The Edge June 2014 (Issue 56)

contents June 2014

w w w.t h e e d ge. m e

Business Interview: QIMC CEO Abdul Rahman A. Al Ansari

100% Qatari Vol. 6 No. 6 - Issue 56 - June 2014

36

GREAT POWER GREATER RESPONSIBILITY

Addressing issues of migrant labour rights in Qatar

PLUS:

Can Qatar ever become a Developed Market?

Cathay Pacific GM Charlie Stewart-Cox DHL Express ME CEO Nour Suliman Lessons from Hamad International Airport

With power comes responsibility. As one of the world’s richest countries, as Qatar prepares to host the 2022 World Cup, it has an added responsibility towards thousands of expatriates working on various projects here. In the light of Qatar government’s recent press conference proposing labour reforms, Farwa Zahra explores analysts’ reactions, international pressure and some of the workers’ welfare initiatives being carried out in Qatar, but ignored by international media. (Image by Paolo Mallari)

36 Qatar Foundation’s preliminary research for worker reforms indicated that in many cases, the abuse of migrant workers begin prior to their arrival in Qatar. (Image Corbis)

features Qatar’s Industrial Revolution

- QATAR’S BUSINESS MAGAZINE - Vol. 6 No. 6 - Issue 56 - June 2014

cover story

42

42

As someone who has steered Qatar Industrial Manufacturing Company to encourage private sector growth, Abdul Rahman A. Al Ansari, CEO, speaks with Aparajita Mukherjee about Qatar’s manufacturing industry, its future and the challenges.

Feature Story: Educating Qatar

48

Is Qatar, with its grand ambitions, readying the next generation for the challenges that lie ahead? Or is education, one of the most conservatively managed sectors, in need of disruption? Shehan Mashood explores.

Business Interview: Cathay Pacific’s Middle East Focus 54

On the occasion of the launch of the Doha-Hong Kong route, Charlie Stewart-Cox, general manager South Asia, Middle East and Africa of Cathay Pacific, speaks exclusively with Aparajita Mukherjee about the airline’s focus in the Middle East.

Business Management: Qatari Labour Market

58

Despite Qatari employers offering ample opportunities for personal and professional growth, the sheer supply of Qatari graduates is significantly less than the demand. Local employment seekers also suffer from an ‘attitude gap’, writes David Jones.

Abdul Rahman A. Al Ansari, CEO of Qatar Industrial Manufacturing Company says the company’s investment strategy looks at economically-viable industrial projects that utilise regionally or locally available natural resources.

The Edge | 3

Contents page

sectors

Finance & Markets 21

As Qatar is formally included in the MSCI Emerging Markets Index, analysts debate if this will be a precursor for the market to be regarded as a nascent developed market.

Energy & Sustainability 25

Nakilat has signed a refinancing deal of USD807.4 million (QAR2.93 billion), allowing for the purchase of three new liquefied natural gas (LNG) carriers.

Real Estate & Construction 29 What are some lessons Doha’s new Hamad International Airport has left for stakeholders of other infrastructure projects underway in Qatar?

Projects such as Hamad International Airport are no longer limited to construction works, they should be classified as large complex projects, says Anthony Holmes, director, Institute for Infrastructure Studies. (Image Reuters/Arabian Eye)

Tech & Communications 33

Young travellers expect hotels to be tech-savvy, offering high speed Wi-Fi, mobile workspace and more recently, mobile check-in, writes a travel expert.

Business Insight 63

Nour Suliman, CEO of DHL Express Middle East and North Africa, talks about Qatar’s market. Lawrence Yanovitch, the president of GSMA, an organisation that represents the interests of nearly 800 mobile operators, speaks about how to use mobile to help humanity.

Nour Suliman, CEO of DHL Express Middle East and North Africa, says the company aims to leverage technology in ways that would benefit its customers.

regulars From the Editor 7 Photo of the Month 10 Business News 12 Qatar Perspectives 16 Products 69 4 | The Edge

Special advertiSement

A DIFFICULT CHOICE: TO LITIGATE OR TO ARBITRATE IN QATAR? Investors are sometimes confused whether to litigate or arbitrate their potential disputes. In this article we will explore a comparison among the main advantages and disadvantages of both dispute settlement mechanisms.

Litigation in Qatar Costs: the maximum fees payable for filing a case before the Qatari court of First instance is Qar 3,000 regardless of the amount claimed, which is significantly lower than the fees payable to arbitration centers and arbitrators. timing: it would take an average of approximately 2-3 years from the time a case is filed before the court of First instance until a final judgment is rendered. this could be slightly longer than the average time taken for an arbitration award to be rendered under the Qatar international center for conciliation and arbitration (Qicca) rules.

Capability/expertise of judges: in arbitration, it is possible for the parties to appoint arbitrators who are very specialised in certain fields and have a high level of expertise. Generally, it is unlikely that a judge at a Qatari court of First instance would have the same level of expertise in a particular field as an arbitrator selected by the parties. capability/expertise of court-appointed advisors: as and when required, a Qatari court would appoint an expert to review and advice on the contested matters. the parties to the litigation dispute cannot participate in the selection of such experts.

Enforcement: if the investor is seeking to enforce a judgment against the assets of a borrower located in Qatar, then a judgment from a Qatari court would be relatively easy and straightforward to enforce.

would then select the chairman, making up a panel of three arbitrators. One advantage of electing arbitration is that it enables the parties to select an arbitration tribunal constituted of arbitrators professionally experienced in the specific nature of the dispute. the parties are not restricted to select arbitrators from the list of arbitrators provided by Qicca. the parties can also select arbitrators who are not on the Qicca’s list. However, as mentioned above, this may only be an advantage if the dispute involves a very complicated subject, which needs a high level of expertise in a specific field of profession.

Enforcement: an arbitration award from the Qicca is considered equivalent to a judgment rendered by a Qatari court under the Qatari commercial and civil procedure code and is enforceable in the same manner. However, the arbitration award can be challenged by the losing party who can file a new action to set aside the award based on article 207 of the civil procedures law. Filing such a case shall suspend the enforcement process unless the court decides otherwise. in practice, the losing party is likely to file such a case in order to suspend the enforcement of the award.

We are aware that a new arbitration law is expected to be enacted in the near future and the content of this article may be subject to some amendments depending on the context of the new law.

arbitration undEr thE QiCCa ruLEs Costs: the fees payable for filing a case are provided under the Qicca rules and would depend on the amount in dispute. the maximum fees payable where the amount in dispute is more than Qar 50,000,000 are: • Registration fees: QAR 5,000; • Administration expenses: QAR 375,000; • Arbitrators’ fees: QAR 267,500 for a sole arbitrator and QAR 585,000 for a panel constituted of three arbitrators. timing: it would typically take less time to obtain an arbitration award, compared to a judgment from a Qatari court of First instance. However, it is worthy of noting that the arbitration award rendered by the Qicca is final and is not subject to appeal whilst the judgment issued by the Qatari court is subject to appeal.

Capability/expertise of arbitrators: Under the Qicca rules, the parties may select just one arbitrator or each party may select an arbitrator and the two arbitrators

dr Hazem HUSSien Senior Associate Al Tamimi & Company h.hussien@tamimi.com Follow us on Twitter @AlTamimiCompany Join us on LinkedIn – Al Tamimi & Company www.tamimi.com

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Photography/image credits and copyright, where not specifically stated, are that of Shutterstock and/or iStock Photo or Firefly Communications.

6 | The Edge

editor’s letter As we approach the hottest months of the year in the Middle East, Qatar continues to find itself in an equally scorching spotlight: the rights and living and working conditions of its migrant workers. Indeed, when it comes to issues such as exit permits and changing employers, even expatriate sojourners in the service industry and professional sectors are also affected.

Increasingly, international media outlets and human rights organisations have criticised what they say is the country’s archaic approach to the basic rights of foreigners who work here.

These are people who admittedly mostly repatriate their hard-earned money via remittances, but are also here to assist Qataris in the building and running of their country as it approaches the 2022 World Cup, in achieving the goals of the Qatar National Vision 2030, and far beyond.

There have been many scathing – or at the very least highly critical – commentaries led by publications such as the United Kingdom’s The Guardian and Daily Mail newspapers, as well as United States websites such as the Huffington Post, to name but a few. These have increased in recent months, as news stories relating to migrant workers and other issues surrounding the awarding of the 2022 World Cup continue to undergo international media scrutiny.

There have also of course been long-standing objections to the allegedly pervasive shocking working conditions and poor migrant worker accommodation by human rights and migrant worker advocacy organisations, such as Amnesty International, Human Rights Watch and the International Trade Union Confederation (ITUC).

Moreover, in March, the ITUC released a pejorative report alleging that foreign workers in Qatar are “enslaved” and erroneously citing high death rates of Indian and Nepali workers due to construction projects, which the organisation said were related to the 2022 World Cup (though none of these had commenced at the time).

The censure against Qatar continued the same month, when the United Nations (UN) International Labour Organization condemned the country for not allowing trade unions. And more recently, in early May a session held in Geneva under the auspices of the UN’s Human Rights Council’s Universal Periodic Review, again questioned the country’s reluctance to legalise unions, among other criticisms.

The above-mentioned review is a regular process all member states must endure periodically (though the timing perhaps was somewhat unwelcome for Qatar, given the circumstances), and the majority of UN member states also called on Qatar to abolish its system of employment laws under the kafala system.

As Farwa Zahra reports in our cover story ‘Great Power, Greater Responsibility’ on page 36, in late May representatives of Qatar’s Ministry of Interior and the Ministry of Labour and Social Welfare revealed what were expected to be sweeping changes to the labour law paradigm in Qatar. Yet despite the announced and no doubt well-intentioned amendments to its labour laws, response was mixed.

The proposed changes, some of which are due to be implemented shortly and others requiring further official approvals, were denounced in much of the international media as being cosmetic. They were also criticised by some within Qatar as lacking substance – or at best as a step in the right direction, but not going far enough.

However, others praised the measures as at the very least, a good indication of the willingness of Qatar to evolve its labour laws, and as significant reforms that will vastly improve the lot of all expatriate workers in Qatar.

Representatives at the press conference insisted, when questioned, this is due to the intentions of Qatar to ensure workers’ rights in the country and not international pressure.

That Qatar is indeed showing action to update its labour laws cannot be disputed. Otherwise, opinions on the proposed changes remain divided, as the residents of Qatar and the outside world wait to see which of these proposed new laws will be implemented and what further changes may follow.

Stories relating to migrant workers and issues around the 2022 World Cup continue to undergo Miles Masterson international media scrutiny. Managing Editor

The Edge | 7

10 | The Edge

photo of the month

Celebrating Champions

French football league team Paris Saint-Germain (PSG) won the Hexagonal Trophy as 2014 French League One Champions after their French Ligue 1 (League One) football match versus Montpellier in Paris, France, in May. PSG won 4-0, with team members Ezequiel Lavezzi, Zlatan Ibrahimovic, Lucas Moura and Adrien Rabiot scoring the goals. Star striker Ibrahimovic’s goal was his 26th of the season. PSG’s Ligue 1 win was achieved with a recordbreaking points tally, and their 27 victories is a league record as well. The Qatari-owned Sports Investments Company has a majority stake in PSG and the club is part-sponsored by Qatari firms Ooredoo and QNB. PSG is managed by former Qatari professional player Nasser Al Khelaifi, who is seen jubilant in the bottom right of the frame. (Image by Christian Liewig/Liewig Media Sports/Corbis) The Edge | 11

news business

Qatar’s investment in Russia hedges its global gas position News that Qatar’s USD170 billion (QAR618.8 billion) sovereign wealth fund, the Qatar Investment Authority (QIA), is allocating USD2 billion (QAR7.28 billion) to investments with the state-backed private equity Russian Direct Investment Fund (RDIF) accords perfectly with Qatar’s strategy of diversifying the economy away from reliance on its hydrocarbons wealth, writes Simon Watkins Analysts have called these ‘real’ investments and have classified them into the Emerging Markets’ sphere, as Aladdin Hangari, managing director, Credit Suisse, in Doha said, “I think going forward, we’ll see the QIA doing more in Emerging Markets, as long as it finds the right opportunities.”

QIA’s money will be agglomerated into the RDIF’s overall USD10 Russia’s President Vladimir Putin met with the RDIF billion (QAR36.4 CEO Kirill Dmitriev at the state residence outside billion) fund that Moscow. Dmitriev has said that QIA’s money will be invested in major infrastructure projects in Russia. will be used to (Image Reuters/ Arabian Eye) invest in major infrastructure projects in Russia, including a new Moscow ring road and a fast-speed train line, according to RDIF’s Moscowbased chief executive officer Kirill Dmitriev.

The deal marks a much more long-term strategic partnership between Qatar and Russia and, in light of the recently announced landmark USD400 billion (QAR1.4 trillion) deal for Russia to supply China with gas for the next 30 years, tangentially strengthens ties between the three countries going forward.

The agreement between Russia and China, if Qatar was left out of the loop, could have proven costly, as it would have given China greater leverage when negotiating liquefied natural gas (LNG)

With the QAR7.28 billion investment deal with Russia, Qatar has secured its position on both sides of the global geopolitical divide.

12 | The Edge

contracts, according to Trevor Sikorski, head of natural gas, coal and carbon at Energy Aspects in London, as it would firstly potentially impact the volume of LNG that China needs to import from other non-Russian suppliers, and second would likely push down the spot price for LNG in Asia. Indeed, the backdrop for LNG prices was already looking soft even before the RussiaChina deal: after spot LNG prices rose to a record USD19.70 per million British thermal units (BTU) (QAR71.71) in February, they fell in northeast Asia in the week to May 19 to USD13.50 (QAR49.14), their lowest since October 2012, according to World Gas Intelligence assessments of cargoes for delivery in four to eight weeks from that time. As it now stands, though, Qatar looks well-placed in this gas supply-demand equation, having built upon last year’s inroads into a tighter relationship with Russia, which saw QIA’s recently-appointed chief executive, Ahmad Mohamed Al Sayed, join the RDIF advisory board last July (on which the heads of the Abu Dhabi state fund Mubadala Development Company, and China Investment Corporation also sit), and last May’s announcement that the QIA had also bought a stake in Russia’s leading state-directed investment bank VTB. Interestingly, by doing such a deal with Russia, Qatar has secured its position on both sides of the global geopolitical divide. On the one hand, Qatar appears to side with the United States power bloc in supporting rebellions against pro-Moscow regimes in Libya and Syria, and in such a fashion positions itself as the alternate gas supplier to Europe if Russia turns off the gas as a result of the ongoing troubles in Ukraine.

But, on the other, Qatar is now firmly ensconced in the globally dominant Russia-China supply-demand nexus.

news business

Contribution of technology to Qatar’s growth highlighted at QITCOM

The QITCOM conference and exhibition was held this year at the Qatar National Convention Centre, where many new products and services were launched.

QITCOM 2014, which returned this year after a hiatus, was a launch pad for numerous technology-related initiatives within Qatar. The three-day exhibition featured high profile speakers such as Jim McKelvey, the co-founder of Square, and Kevin Eyres, former managing director for LinkedIN Europe. by Shehan Mashood Minister of Finance, HE Ali Shareef Al Emadi speaking at the opening of the conference pointed out the critical importance of technology in Qatar’s development saying, “The best proof of Qatar’s interest in investing in communications and information

technology is the investment of QAR2.5 billion in Qatar satellite company Es’hailSat that will enhance the country’s capability in the telecommunications and information sector.” He added that the gross domestic product contribution from the telecommunications and information technology sector had increased to QAR7.5 billion in 2013 from QAR5.5 billion in 2010.

Under this year’s theme of ‘Innovating Today For The Future of Qatar’, international speakers discussed key topics that related to the promotion of innovation and an entrepreneurial culture. Part of the event was also an appathon where people were given the opportunity to pitch ideas and form teams to build and present an app in under 24 hours.

The event also focused on enterprise-related issues such as cyber security. Brigitte Zypries, Parliamentary State Secretary at the Federal Ministry of Economic Affairs and Energy in Germany, who was one of the panelists at the conference, told The Edge that figuring out how to create a secure IT environment in both the hardware and software space is an important challenge that governments need to confront.

Qatar’s manufacturing sector needs strengthening Falling oil prices will pose a challenge to Qatar unless the government steps up diversification efforts and develops its manufacturing sector, according to the Centre for Economics and Business Research (CEBR). by Aparajita Mukherjee According to Economic Insight: Middle East Q2 2014, the Gulf Cooperation Council (GCC) economies are now more dependent on commodity exports than they were 10 years ago, despite the diversification agenda.

Commodities account for 93 percent of Qatar’s total goods exports by value while manufacturing activities account for less than 10 percent of goods export revenues.

The report states, “Qatar must now improve education, increase labour productivity and attract more foreign direct investment to progress its skill- and technology-intensive manufacturing sectors.” Asked by The Edge, how the CEBR recommends Qatar do this, Charles Davis, director, CEBR, said, “Qatar has an excellent track record of investing in basic education, but in order to diversify the economy, it will need to focus more on building a knowledge economy and this means developing rigorous vocational and professional qualifications.”

Davis continued that Qatar could maximise the benefit gained from its natural resource wealth by developing high-tech downstream manufacturing

of chemicals, machinery and metals. Skills in science, mathematics and engineering are critical to success in these industries, he added, “In the short term, overseas hires can fulfill these needs, but over the longer term, countries need to train their best young people so they can become the industry leaders of tomorrow.”

Number of the month

Contribution of the manufacturing sector to Qatar’s total goods exports by value.

10% The Edge | 13

news

business in brief Words & Numbers

“To silence me and my colleagues on the pretext that we’re a threat to national security and members of a terrorist organisation is a sheer insult to the intelligence of Egyptian people and the democracy promoted in the newly ratified constitution.”

Al Jazeera journalist Mohammed Fahmy.

(Image Reuters/Arabian Eye)

19

Qatar’s position on the International Institute for Management Development’s (IMD) 2014 World Competitive Yearbook ranking, down from 10 in 2013. The IMD report compares 60 nations on the basis of more than 300 criteria, based on hard data statistics (2/3) and a business executives’ opinion survey (1/3).

“HIA is a worldclass aviation hub purposebuilt to cater to rapidly evolving aviation and passenger needs of the 21st century.”

HE Abdul Aziz Mohammad Al Noaimi, chairman of the New Doha International Airport Steering Committee, on the soft launch of Hamad International Airport (HIA).

6%

Qatar’s GDP growth rate that the International Monetary Fund expects for 2014.

14 | The Edge

Lufthansa flies from Doha’s Hamad International Airport

Lufthansa has started operations from Doha’s Hamad International Airport. “Lufthansa welcomes the move to the state-ofKarsten Zang, Lufthansa’s new the-art Hamad general manager, UAE, International and director, Gulf and Pakistan, congratulated Airport and we are the authorities of Hamad International Airport as it pleased to inform begins operations. our passengers of our new base in Doha. We would like to extend our congratulations to the airport authorities of Hamad International Airport as it begins operations,” said Karsten Zang, Lufthansa’s new general manager, United Arab Emirates, and director, Gulf and Pakistan.

Center for Middle East entrepreneurship to launch at DePaul University

Al Faisal Holding, one of the leading private companies in Qatar, has signed an agreement with DePaul University to take steps toward a long-term collaboration that supports entrepreneurship and business development in Qatar and the Middle East.

DePaul plans to launch The Sheikh Faisal Center for Entrepreneurship in the Middle East at the Driehaus College of Business later this year.

Back 2 Business 2014 to be held in October

Msheireb Properties sponsors community development project Qatar’s leading nonprofit education and community development organisation, Reach Out To Asia (ROTA) has launched a ROTA National Programs director, Mohamed new volunteer-led Abdullah Saleh, said that initiative called launching the ‘Reach Into Qatar’ initiative aims ‘Reach Into Qatar’. to promote the spirit The project is of volunteerism and community work both sponsored by inside and outside Qatar.

Msheireb Properties.

In the first pilot year of the project, ‘Reach Into Qatar’ will focus on providing quarterly house renovations for families in need in communities across Qatar.

Hyundai launches all-new Genesis

First revealed in Korea at the end of 2013, the Genesis was unveiled in Qatar in May.

Hyundai Motor Company and National Car Company, sole distributor for Hyundai in Qatar, have unveiled the Hyundai Genesis for the first time in Qatar. Genesis is the first Hyundai model to feature the brand’s Fluidic Sculpture 2.0 design concept, while also boasting enhanced driving performance and technologies such as a head-up display, smart trunk function and autonomous emergency braking.

CHRVI returns to Qatar Qatari Businessmen Association has joined the steering committee of Back 2 Business this year.

To be held on October 1 at the Marriott Renaissance Hotel City Center, Back 2 Business is one of the major business networking events in Qatar. Its 2014 edition will be organised by the Italian Chamber of Commerce and the Turkish business association, and is expected to see more than 600 participants.

The International Exhibition for Cooling, Heating, Refrigeration, Air-conditioning and Insulation (CHRVI) was held in Doha from May 26 to 29. The event included 90 local, regional and international companies, displaying their latest products. This year’s event also hosted the first Air-Conditioning and Energy Efficiency Conference, featuring industry experts, university professors, researchers and major companies operating the field of Heating, Ventilation and Air-Conditioning.

events business

Qatar, June 2014

event of the month 2 - 4 June Cityscape Qatar

Now in its third edition, the annual three-day exhibition, which will be held at the Qatar National Convention Centre, is expected to be twice as large as its 2013 exhibition.

Deep Marwaha, group director for Cityscape, commented that Qatar’s development plans leading up to the 2022 World Cup and the National Vision 2030 have made it one of the most exciting places for investors. Qatar’s population has increased by 15 percent since Cityscape’s inaugural exhibition in Doha, said Marwaha. According to industry reports, he added, within the next 12 months, the residential market will be bolstered by the completion of 25 residential towers in The Pearl-Qatar and nine towers in the Diplomatic District, adding 7200 units, and expectations are high for the retail market with 10 new malls set to be completed, or near completion, in a similar period. The hospitality market will be driven by an expected 20 percent growth in tourist numbers, according to the Qatar Tourism Authority.

Set against these growth figures, Cityscape Qatar 2014 will be a not-to-miss opportunity for investors looking to enter the market, said Marwaha. According to him, international participation at Cityscape Qatar is up from 2013, with 55 percent of foreign exhibitors. Colocated with the exhibition will be two dedicated conference programmes, the Qatar Real Estate Summit and the Cityscape Qatar Retail Forum, bringing together senior real estate professionals who will explore opportunities and find solutions to key challenges affecting the industry.

UPCOMING EVENTS IN JUNE

8-10 June

Underground Infrastructure and Deep Foundations Qatar

OTHER UPCOMING EVENTS 8 - 9 September Future Interiors Qatar

22 - 24 September SPE Middle East Health, Safety, Environment & Sustainable Development Conference & Exhibition

1 October Back to Business

22 – 23 October ITS and Road Safety Forum

19 – 21 October Estedama

19 – 22 October

International Association of Science Parks

7-10 December ITU Telecom World

Visitors look at models of some of Qatar’s mega projects at Cityscape Qatar last year in 2013.

9-10 December Euromoney Qatar Conference

The Edge | 15

qatar perspectives

Broadband networks to bring about all-pervasive changes High-speed broadband access will play a transformative role in the economic, social and cultural enrichment of Qatar. In the opinion of Mohammed Ali Al Mannai, the advent of pervasive broadband in Qatar will bring about noticeable changes for the country.

Qnbn envisages an era in which so-called ‘machine to machine’ communications will revolutionise transport, security, and healthcare systems through Qnbnenabled fibre-optic infrastructure.

We cannot imagine the opportunities that a super-fast broadband network can unlock.

It is not just going to make it faster for Qatari businesses and residences to access the Internet or download media – it is going to be the start of a new era in the industry and society. It is going to stimulate economic growth, improve healthcare and education, and create opportunities for everyone to participate in the new information economy.

Universal availability and widespread use of high-speed broadband will be fundamental to the future international competitiveness and socioeconomic development of the country.

Where most people think of high-speed broadband in terms of faster downloads of movies and entertainment, Qnbn’s focus is on the economic benefits that broadband is already unlocking in Qatar.

Global studies by the likes of the World Bank and the International Telecommunications Union (ITU) suggest that the adoption of broadband at a company level has clear effects on productivity and job creation – and while larger firms have been the first to benefit, Qnbn believes that there is a great growth potential for smalland medium-sized enterprises (SMEs), and in outlying areas, where businesses will be able to use broadband-enabled services to operate successfully.

Qnbn’s goals are ambitious: to help the Ministry of ICT meet four major targets of the National Broadband Plan, and in the longer term, enable the Qatar National Vision 2030’s focus on human, social, economic and environmental development. Meeting these goals will see that all businesses, schools, hospitals

and government institutions will be able to access at least 1Gbps download and upload speeds by 2016. Additionally, Qatar’s population will have the ability to choose between a minimum of two service providers by 2016, and households will have the ability to access affordable and high-quality broadband service of at least 100Mbps effective download and 50Mbps effective upload speeds by 2016. The new-generation network will enable the transport of large data, video and voice, including high-definition internet-based television services.

Work is already well underway. Qnbn has already connected Barwa City. Work is currently underway to connect a number of towers and compounds in the West Bay area, and the Msheireb Downtown Doha project.

But there is a bigger story to broadband.

Beyond the benefits to businesses and homes of high-speed broadband, Qnbn envisages an era in which so-called ‘machine to machine’ communications will revolutionise Qatari transport, security and healthcare systems through Qnbn-enabled fibre-optic infrastructure.

Intelligent cameras will provide remote surveillance, and even feed real-time traffic information to control centres. Taxis and buses will also be able to send information to control centres to help regulate transport intervals.

The technology already exists whereby vehicles automatically trigger emergency calls when involved in an accident.

From a gender equity perspective, access to broadband will create new channels of communication, and open new windows

16 | The Edge

to the worlds of business and education.

Broadband will also help Qatar’s physically challenged citizens to fully participate in society through greater access to education, jobs and other social amenities.

It will even help support and preserve Qatar’s cultural heritage, using broadbandenabled technology to act as a preservation medium for arts, crafts, skills, mythologies and other cultural memories. By connecting communities, ethnic groups can share their stories, knowledge, language and traditions for generations to come.

Mohammed Ali Al Mannai is the chief executive officer of Qnbn.

qatar perspectives

Qatar’s public investment programme and inflation risks With an ambitious public spending programme on infrastructure projects ahead of the 2022 World Cup, Qatar, according to International Monetary Fund (IMF), will see a three to four percent inflation rate, though warns Martin Sommer, policy makers need to remain vigilant of factors that could trigger the rate.

Qatar has embarked on a large public investment programme worth roughly USD200 billion (QAR728 billion). According to the latest assessment of the IMF of Qatar, these investments are essential to facilitate economic diversification and prepare for the 2022 World Cup, but they also entail risks. In particular, the investment programme could lead to overheating in the near term, and the economy could become saddled with overcapacity over the medium term.

Qatar experienced double-digit inflation during 2006 to 2008. This episode was associated with extremely high growth - real gross domestic product (GDP) grew by around 20 percent in each of the three years - dramatic population expansion (population increased by twothirds over the period), a real estate boom, and rising global commodity prices. ‘Core inflation’ which excludes food, rent, and utilities from the standard consumer price index also grew quickly.

The recent developments appear far more benign. Population growth accelerated to around 10 percent annually, with housing demand from expatriate workers increasing rents and inflation. However, inflation has been falling over the past year, from 3.7 percent in April 2013 to 2.8 percent in April 2014. Core inflation has recently fluctuated below two percent.

The IMF projects inflation to stay subdued between three to four percent going forward – a modest increase from recent years. GDP growth is expected to remain around six to seven percent; this is a very strong outturn by international 18 | The Edge

Qatar has taken steps to improve public investment management system, but more remains to be done, especially in areas of appraisal and selection of projects. standards, but well below Qatar’s experience of the past decade. The anticipated gradual decline in global commodity prices will partly reduce price pressures from strong economic activity in Qatar.

However, policy makers need to remain vigilant. Inflation could emerge through several channels: rapid population growth could again push up rents if housing supply does not increase quickly. The simultaneous execution of many construction projects could create bottlenecks and push up prices of raw materials and other inputs, and it may prove difficult to bring into Qatar a sufficient number of expatriate workers, thus escalating wages and prices.

The Qatari policy makers are mindful of Qatar’s 2006-08 experience with doubledigit inflation and intend to phase in the investment projects gradually. They are appropriately prioritising de-bottlenecking projects such as the new seaport, which should help ease some concerns about cost escalation. That said, certain risks will be more difficult to deal with – for example, the possibility of rising costs due to infrastructure programmes in other Gulf Cooperation Countries countries.

If signs of overheating emerge despite the policy makers’ de-bottlenecking efforts, the investment expenditures should be slowed down to allow the economy to adjust. In case of excessive credit growth or risk taking – for example, the private sector could become too exuberant given expectations of rapid growth – policy makers could deploy further liquidity withdrawal operations and introduce new macroprudential measures (for example, reduce the loan-to-value ratio).

As noted at the outset, the public investment programme entails the risk

of overcapacity. Should this scenario materialise, Qatar would face disinflationary, rather than inflationary pressures. It is therefore important to pay due attention to the cost and benefits of individual projects, preferably in the context of integrated public investment management process, so that policy makers have a full picture of emerging capacity. Qatar has taken steps to improve the public investment management system, but more remains to be done, especially in the areas of appraisal and selection of projects.

Martin Sommer is a mission chief for Qatar at the International Monetary Fund in Washington, DC. His work focuses on macroeconomic developments in the GCC countries, oil and natural gas markets, and effectiveness of public investment.

sector name | banner heading

Contents: Can Qatar ever reach Developed Market status? 21. Stable, low-risk rating from S&P 24.

finance & markets

Can Qatar ever reach Developed Market status?

Prospects of more foreign funds into the QSE have become real with Qatar’s classification into Emerging Markets, but could that ever lead to further re-classification on the MSCI Index?.

As Qatar is formally included in the MSCI Emerging Markets Index with a 0.45 percent weighting, analysts debate if this will be a precursor for the market to become a developed one, not if global market history is a relevant guide, writes Simon Watkins.

W

ith the MSCI Qatar’s upgrade into the Emerging Markets Index, expectations run high as to what this might mean for Qatar’s global investment profile. However, the mere fact that the country is now classed as an Emerging Market (EM) does not mean that, any time soon, it will be regarded as a nascent Developed Market (DM), with all of the investment flows that this

implies, if history is any guide.

It is true that the MSCI status upgrade for Qatar may lead – as has already been partly seen – to an upward spike in investment volumes into the Qatar Stock Exchange (QSE), with analysts predicting anywhere between an additional USD500 million (QAR1.8 billion) to USD800 million (QAR2.9 billion) in shortterm investment flows. However, as all of this

type of investment, if it is to be sustained over time, is predicated on the assumption that an EM will eventually converge into a DM. Yet, it is worth noting that the stark fact remains that just five of the 38 countries in the 20th century have moved from EM to DM status to date. Of the rest, 17 were and are developed, 14 were and are classified as middle-income EM, and those with The Edge | 21

sectors | finance & markets

It is worth noting that the stark fact remains that just five of 38 countries in the 20th century have moved from emerging to developed market status to date.

One of the key challenges for Emerging Markets on the road to becoming developed ones is sustaining superior growth rates over the decades it would take for income levels to converge with those of developed markets.

economy of China will have overtaken that of the United States (US) for the number one spot, and by 2050, China will have almost double the gross domestic product (GDP) of the US, with India ranked third, Brazil fourth, Mexico fifth, Russia sixth, Indonesia seventh, and South Korea 13th, and none of these look like they are going to attain DM status any time soon.

Income distribution

DM among them still dominate the equity landscape, comprising 84 percent of the MSCI All World Index.

So, what are the variants that militate into an EM converging into the status of a DM? Can Qatar achieve this over time, and secure the type of long-term increased international investment flows that it needs in order to wean itself off pure hydrocarbons’ revenues, and an over-stretched state-directed banking system? The last variable of the banking system is pertinent in view of the fact that total lending by banks currently stands at around 120 percent of deposits, according to the Qatar Central Bank.

In general terms, underlined Kathryn Koch, managing director of Goldman Sachs Asset Management in London, any gaps in the DM’s investment landscape is likely to be filled increasingly over time by the assets of those EM that meet the basic criteria of an investment destination. Factors include sustainable fiscal policy, a sound balanceof-payments profile and a solid financial and political system. However, it is not just these broad economic parameters that count on the convergence trail. After all, according to the International Monetary Fund (IMF) projections, by 2030, the USD-valued 22 | The Edge

Instead, highlighted Frances Hudson, investment director and global thematic strategist (multi-asset investing) for Standard Life Investments in Edinburgh, academic research into the ‘middle income trap’, which assesses the likelihood of an economy progressing to DM status, suggests that the distribution of income also matters. In this respect, studies suggest that the more equal the distribution is, the more likely a country is to move up from one level to another, and with an evenly spread wealth, the outlook for Qatar at least in this context looks propitious.

Other factors that influence development outcomes include the country’s institutions, and progress on structural reforms, and here, of course, work remains to be done in Qatar, although recent developments appear to show that the authorities are cognisant of the country’s shortcomings in these areas. Indeed, although many fund managers greeted MSCI’s upgrade of Qatar with surprise because its companies still maintain many restrictions on their foreign ownership limits (FOL), just three days before the official inclusion into the MSCI EM Index, HH the Emir Sheikh Tamim Bin Hamad Al Thani instructed all companies listed on the QSE to raise their FOL to 49 percent, from the current usual 25 percent, in a move to attract more liquidity to the bourse. The changes will not be immediate because they are subject to companies amending their articles of association, requiring shareholder approval.

Additionally propitious moves also came just ahead of the MSCI change, with QSE’s chief executive officer, Rashid Al Mansoori, stating that the exchange is set to introduce margin trading and cover short selling in the near future, both of which are an integral part of attracting more foreign investment into the country’s stocks.

Moreover, Al Mansoori highlighted that QSE is intending to introduce this in tandem with implementing further measures to enhance market liquidity, including adjusting the trading hours, increasing the number of brokerage firms, assisting in the licensing of banks as custodians, introducing the concept of liquidity provision and securities lending and borrowing, and introducing delivery versus payment (DvP) and direct market access (DMA) schemes for foreign brokers, the latter through a sponsoring local broker.

“These infrastructure changes are, of course, market-wide,” says Al Mansoori “and therefore benefit the international investor base as well as the domestic one, with foreign investors generating 40 percent of the total turnover on the QSE.” “The liquidity aspect is our top priority,” he added, “given its importance to the domestic and international investor base and, in this sense, the development of QSE’s trading environment reflects best international practice, providing investors with new investment opportunities backed by the existence of efficient and effective systems.”

120% Qatari banks’ lending as a percentage of deposits.

finance & markets | sectors

Al Mansoori furthered that QSE is also currently working on two live Exchange Traded Fund (ETF) projects, one of which will be based on government fixed-income risk from an Asian borrower, while the other is likely to be an ETF based on a representative Qatar country index. “We hope to introduce these ETFs to the market within the next six months,” Al Mansoori said, “and, in terms of assets under management, these transactions will be larger than anything else currently listed in the region.”

Whether or not these changes will be enough for Qatar to be upgraded to the highest level, of course, remains to be seen.

Banking sector

Stable, lowrisk rating from S&P

Standard & Poor’s (S&P) has classified the banking sector of Qatar (AA/Stable/A-1+) in group ‘4’ (the fourth-lowest risk category on a 1-10 scale) under its Banking Industry Country Risk Assessment (BICRA) criteria. by Aparajita Mukherjee

S&P’s BICRA uses economic risk and industry risk scores to determine a bank’s anchor, the starting point in assigning an

13%

Qatar’s total loan growth including foreign and domestic lending. issuer credit rating to a bank.

Commenting on the rating rationale on the economic risk assessment for Qatar, which has cited economic imbalances as high risk, Stéphanie Méry, director of financial services, S&P, said that the company expected moderate acceleration in lending growth after the slowdown in 2013. “We consider Qatar’s economy to be in an expansionary phase owing to its prosperity. Real gross domestic product growth was six percent in 2013, and the banking sector is expanding rapidly. Credit growth was exceptionally strong up to 2011 and 2012, when it rose 30 percent and 21 percent, respectively.”

Méry added, “We note that acquisitions made by Qatar National Bank (QNB) and The Commercial Bank of Qatar (CBQ) in 2013 slightly distorted the figures and helped fuel Qatar’s total loan growth of 13 percent including foreign and domestic lending significantly during this period.”

In response to The Edge’s question on the local banks’ performance after the Basel III comes into effect, Méry said that the Qatar

Stéphanie Méry, director of financial services, S&P, said that the company expected moderate acceleration in lending growth after the slowdown in 2013.

Central Bank issued its final Basel III liquidity coverage ratio, with a minimum requirement of 60 percent as of January 2014, rising in equal annual steps of 10 percent to reach 100 percent on January 1, 2019. “We don’t think the Qatari banking industry will face major capitalisation or liquidity issues when dealing with the introduction of new Basel III capital rules,” she added.

Gulf Stockmarket Indices ( rebased with March 31, 2014 = 100) 117 114 111 108 105 102 99 96

31 - Mar

5 - Apr

Bahrain Qatar

10 - Apr Kuwait Saudi Arabia

15 - Apr

20 - Apr

25 - Apr

30 - Apr

Oman Dubai

Sources: Bloomberg and QNB Group analysis

The Edge | 23

Contents: Nakilat deal makes Qatar a global LNG shipping leader 25. Major Qatargas Kenya deal highlights Qatar’s foray into frontier markets 26. Ongoing dearth of education and training prompts novel initiatives across the GCC 28 .

energy & sustainability The latest Nakilat deal will add to Qatar’s already extensive fleet of gas carriers. (Image Reuters/ Arabian Eye)

A

Nakilat deal makes Qatar a global LNG shipping leader

ccording to Nakilat, the additional vessels include an existing 2007-built 145,000 cubic metre (cbm) ship and two 160,000 cbm ships currently under construction at the shipyards of Daewoo Shipbuilding and Marine Engineering (DSME) and Hyundai Samho, with expected deliveries in June 2015 and April 2015, respectively. These new vessels increase the joint venture’s total

fleet from eight vessels to 11, and will be used in international trade, growing Nakilat’s LNG fleet from 58 vessels to 61 (the largest in the world), and expanding Nakilat’s total fleet – including both LNG and liquefied petroleum gas (LPG) carriers - from 62 vessels to 65.

Engineer Abdullah Fadhalah Al Sulaiti, managing director of Nakilat, and a signatory of the deal, together with Bassel Gamal, QIB group chief executive officer (CEO),

Nakilat has consolidated its position as Qatar’s premier gas transporter by dint of a refinancing deal of USD807.4 million (QAR2.93 billion), through Qatar Islamic Bank (QIB) and Barwa Bank. The deal allows for the purchase of three new liquefied natural gas (LNG) carriers, writes The Edge’s editor of the Energy and Sustainability sector, Simon Watkins. and Khalid Al Subeai, acting CEO of Barwa Bank, highlighted the ongoing strength of the relationships with QIB and Barwa Bank.

Through this, Nakilat will be able to maintain Qatar’s prime position in the global LNG shipping market, and continue to capitalise on further opportunities for the growth of the country’s marine transportation sector.

The Edge | 25

sectors | energy & sustainability

Indeed, the past few years have seen exponential growth at Maran Nakilat, a joint venture between Nakilat and Maran Ventures, over three distinct phases: the first being an initial fleet of four vessels with a cargo capacity of 580,000 cbm; the second with the now expanded fleet of 11 vessels with a cumulative capacity of 1.7 million cbm; and the third being Nakilat’s increase in ownership of the joint venture (in June 2013) from 30 percent to 40 percent.

As it now stands, Maran Nakilat – established in 2005 – has chartered out the original fleet of four LNG vessels to RasGas, while Nakilat also manages and operates four large LPG carriers via two strategic joint ventures: Nakilat Keppel Offshore and Marine (N-KOM), and Nakilat Damen Shipyards Qatar

65

The total number of Qatargas vessels.

Khalid Al Subeai, acting CEO Barwa Bank commented, “The signing of this agreement confirms our strong relationship with corporates, which has enabled us to become the partner of choice for a number of major corporations such as Maran Nakilat Company.”

26 | The Edge

Nakilat will be able to capitalise on further opportunities of growth for the country’s marine transportation sector.

(NDSQ), in addition to operating the ship repair and construction facilities at Erhama Bin Jaber Al Jalahma Shipyard.

In keeping with two previous co-financing deals in just the last two years with QIB, highlighted QIB group CEO, Bassel Gamal, this landmark refinancing was based entirely on Shari’ah principles, “The signing of this agreement confirms the bank’s strategy and commitment to providing financial Islamic solutions that meet the requirements of its institutional and corporate clients, and its contribution in supporting the national companies in line with Qatar National Vision 2030 to build a stronger economy.”

Al Subeai commented, “The signing of this agreement confirms our strong relationship with corporates which has enabled us, in a short time, to become the partner of choice for a number of major corporations such as Maran Nakilat Company, and demonstrates our commitment to providing shari’ahcompliant banking solutions that meet the requirements of our institutional and corporate clients.”

Looking further forward in general company development terms, Nakilat’s Al Sulaiti, said that there are two more phases remaining before completing a new stateof-the-art dry dock: the first, ‘Phase 2-a’, involving preparing a floating dock for the Q-Max vessels (due to end in 2015); and the second, ‘Phase Six’, involving the production and maintenance of fibreglass reinforced plastic vessels (currently in the process of architectural design, and due for completion in two and a half to three years).

Market expansion

Major Qatargas Kenya deal highlights Qatar’s foray into frontier markets Kenya Pipeline Company has signed a deal with Qatargas for the supply of one million tonnes of natural gas annually to power the 700-megawatt gas-fired plant in Dongo Kundu, Mombasa.

The deal highlights the huge synergies between Middle Eastern hydrocarbon producers and major African states, say analysts.

“There are a number of African countries currently coming online with oil, and the Middle Eastern region has a lot of expertise that they can use in Africa,” said Morris Reid, managing director at global strategy firm, Mercury, in Washington DC, “and frankly I think the Africans would welcome working with this part of the world (Middle East) to provide the necessary technical knowhow and infrastructure to those countries.”

Indeed, Africa’s prospects and potential for further oil and gas finds remain exceedingly positive, with think-tank Chatham House highlighting, for example, that against some 15,000 wells drilled in West Africa, only around 500 have been drilled in East Africa thus far.

Against this vast opportunity, the scope for importing the aforementioned technical skills, hardware, and infrastructure requirements from abroad remains equally enormous, as, for example, refining capacity on the continent still remains limited and as a result, countries like Angola and Nigeria export crude oil, only to import refined oil again later at an additional cost.

Basic problems in the refining industry on the continent include corruption, poor maintenance, theft, and other operational problems, and subsidies have also contributed to low capacity utilisation at what refineries there are, according

sectors | energy & sustainability

550.00

Africa’s Proven Reserve of Natural Gas Trillion Cubic Feet

500.00 450.00 400.00 350.00 300.00 250.00 200.00

Qatar appears wellplaced to be at the forefront of tie-ups across Africa, as the continent looks to reduce its carbon footprint going forward.

150.00 1980 1984 1988 1992 1996 2000 2004 2008 2012 Source: US EIA

to KPMG’s recent report Oil and Gas In Africa: Africa’s Reserves, Potential, and Prospects.

Qatar appears particularly well-placed to be at the forefront of such tie-ups across Africa as a whole, as the continent looks to reduce its unit cost of power and carbon footprint going forward (to KES9.10 per kilowatt hour from the current average of KES17.20 per unit for domestic households), with LNG providing a clean-burning, lower emission quality, and cheaper cost than traditional fossil fuels like diesel which are expensive and produce high levels of carbon dioxide emission.

Additionally, the investment in Liquefied Natural Gas (LNG) power plants will also mean a much-needed reduction for many countries in Africa on hydro-electricity, which is susceptible to weather changes such as all-too-common droughts across the continent.

In fact, it was precisely for these reasons that Kenya’s President

Uhuru Kenyatta was recently in Qatar scouting for investors to help Kenya develop its LNG power generation sector, including a high-profile meeting with Qatar Investment/Holdings CEO, Ahmad Mohamed Al Sayed.

At a meeting with Qatari Energy and Industry Minister HE Mohamed Saleh Al Sada, Kenyatta highlighted, “I encourage Qatari entities in the energy sector to participate in the Kenyan energy sector where substantial returns and mutual benefits can be expected, and cooperation with Qatar in the energy sector will not only benefit Kenya but also our neighbours by opening the region to diverse investments.”

Overall, the new gas-powered power plant is part of the Kenya government’s plans to add 5,000MW to the country’s existing 1,664MW generation capacity by 2017 to accelerate economic growth, which is expected to push Kenya’s power demand up to 15,000MW by 2030.

Energy education

Ongoing dearth of education and training prompts novel initiatives across the GCC A recent report by Deloitte suggests that the Gulf Cooperation Council (GCC) countries can expect to see a total volume of USD68 billion (QAR247.52 billion) worth of oil and gas contracts in the next five years. But will Gulf nationals have the requisite technical skills for these projects?

Sixty percent of global energy consumption will come from oil and gas by 2040, up from 55 percent in 2010 and this need for providing technical and vocational education options for Gulf nationals has perhaps never been more acute, according to Sean Price, head of direct delivery at Pearson, the world’s largest education and book publishing company in London.

28 | The Edge

“Competition for skilled labour is particularly acute in Gulf countries, where despite efforts by local governments, an expatriate oil and gas workforce remains the norm, and there is a substantial shortage of workers who possess technical or vocational qualifications in the electrical, production processes, mechanical, pipe-fitting, drilling operations and plant construction fields,” added Price.

In this respect, recent developments in Qatar appear well ahead of the regional curve, including the extension of support

by Qatargas to the activities of the Qatar Society of Petroleum Engineers (QSPE), the local chapter of the Society of Petroleum Engineers (SPE), enabling local petroleum engineering professionals to

share knowledge and benefit from ideas of industry-recognised technical experts.

Qatargas lends its support to the activities of the Qatar Society of Petroleum Engineers (QSPE), the local chapter of the Society of Petroleum Engineers (SPE). The initiative will encourage knowledge sharing among local petroleum engineering professionals.

Contents: Lessons from Hamad International Airport 29. The saga of winter dates for 2022 World Cup continues 30.

real estate & construction Lessons from Hamad International Airport

Pictured here is the departure hall of Hamad International Airport. Projects such as airports are no longer limited to construction works, they incorporate a number of dissimilar technologies to be classified as large complex projects, says Anthony Holmes, director, Institute for Infrastructure Studies. (Image Reuters/Arabian Eye)

Years after its original deadline, Doha’s new Hamad International Airport (HIA) has finally begun its operations starting with a soft launch in May. Farwa Zahra explores the lessons this new facility has left for stakeholders of other infrastructure projects underway in Qatar.

A

head of the 2022 World Cup, Qatar is picking up pace to develop a variety of mega projects.

Doha Metro, Sharq Crossing, New Port and Doha Festival City are just to name a few.

Construction and the upgrade of some of these projects, including the eight stadiums finalised for the World Cup, are set against a definite deadline of 2022.

Reflecting on the experience of HIA, director of Institute for Infrastructure Studies, Anthony Holmes discusses some lessons to learn from Qatar’s latest infrastructure project, “For those who plan new airport developments, there is a

cautionary lesson about timescales and budgets. For those planning large hub and spoke facilities, the operational lessons will become apparent over the next 24 months.” Here are some quick lessons derived from The Edge’s conversation with Holmes:

Delays happen

The scale and variety of dissimilar technologies incorporated in infrastructure projects, such as airports, make them different from mere construction projects.

They have now become large complex projects (LCPs). Their very complexity

makes them prone to technical issues that can surface at any stage before or after project completion. Stakeholders, hence, need to plan a margin for such delays.

“HIA is just another LCP that is being delivered into operation but only with difficulty, many years late and over budget,” explained Holmes.

Budget overruns

“On a global scale, LCPs frequently encounter delays and cost substantially more than their original budget,” said Holmes. The original budget of a project is only an estimate. Considering factors such

The Edge | 29

sectors | real estate & construction

as time delays and emerging technologies, the budgets set initially can only be an indication – and more so in the case of mega projects. HIA started with the initial estimate of USD7.5 billion (QAR27.3 billion) in 2003. Now in 2014, Phase One of the project is estimated to cost over USD15 billion (QAR54.6 billion) at opening day.

Capacity varies

The operability of an infrastructure project such as HIA must match varying capacity levels. “Its daily operational profile must accommodate short periods of intense activity followed by longer periods of comparatively low usage,” said Holmes.

While HIA has an annual passenger capacity of around 30 million, there are busy periods each day when it must function as an airport with an annual capacity of maybe 60 million. This pulse operational mode imposes challenging and simultaneous stresses on all airport capabilities, he explained.

Risk remains

Despite the completion of project, there is always a risk of operational glitches that can emerge at any stage. A soft launch, then, helps to identify such complexities during operational readiness and testing process. “Scaling from simulation to a small scale ‘live’ operation is a cautious step towards full opening which minimises the risk of operational chaos that would ensue if a ‘hard’ opening failed,” said Holmes.

Conclusion: Plans change

When it comes to mega projects, there are no best-laid plans. According to Holmes, “From a global perspective, LCPs rarely conform to their original plan. They are delayed, often by years, cost significantly more than envisaged, are used less than projected and are vulnerable to disruptive technological innovation requiring unplanned and expensive upgrades.” However, these elements should be taken into consideration in project appraisals, “If the degree of project complexity is not evaluated and addressed using new techniques of risk appraisal and project management, then sponsors are unnecessarily accepting a significant probability of project impairment that even unlimited funds cannot resolve without incurring delays,” concluded Holmes.

30 | The Edge

“On a global scale, LCPs frequently encounter delays and cost substantially more than their original budget.”

– Anthony Holmes, IIS. FACTS ABOUT HIA

21

44

kilometre of road surface

road bridges

29 5 100+ hectares lagoon

tunnels

buildings within the site

storeys of catering facility

Sport facilities

The saga of winter dates for 2022 World Cup continues FIFA president Sepp Blatter’s recent comments that awarding the 2022 World Cup to Qatar was a mistake has once again triggered debate about the timing of the tournament.

5

“The Qatar technical report indicated clearly that it is too hot in summer, but the executive committee with quite a big majority decided all the same that the tournament would be in Qatar,” Blatter was quoted as saying. The comment was followed by an indication that a tournament during winter is more than likely.

While the country is already preparing to incorporate cooling technologies to make the sport arena tolerable for the spectators, questions have been raised about the general climate for FIFA fans arriving from all over the world.

Scepticism remains about the viability of cooling technologies within stadiums

real estate & construction | sectors

as well. Speaking at a Heating, Ventilation and AirConditioning industry conference, Leo Rasmussen, senior technical adviser at Condair, said that Qatar’s climate which has high levels of humidity is not very conducive for cooling mist technologies.

“In the summer, if you have already 50 degrees, and you have 40 or 30, 35 percent relative humidity, then you can cool down [the stadiums] but it will still feels like a sauna. The more water you add to the air, the more heavy it feels,” he said.

Providing specific details, Vasanth Kumar, chief executive officer of Arabian MEP Contracting, said, “The design, specification and installation should comply to the American Society of Heating, Refrigerating and Air-Conditioning Engineers standards as minimum,” adding that, “The pitch of football stadiums can be cooled not exceeding 26 degrees and 80 percent relative humidity by perimeter nozzles located at low level of pitch supplying cool and conditioned air across the pitch.

Under-pitch cooling can be used to cool the pitch by means of mechanical thermal storage systems.”

As the gap between now and 2022 narrows, a definite call on the tournament’s timing needs to be taken. Holding the World Cup in winter would mean a shift in preparations of stadiums right from the design stage. What catalyses this need for urgency is the fact that Qatar has already unveiled plans to start construction on five stadiums.

“ You can cool down [the stadiums] but it will still feels like a sauna. The more water you add to the air, the more heavy it feels,” Leo Rasmussen, Condair.

Though a final decision is yet to be made, the Qatar technical report indicated clearly that it is too hot in summer, said FIFA president Sepp Blatter. (Image Reuters/Arabian Eye)

The Edge | 31

Q a t a r ’s B u s i n e s s M a g a z i n e

Stay informed about business in Qatar.

Online.

For more exclusive content visit us at

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Contents: How is technology changing travel in the Middle East? 33. Dark Data: The hidden treasure in your firm 34 .

tech & communications Millennials’ (those born between the early 1980s and early 2000s) desire to be connected even during travel is forcing the hospitality industry to adapt and cater to their needs. (Image Corbis)

How is technology changing travel in the Middle East?

Technology has changed the way people plan and book their holiday. But what do young travellers expect from a hotel once they arrive at their destination from a technological perspective? They expect hotels to be equally tech-savvy, offering high speed Wi-Fi, mobile workspaces and more recently, mobile check-in, writes an expert in the travel industry, Neal Jones

M

illennials (those born between the early 1980s and early 2000s), have grown up, with technology at their fingertips, they are now travelling the world over, and expecting an easy travel experience with as little disturbance as possible to their daily routine.

From a business standpoint, this group will comprise 75 percent of the global workforce by 2025; like their personal experiences, they expect business travel to be equally

easy. In the Middle East, this desire is no different.

According to a report by Viacom, millennials are a more influential segment in the Middle East than in other parts of the world. Globally, millennials count for 34 percent of the total population on average, whereas in the Middle East, it is 48 percent, almost half the entire population. Brought up in growing economies, working millennials in the region have become accustomed to the

latest technology trends and are considered early adopters of both the latest tech products and online experiences.

They are also more addicted to the Internet than in other countries; 55 percent of millennials in Egypt would rather stay at home than go on holiday without access to the Internet. In Saudi Arabia, this figure is 39 percent. In addition, more than four in five individuals based in the Middle East stay connected wherever they travel. In order The Edge | 33

sectors | technology & communications

55% 39%

of millennials in Egypt would rather stay at home than go on holiday without access to the Internet

in Saudi Arabia.

for the travel industry in the Middle East to thrive, it is imperative they understand this group’s value, spending power and technology habits.

Here is another reason why: according to a study by Concur, nearly 90 percent of business travellers use mobile apps and 62 percent use them on every business trip, with 89 percent stating that mobile apps improve their travel experience.

As a result, businesses in the travel industry are revamping their offerings across the board to cater to this generation and in turn get a larger slice of the business traveller market.

At any given moment, today’s global traveller may want to take a personal call, handle a business meeting or host a social gathering. Given this new set of expectations, a hotel’s public spaces have to evolve their design to accommodate the diverse needs of all of its guests, often at the same time. And the change does not stop there. As a result of this demand, hotels in 34 | The Edge

the region are now offering free Wi-Fi in public spaces, personalised apps, and much more. While some are clearly at the top of their game when it comes to catering to the tech-minded, the overall travel industry still has a long way to go in order to become fully compliant for this generation.

Businesses in the industry need to strive for digital parity to take full advantage of this powerful generation; 24/7 access is no longer an option, it is a must.

Neal Jones is the chief sales and marketing officer for Middle East and Africa at Marriott International.

Information storage

Dark Data: The hidden treasure in your firm Dark Data is the information that collects at a firm in the process of regular business activities, but then goes unused. Storing and securing data incurs extra costs for an organisation. Allen Mitchell, an expert in data and information management issues, writes that dark data could present unrealised opportunities for firms in Qatar.

It may not seem like much, but the dark data accumulated over the years you have been in business could be an untapped digital goldmine, which could give your company a competitive advantage if used in conjunction with the critical data you employ every day. Volumes of dark data exist in nearly every enterprise organisation, historically unaccounted for and undervalued. Modern-day information sharing is fuelling the growth of this data, giving dark data free reign to flow through a range of consumer devices. The problem is that many organisations lack the policy and technology needed to determine best practices for data protection and efficient storage outside of the corporate data centre.

The data deluge

IT administrators often struggle with having little to no insight into what data is being created, limited control over how it is being stored, and almost no understanding of its business value. While this may not suggest a complete business breakdown, it can certainly result in a number of missed

69%

of a company’s data on average has no value.

opportunities and increased costs. When it comes to information lifecycle governance, more often than not, organisations choose cold storage tape vaults to keep every scrap of data out of the paralysing fear they may throw away something of value.

The cost of keeping everything

In a recent survey, the Compliance, Governance, and Oversight Counsel (CGOC) found that, on average, 69 percent of a company’s data has no value. In essence, organisations could be spending up to 20 percent of their annual budget on storing data that has virtually no return on investment.

In addition to the cost of storing superfluous data, the risks associated with locating necessary data in the event of a breach or in response to legal action (eDiscovery) are significant. When times comes to make a critical business move or manage an eDiscovery process, it is labour-intensive to sift through the mass of irrelevant information.

Defining the business value

The key to satisfying the need to hoard information and those who might leverage it for the business is to first identify what data has value for which part of the organisation and for how long. Once data has been evaluated and indexed properly, organisations can better decide how and where to store that data – whether it is locally, in the cloud, off-site or using some combination of these. This inherently means a more streamlined approach and cost savings – both by products of a well-defined data strategy.

At its core, dark data represents untapped opportunities to transform a business, which can only be realised through a combination of efficient migration or deletion and content-aware retention.

Trust that once this process is started, the benefits can be seen almost immediately. Only then will organisations be able to manage the present-day data that demands a front-row seat.

Allen Mitchell is senior technical account Manager, MENA, at CommVault Systems.

The Edge | 35

Great power greater responsibility Addressing issues of migrant labour rights in Qatar

photo by: Paolo Mallari

migrant workers | cover story

As one of the world’s richest countries, and after its winning bid to host the 2022 World Cup, Qatar has an added responsibility towards thousands of expatriates working on various projects here. In the light of Qatar government’s recent press conference proposing labour reforms, The Edge’s Farwa Zahra explores analysts’ reactions, international pressure and some of the less-mentioned workers’ welfare initiatives being carried out in Qatar.

O

f late, international news media is focused increasingly on the issue of migrant worker conditions in Qatar. Moreover, humanitarian organisations such as Amnesty International and Human Rights Watch (HRW) have urged the need for FIFA to step in for worker reforms in Qatar. Michael Stephens, researcher at Royal United Services Institute for Defence and Security Studies, Qatar, believes, “The visits by INGOs are extremely useful in highlighting the issue to the outside world and will play their role in providing advice and support for change in Qatar.”

Responding to the calls for reforms, in February, Qatar’s Supreme Committee for Delivery and Legacy released a 50-page report documenting a strategy to address the issue of migrant workers. Around the same time, Qatar’s Ministry of Labour and Social Affairs reportedly increased the number of 150 trained labour inspectors by 30 percent.

Later in May, based on a DLA Piper report, Migrant Labour in the Construction Sector in the State of Qatar, the government proposed wide-ranging labour market reforms which include: (1) Change of the kafala system to one based on employment contracts, whereby exit visas of expatriates are monitored and issued by the Ministry of Interior (MoI); (2) Lifting the two-year ban required to rejoin Qatar’s labour market; (3) Increasing the maximum penalty from QAR10,000 to QAR50,000 against employers confiscating workers’ passports; (4) Issuing No Objection Certificates (NOC) to employees at the end of their contract period. For those on indefinite contract, NOC can be obtained five years after joining; and (5) Improving the living and working conditions of workers in Qatar.

The announcements have received both applause and criticism. Proponents have welcomed the change, saying that anticipating a sudden abolishment of kafala would be expecting too much. Qatar-based human rights activist, Aakash Jayaprakash, comments, “Certain elements such as the removal of the two-year ban is great to see,” adding, “Qatar is under intense international scrutiny and it is true that they have been having very serious discussions about this matter. It must be recognised that the country has been open to international organisations and allowed itself to be challenged.”

The world, however, has greater expectations of Qatar. Human rights activists unanimously expressed their disappointment in the outcome of the much-awaited May press conference hosted by the Ministry of Interior. Speaking with The Edge, Dr. David Roberts of King’s College London, says, “Abolishing the kafala system in its entirety would be an expensive proposition for Qataris and Qatari businesses alike. But the bonanza of the World Cup and the tens of billions of dollars spent on it are being channelled through Qataris and their companies, compensating them to a degree. Moreover, this is the price of modernity.”

“It must be recognised that Qatar has been open to international organisations and allowed itself to be challenged.”

- Aakash Jayaprakash, human rights activist.

cover story | migrant workers

100

The number of labour inspectors expected to be hired this year.

According to the information given out by the MoI, an e-government system will automatically grant an exit permit to an employee after a 72-hour grace period prior to departure. During this time, the employer will be notified about the request.

Commenting on the proposed system, Jayaprakash says, “While it is good to see that the exit permit is now going to be State-managed, the fact remains that the employer can still contest an employee’s exit. At least from the information given, it seems like the power relationship is still in favour of the employer.”

On the other hand, Dr. Roberts foresees that the new system will upset the power dynamics, as some Qataris may feel their control is being weakened.

While the international media remains sceptical, and particularly volatile since the May announcements, residents of Qatar are generally reluctant to express opinions about the ongoing issue of migrant workers – an observation evident by the fact that while The Edge approached 20plus construction companies, only two responded with comments.

Discussing how fair the ongoing media trial has been around the issue of Qatar’s labour conditions, Alan Crawford, head of Corporate Quality and Health, Safety and Environment (HSE) at Qatar Project Management, says, “It tends to be only the negative side of HSE and welfare standards that journalists see. They never, ever report on anything that’s positive.

And there are many positive health and safety initiatives happening in Qatar,” adding, “Within the last 12 months, I can see, there are many good initiatives by project management companies and contractors. However, they don’t make good newspaper stories, and so they tend

Workers at a construction site in Doha wash their dishes after a lunch break. (Image Reuters/ Arabian Eye)

not to be reported. And sadly, the United Kingdom’s media is the biggest culprit.”

Stressing that the media should make a realistic comparison of Qatar’s labour conditions against the rest of the Gulf, Vasanth Kumar, chief executive officer of Arabian MEP Contracting says, “Having spent almost quarter of century in the Gulf region and as a resident of Qatar for almost two decades, I have seen how things have evolved over the years in the Gulf Cooperation Council (GCC) and Qatar in particular.”

Worker welfare initiatives

Indeed, there is little attention for the companies, both private and public, exhibiting ethical practices in human resources. From the government sector, in 2013, energy company RasGas celebrated 100 million man hours worked without a lost-time incident, an industry record.

Qatar Foundation (QF) has developed its own worker charter, which sets out the basic fundamental policy for the treatment of workers affiliated with QF projects.

Sharan Burrow, general secretary of International Trade Union Confederations tells The Edge that the government of Qatar has the resources and the responsibility to enforce its laws. (Image Reuters/Arabian Eye)

migrant workers | cover story

“Within the last 12 months, I can see, there are many good initiatives by project management companies and contractors.”

- Alan Crawford, QPM. Representing the private sector, Shell Qatar Pearl GTL’s worker accommodation is headed by an appointed mayor who leads a resident welfare team.

RasGas’ chief venture officer, Nafez Bseiso, tells The Edge about the company’s health management programme in place at the worker camps, with facilities offering health screening and health education. The approach, Bseiso says, goes beyond worksite management “and is more about improving the overall quality of life of employees by creating a caring culture and safe environment both at the camps and on site”.

QF monitors all its contractors to adhere to the mandatory standards set by the organisation, where a Workers’ Welfare Department operates as a regulatory body conducting welfare audits on all projects.

“The audits include inspections of the construction site and accommodation facilities, reviews of the organisation’s recruitment and employment policies, and also include confidential interviews with workers to ensure that their concerns are

An aerial view of worker accommodation facility at Qatar Shell’s Pearl GTL, also known as The Village. “The programme not only enhances the health of the workforce and mitigates risk, it also increases productivity and performance,” says Dr. Israr Ahmed, country health manager for Qatar Shell.

heard and taken into consideration,” says Christopher Newman, welfare manager, Health, Safety, Security and Environment Directorate, QF. “The key is to gain the realisation of the worth of an individual as an individual and not merely as a resource,” he adds.

Migrant worker reform - an opportunity

As a member of the International Labour Organization since 1972, Qatar’s law in theory protects workers against exploitation. One of the five challenges mentioned in its National Vision 2030 is the quality of life of the expatriate labour force working in Qatar.

“The majority of the requirements in the standards already exist in Qatar Law, GCC law or are widely adopted international conventions,” says Newman. The country also has means to implement what is

already drafted in its legal framework.”

“The government of Qatar has the resources and the responsibility to enforce its laws,” says Sharan Burrow, general secretary, International Trade Union Confederation (ITUC). Speaking with The Edge about the ongoing cases filed against employers for worker rights violation, she points out, “Often in cases, employers do not show up for hearings, delaying the cases for months.

If employers were responsible for covering lost wages for workers while they wait for their cases to be heard, that would probably stop unnecessary delays in the legal system.”

By enforcing the existing laws and introducing amendments for further reforms, Qatar has the chance to capitalise with a reputation on worker reforms.

Leading the Gulf by setting an example will not only provide the country a competitive

cover story | migrant workers

“The key is to gain the realisation of the worth of an individual as an individual and not merely as a resource.”

- Christopher Newman, Qatar Foundation.

According to Michael Stephens, researcher at Royal United Services Institute for Defence and Security Studies, Qatar, many decision makers in Qatar have woken up to the fact that the country must change its labour system as a result of the increasing media spotlight.

40 | The Edge

At a much-anticipated press conference held on May 14, Qatar government representatives announced proposals for the country’s labour market reforms.

edge over other Gulf countries, but will also save employee turnover costs.

Speaking about the economic opportunity of cutting down long-term costs, RasGas’ Bseiso says, “In order to achieve superior results and drive overall performance, you need to have a motivated workforce and effective programmes and processes in place…

Avoiding lost-time incidents essentially means that we can progress without losing time and therefore remain on schedule and save costs.”

For Qatar Shell, the rationale to provide decent living conditions at the Pearl GTL worker accommodations is simply the premise that it is the right thing to do. “The programme not only enhances the health of the workforce and mitigates risk, it also increases productivity and performance,” says Dr. Israr Ahmed, country health manager for Qatar Shell.

Sharing a similar perspective, Newman explains, “When considering the increased life-cycle of improved facilities and the inevitable benefits of having a more productive, dedicated and motivated workforce, ethical practices make sound business sense.”

Pre-arrival worker abuse

QF’s preliminary research for worker reforms indicated that in many cases, the abuse of migrant workers started prior to their arrival in Qatar. “We have recognised that these agencies are putting people into debt before they even get on a plane, and these are people and agencies from all countries,” said Kevin Murray, in and interview with The Edge while he was the director of HSE and migrant welfare at QF. In an interview with 10 migrant workers linked with the construction of a stadium in Qatar, HRW’s report Building a Better World Cup: Protecting Migrant Workers in Qatar Ahead of FIFA 2022 indicated that all respondents said they paid hefty recruitment fees to get their jobs.

Dealing with pre-arrival abuse is one of the issues mapped out in Qatar Foundation Mandatory Standards of Migrant Workers’ Welfare, addressing ethical recruitment, employment contracts and practices, worker accommodation, food hygiene, transportation and site welfare requirements, to name but a few.

Some of the outcomes of the document, Newman says, include requirements such as “no recruitment fees to be paid by the

migrant workers | cover story

workers; free access to their passports; accommodation strategies that provide privacy and a sense of community; balanced diets; air-conditioned buses; access to cool, clean drinking water, and rest facilities that protect from the harsh conditions on site”.

Showing an understanding of the prearrival abuse, one of the demands raised

by ITUC is for Qatar’s authorities to work with international recruitment companies to clean up the mass recruitment of migrant workers.

Qatar’s labour environment in numbers The top four causes for complaint in 2013 were Repatriation costs

8,906

Grievances relating to the end of service benefits

8,203

Ensuring efficacy of labour reforms

Aforementioned are some companies exhibiting high standards of worker welfare on a wider level, but as the Amnesty report puts it, these initiatives are limited to a small number of workers affiliated with the concerned organisations.

Enforcing the implementation of welfare standards, according to Stephens, is in hands of the government. “The government is the only body that can solve the issue with labour rights. Without correct legislation and enforcement, private companies may be tempted to cut costs or abuse workers.” Burrow is of the view that high number of worker deaths and injuries puts a “reputation risk on international companies seeking to do business in Qatar”.

While Amnesty International’s researcher on migrants’ rights in the Gulf, James Lynch, called Qatar’s recent proposals a “missed opportunity” in his post-press conference commentary, Dr. Roberts believes the “announcements are potentially interesting and a partial improvement on the existing system.”

However, he is also sceptical of the proposal’s efficacy.

Indeed, what really defines the prospects of the recent proposals is the level of implementation they will meet. “A Qatar University study documented that over 90 percent of low-income workers had their passports taken. Were all their employers fined? So while it is great that the fine amount has been raised to QAR50,000, the implementation is again my biggest concern,” says Jayaprakash.

Adding to this, he hopes the proposals come into effect in the near future, “It will

Late payment of wages

9,959

Leave allowance

7,831

Autopsies conducted by the Forensic Pathology Department increased from

In 2012

5,245

2%

warning notices issued relating to health and safety

in 2012 to currently

9.8%

A National Human Rights Committee study states that of a sample of 1114 construction workers,

11% stated that they had been injured at work.

More than

50%

felt (by their own assessment) that their injuries were caused by a lack of adequate safety measures and procedures in the workplace.

250

200

Cause of migrant worker deaths in Qatar for India, Nepal and Bangladesh (2012) Classified by Supreme Council of Health

150

100

Intentional self-harm by hanging, strangulation and suffocation and intentional self-harm by sharp object

50

Unspecified fall and struck by thrown, projected or falling object

0% Sudden death, cause unknown

Road traffic accidents

Other causes

Source: DLA Piper: Migrant Labour in the Construction Sector in the State of Qatar, Department of Work Relations Report, Gulf Times, Qatar National Human Rights Committee: Study on the Conditions of Unskilled Labor Force in the Construction Sector in Qatar, 2011, Supreme Council of Health Qatar.

Continued on page 62

The Edge | 41

Beginning with the 2007 World Bank recommendation that Qatar move into a knowledge-based economy, analysts have commented that in order to reduce its dependence on hydrocarbon wealth, Qatar’s manufacturing industries need to assume greater prominence.

42 | The Edge

Catalysing Qatar’s mid-size

manufacturing SECTOR

An exclusive interview with abdul rahman a. al ansari, ceo, qatar industrial manufacturing company The Edge | 43

business interview | manufacturing sector

As someone who has steered the Qatar Industrial Manufacturing Company (QIMC) to encourage and expand the role of the private sector within a primarily energy-driven economy, the challenge before Abdul Rahman A. Al Ansari, CEO, set out to create a stable manufacturing base in Qatar.

Today, 24 years later, QIMC has a presence in as diverse industries as gypsum, plastics, pipes, metal coating, sand treatment, paving stones, among others. Talking exclusively to The Edge’s Aparajita Mukherjee, Al Ansari offers his opinions on the way the manufacturing industry is evolving in Qatar, the future of the sector and the challenges it faces.

F

or a 24-year-old company, a net profit of QAR202.16 million exemplifies a certain degree and quality of management.

Abdul Rahman A. Al Ansari, CEO, has been with QIMC since day one, giving him the advantage of being able to speak on the history of the company, its present stability and its prospects.

QIMC’s success, he says, has come through focus and continuous strategising. “In 1990, when QIMC was set up, Qataris were engaged either in trading or in the real estate sector and the government envisaged a gap in the medium-scale industry. We had Qatar Steel, Qatar Petrochemical Company (QAPCO), Qatar Fertiliser Company (QAFCO) and others which started the basic and bulk investment activity of the State of Qatar, but no entity in between to support and to serve the wide range of natural resources in Qatar that were left unutilised. That was the purpose of setting up QIMC.” Al Ansari says that to develop the mid-range companies, which was a priority with the State right from the beginning, support services in terms of the infrastructure (the industrial area) and finance (Qatar Development Bank), were addressed, and what was missing was a company “like us to encourage the private sector by organising both pre-feasibility and detailed feasibility reports to identify the opportunity gaps within the wider economy”.

Feasibility studies are either dictated by the private sector or could be an in-house effort. Al Ansari clarifies, “We have our own resources – the project department – which is now exploring new opportunities on the basis of the existing resources within Qatar.

But at times, private sector players, national technology holders, international marketing organisations or third party vendors approach us and we do the market study, risk assessment, covering the technology and assessing the time taken to finalising a project.”

Conducting such studies has been a valuable learning experience on the back of which QIMC gained enough expertise to start 17 projects (all of which are joint ventures with companies from various countries). In addition, there are those that are outside of Qatar, says Al Ansari, adding, “All our projects are profitable and healthy which gives us scope for exploring other ideas.”

QIMC has two categories of direct involvement – its associates and subsidiaries. Regarding the company’s involvement in these two categories, Al Ansari says, “We are involved wholly in all of our companies and directly address the main operational issues for each and every company. The common link is the operation department of QIMC, which keeps track of all our investments, for both associates and subsidiaries, though the difference is in our shareholding pattern.”

Extending the manufacturing base

But can manufacturing in Qatar be extended, given the realities that it is primarily an energy-driven economy, dependent on imports for most of its needs, has a small local population, and is dependent on labour supply from the international market?

Al Ansari stresses that given the plentiful hydrocarbon resources of Qatar, it is the strategy of the government and that of QIMC as a company to accord manufacturing the priority that it deserves. He adds, “Oil and gas are our resources and we want to promote these resources in a way that there is an added value.”

Al Ansari stresses creating a viable downstream industry focus and lists derivatives of the petrochemical industry as the thrust, adding aluminium and steel as two products for which medium44 | The Edge

“With support services and finance guaranteed by the government, a company such as QIMC was needed to push manufacturing into the agenda of priority.”

Abdul Rahman A. Al Ansari, CEO of QIMC, says QIMC’s investment strategy is fundamentally driven by the principle of looking at economically-viable industrial projects that utilise regionally or locally available natural resources and intermediate products.

The Edge | 45

business interview | manufacturing sector

“We are talking about the right support, right infrastructure, policies, strategy and not subsidies.” level investments can be envisaged.

“The bigger industries are already there. And they have a red carpet from the government. Now, it is the mid-tier industries, which have to fight for their own red carpet, and this is the challenge since the governments of the region have to understand the importance of this sector,” says Al Ansari, adding that he is not referring to government’s subsidising, since these cannot take a nation forward.

Al Ansari clarifies, “We are talking about giving the right support, the right infrastructure, policies, and strategy, on the back of which, I can be creative and compete in the market.”

Talking about the current focus of QIMC, Al Ansari says that the company is concentrating on reviewing existing companies, devising ways of getting more out of each investment, selecting better organisations as partners and adding more control to expenses. He adds, “We are not only expanding on some of these projects but are also upgrading some of the projects that rely on processing plants. This, we feel, will reflect immediately on the results of the company. This is all-important.”

Citing a recent example from the industries that QIMC has promoted, Al Ansari talks about aluminium smelters, saying, “Within the past four or five years, seven aluminium smelters have come up around 500km despite the fact that Qatar has no plans for becoming a hub for aluminium. One reason for this is because the cost of setting up a smelter is lower here compared with Europe.”

Al Ansari adds that these success stories aid QIMC’s belief in creating a strong export market for aluminium. Qatar Aluminium Extrusions Company began commercial production with a capacity of 8000 tonnes per year and QIMC is currently working to raise it to 24,000 tonnes during the next three years.

recommends that we look at some core sectors such as petrochemicals, oil and gas value-added products, steel, construction and chemicals.”

But the main challenge is infrastructure, which, in the opinion of Al Ansari, is being addressed by the government by creating an industrial area. “This issue, combined with balancing resources such as the requisite population to man big projects and the tight deadlines within which each new project will have to be completed given the 2022 World Cup timeframe, makes our job complicated,” he explains.

QIMC has recently extended its presence to other Gulf Cooperation Council (GCC) countries such as Saudi Arabia, Bahrain and Oman. Commenting on the increased regional footprint, Al Ansari says, “From the beginning we have invested in Bahrain and Saudi Arabia as well as Oman. Recently in our ministerial meeting in Oman, we signed a memorandum of understanding with Oman’s Takamul Investment Company, wherein we joined hands to develop industrial projects in both Qatar and Oman.

Al Ansari believes that the profit figures of QIMC for 2014 will be higher than what the company has seen in the past two years.

QAR

202.16 million 2013 net profit of QIMC

The core sectors

For the past six years, the company has fine-tuned the sectors that it wants to exit such as food, paper and plastic. “EY 46 | The Edge

Qatar Clay Bricks Company, a joint venture of QIMC with other Qatari entities, is the only plant making red clay bricks. Abdul Rahman A. Al Ansari, QIMC’s CEO says that it is not very easy to find this kind of mud here and the clay needs a different kind of treatment.

manufacturing sector | business interview

17

The number of QIMC projects within Qatar.

They have similar project interests as us, for example in the aluminium sector. Similarly, they have identified some interesting projects in our portfolio, which they can replicate in Oman.”

Investment strategy

QIMC’s investment strategy is fundamentally driven by the principle of looking at economically-viable industrial projects that utilise regionally or locally available natural resources and intermediate products.

Commenting on their investment model, citing some examples, Al Ansari says, “QIMC has, with other private sector Qatari companies, promoted Qatar Clay Bricks Company, the only plant making red clay bricks. What needs to be highlighted is the fact that it is not very easy to find this kind of mud here in our region. The clay has to be treated it in a different way through the available technology.”

Another example is gypsum produced by the Qatari-Saudi Gypsum Industries Company (a joint venture between QIMC, Qatar National Cement Company and the National Gypsum Company of Saudi Arabia), the best quality available regionally.

“Because of the 99.9 percent purity level, we are able to compete with all of the gypsum manufacturers in the region.”

QIMC, according to Al Ansari, also looks at the recycling industry – recycling wastage from by-products such as the sludge from Qatar Steel. “We invested in a sulphuric acid plant through our whollyowned subsidiary Q-Acids which collects the sulphur from Qatar Steel and produces sulphuric acid that is utilised by all large companies in Qatar.”

Challenges and prospects

One critical factor to watch out for is the infrastructure support that industries need.

Al Ansari clarifies, “I will not say Qatar is late in creating the requisite infrastructure but,

QIMC ventures Qatar Treatment Plant QIMC stake 100%

Qatar Jet Fuel Company QIMC stake 40% WOQOD 60%

Qatar Wooden Products Co. QIMC stake 33.3% Qatar Petrochemical Co. 33.3% FEBO s.p.a. Italy 33.3% Qatar Clay Bricks Co. QIMC stake 46.35% Private sector 53.65% Qatari Saudi Gypsum Industries Co. QIMC stake 33.3% NGC, Saudi Arabia 33.3% Qatar National Cement Co. 33.3% Gasal QIMC stake 29.5% Air Liquide France 40% Qatar Petroleum 30.5%

Qatar Metals Coating Co. QIMC stake 50% Qatar Steel 50%

Source: QIMC Annual report 2013

at the same time, I don’t think we have reached the optimum level in creating the support infrastructure, especially outside of Doha.”

In Al Ansari’s opinion, as the rush for projects for the 2022 World Cup increases, the main challenge before the management of companies such as QIMC will not be to meet business targets, but to contain inflation. Al Ansari cautions, “Because of the small economy, with

multiple projects, inflation will immediately go up and if adequate measures are not taken, it will be out of control.”

Ending on a positive note, Al Ansari believes that the profit figures of QIMC for 2014 will be higher than what the company has seen in the past two years. He concludes, “This profit trend is reflective of both the performance of the company and the healthy growth of the nation as a whole.”

The Edge | 47

Educating

Qatar

Can schools and teachers meet the demands of the changing economy?

Education is seen as one of the most fundamental aspects of building a successful society, and of late, the most critical element in meeting the demands of a changing economy. Is Qatar with its grand ambitions readying the next generation for the challenges that lie ahead? Or is education, one of the more conservatively managed sectors, in dire need of disruption? And can Teach for Qatar, an organisation that aims to divert the brightest minds towards teaching, succeed? by Shehan Mashood

t

wenty five years ago at Princeton University in the United States, Wendy Kopp, a student in university at the time, launched Teach for America, a programme to address inequalities that existed in her country’s education system. “I was very focused on the fact that in our country, a country of such tremendous resources, where kids were born would predict their educational and life outcomes,” she tells The Edge, during her recent visit to Doha where she delivered the commencement address to this year’s graduating classes at Education City.

Teach for America would bring highachieving young graduates into schools in areas that desperately needed better education, to teach for two years. Kopp

believes that their teacher corps, (which is what they call graduates in the programme who come in and spend two years teaching) see a very systemic issue playing out in the classroom. “They come out of this realising, ‘Wow, we need to figure out how to improve healthcare and improve nutrition and improve x, y and z’,” she says, “And then they ask themselves at the end of those two years, ‘How can I personally make the biggest difference?’”

Kopp says her generation had developed a reputation of only looking out for themselves and focused on earning high salaries, “I thought that this generation could make a difference by channelling their energy into classrooms instead of into investment banks, and that led to the idea

of Teach for America.”

Eight years ago, she started meeting other social entrepreneurs from around the world and found partners that were interested in adapting the Teach for America model in their countries, which led to the creation of Teach for All (TFA), a loosely affiliated global network based on the Teach for America model. This ultimately led her to Qatar, says Kopp who is now chief executive officer of TFA, and a year and a half ago, the idea for Teach for Qatar was created.

Motivation is key

TFA programmes are often found in areas of extreme poverty in emerging nations or low-income areas, often in urban areas of

feature story | education

“One of the things that we see across contexts is the huge challenge of student motivation.” – Wendy Kopp, CEO Teach for All. developed countries. Neither of which one would think at a glance applies to Qatar.

In fact, Qatar has doubled its budget for education in the last five years in response to challenges in the education sector, says Mathew Boice, vice president of Ellucian for Europe, Middle East, Africa, India. Most recently, QAR26.3 billion of the state budget was allocated for education this year. Kopp, however, argues that a model, which channels future leaders towards something as fundamental as education, is a universal idea that can be adapted and be beneficial anywhere. She says, “Countries are different and contexts are different, but that idea is really a universal one.”

Mohammed Fakhroo, the CEO of Teach for Qatar agrees, telling The Edge, “Obviously every country is really different.

So we assess our local context, we spent a lot of time in classrooms to understand what the actual needs are. In our country, in our context it is motivation. It plays a huge role, we need to get the kids a little bit more engaged.” Fakhroo says every single child in this country deserves a quality education and the way he feels this can best be done is by “having the most outstanding person in front of the [students] in the classroom.”

Boice explains that when the government commissioned a review of the education sector back in 2001, one the findings was the lack of student preparedness for tertiary education or to join the labour force. While improvements have been made since, with Qatar’s Programe for International Student Assesment (PISA) score – which measures knowledge through test 50 | The Edge

Charles Leadbeater, an author and expert on innovation and creativity tells The Edge that it does not take long for economies to go from being resource-poor to rich and back to poor again, and Qatar needs to build systems now that will ensure its long-term sustainable growth.

Wendy Kopp, CEO of Teach for All who gave the commencement address to this year’s graduating classes from Education City universities, encouraged students to consider education as a career possibility. She tells The Edge many people have an inclination to want to teach, but are often face challenges.

scores - rising over the years, Qatar still lags far behind other nations according to a recent Pearson report, which places the country near the bottom of a list of 65 countries.

Boice says, “More Qatari role models in teaching should inspire a new generation of educationalists in Qatar to support the

deep base of school education required for the other components of the education sector to succeed with talent nurtured locally.”

The challenges

However teaching is not a profession that many young graduates aspire to. Fakhroo

QAR

26.3

BILLION

Amount allocated to education from the Qatar budget this year, the highest ever. hopes to change that, saying, “If teaching was their profession of choice then we would have higher academic achievements, we would improve our education system at a faster pace.” In the short term, his hope is to close the academic or the achievement gap in the classrooms, but in the long run, he says, “I am getting those smart people that are usually in the oil and gas sector or the financial sector to invest their energy in education, and once they are done with the two years, they can come out saying these are the challenges we see, and these are the challenges we want to fix to ensure that we have quality education.”

Charles Leadbeater is an author and expert on innovation and creativity, who has advised large organisations on innovation including the BBC and Microsoft. He has also produced a book on innovation in education for Qatar Foundation as part of its World Innovation Summit for Education (WISE). He tells The Edge that even though Qatar is a very resource-rich economy, it does not take long for an economy to go from being resource-poor to resource-rich to resource-poor again. He says, “If you look at the best resource-rich economies who have really thought hard about how to use their resources, like Norway, they invest a lot in knowledge and education for the longer term.” The cycle can be very fast, adds Leadbeater, and it does not give countries long to build the foundations and infrastructure for a different kind of economy that emerges out of it.

Kopp concedes that while the Qatari context is not the norm for the TFA, she says, “One of the things that we see across contexts is the huge challenge of student motivation. The challenge of how do we get our kids on a mission to attain

Mohamed Fakhroo, CEO of Teach for Qatar, tells The Edge the biggest challenge within Qatar’s education system is motivation of students.

The Edge | 51

feature story | education

a great education, and all of the things that sets you up for. That challenge is the same in the slums of Mumbai in India and in the communities in Qatar and in the communities in New York City, which is my home.”

Fakhroo says they are now in the recruitment phase but, “Telling an outstanding graduate to give two years of their life to go into those classrooms is hard.” TFQ has so far received over two hundred applications which has been whittled down to 13 fellows, “Our target is 30 fellows, but again to me it’s not a number, I look at quality, I am not looking at quantity,” he adds. So far, 10 independent schools have signed up to work with TFQ. Kopp believes that attracting young high achieving graduates to work in the education sector is not as challenging as it might seem. She says, “Many people have an inclination to want to teach, to want to make a real difference.”

Fakhroo hopes to capitalise on this to encourage young people in Qatar to join the programme. “In our context, it is more about giving back to the country. So you saw when we launched, Her Excellency Sheikha Hind bint Hamad Al Thani, stood up and said to all of those who benefitted from our higher education to try and give back.”

According to Kopp, between 50 to 70 percent of teachers in the TFA network stay in education after the two years, “Some of them teach, some of them become school leaders or even school systems leaders. I was just in Peru where 20 percent of the first sets of fellows are working for the education ministry. So there are many different things that we are going to do to solve the problem, we cannot solve it from within the classrooms alone.”

Innovation in the ecosystem

Leadbeater is in agreement that more changes need to happen to the ecosystem that surrounds a child’s education.

“I think we tend to focus a lot on schools and teachers, but actually the biggest areas are families and pre-school, and how can you equip families and particularly mothers to become educators.”

Leadbeater feels that another challenge the education system in the future will have overcome is a sole focus on academic qualifications, “A lot of people want those things, but they want other things as well,” he says. “They want to share, work 52 | The Edge

Overall Reading Literacy Grade 8 PISA score Qatar

312.21 2006

387.5 2012

Mathematical Literacy Grade 8 PISA score Qatar

317.96 2006

376.45 2012

Science Literacy Grade 8 PISA score Qatar

349.31 HE Sheikha Hind bint Hamad Al Thani speaking at the launch of TFQ said, “I call upon our youth who have benefited from the flourishing of higher education in Qatar to take advantage of this opportunity to give back to their community, and to be part of a process of change that perhaps they once dreamed of effecting when they were young students themselves.”

70%

of TFA fellows stay on in education after completing the two year programme

in teams, make things, to solve problems, (education) needs to be far more engaging and productive.”

The challenge, however, is implementing these structural changes in both educational systems and in how parents, children and teachers view education.

Boice says, “A challenge faced by the education sector is that, typically, one associates innovation with sectors such

2006

383.64 2012

Teacher to pupil ratio in 2003

1

11.69

Teacher to pupil ratio in 2012

1

9.6

as IT or healthcare, whereas education – which is the solution to most of the world’s problems such as poverty, conflict through ignorance and environmental issues – is not usually associated with all that is cutting edge, the latest and greatest.”

The main challenge is the reluctance to embrace any change among both parents

Mathew Boice, vice president of Ellucian for Europe, Middle East, Africa, India tells The Edge, “A challenge faced by the education sector is that, typically, one associates innovation with sectors such as IT or healthcare, whereas education – which is the solution to most of the world’s problems such as poverty, conflict through ignorance and environmental issues – is not usually associated with all that is cutting edge, the latest and greatest.” (Image Corbis/ Arabian Eye)

“More Qatari role models in teaching should inspire a new generation of educationalists in Qatar.” – Mathew Boice, Ellucian.

and teachers, says Leadbeater, “and the sort of fear that you cannot break up this model, that children need to go through these exams and these tests, you know that it needs to be rigid and structured. It is really a fear that if we move away from that, we will lose quality and so forth.”

But if the number of people feeling successful and able to do things, judges the effectiveness of education, “then you have already taken quite a different way of doing things,” says Leadbeater. “So the frustration with education systems is, I think, that they should really be good at spotting talent, building creativity and building capability, and often they just oppress it or waste it,” he adds.

Kopp says there are places around the world that are making extraordinary progress in raising education levels and decreasing disparities that could serve as examples. Shanghai, for example, once had low educational levels and big disparities between the migrant children and the natives, “and now 20 years later, they have the highest levels of excellence and equity in the world,” Kopp says.

“They have taken a very rigorous approach to teacher development,” she continues, “that is embedded in the

schools, so they free up 30 percent of teachers’ time and invest in coaching and collaborative groups. They have a passionate commitment to equity and have instituted a number of policies that integrate the most disadvantaged kids and provide them with extra support, and have embraced a rigorous curriculum that promotes critical thinking. Those are things we could all be doing.”

Boice adds, “Great education institutions are part of the picture. But as Silicon Valley illustrates, so is the wider environment. We believe this is being clearly established in the region, with many examples, from Doha, Dubai, Abu Dhabi, Dammam, and Jeddah.” Boise believes that students in countries such as Qatar are being exposed to vastly increased opportunities domestically in the Gulf Cooperation Council.

“We need to make sure that the foundations are right,” says Kopp, “and that begins with ensuring that we have some of our most qualified people in our classrooms, that they have the training and support they need, that our schools are well functioning with clear missions.

The Edge | 53

Charlie Stewart-Cox, general manager South Asia, Middle East and Africa of Cathay Pacific says, “Cathay Pacific will always focus on trying to do things that will attract customers to fly with us again and again, because ultimately that’s what wins us business.”

Cathay Pacific’s

Middle East focus borne out of high passenger traffic 54 | The Edge

aviation industry | business interview

Following the launch of the Doha-Hong Kong route, Charlie Stewart-Cox, general manager South Asia, Middle East and Africa of Cathay Pacific, speaks exclusively with The Edge’s Aparajita Mukherjee about the airline’s focus in the Middle East and the logic behind airline ticket pricing.

I

n as competitive a business as aviation, Cathay Pacific has earned a net profit of QAR1230 million for 2013, representing an increase of 203.9 percent over 2012.

The factors that have helped the airline achieve this are its keen business sense in choosing suitable routes, a competitive ticket pricing and a rational marketing philosophy. And as someone who oversees the business and operations of Cathay Pacific and Dragonair, in three key and busy markets, Charlie Stewart-Cox is clear about why the airline has chosen to start a new route between Hong Kong and Doha.

The airline, Stewart-Cox says, has been serving the Middle East for 37 years and is committed to developing its presence in this ever-growing market by identifying opportunities to strengthen its services to and from the region.

As a seasoned airline operator, StewartCox adds that under Cathay Pacific’s strategic codeshare agreement with their oneworld partner, Qatar Airways, passengers can freely book on either airline to an expanded network of destinations.

This includes flights from Hong Kong to Europe, Africa and the Gulf or from Doha to Australia, New Zealand, Korea and Japan.

Elaborating further, he says, “Cathay Pacific will always focus on trying to do things that will attract customers to fly with us again and again, because ultimately that’s what wins us business.”

The airline started servicing Doha from the end of March this year. Given

its headquarters in Hong Kong and its extensive network in China, Cathay Pacific, says Stewart-Cox, foresees a big increase being contributed by Chinese travellers, adding, “We also expect to see a large increase in passenger arrivals from other Far-East points including Japan, Korea, Australia and other South-East Asian countries, in all of which we have a good presence.”

Route economics

If Doha made it to the Cathay Pacific route map because it meant more business, what dictates the selection of a new route for the airline? Stewart-Cox says that Cathay Pacific currently offers scheduled passenger and cargo services to more than 180 destinations. Pinpointing the strategy behind its route selection, he says, “We want to provide passengers with maximum schedule flexibility through more

QAR

1230 million

Cathay Pacific’s 2013 net profit.

The inaugural flight of the Doha-Hong Kong route was welcomed by a traditional water cannon at the Doha International Airport on March 30, 2014.

The Edge | 55

Charlie Stewart-Cox at the gala dinner celebration with Cathay Pacific CEO Ivan Chu (fourth from right), chief guest Qatar Airways CEO Akbar Al Baker (third from right), and guest of honour Qatar Civil Aviation Authority Chairman HE Abdul Aziz Al Noaimi (centre).

“Fuel remains our biggest single cost, accounting for 39 percent of our total operating cost in 2013.”

56 | The Edge

flight choices on trunk routes and global connectivity, and continue to identify opportunities to strengthen our network and services.”

Talking about the airlines’ route plans in 2014, Stewart-Cox says that towards the end of this year, the airline will add Manchester to complement the London service in the United Kingdom, adding, “We will also add frequencies to Chicago, Osaka, Australia and Los Angeles in 2014.”

Categorising the United States (US), China and the Middle East as exciting markets moving forward, Stewart-Cox says, “The Cathay Pacific group is planning to increase passenger capacity by 7.59 percent in 2014, primarily long-haul routes to North America.”

Commenting on their Middle East focus, he continues, “For us, the Middle East continues to lead all regions in the air travel market. The US economy is showing significant signs of recovery, and China will always be a strategically important market for Cathay Pacific and Dragonair, our sister airline. We also see a healthy demand in South-East Asia and South-West Pacific.

Dragonair has further expanded its network by including Penang and Bali in Indonesia, as well as added a frequency to Beijing following the momentum of last year’s new destination launch, which

includes Yangon, Zhengzhou, Wenzhou, Da Nang, and Siem Reap.

Cargo routes have a different planning and Cathay Pacific aims to adjust its freighter frequencies in accordance with market demand. The airline has introduced freighter services to Guadalajara in October 2013 and is planning a nine percent increase in freighter capacity as it has launched services to Mexico City, in addtion to twice weekly freighter service to Columbus, Ohio, in the US in late March 2014.”

Ticket and fuel pricing

Airline pricing is a complex process, and a part determinant of how widely-flown it is. Explaining the pricing model of Cathay Pacific, Stewart-Cox stresses the fact that the airline implements competitive pricing across their network, adding, “We also offer promotional fares, including our very successful fanfares programme in Hong Kong, which sells an average of 1500 to 2000 tickets a week.”

The programme features a mix of regional and long-haul destinations, lastminute fares and advance bookings at highly attractive fares to 11 destinations every week.

Apart from offering competitive pricing, the airline has been constantly reviewing, and improving products, network,

aviation industry | business interview

Pinpointing the strategy behind its route selection, Stewart-Cox lists providing passengers more flight choices on trunk routes as the most important criteria.

Listing the steps that the airline introduced in 2012 and continued in 2013 to protect Cathay Pacific’s business from high fuel prices, Stewart-Cox includes consolidating flights and phasing out older and less fuel-efficient aircrafts to improve fuel efficiency. (Image Corbis)

schedules and frequencies according to the needs of its customers.

Given the fuel pricing mechanics and the unlikelihood that jet fuel prices will come down, Stewart-Cox says, “The price of jet fuel remains a concern for Cathay Pacific and the industry as a whole.

Fuel remains our biggest single cost, accounting for 39 percent of our total operating cost in 2013.”

Listing the steps that the airline introduced in 2012 and continued in 2013 to protect its business from high fuel prices, he includes, reducing capacity, consolidating flights, and phasing out older and less fuel-efficient aircrafts to improve fuel efficiency. “All these have proved to be effective,” he adds.

Innovation is also a key factor in the aviation business and Cathay Pacific continues to introduce new products – both in flight and on the ground – to

provide a better travel experience for passengers. Detailing these innovations, Stewart-Cox says, “We are adding capacity this year, especially for long-haul destinations, and will continue to develop our passenger and cargo networks. The delivery of 19 new and more fuel-efficient aircraft in 2013 and 15 more this year, will enable us to meet capacity growth and reduce operating cost.”

Corporate marketing and the GCC business

Corporate bookings form a major part of airline business these days. Asked by The Edge, what proportion of its business is driven by corporates in Cathay Pacific, Stewart-Cox says, “Cathay Pacific Airways caters to a wide range of business travellers.

Most of our corporate travellers are also members of The Marco Polo Club which offers multiple benefits and flexibility when

travelling with Cathay Pacific and oneworld partner airlines.”

Giving his take on the way the aviation business is likely to look in the Gulf Cooperation Council (GCC), Stewart-Cox says, there has always been a corporate commitment to the GCC and Qatar.

He adds, “We shall continue to identify opportunities and strengthen our services to and from this region.” As testimony of this focus on the region, the airline has not only added the Doha-Hong Kong service, but has also adjusted their Middle East network effective from March 2014, he says adding, ”Our Bahrain service increased to a daily flight with an intermediary stop at Dubai and Riyadh is now served by a direct flight from Hong Kong five times a week. The group will be taking delivery of 94 aircraft from now to 2024, which will enable us to meet capacity growth should the right opportunities arise in the future.”

The Edge | 57

business management | human resources

Challenges

facing the Qatari labour

market Despite Qatari employers offering ample opportunities for personal and professional growth, the sheer supply of Qatari graduates is significantly less than demand. Local employment seekers also suffer from an ‘attitude gap’, with a lack of key desired workplace skills and traits such as flexibility, curiosity, efficacy, affiliation and empathy, writes David Jones 58 | The Edge

The Edge | 59

business interview | islamic banking

A

s the next batch of alumni graduate from their studies and enter the labour market for the first time, the competition for top talent remains as fierce this year as ever. With less than 1000 Qatari graduates per year, the supply of those young Qatari graduates with the most productive potential is significantly less than the demand from employers, according to the latest research at The Talent Enterprise.

Qatar’s employers offer ample opportunities for personal and professional growth for both nationals and expatriate workers who steer its ongoing development forward. The talent of young people, and the ‘youth bulge’ in population they collectively represent, offer the greatest productive opportunity for the

Qatar needs to focus on making the private sector more attractive to young Qataris, and encourage them to become more employable to private sector companies.

60 | The Edge

country in the 21st century. However, at this crucial juncture of Qatar’s development, as it moves towards a knowledge economy, there also is a dilemma with the high levels of youth underemployment, low representation of females at work and continuously lowering levels of employee engagement and productivity per person employed compared with international benchmarks.

Harnessing the nation’s demographic potential is imperative at this point as the local population is projected to peak in the decade ahead and there will be a significant increase in the proportion of young jobseekers entering the labour market. This limited opportunity will not last forever.

Focusing on youth development, fostering national skill competitiveness and directing the economy towards sustainable, long-term growth should be the key areas of priority for policy makers, human resource (HR) professionals, educational providers and organisational leaders in general.

What future faces Generation Z?

To enable tomorrow’s talent to create economic success and drive sustainable growth, it is critical to ensure that the policy, educational and HR frameworks are aligned to provide them the tools and resources necessary, and prepare them for compelling occupational demands and a competitive business environment. Improving the quality and quantity of career counselling available to young Qataris is critical. The levels of self-awareness among young Qataris, in terms of a balanced appreciation of their own personal strengths and areas for

development, is among the lowest in the world, according to The Talent Enterprise’s recent Global Youth Employability study.

More specifically, another area that must not be overlooked is the reportedly low levels of preparedness, resilience, self-efficacy and optimism among youth in the Gulf Cooperation Council (GCC). Our own research has revealed that strengths like buoyancy, resilience, self-efficacy, confidence, and flexibility are among the lowest in the world for the GCC youth.

Some of our recent research data in the region presents key insights into the strengths among those under the age of 25 years in the State of Qatar. Youth in Qatar specifically reports a lack of key desired workplace skills and strengths such as flexibility, curiosity, efficacy, affiliation and empathy. The gap in education frameworks in preparing students for the workplace and developing the specific employability skills, which drive individual and organisational productivity, can explain the low levels of self efficacy reported by the under 25’s. Young Qataris are also more highly driven by both intrinsic and extrinsic motivators than their older compatriots, which presents employers with some very interesting challenges.

Fostering foundational workplace and life skills among our youth needs to be highly prioritised. This is both in their best interests and those of employers. Today, in countries such as the United States, the United Kingdom and Australia, teachers and parents are taking the lead in character building and imparting employability skills such as teamwork, self-confidence and

human resources | business management

communication by incorporating them as a part of the core curriculum. Greater awareness of and a higher prioritisation in supporting employability by educators must take higher priority. In a recent global study on employability, when asked to identify the priorities for educators, the results were telling. Helping students find employment fell to the middle of the place list coming in sixth out of 10 issues, across both public and private educational providers.

Both employers and students believe that QATAR DEMOGRAPHIC the educational system has not prepared STRUCTURE NOWwhereas DEMANDS them for the workplace, the views EVEN MORE JOBcontrast.

CREATION QATAR of educators are DEMOGRAPHIC in total There is a

STRUCTURE NOW DEMANDS Youth Population - Age Bracket EVEN MORE JOB CREATION (15-29) as a % Of Total Population QATAR DEMOGRAPHIC Youth Population - Age Bracket STRUCTURE DEMANDS (15-29) as a %NOW Of Total Population EVEN MORE JOB CREATION

13%

18% 23% 28% 33% Youth Population - Age Bracket (15-29) as a % Of Total Population 13% 18% 23% 28% 33% 1990 2011 Source: US International Census Bureau, *year=1992 13% 1990 18% 23% 28% 33%

2011

Source: US International Census Bureau, *year=1992

1990

2011

Source: US International Census Bureau, *year=1992

RATIO OF WORKERS IN PRIVATE SECTOR IN 2010 - QATAR RATIO OF WORKERS IN PRIVATE SECTOR IN 2010 - QATAR RATIO OF WORKERS IN PRIVATE

2010 - QATAR 0% SECTOR 25% IN 50% 75% 100% 0%

Expatriate 25%

50%

Expatriate

Local 75%

100%

Local

Source: Gulf Investment Corporation Est. 0% 25% 50% 75%*2008100% Expatriate Local Source: Gulf Investment Corporation *2008 Est.

Source: Gulf FORCE Investment PARTICIPATION Corporation *2008 Est. LABOUR RATE BY GENDER, 2011 LABOUR FORCE PARTICIPATION RATE BY GENDER, 2011 LABOUR FORCE PARTICIPATION RATE BY GENDER, 2011 100%

0%

25%

50%

75%

0%

25% Female

50%

75% Male

100%

0%

25%

50%

75%

100%

Female Capital, Arab Youth Unemployment Male Source: Alkhabeer 2013 Female Male Source: Alkhabeer Capital, Arab Youth Unemployment 2013 Source: Alkhabeer Capital, Arab Youth Unemployment 2013

glaring lack of consensus between various stakeholders on the future preparedness of students for the workplace.

Employee expectations

As the fastest developing economy within the GCC, and with the lowest proportion of nationals to expatriates in the workplace, effectively matching supply and demand for local labour and bridging the education to employment gap is crucial for Qatar.

Young Qataris look up through the hierarchies in their organisations and see a greater degree of career advancement opportunities than anywhere else in the GCC. This, more than earnings or any other single driver of engagement, is the single most important source of motivation for GCC nationals in particular.

The Talent Enterprise’s recent employee research revealed key expectations such as career development, training, pay, work-life balance and authority as key motivators. From a retention point of view, having a clear career path, learning and development, and job security are of key importance to young Qataris. Educators, employers and policy makers have a crucial and central role to play in building the future employability of young nationals.

Desired progress can be achieved in encouraging students to make the right educational choices and counselling job seekers to find appropriate employment.

If the nation’s continued economic development towards a knowledge-based economy is to be sustained, Qatar needs to focus attention on helping make the private sector more attractive to young Qataris and encourage them to make themselves more employable to private sector employers.

With a young, growing and welleducated local workforce, Qatar certainly has all the right ingredients for success.

The question remains whether it can get the recipe right.

David Jones is the managing director of The Talent Enterprise, a HR consultancy based in the region dedicated to the advancement of human capital.

Empowering Qatari youth What can the labour market do to create a stronger bridge between education and employment to support a successful next generation workforce?

• Take a fresh approach to career guidance It is critical that we help match the key strengths and interests of young nationals and help them make the right career choices. Building key employability skills and strengths must also be given high priority in the education and development journey.

• Open up opportunities for internships: These opportunities provide students gain the muchneeded exposure and experience that is strongly lacking within their formal education.

• Promote private sector employment This will reduce the current dependence on the public sector as an employer. Building more innovative, equitable and less hierarchical work cultures can enable private sector to attract, retain and engage a young workforce.

• Leverage technology This can not only help students match their work preferences and work styles and personal strengths to the organisational culture and employer brands of various organisations, but also help them identify an employer with whom they believe they can have a long and sustainable employment relationship.

• Manage expectations Our research in the region has consistently revealed that career advancement opportunities, more than earnings or any other driver of engagement, is the single most important source of motivation for the GCC nationals in particular. However, career progression as an end in itself is not recommended and must be clearly linked to competence, performance and contribution.

The Edge | 61

Spillover Continued from page 41

Great Power Greater Responsibilty

go through a process of being modified and approved by the Qatar Chamber of Commerce and Industry, who seem to be the most resistant to these changes, and the Cabinet and ultimately must be signed by the Emir and gazetted to become an actual law. I hope these initiatives are implemented in the next few months, and all details of these proposals are shared.”

Crawford stresses the role of clients working in partnership with project managers and contractors to drive forward improvements in health and safety. While clients direct the ethical treatment of workers, main contractors must be responsible for subcontractors’ performance in health and safety. According to him, contractors should reward good standards of health and safety but at the same time be ready to take punitive action against persistent violators.

This, however, requires a change in the current priorities of clients and contractors alike.

The health and safety professional further tells that within Qatar, while the media reports on sites with high accident rates, there are many others completing millions of hours without losttime incidents.

The recent reforms proposed by the government could come into effect in a matter of weeks, according to DLA Piper’s report. The government, however, has not confirmed this.

That said, despite speculations on the next stage of the proposal, Crawford’s observation on disparate worker conditions at different sites leaves us with a bigger question: “If some companies within Qatar can still demonstrate ethical standards for their migrant workers, why can’t the others?”

62 | The Edge

Inside the minds of leading business figures

business insight Logistics challenges in Qatar are more predictable than the rest of the region > 64 In a conversation with The Edge, Nour Suliman, CEO of DHL Express Middle East and North Africa, talks about the Qatari market, the benefits that companies such as DHL bring to the wider business environment, and their role in the e-commerce of the region.

Creating new kinds of partnerships and revenue sharing models for the mobile industry 66 Lawrence Yanovitch, president of the GSMA foundation, spoke to The Edge about how to mobile can being used to help humanity, and the technologies aiding it.

Mobile money programmes such as M-Pesa which operate in Kenya create the ability for people in cities and remote areas to make money transactions in a safer and faster way, says Lawrence Yanovitch, president of the GSMA. Pictured are customers queuing for mobile money transfers through M-Pesa, in Nairobi, Kenya.

(Image Reuters/ Arabian Eye)

66

business insight | freight services

LOGISTICS

Logistics challenges in Qatar are more predictable than the rest of the region In an exclusive conversation with The Edge, Nour Suliman, CEO of DHL Express Middle East and North Africa, talks about Qatar as a market for the company, the benefits that companies such as DHL bring to the wider business environment, and their role in the e-commerce of the region.

Can you tell us about yourself and your role at DHL? As the CEO of DHL Express Middle East and North Africa, I am tasked with overseeing the company’s operations and strengthening partner relationships in the region, covering 19 markets. Prior to this role, I was the country manager for DHL Express Saudi Arabia.

I have been with DHL Express for more than 30 years and in all these years, I have also held various positions with DHL Express Bahrain, DHL Express Cairo and in the United Arab Emirates (UAE).

How do the infrastructure delays – such as the airport in Qatar – affect the delivery and logistics industry?

There is no denying that infrastructure works are a promise of an incredible future even if they cause temporary disturbances and difficulties. Sometimes, delays in infrastructure projects are 64 | The Edge

Nour Suliman, CEO of DHL Express Middle East and North Africa tells The Edge, “Technology tends to make life easier, and we always aim to leverage technology in ways that would benefit our customers.”

unavoidable because of their massive scale. Therefore, we have devised contingency plans to counter any effect caused by these delays. Overall, we have not really been affected by the delays and at the same time are confident that, once complete, it will definitely help in improving our services.

Logistically, how do you plan for issues such as traffic? Is there a reaction to circumstances or do you plan ahead?

We have a well-devised contingency plan where we have appointed several service points in different areas of distribution.

Moreover, we constantly work to keep our schedules and routes updated to make sure that our services are least affected by traffic bottlenecks and construction activities in Qatar. Since we know the Qatari market well, we have drawn our plans to address any possible obstacles and/or delays.

freight services | business insight

sheets. It also contributes to DHL’s ‘Go Green’ initiative as it ends hard-copy delivery sheets and eliminates the need to print and post hard-copy PODs. In addition, we have also launched online Shipping Management Solutions where customers can schedule their pickups online from their homes and offices, saving them a considerable amount of time and effort by tailoring DHL services well to their needs.

“Customers can schedule their pickups online from their homes and offices, saving them a considerable amount of time and effort.”

How does Qatar compare to the region in terms of challenges?

Fortunately, challenges in Qatar are more predictable compared to the rest of the region. Currently, we are facing mobility challenges as we have to plan alternative routes and fresh timelines.

Does DHL have systems and redundancies in place to tackle these issues? Are they standard protocols or are they customised to the specific location?

Since these challenges fall within our yearly business plan, we have proper systems and redundancies in place to tackle issues like delays, warehousing and distribution. DHL Express Qatar has formulated tailor-made solutions to deal with any kind of untoward situation or crisis to ensure the satisfaction of client, in terms of time, quality and efficiency.

How can firms benefit from a logistics provider such as DHL? We are in the business of creating business, which basically means that any delay from our side will affect our customers’ business, which is why our customers understand and appreciate the level of service we provide. Businesses can benefit from DHL’s expertise in international express, air and road transportation, and the experience of an international network of experts providing logistics solutions.

With regard to the use of technology to leverage the increase of efficiency, what are the new developments in this area?

Technology tends to make life easier, and we always aim to leverage technology in ways that would benefit our customers.

We recently introduced an Electronic Proof of Delivery (POD) service, capable of directly capturing customer signatures on screen – a first of its kind in Qatar. The unique Electronic Signature (e-Signature) capability eliminates the need for hard-copy POD

Is DHL investing in its own infrastructure in the region, and Qatar?

We are investing in many countries in the region, as it is important for us to grow across all markets. The UAE and the Kingdom of Saudi Arabia are our two largest markets and therefore we had announced earlier major expansion plans in both countries. These plans will not only improve the level of service in both countries but across the whole region. However, that is not all; we have plans for expansion in Egypt and Morocco, as well as new flights to Lebanon and Qatar.

Do you think logistics companies such as yourselves can play a role in the e-commerce market in Qatar?

E-commerce is a booming sector, which is growing at a rapid speed around the region. We are aware of the importance of logistics to this industry. Consumers who have made purchases online are eager to know if their shipment is in safe hands, will be on time and in perfect condition. Therefore, e-commerce companies trust leading logistics service providers such as DHL to deliver products to their customers.

How competitive is the delivery and logistics market in Qatar, and what does DHL do to differentiate itself from the competition?

Every industry is competitive, and competition is healthy and always benefits the customers and consumers. DHL differentiates from other delivery and logistics service providers as we focus on the people. We train, reward and recognise our employees, which is then mirrored in the level of service our customers receive.

How has the Arab Spring affected your business, and the industry as a whole?

The Arab Spring has not affected our business and we are on course with our strategy. It did not affect our business, or our way forward. We have experienced working in volatile and unstable conditions, offering out of ordinary solutions to continue delivering. We worked during the crisis in Libya, Egypt and Yemen and are still delivering in Syria because we are well aware that our customers depend on us.

What opportunities do you see in Qatar and the wider Middle East for DHL? Is the delivery and logistics market growing?

And if so, what is driving it?

We are growing in the double digits everywhere. The Qatari economy is expanding and so are exports and imports, and that directly affects our industry. DHL sees a promising future in Qatar as well as in the wider Middle East, as the delivery and the logistics sectors are growing rapidly in the country in light of Qatar’s robust growth in overall foreign trade activities.

The Edge | 65

business insight | mobile telephony

TECHNOLOGY PARTnerships Lawrence Yanovitch, president of the GSMA Foundation, which works in association with the GSMA, an organisation that represents the interests of nearly 800 mobile operators and 250 companies that serve the mobile ecosystem. He spoke to The Edge about developing partnerships between the private sector and the public sector around how to use mobile to help humanity.

Tell us a little about yourself and GSMA? As a child, I lived in Tehran, Iran, before the revolution and I saw a lot of the slums and poverty and particularly issues around women, and was really very challenged about the income disparity in the country.

I was very concerned at the start of my career about what we could do to fight poverty in developing countries, and so I focused a lot on microfinance building banks around the world for the poor.

What I had was an opportunity to see how women were empowering their lives through building businesses. But one of the biggest problems is that many women who were starting businesses in low-income communities lacked access to capital. So I ended up working at the Bill and Melinda Gates Foundation where I had the opportunity to see how mobile phones can be used to give low-income populations access to banking services, and that is how I became impassioned with working on the mobile development agenda and the GSMA is one of the best places to advance that agenda.

Tell us about the intersection of mobile and finance. How is access to mobile money helping people?

Well, first of all, one of the problems people face is safety. I. I was working in 66 | The Edge

Creating new kinds of partnerships and revenue sharing models for the mobile industry Afghanistan on building a microfinance project on the Iranian border, and it was dangerous to travel and transport cash around the countryside when you have security situations and no bank branches within hundred of kilometres. So one of the great values of mobile money is the access to digital currency, it makes it a lot safer to transport your money, but it does not just end there. It is also so much more efficient if you think about what it would take before the advent of mobile money for a low-income person in a village to transfer money to a child who, say, is studying in a distant city. They would send money through informal networks – give it to a bus driver for

instance. Mobile money helps to overcome those problems.

We have a large low-income migrant population in this country, what can kind of services can they gain, is it geared towards them?

We often thought that in microfinance, that micro-loans were the key, but we did not realise how complex it is when you are poor to manage your money. So the efficiencies around digital currency could be even more powerful than the banking or lending side of things. With respect to the populations here, I met a taxi driver in Doha last night who told me he was using

“If governments can have a long term view on working in partnership with industry to handle large infrastructure and data, then you can have a real economic revolution.�

One of the great values of mobile money is that it makes it a lot safer to transport your money in remote areas, Lawrence Yanovitch, the president of the GSMA tells The Edge, this has helped give lowincome populations access to banking services.

mobile money services to send money home to his family in Kenya.

Ooredoo has introduced such a services to send money from Qatar to over 200 countries. They also introduced services for Filipino residents in Qatar to transfer money directly into their bank accounts in the Philippines via their phone.

Can you tell us about your work with Ooredoo group?

Dr. Nasir Marafih (CEO of Ooredoo Group) is the chairman of our foundation board. One of the reasons we selected Ooredoo is because it is at the forefront of mobile innovation for social impact, it is part of their brand.

What I am really proud about in Ooredoo is that there is a lot of conversation in the international community about companies doing well by doing good, that you can increase your profits if you take your customers and your employees, keep them always in mind, and that is what I see Ooredoo doing.

I had the opportunity to go to Iraq a year and half ago, and I was very impressed with what Ooredoo had done with its subsidiary AsiaCell on a programme called mWomen. The focus was to look at women as a distinct market segment, and research what women wanted separately from men. They introduced a specific product offering that permitted women to have their own service where they were able to interface with female agents, female call service providers as well as having a specific package and plan that was based around their air time usage. They had a huge increase in female subscribers within 18 months, they had two million women who had access to mobile connectivity. When I look back at microfinance, it took me 15 years of my life to reach a million women through microfinance.

Mobile penetration is high in this region. What opportunities does that create for both the private sector and government, and how can they leverage connectivity?

We have just seen the tip of the iceberg. I think a lot of the digital future lies with youth. Alvin Toffler the great futurist wrote Future Shock this fantastic book in the 1970s where he

suggested that each new generation would adapt more quickly to technology, and we have seen that.

Can you talk about the mobile spectrum challenge? What is holding it back?

Well I think the issue around spectrum is that there is lot of interest in increasing the quality of mobile service and channelling large amounts of data through the networks. The GSMA has the aspiration to increase the number of mobile subscribers that have access to the Internet through your mobile phones by a billion by 2020. In order for that to happen, we need to have access to more spectrum and to be able to handle these large volumes of data so if governments can have a long term view on working in partnership with industry around what is required to make the investments of this infrastructure, to handle this large infrastructure and data, then that is where you can have the real economic revolution. If there is a short-term view, then we cannot really grow and reach our potential. The GSMA foundation is a charitable entity, and what we focus on is on what happens once people have access to connectivity and all the things that can be built whether its mobile money, access to health, access for small farmers to agricultural information, but unless the mobile industry and governments collaborate effectively, then you will not be able realise this potential.

What other public policy work is the GSMA involved in? And what is the one biggest challenge in the mobile industry you see?

Well I think we need to think about public policy in a much larger way, its not just governments and private sector, it is governments, civil society and all the stakeholders in this new digital society/ econom. It is the entrepreneurs, it is the adjacent industries, the banks, so the biggest challenge is that this innovation has happened so quickly that it is hard for all the players to come together around a joint vision for a digital future where the pie can just expand for all.

The Edge | 67

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automotive | product & reviews

Reviews Ford

Fiesta

F

ord’s 2014 Fiesta caused a stir when it was first released in both the United States and Europe, mostly due to Ford’s patented 1.0 litre EcoBoost engine which does 40 miles to the gallon. EcoBoost engines deliver fuel economy (gains of up to 20 percent) and reduction of CO2 emissions of up to 15 percent, compared with larger, lessefficient engines. While saving money on petrol is not likely to be a concern in Qatar, for those who want a vehicle that is environmentally friendly without having to buy a hybrid, this is certainly as close as

one can get. The car still manages to deliver 123 horsepower, giving more horsepower per litre than a Lamborghini Aventador (at 108 horsepower per litre). The EcoBoost’s technology is fundamental to Ford’s strategy to provide high-output, smallerdisplacement powertrains that deliver good performance and fuel economy.

The Fiesta is also packed with technologies and features such as a 6.5inch touchscreen that features enhanced voice control, providing drivers more options for navigation, communication and entertainment functions. Ford’s MyKey is a

new feature on the Fiesta, which enables parents in particular to encourage safer driving and limit their teenagers’ exposure to risk at the wheel. The system allows owners to configure maximum speed and audio volume limits. It also mutes audio until seat belts are fastened and ensures driver aids, safety systems and more vigorous alerts cannot be deactivated when used. The starting price for the 2014 model is QAR59,900 including three-year/60,000km free service and maintenance, and five-year/100,000km extended warranty and roadside assistance.

The Edge | 69

products & reviews

Read it:

The Chimp Paradox Picking up where we left off in The Edge book reviews last month, we continue by starting with another self-help book. But this one is quite different, as it postulates that you have a monkey living in your head. Yes, a primate, in the form of a not-so-loveable chimp.

Not a real one of course, but a virtual chimp within the limbic part of your brain, which, on a very simplified level, explains author Dr. Steve Peters, controls our emotions and more specifically the irrational responses and reactions we exhibit when confronted by every curveball life throws us (actions and words, many of which we later regret).

Dr. Peters, a highly qualified academic and renowned psychiatrist (whose mind management techniques have been credited with contributing to the eight gold medals earned by the British cycling team, among other sports teams he has been involved with), is of course not taking himself entirely seriously when he postulates the above.

The entire book is more of analogy, and early on the author explains that this ‘chimp’– which is not your real self – cannot be totally controlled but can be properly managed. In doing so via various techniques laid out in the book, we can learn Available at Virgin Megastores in Doha.

to improve our lives and become successful and happy (which of course is the aim of every self-help book known to man).

We start this process by recognising the “chimp within” and learning to understand his (or her) behaviour, which is based on emotional thinking, such as suspicion and overly passionate reactions to stimuli.

Our true self, writes Dr. Peters, housed in the frontal lobe (and represented in his book as a smiling stick man) is instead more concerned with facts and the truth. Thus learning to separate the two (the paradox part of the title) and handle the mad little monkey in your head, is the essence of his theory and this weird but oddly engaging book, which also holds that seven different areas of our mind can be represented as planets or the “Psychological Universe in your head” as Peters writes. Oddly engaging indeed.

Read it:

The Snowball: Warren Buffett and the business of life The first thing to note in this “updated and condensed version” is that it is still 700 pages long, a testament to the long and interesting life that Warren Buffett has led. This is not the first time we have reviewed a book related to the Oracle of Omaha, but this is perhaps the most personal.

Author Alice Schroeder, who was picked by Buffett to be his biographer, does a remarkable job of blending stories of the personal with business. The first few cents Buffett made was from

Available at Virgin Megastores 70 | The Edge

selling packs of chewing gum, at age six.

He tells the story of how Mrs. Macoubrie wanted only one stick of gum, but as Schroeder tells it, if he opened the pack and sold the one stick, he would have four sticks left to sell to somebody else, and this just was not worth the risk. At age six, we see on display the level-headedness and ability to see the risk and reward of a situation that has made him one of the most prolific investors of our time.

The first pennies he made selling gum “became the first few snowflakes in a snowball of money to come”, writes Schroeder.

The personal details of Buffett’s life growing up and early career combined with nuggets of sage advice from a shrewd investor, make it a biography unlike many others.

Schroeder, a former insurance stock analyst at Morgan Stanley, brings the added value of being able to explain very well many of the financial decisions Buffett made and help the layman understand complex financial principles.

This latest edition is revised and updated in light of the financial crisis, and is a must-read for anyone interested in getting to know the complex man behind his larger-than-life image as a legendary investor.

products & reviews

HP Slate VoiceTab

App Reviews

The HP Slate VoiceTab is a compact, full-featured tablet powered by a Quad-Core processor and built on the Android operation system.

It comes equipped with a 3G Dual SIM Standby feature. The tablet has front-firing stereo speakers for better sound quality. Its new IPS Panel delivers a better viewing angle, while offering vibrant colours and a responsive touch.

The Walkman NWZ-B180

Sony’s latest Walkman has a playback time of 20 hours and a quick charge feature that provides 90 minutes of power after a three-minute charge. The Walkman NWZ-B180 features a new aluminium body. Eliminating the need for cables, the device also has a built-in USB allowing for the easy transfer of content from a PC. With 4GB worth of memory, the new digital media player can store up to 890 songs with the BASS Boost feature.

Rado Esenza Ceramic Touch

Nuzzel

If you are not one of those people who obsessively check their Twitter feeds every minute but want to know when people are discussing something important, Nuzzel might be the app for you. Add your Twitter and Facebook accounts to Nuzzel and it notifies you when multiple friends share an article.

BMW Qatar If you own a BMW in Qatar, here is a nifty app that allows you to request service appointments through the app. A simple app, it also shows you locations of various service centres around the country.The app allows users to browse through its new models, a selection of pre-owned models and even schedule a test drive.

Finances Rado Esenza Ceramic Touch Fibonacci Colours is the latest range of watches designed to strike a balance between jewellery and timepiece. The collection features three colours – orange, blue and green. The cases and bracelets are made from lightweight, scratch-resistant and highly polished high-tech ceramic. In stark contrast to the shiny black are the 534 precious stones that appear on each face.

Canon EOS 1200D Salam Stores and Canon have unveiled the new Canon EOS 1200D – a new entry level DSLR. Designed for first-time DSLR users, the EOS 1200D is Canon’s first model to be launched with an EOS Companion app for mobile devices (compatible with iOS and Android

Apps that claim to help you manage your finances are awash in the App Store. But Finances does all the essentials and has a beautiful user experience (UX) that makes it a good choice. It might take some getting used to in the beginning, but the visualisations of spending habits is a useful feature if you are looking to make some changes.

The app also reminds you through notifications to add all your expenses.

devices), which offers helpful tips and tutorials to help you get the most out of your new camera. The EOS 1200D combines Canon’s world-class imaging system with a range of intuitive, easy-to-use controls and automatic shooting modes.

The Edge | 71

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