“Manufacturing industries to play a key role in Qatar’s transition from a hydrocarbon economy,” – Richard Keery, HSBC Qatar
contents June 2015
w w w.t h e e d ge. m e
Business Interview: Emad Al Khaja, Injaz Qatar’s new executive director, talks ‘gen next’
- June 2015
36
42 Emad Al Khaja, Injaz Qatar’s newly appointed executive director, speaks of his team’s ongoing commitment to developing the next generation of business leaders.
- QATAR’S BUSINESS MAGAZINE - Vol. 7 No. 6 - Issue 68 - June 2015
cover story
Vol. 7 No. 6
FEAR OF A
NUCLEAR IRAN
Major global powers prepare to strike an unprecedented agreement with Iran to suspend its nuclear programme as Gulf states watch on
Can the Middle East keep pace with the IT trends of Silicon Valley?
100% Qatari
“Manufacturing industries to play a key role in Qatar’s transition from a hydrocarbon economy,” – Richard Keery, HSBC Qatar
PLUS: Employment’s “tech gap” Construction inflation GCC food overconsumption
Politics and diplomatic machinations aside, given its massive reserves of oil and gas, what might the fallout of Iran’s nuclear deal with the P5+1 nations be for Qatar, should economic sanctions be lifted on its Gulf neighbour – with whom it shares the world’s largest non-associated gas field – not to mention the wider regional and international hydrocarbons sector? The Edge special energy correspondent, Simon Watkins, offers analysis.
features
Business Interview: Connecting corporate experience with the educational sector 42
Preparing youth for the job market is a priority agenda in Qatar, with Injaz Qatar having played an important role since 2007. Emad Al Khaja, Injaz Qatar’s executive director, talks about Injaz’s achievements, its challenges and its plans in the coming years.
Feature Story: Can Middle East keep pace with the IT trends of Silicon Valley? 48
Experts on the field at EMC Corporation’s annual corporate gala for its clients, vendors and partners held at Las Vegas, give their take on the region’s IT adoption to The Edge’s Aparajita Mukherjee.
Business Interview: Manufacturing key in Qatar
54
In an exclusive conversation with The Edge, Richard J. Keery, head of commercial banking, HSBC Qatar, gives his views on the opportunities that infrastructure investments open up for financial institutions.
48 Revealing the demand of the data storage market in the MENA region, the EMC Digital Universe states that the digital universe in the MENA will grow from 249 Exabytes (1 EB = 10006 bytes = 1018 bytes) in 2014 to 1835 Exabytes by 2020, an increase of more than 600 percent, (Image Reuters/Arabian Eye)
The Edge | 3
contents
sectors
Finance & Markets 25
Qatar is increasingly looking eastward for investments to diversify its geographic exposure while low levels of inbound and domestic mergers and acquisitions are set to remain.
Energy & Sustainability 27
Introducing... The Edge's Weekly
News that India is in talks with Qatar to import at least 10 percent less liquefied natural gas (LNG) this year is entirely in line with the continuing negative price trend in global hydrocarbons pricing.
PODCAST
The Edge now has business news podcast on the Ginger Camel Media Network. Hosted by our Managing Editor Miles Masterson and featuring the editors of The Edge and QCN magazines as well as special guests, The Edge Business News podcast covers business news, current affairs and analysis of the main news stories across all sectors related to the economy and society in Qatar, as well as Arab countries and the rest of the world. Please subscribe The Edge Qatar Business News podcast and download our weekly edition for the up to date insights into the world of business in Qatar and beyond.
An LNG carrier at the Indian port of Kolkata. India is attempting to renegotiate the terms of its 25-year LNG deal with Qatar, struck in 2004, due to depressed global energy prices.
Real Estate & Construction 31
Although Qatar’s construction inflation has been flat so far for the building and real estate sector, industry players fear it can rise up to seven percent by the end of next year.
Tech & Communications 33
As tech-savvy professionals turn to social networks in search of jobs, a sizable segment of employers in Qatar are still relying on their own websites, print media and online career websites.
Business Insight 59
James McGowan, regional brand communication manager, Ikea Qatar, UAE, Egypt and Oman, discusses how the Swedish store caters for the local taste in furnishing. Andy Winns, chief executive Lockheed Martin Andy Winns, chief Middle East, talks about its executive Middle East Middle East business presence, Lockheed Martin, talks about the prospects and what Qatar means company’s regional presence. to it in terms of its business.
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From the Editor 8 Photo of the Month 10 Business News 12 Qatar Perspectives 20 Products 65
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Considerations in Cold Chain Logistics In preparation for the 14th Annual European Cool Chain and Temperature Controlled Logistics Summit, event organizers Cold Chain IQ conducted a survey of over 100 temperature control and quality professionals to gauge their priorities and concerns for 2015. Chief among their priorities was improving the quality and safety of their supply chain – a concern made greater by the fact that 57% of respondents reported that they outsourced their cold chain logistics. This made establishing successful logistics partnerships a top priority, and was why 40% of respondents demanded more visibility and control over the processes governing their supply chain. Proper cold chain services are vital for any national food security plan, which addresses a fundamental human need to know that the food and drink we are consuming will do us no harm. As part of the National Vision 2030’s efforts to ensure the Qatar’s human development through enacting health initiatives across the board, ensuring the safe handling and storage of food has become one of the nation’s priorities. Gulf Warehousing Company has done its part to provide the best cold chain solutions possible to the nation, and here are some of the considerations we found must be taken into account when providing refrigerated and chilled warehousing. The Right Qualifications: Ensuring that the location you have chosen to store your items has been properly inspected and certified is high on the priority list. The industry recognizes both the ISO 22000 for Food Safety Management Systems and the Hazard Analysis and Critical Control Points (HACCP) as the best industry practices, both addressing the various biological, chemical, and physical hazards that might endanger food safety and provide processes to address these risks. It is important to note that these are certifications that are given to sites, not organizations, which mean that it is the site that is inspected and certified, such as our facilities in Street 15, Street 41, and the Logistics Village Qatar. Additionally, the State of Qatar requires that all personnel handling food or present at any of the food stores must have the necessary Municipality Food Handling Certification, which is renewed annually after health checks. The Right Temperature: It is important to store every food item at the right temperature to ensure both its safety and its structural integrity. Ice Cream might crystalize if it’s not stored at a temperature of -25 C. Frozen meats and vegetables must be stored at -18 C, whereas general food items such as cheese or pickles do best at +3 C. Finally, confectionary items such as chocolate are stored at +18 C, again to ensure its safety but also to ensure the preservation of flavor. Facilities that offer more than one storage temperature are separated into chambers, with the temperature in each chamber closely monitored. The Right Equipment: Maintaining the cold chain must be looked at holistically: temperature monitoring devices (TMD) can be used to ensure a cold shipment’s temperature is tracked during shipping, storage and distribution. The right airlocks and a cold dock as well are important in ensuring that the cold chain is not broken.
Additionally, Gulf Warehousing Company has found that the Very Narrow Aisle (VNA) racking system, which stores more items in less space by narrowing the space between the racks, is perfect for food storage. In refrigerated and chilled environments, however, modifications have to be made to most VNA systems, in order to avoid the hydraulics and oils in the systems from freezing and seizing up. For our employees, we find that thermal wear imported directly from the UK ensures their safety in these extreme temperatures. The Right Practices: Our employees are instructed in the best practices and systems to ensure that food safety is never compromised. The Warehouse Management System (WMS), which tracks the whereabouts and expiry dates of the stored items through a number of hand-held RF terminals that report to a central server. Our clients can then refer to reports published in real-time to see where there items are at any time, providing complete transparency. Among the requirements for such practices are the following: • Appropriate Quality Management System in place, with written procedures and clear records • Controls must be set on the supply chain, particularly for key factors such as temperature, humidity, and even exposure to light • Appropriate resources must be provided for the activities performed, such as building management and temperature control systems • An individual must be nominated to take personal responsibility for the quality system • There must be an emergency plan in place to recall items from the market if the need arises Forming the practices followed at any facility is a sophisticated and evolving process. New formulations come to the market all the time, which create a massive logistical challenge that takes place almost entirely behind the scenes. These practices and considerations, however, go a long way to ensure that these products are handled and delivered safely.
editor’s letter The impending agreement between Iran and the five most powerful countries of the United Nations (UN) – namely, the G5+1, the United States (US), Russia, China, the United Kingdom (UK) and France, plus Germany – has enormous global repercussions on many levels (assuming of course that nothing scuppers it between now and the date set for its signing on June 30). For one, on a diplomatic level it will set a precedent arguably not seen since the Cuban Missile Crisis between Castro and Kennedy in the US in the 1960s. Though that incident had far more urgency and immediate tension in imminent threat of all-out global thermonuclear war, the Iran/G5+1 deal has a similar gravitas, perhaps more over the longer term. With rightwing hawks in the US already calling for an invasion of Iran, one shudders at the level of their shrill, should it be proven the Ayatollahs have the capability to produce an atomic bomb. The last thing the Middle East and indeed the world needs is another war in the Arab world (save perhaps those who stand to profit most in the military-industrial complex). This agreement, for those who have not been paying it any attention, basically stipulates that aggressive global economic sanctions against Iran will be removed in return for their abandonment of plans to become a nuclear power. It would, ostensibly, help to prevent a full-scale conflict between Iran and, well, anybody else. In terms of foreign policy, the agreement, largely led by the Americans, could also be considered to be a major success for the Obama administration, whose international strategy has been heavily criticised almost from the day he took office. Indeed, repercussions of a successful conclusion to the Iran deal could be that it might go some way to ensuring that fellow Democrat Hilary Clinton enters the White House (which will, one might hope, affect US relations with the Middle East in a more positive way than having warmongering Republicans in power).
In addition it could – as has been suggested – be used for a template for striking similar deals with other ‘rogue’ nuclear states such as North Korea. Ideally, this agreement could also, at least even slightly, herald the beginning of improved relations between Iran and its Gulf neighbours. Theoretically, any slight thawing in the icy relations between Iran and the Arab world might mean that there is less chance of any regional hostilities escalating uncontrollably in the future. Naturally the relevant hostilities in the Middle East are centuries old and mired in sectarian, cultural and territorial convolutions. Thus, the Gulf Cooperation Council (GCC) countries especially are the most sceptical towards allowing Iran more economic and diplomatic power. This is a point US president Barack Obama has been so keenly aware of. He invited Qatari leader HH the Emir Tamim bin Hamad Al Thani and his GCC peers to the US recently to assure them that this deal would improve, rather than worsen, the status quo in the Middle East. But beyond the level of diplomatic and inter-nation relations, the concern of the Gulf monarchies is even more understandable when one considers that the Iran deal also has another enormous, potentially game-changing repercussion on the world economy and that of the GCC states and Qatar in particular. As our energy special correspondent Simon Watkins points out in his cover story Fear of a Nuclear Iran on page 40, Iran holds enormous reserves of oil and gas. Should sanctions against Tehran be lifted entirely, the effect on an already volatile global hydrocarbons sector will thus be marked. Yet, as Watkins points out, as in all such situations there are caveats and complexities that do not necessarily mean a negative outcome for Qatar, which shares with Iran the world’s largest gas field and founding membership in the Gulf Countries Exporting Forum (GECF) – and its oiland gas-producing neighbours. Two things are for sure though, should this historic agreement be signed, what follows will be extremely interesting and significant to all who reside in the Middle East and moreover the deal has the potential to meaningfully alter the political, diplomatic and economic landscape of the region forever.
Should sanctions against Tehran be lifted, the effect on the volatile global hydrocarbons Miles Masterson sector will be marked. Managing Editor 8 | The Edge
Photo finish 10 | The Edge
photo of the month
Hagos Gebrhiwet of Ethiopia finished ahead of Mo Farah of Great Britain to win the Men’s 3000-metre race during the International Association of Athletics Federations (IAAF) Diamond League 2015 meeting, held at the Qatar Sports Club in Doha in May. Eleven world leads and four Diamond League records were set at this year’s Qatar stop of the prestigious athletics series, which was attended by many of the world’s top track and field stars. A standout performance came from Cuban long jumper Pedro Pablo Pichardo, whose distance of 18.06 metres is the furthest any human has jumped in almost 20 years and placed him as the third best long jumper of all time. (Photo by Francois Nel/Getty Images) The Edge | 11
news
business news
Health and safety standards remain a serious concern in Qatar’s construction industry
main story 12 | The Edge
May’s fatal crane collapse incident, which killed at least one person and injured three others, has once again raised serious concerns about the health and safety standards of the construction sector in Qatar. by Syed Ameen Kader Sunday morning, May 17, could have been far more deadly had the crane not fallen short by a few metres of a usually busy intersection of F-Ring and Airport Roads. In another incident, a British expatriate in his 40s was killed when a shipping container, reportedly carrying scaffolding materials, came crashing onto his vehicle from a passing truck at Corniche in the following week on May 25. Although these two accidents are not related, they raise questions whether it is merely a coincidence that both involved construction sector activities – one being a mishap while equipment was being set up; another when machinery was being transported. Incidents of such nature do not only threaten the lives of construction workers but also the general public who might fall victim to shoddy health and safety practices adopted by contractors or construction companies. Countries such as Qatar, which is undergoing massive construction activities across the state, are more vulnerable to such incidents due to the scale of work. Remember, Doha has a number of ongoing projects – many of which are at busy public areas that see heavy vehicle and pedestrian movements. But is it that more construction work means more accidents? Yes, should industry studies be believed. According to a research report titled, Tower Crane Incidents Worldwide, brought out by Britain’s national regulator, Health and Safety Executive (HSE), in 2010, 65 percent of a of total 86 tower crane incidents that occurred during 1989 to 2009 actually took place between 2005 and 2009 – a period that has seen a boom in the construction industry around the world. Certainly, the volume of work does not justify having a greater number of construction-related accidents. Industry players involved in the health, safety and environment (HSE) in Qatar told The Edge that it is more to do with the state of HSE practices in Qatar than the scale of projects. “It’s [health and safety] is far from world standard, only major international construction and oil and gas companies are at par with the world standards. Mostly you see window dressing here, as slogans such as ‘Safety First’ on buildings, where the sign itself is the best part of the safety commitment,” said a senior HSE expert, who did not want to be named. In general, he added, paperwork is done in order to obtain approval, but he alleges, actual construction safety on site is almost non-existent, “as most projects are measured commercially and not by safety or quality”. Industry experts also suggested that major causes of accidents are lack of training, planning and having the right skills available on site and that low levels of management awareness and a lack of proper supervision processes are to be blamed for many of the accidents.
Andy Reid, business development manager at Qatar International Safety Centre (QISC), agreed, “Unfortunately, most companies or contractors only think about how much the training costs. This may not be their company policy. However, procurement departments don’t know technically about the quality of training that they may be buying in to, all they seem to compare is the costs.” Reid, who has been involved in safety training for the past 25 years, told The Edge even major high-profile projects do not budget for HSE training requirements while tendering for work. What led to the crane collapse last month in Doha was still part of an investigation at the time of writing but, historical analysis of 86 tower crane accidents worldwide reveals that 34 percent (29 incidents) were due to erection/dismantling of the crane, whereas 18 percent (15 incidents) happened due to extreme weather conditions, followed by other issues such as foundation, structure, misuse and electrical/control system. To take extra precautions while using tower cranes inside the city, Don Boynton, Mechanical, Electrical and Plumbing service group manager at GHD, suggested providing pedestrian protection in the form of hoarding like in other countries. “We should establish a professional organisation in Qatar for people who are operating cranes and slinging loads. Also, we should provide alternative pedestrian walkways around a site that does not require people to walk on busy roads,” Boynton concluded.
news
by the numbers Online job sites changing the recruitment landscape As companies and job seekers continue to move towards a more technology-enabled world, online headhunting will drive the future of the recruitment industry. In an interview with The Edge’s Farwa Zahra, Ibrahim Badreddeen, country manager, Qatar at Bayt.com, shares more about Qatar’s evolving job market. What are some of the major challenges of recruitment in Qatar? Finding the perfect candidate is always a challenging exercise, and with millions of talented professionals out there, there is a huge range of skills, experience and qualifications to choose from. According to our Bayt.com poll, a third of employers in the Middle East and North Africa (MENA) region consider sourcing relevant candidates to be the single biggest challenge they face when hiring senior executive talent. Could you share some statistics about the Qatar job market? The Bayt.com Middle East Consumer Confidence Index Survey, March 2015, has shown that in Qatar almost four in 10 (38 percent) respondents believe that the country’s economy has improved in the last six months, while 58 percent expect things to get even better in the next six months. From an economic point of view, the availability of jobs is strongly tied to the economy in any given country. Six in 10 respondents in Qatar consider jobs to be plentiful, with expectations for more vacancies to open up during the next six months. How has the recruitment process evolved over the years? The conventional methods of hiring were very time consuming because most of the recruitment used to be done through headhunting agencies or referrals. But I think the recruitment landscape has evolved in recent years and it is changing for the better. From being a source to recruit only entry and mid-level professionals, job websites have now emerged as a major platform to hire across the entire career spectrum, including top executive talent or C-suite.
NUMBER OF THE MONTH
73%
The percentage of private multinationals who participated in the Bayt.com Middle East Job Index Survey, February 2015 said that they would be probably or definitely hiring in a year’s time. The survey revealed that 67 percent of companies in Qatar are either definitely or probably hiring during the same time.
IT Report: Qatar is most aware of cyber laws among GCC IT professionals
1 in 5
participants were aware of an online privacy violation in the past 12 months and
38% 23%
38%
of IT professionals in Qatar say they understand the local cyber laws compared to
23%
average across the GCC, according to a recent survey of 500 IT workers by Gulf Business Machines (GBM).
86%
of participants are concerned with data and identity theft that could result from having to provide personal data while making online transactions.
3 out of 5
participants blindly accept online terms and conditions, which in turn may lead to privacy breaches.
In Qatar
30%
80%
accept terms and conditions without reading them before downloading and installing apps on their mobile devices.
are not aware of any cyber threatening incident in their company in the past 12 months.
80%
said security and privacy were considerations made when choosing a mobile application.
Key GCC findings included that
50%
of respondents use only one type of security measure to access data on their mobile devices, generally a password or PIN.
10%
or less executives use appropriate security measures.
14%
of GCC respondents use no form of security on their mobile, for example, a PIN, password or fingerprint recognition.
Source: Gulf Business Machines Security Survey 2015
The Edge | 13
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business in quotes
“The United States will stand by our GCC partners against external attack and will deepen and extend cooperation that we have.”
Business News in Brief Al Tamimi chosen as law firm of the year
Al Tamimi & Company has won the Corporate Counsel’s Middle East Law Firm of the Year Award for its excellence in training and employee development schemes. The judging panel praised the law firm’s commitment to the advancement of local legal talent and client care. Over the last 12 months, the firm grew to over 600 employees and now has 52 partners. The firm also expanded its operational presence by opening new offices in Cairo and Jeddah in 2015. The Corporate Counsel Middle East Awards, hosted by Legal Week and now in its fourth year, celebrates legal excellence in the Middle East and is open to in-house legal teams and law firms operating throughout the region.
United States (US) president and commander-in-chief Barack Obama at a summit held in May at Camp David in the US with the Gulf Cooperation Council (GCC) leaders to discuss the impending G5+1 agreement with Iran (see cover story). Obama was addressing misgivings expressed by Arabian Gulf states over the proposed deal with their long-time regional archrival. Post-event, a joint statement was issued by the leaders affirming that in the event of tensions escalating in the region, the US would stand by its Arab allies “to determine urgently what action may be appropriate, using the means at our collective disposal, including the potential use of military force, for the defence of our GCC partners”.
“We speculate maybe Russia loses it - will they, won’t they? Russia and Qatar will be played, I don’t want to go into more speculation.” Walter De Gregorio, FIFA Director of Communications and Public Affairs at a news conference at FIFA headquarters in Zurich, Switzerland, May 27, 2015 following the arrest of a number of soccer officials in Zurich. The officials have been detained pending extradition to the United States over suspected corruption at soccer’s governing body FIFA, the Swiss Federal Office of Justice said in a statement. “Let me say that the general secretary [Jerome Valcke] and the president [Sepp Blatter] are not involved,” says De Gregorio in response to questions regarding how far the alleged corruption permeated FIFA. “Now you certainly have questions, when it comes to the answers there is hardly anything more we can say with regards to the procedures than what has been written and said by the attorney’s office an hour ago. In spite of what has been said, we are very happy right now. It is once again FIFA suffering under the circumstances.” (Image Arabian Eye/Reuters)
14 | The Edge
Al Tamimi & Company partners (Izabella Szadkowska, Ahmed Allouz, and Garry Watts) at the Corporate Counsel Awards.
London’s Centre Point project woos Qatari investors
Almacantar, a property development and investment company, recently unveiled redevelopment plans for the London’s most iconic Centre Point building to Qatari investors. Located in the heart of the United Kingdom’s capital at the east end of Oxford Street, Centre Point tower will offer 82 exclusive residential apartments, ranging from one-bedroom apartments to a four-bed duplex, with uninterrupted views of London. The redevelopment of the project is expected to be complete in 2017, at the same time as Crossrail, a new high frequency railway line that opens with direct fast access to London’s Heathrow Airport. The revival of iconic Centre Point opens up a new opportunity for Qatari investors to own a part of what will become one of the London’s most prestigious residential addresses.
business in brief SWBH opens Najd hotel at Souq Waqif Souq Waqif Boutique Hotels (SWBH) has opened its newest Najd Boutique Hotel in the heart of historic Souq Waqif in Doha. The 15-room property offers an architectural landmark with its majestic Arabian design and state-of-the-art amenities, representing a blend of originality and modernity. Taleb Al Henzab, general manager at SWBH, said, “The brand has quickly earned itself a preeminent place on the world tourism map and become a destination of choice in Doha’s heritage-rich Souq Waqif.”
GWC gets approval for a new rights issue
Gulf Warehousing Company (CWC), a Qatari shareholding firm, has received necessary approval from the government to increase the company’s capital by 25 percent. This will be equivalent to 11,890,244 shares, at a nominal value of QAR10 per share, and an issuing premium of QAR28.50 per share. This follows the company’s strong first quarter results, which recorded 40 percent increase in net profits, achieving QAR40 million, in addition to total revenues peaking at QAR196 million.
Winners of ‘SeeMyDoha’ photography competition announced
Mohamad Jaidah, group executive director of the Jaidah Group and Abdul Razzak Al Kuwari, manager of the Minister of Culture, arts and heritage’s office with two of the winners.
Jaidah Automotive, the exclusive dealers of Chevrolet branded motors in Qatar, and the official organiser of the ‘SeeMyDoha’ photography competition announced the winners of the second edition of the competition at an award ceremony held at the Souq Waqif Art Centre in an exhibition showcasing all the nominated pictures. The top three entries were chosen out of 26 finalists by an expert panel of judges.
news
Start-up Watch ShababFalcon Launched in May, ShababFalcon is a Qatar-based shopping portal for clothes that promises fast delivery of international brands as well as collection from local designers. The fashion e-tailer is the brainchild of four individuals – Mohammed Khalaf Al Mohannadi (management), Mohammed Asif (engineering and operations), Hamdi Shoukath (sourcing and community relations) and Mayouf Rouf (marketing and communications). by M. Iqbal How did this idea of fashion e-tailer come to you? It all started when one of our friends placed an order online from a popular fashion website based out of the United Arab Emirates and had to wait 42 days to get it. In Qatar, most of the local e-sellers or designers are based on Facebook and Instagram platform, which are not always curated, and only a few businesses offer home deliveries. We realised there is a better way of doing things as there was no brand that properly represented Qatar and thus ShababFalcon was born. How is ShababFalcon different from other online retailers in Qatar? Some of our differentiating factors are financial customer support, timely deliveries and choice of payment options such as cash-on-delivery or card. We offer curated, authentic, home-delivered fashion and lifestyle goodies, which customers can order online, without going through multiple social platforms. This also offers a better-managed, professional and dependable channel to small and homebased fashion and lifestyle businesses. We help them deliver products within 24 hours and give them access to customers on multiple platforms. What were the challenges you faced while executing the project? The biggest challenge we have faced so far
A screenshot of ShababFalcon’s app, available on Google Play and the Apple App store.
is reaching out to suppliers, and educating small retailers about the advantages of being online. How has the response been since launch? We have had an overwhelming customer response and have been busy fulfilling orders from all over Qatar. We also received some good feedback to tweak the platform. We launched our iOS and Android apps during the Qatar Business Incubation Centre’s Demo Day on May 19. Even before we launched the app, 80 percent of our orders were being placed via mobile phones. What are your plans for the future? Our immediate focus is to diversify our products to meet our customers’ needs. We want to become a one-stop shop for alternative and unique fashion in Qatar as well a curator of local brands. www.shababfalcom.com The Edge | 15
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events
Business Events Calendar June-September 2015 10-11 June WRPTS
The 4th World Refining and Petrochemical Technology Summit (WRPTS) 2015 has been moved to a new date and is now happening in June instead of May. The flagship event for the petrochemicals and refining industries brings together key professionals such as plant heads, head of petrochemicals and refineries, senior managers, production and process engineers from global and regional companies. The event will host more than 20 sessions, providing a unique opportunity to hear firsthand from senior industry leaders.
Events Listing June 31 May-3 June Underground and Deep Foundation Qatar
The WRPTS will offer an opportunity to meet some of the biggest decision-makers from the major oil, gas and petrochemical sector across the Middle East.
Tony Buzan is the inventor of Mind Maps considered by many as one of the most powerful thinking tools in the world.
8 June Mind Mapping Seminar
The world’s renowned speaker Tony Buzan is visiting in June to address a thoughtprovoking seminar, entitled Mind Mapping in Doha. Buzan will share his groundbreaking techniques that have produced some of the most mentally fit people in the world. ‘Use Your Head’ is a workshop that will provide you a brain workout tool and will guide you how to maximise your brain power. This could be an interesting session for key decision-makers such as CEOs, directors and senior managers, as well as all for those who are keen to improve their individual and organisational performance through better time management, inspired solutions to problems, enhancing memory skills, and brainstorming.
18 | The Edge
1-3 June CHRVI Qatar
This month’s exhibition on Cooling, Heating, Refrigeration, Ventilation and Insulation International (CHRVI) can be a good platform to explore new technologies and solutions in the heating, ventilation and air conditioning field. As sustainable development continues to be a hot topic in the region, this event offers an opportunity to display the latest products and solutions to targeted audience who are mainly trade buyers, consultants, engineers or end users.
1-3 June CHRVI 7-8 June Big Data and Analytics Workshop 10-11 June WRPTS 8 June Mind Mapping Seminar
September 6-9 September Port Development Week 7-8 September Future Interiors Qatar (Project Qatar)
A wide range of latest HVAC technology will be displayed at CHRVI that takes place between June 1 and 3 in Doha.
8-9 September 4th Annual ITS & Road Safety Forum
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Tourist Industry Licensing in Qatar Even before its successful FIFA World Cup bid, Qatar had planned a major infrastructure programme. The award of the 2022 FIFA World Cup has given a greater impetus to infrastructure development and has served to create a timeline for delivery. The numbers are staggering (particularly given the size and current population of Qatar); US $35 billion for a new rail project, US $20 billion for upgrading the road network, US $11 billion on further upgrades to the Doha International Airport, US $5 billion on a new deepwater sea port, new and refurbished sports stadia and 170 hotels comprising over 70,000 hotel rooms. Of particular interest to the hotel industry and other tourism sector is the fact that in order to regulate the tourism industry sector in Qatar, Law number 6 for the year 2012 (”Tourism Licensing Law”) was put into place to supervise business activities to which the Tourism Licensing Law applies, which falls under two main categories as follows:1. “Tourist establishment” as defined in Article (1) of the Tourism Licensing Law means places operating mainly to accommodate tourists, such as entertainment establishments and specialised clubs, as well as the places allocated to provide services for tourists, such as tourism offices, offices offering tourist transport, tourist guide offices and timesharing places and any other establishment deemed to be a tourist establishments in accordance with a decision of the Minister of Economy and Commerce on the proposal of the President of the Authority; 2. “Tourist activities” means any activity of transport of tourists including transport of tourists on trips onshore or offshore, the activities of tour guides, time-sharing and any other activity deemed to be a tourist activity in accordance with a decision of the Minister of Economy and Commerce on the proposal of the President of the Authority;
the Authority’s inspectors will carry out an inspection to verify compliance and based on this inspection a license can be issued. Pursuant to Article (6) of the Tourism Licensing Law, a three year licence will be issued for hotels and a one year license will be issued for tourist establishments and other tourism activities. A renewal for further or similar periods can take place once the licence has expired. Under Article (12) of the Tourist Licensing Law any licensee to provide adequate opportunities for the training, preparation development of Qatari nationals at various levels and provide the Authority with information concerning the licensee’s annual training programs. The provision does not expressly refer to the hiring of Qataris but seems to be more of a reference to the activities of the licensee ensuring that knowledge and expertise within the industry is being imparted to Qataris. For any new business requiring a license, once the applicant obtained the aforementioned preliminary approval, undergoing procedures for incorporation can be commenced in parallel, however final incorporation will not occur until all the requirement of the Authority are met.
Pursuant to Article (2) of the Tourism Licensing Law:“Establishing, using or managing a hotel or tourist establishment or the practicing of any tourist activity shall be prohibited unless a license has been obtained from the Authority in accordance with the requirements and regulations established by this Law and the implementing regulations thereof”. The concerned authority mentioned above is the Qatar Tourism Authority. Article (3) provides that where any person intending to carry out an activity requiring a licence from the Authority, an application is made on the form provided by the Authority. Once the application is submitted by completing the form and attaching any documentation required by the form, a committee within the Authority will review the same and a response is to be issued within thirty days from the date of the submission of the application. Any expiration of this period without a response is be deemed to be a rejection of the application. Once the application is approved, a preliminary approval will be issued under Article 5 setting out certain pre-requisites to be met by the applicant. Once the applicant meet these requirements a written notification of the same must be delivered to the Authority. Within fifteen days of the notification
Samy EL ShEIkh Associate Al Tamimi & Company s.elsheikh@tamimi.com
Follow us on Twitter @AlTamimiCompany Join us on LinkedIn - Al Tamimi & Company www.tamimi.com
qatar perspectives How ICT powers businesses and people When it comes to the mobile market, Doha is a melting pot of consumer behaviour. It is unlike any other place in the world, though the level of digitisation in the Small and Medium Enterprise (SME) segment is arguably low. This is a dichotomy, as research into digital habits here reveals that residents in Qatar are among the most connected and digitallysavvy in the world. What lies in the middle is a latent, untapped consumer demand for digital services, information, and new experiences which calls for effective public private partnerships, writes Kyle Whitehill.
In Qatar, electronics, travel and telecom services are the most purchased items using a mobile phone.
All businesses are online businesses. At least they should be. On my first Saturday in Doha, I remember looking for a tailor. When I pulled up Google Maps on my iPhone to find one, I was directed to a recruiter, a publisher and an electrical substation. I eventually found a number of excellent tailors near Doha. However, I was surprised so many small retail outlets were not listed on Google Maps – a relatively painless, cheap and lucrative step for any SME to take. It turns out that this is not all that uncommon. A recent report by Deloitte shed light on ICT adoption by SMEs in the region. The report showed that in Qatar, more than 55 percent of SMEs have no presence on social media platforms such as Instagram or Facebook and indicated there are still many SMEs that do not have a corporate website. There is no shortage of innovation in Qatar. iLoveQatar.net, a hyper, local online community and successful media enterprise, is innovating constantly to engage, expand and diversify in new ways. I have used Uber to move around West Bay and it simply works brilliantly. But there remains an opportunity to
supercharge Qatar’s digital development by empowering SMEs to change the way consumers communicate, get information and buy things here. Seizing that opportunity is mostly up to the businesses themselves. For our part, telecommunications providers should be doing more to help SMEs help their customers by developing products deeply in tune with their business’s diverse wants and needs. While Vodafone Qatar has already begun by crafting Shared Plans for SMEs, there is a lot of work to be done. Another example: in Qatar, electronics, travel and telecommunications services are the most purchased items using a mobile phone, though cash on delivery is still a very popular way to shop here and across the region. We launched a virtual store, Scan&Go, whereby anybody can buy something on-the-go and have it delivered to his or her office shortly after. We piloted this concept at Katara and then took it to The Pearl-Qatar before moving it permanently to Al Furousiyah area, pioneering e-commerce for businesses and people in Qatar. Qatar’s most promising features –
20 | The Edge
mind-blowing smartphone penetration, a huge appetite for data, and multiple SIM ownership – present complex challenges and opportunities that play to our strengths. In the public sector, e-government services have been available in Qatar for some time and the national commitment to fibre connectivity and policies supporting that – at the highest levels – are enabling the country to become a regional leader in connectivity. The private sector, on the other hand, must be a loyal partner in this digital transformation if companies such as Vodafone want to pull it off. Telecommunications providers offer the key building blocks for a digital society and economy. This is why we work regularly with ictQatar to help create a culture of digital business on a grassroots level through several innovative initiatives. A rising tide, we know, lifts all boats. The 2014 Networked Society City Index observed, “ICT presents new ways to organise society and change the way individuals and businesses behave.” Accelerating the transformation of the consumer experience in Qatar, by enabling businesses, is the next frontier indeed, after having achieved significant savings in the local calling rates which have dropped by almost 82 percent and international rates by 92 percent, since Vodafone entered the Qatari market.
Kyle Whitehill is the CEO of Vodafone Qatar.
qatar perspectives
Qatar: The fastest-growing food consumption market in the GCC Gulf Cooperation Council (GCC) countries are overwhelmingly reliant on food imports to meet their growing requirements. The food demand in the GCC is driven by a growing population base, increasing affluence and rising tourist inflow within the region. However, the region’s food production is restricted due to its arid climate, less arable land, water scarcity, cumulatively making it heavily reliant on imports. Sanjay Bhatia analyses Qatar’s food consumption patterns, and projects a 5.5 percent growth in food consumption patterns between 2014 and 2019. The region’s abundant energy revenues have supported its food imports as well as enabled its governments to make multibillion dollar investments towards improving the countries’ food security. According to Alpen Capital, food consumption in the GCC, backed by encouraging macroeconomic drivers, is expected to grow at a 3.5 percent compound annual growth rates (CAGR) between 2014 and 2019 to reach 51.9 million metric tonnes (MMT). Cereals are likely to remain the most consumed food category, accounting for 46.5 percent of the region’s total food consumption in 2019. However, rising consumption of high-priced protein-rich and healthy foods is expected to gradually eat into the share of cereals in the total food consumption. Qatar is expected to be the fastestgrowing market for food consumption during 2014 to 2019 at a CAGR of 5.5 percent, followed closely by the United Arab Emirates. Saudi Arabia is the largest food-consuming nation in the GCC and is anticipated to remain so for the foreseeable future. Food consumption in Saudi Arabia is estimated to show an annual average 22 | The Edge
Local governments are encouraging domestic and global food producers to establish new manufacturing units. growth of three percent from 2014. Oman, Kuwait and Bahrain also show similar growth patterns, ranging from 2.7 percent to 3.2 percent. Food consumption in Qatar is expected to reach 2.2 MMT in 2019, registering the region’s estimated highest annualised growth of 5.5 percent from 2014. This growth rate is attributed to its rapidly rising population (4.8 percent compared to the GCC average of 2.4 percent), coupled with an urban lifestyle that has led to an increased demand of processed and Western foods. Also, Qatar’s high obesity rate is leading to an increased consumption of healthy foods. Consequently, the consumption of fruits and meat is expected to grow at a CAGR of above 5.5 percent during the forecast period. There are several trends boosting the growth of the GCC food industry, which also in turn create opportunities for local as well as international players. In tandem, there are ample opportunities in the GCC’s packaged food market due to the rising demand for international foods. The concept of private labels is steadily evolving as a highly profitable option for food retailers in the region, as it lifts profit margins by eliminating the intermediaries in the value chain. In order to reduce the high reliance on imports, governments are encouraging domestic and global food producers to establish new manufacturing units. GCC governments have been investing in fish farming initiatives to boost domestic seafood production and meet the rising demand. Hydroponics and aquaponics are among the technologies the region has already adopted to enhance its agricultural output.
The organic food market in the region, estimated at USD300 million (QAR1 billion) in 2009, is anticipated to reach USD1.5 billion (QAR5.5 billion) by 2018 due to increased health consciousness. Halal food imports into the GCC region are expected to almost double from USD25.8 billion (QAR93.9 billion) in 2010 to USD53.1 billion (QAR193.3 billion) by 2020, registering a 7.5 percent CAGR. Unfavourable climatic conditions, including water scarcity, have an adverse impact on the agricultural productivity of the region. Securing a steady supply of food remains a key challenge for the GCC governments due to their dependence on imports. An unstable sociopolitical environment in the Middle East poses a threat to the import of food into the region. Being largely dependent on food imports, the Gulf nations are always exposed to the fluctuations in international food prices. The regional governments’ efforts to enhance food supply are encouraging international as well as local players to enter and expand in the sector.
Sanjay Bhatia is managing director, Alpen Capital Investment Bank (Qatar) LLC.
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Contents: Qatar diversifying investment exposure eastward. 25. Real GDP growth rates. 26.
In November last year, Qatar Investment Authority (QIA) announced a USD10 billion (QAR36.4 billion) joint venture with China’s state-owned CITIC Group (pictured here is the CITIC Pacific Ltd., at Hong Kong) to invest in the region. (Image Reuters/Arabian Eye)
finance & markets Qatar diversifying investment exposure eastward
Qatar is increasingly looking eastward for investments to diversify its geographic exposure while low levels of inbound and domestic mergers and acquisitions (M&A) are set to remain, writes Ruth McKee Al Ghamdi.
T
he country will continue to be a heavy outbound investor, with Qatari investors being heavily exposed to the European as well as the United States (US) markets. However, notably over the past year Qatari entities have upped their investment allocation to Asia. Sectors of interest are infrastructure, consumer, property, healthcare and financial services. Qatar has already started to make significant tracks in Asia. In November last year Qatar Investment Authority (QIA) announced a USD10 billion (QAR36.4 billion) joint venture with China’s stateowned CITIC Group to invest in the region.
In another deal, the QIA in October 2014 agreed to acquire approximately 19.9 percent of the shares of Hong Konglisted department store operator Lifestyle International for USD616.6 million (QAR2.2 billion). Europe has consistently been the most targeted region by deal count for Qatar outbound deal activity since 2010. Last year saw the highest outbound annual deal count and second highest value going by reported records, with 11 deals worth USD9.9 billion (QAR36 billion) announced. So far, 2015 has been no exception to this trend, with three
deals worth USD2.2 billion (QAR8 billion) accounting for total Qatar outbound activity this year. Qatar has traditionally put great emphasis on the European markets. Qatar’s sovereign wealth fund has a track record of making acquisitions of iconic trophy assets including Harrods and taking stakes in Volkswagen, Sainsbury’s and Porsche as well as football club Paris Saint-Germain and luxury jeweller Tiffany & Co. Interests were also taken in financial giants including Credit Suisse, Barclays, Agricultural Bank of China, Banco Santander Brasil and the London Stock Exchange. The Edge | 25
sectors | finance & markets
Last year saw the highest outbound annual deal count and second highest value going by reported records, with 11 deals worth USD9.9 billion (QAR36 billion) announced. New deals
In early May, it was announced that Qatar Airways acquired the Novotel Edinburgh Park Hotel in Scotland, marking the second hotel acquisition by the airline outside of Qatar. Qatar Airways said the acquisition is part of an overall service offering and growth strategy, which is expected to include further hotels in key destinations. Earlier this year, it acquired the Sheraton Skyline Hotel at Heathrow Airport in London. It has already been reported that Katara Hospitality, the Qatari hospitality player, expects to announce hotel acquisitions this year as part of its strategy to have a portfolio of 60 properties by 2026. Key sought-after international locations are being explored by the company with Katara having a strong presence in Europe and continuing to acquire, develop, and open several hotels across the continent. In January 2015, Katara Hospitality and Fairmont Raffles Hotels International announced they together acquired a 50 percent stake in a joint venture in The Savoy hotel in London from Lloyds Banking Group.
Furthermore, it was reported that Nasser Ahmed Ali A. Al Thani, a Qatari private investor, acquired Turkey’s Kontes Beach Hotel for USD8 million (QAR37.1 million) in February. To date in 2015, there has been one deal with an undisclosed value targeting Qatar, compared to three inbound deals worth USD2.7 billion (QAR9.8 billion) announced in the same period in 2014, according to reported data. Outbound deal value for the whole of 2014 was the second highest annual deal value, with 22 deals valued at USD13.3 billion (QAR48.4 billion). Despite a fluctuating value during the years in between, the 2014 level was more than double the USD5.3 billionworth (QAR19.3 billion) of deals seen in 2010, with the average deal size increasing from USD438 million (QAR1.6 billion) 2010 to USD606 million (QAR2.2 billion) in 2014. In the first quarter of 2015, outbound deal value increased by 49.3 percent compared with Q1 2014, with two deals worth USD1.9 billion (QAR6.9 billion) announced. One of these was the acquisition
of France-based Vinci by Qatar Holding within the construction sector. As a result of this deal, Qatar was the most acquisitive country in the Middle East by value during Q1 2015, accounting for 46.4 percent of the USD3.9 billion (QAR14.2 billion) total outbound M&A value carried out by Middle Eastern countries. There is very little M&A activity going on in Qatar domestically and inbound. Most international and regional players tend to establish new entities with local shareholder arrangements and growing organically. Local Qatari companies are also generally reluctant to sell. However, Qatar National Vision 2030, hosting of the 2022 World Cup and government spending are driving M&A and joint ventures in sectors such as construction with the need for local businesses to acquire scale, technology or knowhow. To this end, there could be some activity in healthcare and education.
Ruth McKee Al Ghamdi is head Middle East and North Africa, Mergermarket in Dubai.
Real GDP growth rates 12 10 8 6 4 2 0 -2
2010
2011 China SSA
26 | The Edge
2012 GCC EMs
2013
2014
2015f
2016f
US Euro Area
Sources: IMF estimates and QNB Group forecasts
Contents: Low energy prices stymie LNG ‘Golden Age’. 27. JBOG project set to save natural gas. 28.
energy & sustainability Is it the end of Qatar LNG’s ‘Golden Age’? An LNG carrier at the Indian port of Kolkata. India is attempting to renegotiate the terms of its 25-year LNG deal with Qatar, struck in 2004, due to depressed global energy prices. (Image Getty Images)
News that India is in talks with Qatar to import at least 10 percent less liquefied natural gas (LNG) this year is entirely in line with the continuing negative price trend in global hydrocarbons pricing. There is also the distinct possibility that oil prices (and consequently gas prices) will drop again, writes Simon Watkins.
I
t was just last year when global natural gas companies were bullish about the future, with analysts highlighting the possible dawn of a ‘Golden Age of LNG’. So does this latest move by India – a key global LNG client in the important Asian market – presage the end of such an era, or is it a temporary setback? Talk of LNG’s fortunes improving for established major global LNG producers was largely founded on the more environment-friendly nature of gas, as opposed to high carbon-gas producing oil,
twinned with the fact that lower revenues for energy companies from the decline in oil prices has meant the postponement or cancellation of new LNG facilities that had been scheduled to come on line in Australia and North America. However, as the case in India has proven, historically low oil prices and expectations that this negative trend may not be reversed any time soon have resulted in spot gas prices coming off by two-thirds since February 2014. In practical terms, India’s LNG import costs
Historically, low oil prices and expectations that this negative trend may not be reversed any time soon have resulted in spot gas prices coming off by two-thirds. The Edge | 27
sectors | energy & sustainability
10%
Asia gas and LNG market profile 2014-2015 22
The percentage by which India is hoping to reduce the cost of LNG imported from Qatar, according to news reports.
Asia spot price (ranges) NBP (less regas)+shipping* Asia spot price - JKM** Japan average import price
20
USD/mmBtu
18
Asia spot price
14
Long-term contract price
12 10 8 6
NBP+shipping Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
under the prevailing deal with Qatar – struck for 25 years in 2004 and linked to the price of oil – puts the average price of LNG shipped to India by RasGas at around USD13 (QAR47) per million British thermal units (mmBtu), versus current spot prices of USD6-7 (QAR 22-25) per mmBtu, according to industry data. This, in turn, compares to Asian spot LNG prices as high as USD20 (QAR73) per mmBtu last year, buoyed by soaring demand from key emerging economies – notably China, and India – and enduring extra import demand from Japan’s reorientation of its energy sector away from nuclear, in the wake of the 2011 Fukushima nuclear meltdown. Looking further forward, much hinges on the outlook for the oil price, which – far from seeing the global hydrocarbons pricing complex edge higher – looks set to remain under pressure, says Christopher Cook, director of global energy consultancy, Wimpole International
16 Japan avg
2014
*= National balancing point ** = Japan Korea marker
2015
Source: BG Group
in Edinburgh. Moreover, Saudi Arabia recently stated that it intends to keep its low oil price policy intact (to thwart the nascent shale energy revolution), and new supply is set to come into the markets as and when sanctions against Iran are reduced and/or lifted in June (see cover story). According to industry sources in the Middle East, the technical specifications of many of Qatar’s deals with Asian LNG importers are identical to that with India, with pricing linked to the previous
12-month Japan Crude Cocktail (JCC), including caps and floors based on average JCC prices of the past 60 months. While reducing volatility, this does not reflect price falls as much as spot pricing, and leaves importers paying a premium to spot product that they will not wish to pay. “This is likely to cause many importers in the key Asian market to come to similar conclusions about their longer-term contracts with LNG suppliers as India,” Cook says, “especially if they have similar deals to those between India and Qatar.”
Flaring reduction
Qatar hits two key hydrocarbons target with official launch of JBOG project In keeping with Qatar’s twin aims of firstly preserving its gas resources for times when prices are higher, and secondly reducing its hydrocarbons-sector footprint in line with the Qatar National Vision 2030, the USD1 billion (QAR 3.64 billion) Jetty Boil-Off Gas Recovery (JBOG) project has now been officially launched in Ras Laffan Industrial City. It is the biggest boil-off gas recovery project in the world to date. Now that the project is up and running, JBOG will collect gas and transport it to an area where it is compressed to be ready 28 | The Edge
for use again either as LNG or fuel gas but – instead of around one percent of the liquefied natural gas (LNG) evaporating as it is loaded on to ships as has happened in the past - the boiled off gas will from now on be recovered. This means that there will be an overall reduction of at least 90 percent in current flaring at Ras Laffan LNG loading berths, according to Qatargas CEO Sheikh Khalid bin Khalifa Al Thani. This is the equivalent to greenhouse gas (GHG) savings of 1.6 million tonnes per year (mtpa) of carbon dioxide (CO2), the same as is produced from 175,000 vehicles. Additionally, said Al Thani, the JBOG project will provide savings of 29 billion standard cubic feet (bscf) per year flaring reduction,
energy & sustainability | sectors
Read QCN. Online.
Saad Sherida Al Kaabi, managing director of Qatar Petroleum and chairman of Qatargas, said the JBOG project will reduce the carbon footprint of the 77 mtpa of LNG production facilities to the minimum practically possible. (Image Qatargas).
1 trillion
The amount of gas, in cubic feet, JBOG will save for Qatar over 30 years.
which is enough gas to produce 750MW of energy or to power 300,000 homes. Over a period of 30 years, the JBOG project will save nearly one trillion cubic feet of gas for Qatar, according to Saad Sherida Al Kaabi, managing director of Qatar Petroleum and chairman of Qatargas, in Doha, and will reduce the carbon footprint of the 77 mtpa of LNG production facilities to the minimum practically possible. Similarly dual-purpose plans, benefitting both Qatar’s budgetary need to conserve its resources during the current depressed hydrocarbons pricing period and its desire to reduce its carbon emissions, was also seen in the recent launching of its USD80 million (QAR292 million) carbon dioxide recovery (CDR) plant by Qatar Fuel Additives (Qafac). This plant allows Qafac to capture around 500 tonnes of CO2 per day, which otherwise would have been lost, from its methanol reformer stack and instead injected back into the existing process to enhance the production capacity of methanol, a key ingredient in the value-added sector of petrochemicals.
Smartphone and Tablet optimised. Get updates on leading projects shaping Qatar’s booming construction industry. Find out more about upcoming events and tenders and read expert opinions and articles on architecture, materials, technology, project management, infrastructure, sustainability and more.
www.qatarconstructionnews.com The Edge | 29
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Contents: Construction inflation still a major worry for Qatar. 31. Cityscape Qatar records good turnout. 32.
real estate & construction Construction inflation still a major worry for Qatar
The Qatari government is expected to scale up project launches, which will create extra pressure on raw materials and resources, and eventually lead to a rise in construction cost inflation.
Although Qatar’s construction inflation has been flat so far for the building and real estate sector, industry players fear this will rise five to seven percent by the end of next year. by Syed Ameen Kader
T
he fear of impending construction inflation continues to be one of the major talking points in the industry. Although the news of inflation is not new, what the industry is eager to know is when is it going to happen and what the magnitude will be. Currently, the construction inflation rate of building and real estate sector is more or less stable at two to three percent, which is pretty much in alignment with the Consumer Price Index (CPI), but industry observers are worried this rate will double by next year as more projects are launched. Steven Humphrey, director, AECOM, said, “This year, we are seeing construction inflation is relatively flat for building work. There hasn’t been huge volume of demand
because government’s projects were slowed or put on hold. But, from the fourth quarter of next year and the first quarter of the following year, it will start increasing at an annual rate of around five to seven percent. Then, after that, we will start to see it going even higher as more and more construction projects get launched.” As Qatar is expected to scale up its project launches in the coming months in order to meet the timeline for the 2022 World Cup and Qatar National Vision 2030, the construction sector is expected to see a sudden surge in demand for raw materials and resources. For instance, at the moment, the construction work of stadiums has just started, and in 12 months’ time, industry
observers suggest, they are expected to be in full swing. Then the sector will start feeling more pressure as all other projects such as The Pearl-Qatar and Lusail will also start moving faster. Humphrey said the government has taken steps by stockpiling some of the critical building materials to control inflation, but they have been largely helped by the slowdown in real estate construction, which is the biggest entity showing development. “If the private sector is moving at full speed and the government sector is also moving at full speed, inflation is inevitable. So the test will be of how the government controls the demand, and paces its project releases,” he told The Edge.
The Edge | 31
sectors | real estate & construction
Martin Cooper, director, real estate services, Deloitte Middle East Region, furthered, “Given the scale of development happening in Qatar and the associated escalation in construction costs, residential affordability is increasingly an issue across most segments of the population.” He added it is critical now to manage the ambitious growth Qatar has set for itself to ensure that it is executed in a way that is synchronised with demand. “We should make sure that we don’t get into a situation of oversupply in certain real estate market segments, by phasing development in a sustainable manner,” he said. Although the real estate sector has been slow so far, the government’s major infrastructure projects are already underway. For example, the tunnelling works for Doha metro was scheduled to have been executed up to 20 kilometres by May. Work at the new Hamad port is also
underway alongside various road projects across the country. Growing construction activities are also creating inflation pressure for the infrastructure sector. Peter Binneboessel, business development manager, Al Jazeera Consulting Engineering, told The Edge the fact that major infrastructure projects have been started “means the market is now coming to the point where it starts boiling”. He added that it is becoming more difficult to get raw materials and primary materials into the country. “Qatar is working on it but it takes some time. In fact, we are noticing that prices of building material, for example ready-mix concrete, are increasing every three months,” said Binneboessel. Most industry players suggested that it is going be very critical to focus on what needs to be delivered now to meet specific demands and timelines for the event and what could be delivered later on.
“If the private sector is moving at full speed and the government sector is also moving at full speed, inflation is inevitable.” - Steven Humphrey, director, AECOM
Event
Cityscape Qatar records satisfactory turnout The property event featured some major deals being announced over its three-day duration.
UDC’s The Pearl-Qatar project was one of the major attractions for visitors at Cityscape Qatar.
Cityscape Qatar recorded decent turnout amid announcements of many real estate deals being struck during the three-day event, which concluded in mid-May. On the back of encouraging performance in the first quarter, Qatar’s property market has been doing well, indicating a positive
32 | The Edge
outlook ahead – something that was quite visible from the mood of exhibitors and participants at the event. For example, representatives of Al Bandary, which showcased a number of highprofile projects including The Al Khessa Gate, a villa project located in Lusail City, along with
the newly launched Jumana Two at The PearlQatar, told The Edge that the company was attending to top clients and had managed to close good deals during the event. “We are pleased to confirm that on Day One of Cityscape Qatar, all of the units in Jumana Two were sold, and we enjoyed similar successes with other projects including Al Shahad Tower, The Dream Tower and other projects located in the Lusail area,” said Maen Al Haj, Property and Real Estate manager, Al Bandary. Some high profile projects displayed at this year’s event included UDC’s The PearlQatar, spanning more than four million square metres of land; and Place Vendôme, a mixed-use development located in Lusail City. In its fourth year, Cityscape Qatar had a participation of over 80 local, regional and international companies, including United Developers, Retaj Qatar International, ASTAD Project Management, Dubai Properties, Azizi Developments, to name a few. The event was attended by more than 8000 visitors over the three days.
Contents: Stark gap between Qatar employers and tech-savvy candidates. 33. Qatar’s Mobile phone spam to come under stricter scrutiny. 34.
tech & communications
LinkedIn research finds a ‘stark gap’ between Qatar employers and tech-savvy candidates
Commenting on the LinkedIn study, Qatari entrepreneur Khalifa Al Haroon told The Edge, “I use LinkedIn and Facebook to post about vacancies my company has. I usually do get a lot of candidates, but sadly the majority of which aren’t who I’m looking for or qualified.”
A study into Qatar’s job market has found that as tech-savvy professionals turn to social networks in search of jobs, a sizable segment of employers in Qatar are still relying on their own websites, print media and online career websites, reports M. Iqbal.
T
he LinkedIn-sponsored study queried 300 employers and 1500 job seekers in the Gulf Cooperation Council, finding a ‘stark gap’ between where employers in Qatar look for talent and where tech-savvy professionals are looking for jobs. About 75 percent of the employers surveyed in Qatar rely on their websites to advertise vacancies, followed by
newspapers and magazines (66 percent) and online career websites (53 percent). In contrast, 66 percent of professionals in Qatar who participated in the study said they prefer online job networks, while 77 percent felt that online job networks are the most effective means to find suitable jobs. The first thing most tech-savvy professionals in Qatar do when looking for
a new job is update their online profiles (31 percent). About 15 percent of respondents said they post their resumes on online job portals, while just nine percent said they look at newspapers. Slightly more than half of Qatar employers agreed that there is a shortage of talent in the labour market, and that it is hard to find candidates with the required skills and qualifications. More than half of The Edge | 33
sectors | tech & comms
Three quarters of Telecom regulations employers surveyed in Qatar’s mobile phone Qatar rely on their websites spam to come under to advertise vacancies. the companies surveyed in Qatar also said that it takes them a lot of time and cost to fill vacancies. “If employers are unable to find and attract the best candidates to their organisation then they will struggle,” said Ali Matar, head of LinkedIn Talent Solutions, MENA. This study shows that many employers are not keeping up with the advances in social media and could be missing out on key hires. The most striking fact is the mismatch between how information on available jobs is communicated, and how job-seekers prefer to go about finding these jobs. Wassim Eid, chief human resources officer at luxury brand company, Chalhoub Group, added: “Having recently passed 50,000 followers on the platform, LinkedIn has helped us to build a powerful Employer Brand within our sector, and is helping us to attract a high calibre of candidates.” That is not to say that high-calibre employees cannot be found elsewhere. Khalifa Saleh Al Haroon, the founder of the Haroon United Group and the iLoveQatar.net, has not had the best experience using online tools to find candidates. While he acknowledges the fact that using social networks to spread the word about potential opportunities is a of professionals surveyed “cost effective way of reaching in Qatar prefer online job out”, he has his reservations. networks. “I myself use LinkedIn and Facebook to post about vacancies my company has. I usually do get a lot of candidates, but sadly the majority of which aren’t who I’m looking for or qualified,” he told The Edge. For that matter, print media itself may not be a waste of money when it comes to seeking talent, he feels. “There are still many people who are more comfortable sifting through the classifieds in a newspaper,” he continued. But it is preferable to use a mix of different means to find candidates, added Al Haroon, who uses his “personal network, word of mouth, LinkedIn, Facebook, and my corporate website” to find the right candidates.
66%
Vacancy advertising in Qatar
Vacancy advertising in Qatar is dominated by
66%
in print media and
77%
of candidates feel online networks are best though only
75%
on corporate websites
34 | The Edge
66%
utilise them
stricter scrutiny
Marketing messages sent to mobile phones will fall under stricter scrutiny once the Communications Regulatory Authority of Qatar (CRA) finishes drafting its new code of conduct. The code to oversee marketing and advertising activities through mobile phones in Qatar is being drafted in response to increased consumer complaints and media reports about mobile phone spams and scams, said CRA. The authority stated the code would provide a framework to ensure that “marketing and advertising activities through mobile phones are carried out in a way that complies with the legal, regulatory and social obligations of the senders”. The code will apply to both messages received via SMS and mobile communications apps such as Whatsapp, Skype and Viber, CRA stated, though it is unclear how the authority will extend its jurisdiction to services with no commercial or physical presence in Qatar. The authority did not, however, specify a timeframe for completion of the code, and instead said that they had “engaged with the service providers” to address the issue. Both Ooredoo and Vodafone have mechanisms in place to block specific numbers for individuals, or for all consumers in Qatar if a number is found sending scam or spam messages to multiple consumers. Ooredoo customers can text ‘Unsub ServiceName’ to 92600 to block a service. For instance, if someone wants all bulk SMS senders to be blocked, they will text “Unsub all” to 92600. Customers can also block spammers via Ooredoo’s mobile app, website or by calling at the helpline. Vodafone customers can call the helpline or log onto Vodafone Qatar’s website to block a spammer. Both service providers also welcome consumer complaints via their social media channels, particularly Facebook and Twitter accounts. The CRA also offers consumers the option to register complaints via its Arsel application – available on iOS, Android and Blackberry devices – although the authority recommends doing so only if the telecom operator has not resolved the issue within 30 days.
The new code will apply to both messages received via SMS and mobile communications apps such as Whatsapp, Skype and Viber.
Fear of a nuclear
Iran
major global powers prepare to strike an unprecedented agreement with Iran to suspend its nuclear programme as gulf states watch on
Indeed, politics and diplomatic machinations aside, given its massive reserves of oil and gas, what might the fallout of Iran’s nuclear deal with the P5+1 nations be for Qatar, should economic sanctions be lifted on its Gulf neighbour – with whom it shares the world’s largest non-associated gas field – not to mention the wider regional and international hydrocarbons sector? The Edge energy special correspondent, Simon Watkins, offers analysis.
cover story | iran nuclear deal
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There are significant geopolitical linkages between Qatar and Iran. Both, for example, are founder members of the Gulf Exporting Countries Forum (GECF).
director of Exploration for National Iranian Oil Company (NIOC), Hormoz Ghalavand, the first ever agreement with a European company for new oil and gas discoveries in Iran’s Salt Domes had been signed, and negotiations with 18 international companies for the signing of oil and gas exploration and development contracts in 40 new exploration blocks were underway. The nationalities of these emissaries is entirely unsurprising, Christopher Cook, director of global energy consultancy, Wimpole International, in Edinburgh, tells The Edge, given the widening political schism between the EU and the US since the revelations Early opportunists Even ahead of the introduction of these new deal by Edward Snowden of wide-scale spying by parameters, there has been no shortage of senior American intelligence agencies on senior figures executives from Western international oil companies in the governments of Europe. “German Chancellor (IOCs) – with the exception of the US, overtly at Angela Merkel in particular was incensed by this, least – visiting Tehran, according to local sources, which is only to be expected, given that she was including those from Italy, the Netherlands, Austria, brought up in the former communist East Germany, France, UK and Germany. Indeed, according to in which spying, even by those one trusted, was a statement at the beginning of January by the endemic,” says Cook. “Her consequent desire to put distance between Germany and, by extension, the EU, and the US was shown shortly afterwards with the deal [Merkel] proposed directly Qatar LNG Export Destinations (2013) to President Putin, without US involvement or backing, over the Ukraine situation.” In broader terms as well, Cook adds, this new United Japan South India China All others Kingdom Korea geopolitical independent attitude found resonance in a comment from a senior figure involved in 31% 21% 17% 15% 9% 8% developing EU energy strategy who, as the above situation worsened with the shooting down of the Malaysian airliner MH17 over east Ukraine, said, “Iran is far towards the top of our priorities for midterm measures that will help reduce our reliance on Russian gas supplies.” Qatar’s position in the natural gas market The economic imperative for the EU to disentangle its firms from any ongoing US-led sanctions is also acute, a senior figure in Iran’s oil LNG exporter Natural gas Proven and gas industry tells The Edge, given that it will exporter reserves st st not want to end up with the leftovers in Iran, when 1 1 1st 2nd 2nd 2nd the US itself lifts sanctions, as it did with the Iraqi 3rd 3rd 3rd oil and gas industry. “The US’ modus operandi in these circumstances has always been the same,” explained the source, who declined to be named Qatar Indonesia Trinidad Russia Qatar Norway Iran Russia Qatar &Tobago due to the sensitivity of the negotiations, which is that it positions its companies, and advisers, within Source: BP 2014 Statistical Review of World Energy, Infographic PWC. the integrated architecture of a country’s oil and gas he release earlier this year of a framework agreement between Iran and the United Nations’ P5+1 group of countries – which includes the United States (US), Russia, China, France and the United Kingdom (UK) – aimed at curbing Iran’s nuclear programme and concomitantly lifting longstanding sanctions on the country, marks a historic shift in the relationship between Iran and the international community. Up until that point, this had been characterised by increasing sanctions from the US, European Union (EU), and United Nations (UN), since the Iranian Revolution in 1979. Despite current sanctions remaining in place and the potential for some slippage before the final agreement is due to be signed by the P5+1 deadline of June 30 this year, there is every chance that such a deal will be signed around that date. This will bring Iran back into the global hydrocarbons market, marking a major challenge for the world’s current ‘swing’ natural gas producer – Qatar.
United States President Barack Obama met with GCC dignitaries, including HH The Emir Sheikh Tamim bin Hamad Al Thani, and Dr. Khalid bin Mohamed Al Attiyah, Minister of Foreign Affairs of Qatar during a working lunch at the GCC-US summit at Camp David, held in May to discuss a range of issues including the Iran nuclear deal. Here HH the Emir is pictured at the post summit press conference alongside President Obama and Kuwaiti Emir HH Sheikh Sabah Al Ahmad Al Sabah. (Image Arabian Eye)
Iran’s return into the global hydrocarbons market will mark a major challenge for the world’s current ‘swing’ natural gas producer – Qatar.
industry before it frees the industry up, and then takes the majority share of all of the assets. “In the case of Iran, the US would be looking to secure around USD150 billion (QAR546 billion) of revenue within just the first few years and, bearing in mind the recent political developments as well, Germany is not going to allow that to happen to it, or to the EU as a whole,” adds the source.
Republican ambition
The increasing presence of major EU firms in Tehran’s corridors of power over the past few months is also likely to undermine the view of those who think that the US Republican Party will inevitably aim to scupper the signing of a long-term deal with Iran, involving the concomitant removal of all sanctions, explains Cook. Quite aside from the geopolitical importance of Iran in the ongoing fight against Islamic State (IS) in the Middle East, there have been numerous reports of extensive US-Iranian military cooperation against IS.
The Republican Party’s historical antiIranian view over the past 36 years is being undermined further by the fact that it has always been the party of ‘big oil’, Cook tells The Edge. “American IOCs are finding that their ability to leverage the enormous power of their direct and indirect donations to the US parties, especially the Republicans, into a softening stance in the nuclear negotiations has increased exponentially,” he says. “I cannot see the Republican Party, just a year out from the next presidential elections, flying in the face of the desire of the IOCs – their major funders after all – to get back into the scramble for their share of Iran’s vast hydrocarbons riches,” Cook underlines. Given the pattern of power in the Middle East as it is currently playing out, Cook concludes, Iran is also vital in allowing US firms to exploit the equally huge resources in neighbouring Iraq: “As it stands, nothing is going to happen in Iraq without the Iranians’ say. So, given the power that it wields on the ground in the form of its militias, which extends all the way through its political system,” he says.
cover story | iran nuclear deal
Given the current pattern of power in the Middle East, Iran is also vital in allowing US oil firms to exploit the equally huge resources in neighbouring Iraq. Ripple effects
Iranian Oil Minister Bijan Namdar Zanganeh speaks during the opening ceremony of the 20th Oil, Gas, Refining and Petrochemical Exhibition in Tehran. Zanganeh has been quoted as saying that Iran expects members of the Organization of Petroleum Exporting Countries (OPEC) to prepare the ground for its extra oil production when the sanctions are lifted from the country. (Image Arabian Eye)
On the face of it, the threat the return of Iran ostensibly presents to the global energy matrix seems large, given its extensive reserves of both oil and natural gas (the latter in the form of its South Pars field, which it shares with Qatar’s North Field in the Arabian Gulf). However, there are reasons that Qatar has for optimism that an unsanctioned Iran will not completely marginalise its position as a major global gas supplier, despite Iran’s massive hydrocarbons wealth. These include an estimated 157 billion barrels (bbl) of proved crude oil reserves (around 10 percent of the world’s total) and an estimated proven natural gas reserve of 1193 trillion cubic feet (tcf), second only to Russia’s, 17 percent of the global figure, and more than one-third of the Organization of Petroleum Exporting Countries’ (OPEC) total. But although the Iranians have said that they can increase production by one million barrels per day immediately, there have been very little investments and modern technological upgrades to the Iranian oil fields since 1979, and the notion that wells that have been shut down for many years can simply just be turned back on and produce oil or gas is nonsensical. Additionally, and more specifically, trader talk of the impact of the amount of Iranian oil currently in storage - EA Gibson Shipbrokers estimates 34.5 million barrels (mbl) aboard tankers in the offshore
– suddenly being released onto the international oil markets is significantly overplayed. If a final deal is struck, then these barrels are likely to come onto the market quickly, as the Iranians try to raise cash rapidly, and will put some pressure on prices, but 30 million barrels or so is not a gigantic amount in the global hydrocarbons industry, and in any event, according to analysts, it is likely that the Chinese will buy it en masse at an appropriate discount to market and simply store it themselves, thus limiting general market impact. It is possible that any deal signed in June might not be of the all-compassing enduring variety that many commentators currently envisage. For a start, although it is true that US President Barack Obama can temporarily suspend all sanctions against Iran unilaterally, it is also true that for these to be permanently lifted will, require the backing of the US Congress, which is controlled by the broadly antiIran Republican Party.
Lifting sanctions
Whatever the outcome, US investors will likely remain shackled by the core Iran Sanctions Act until at least the end of 2016, when the legislation is set to expire. According to Richard Mallinson, senior geopolitical analyst for global energy consultancy, Energy Aspects, in London, it could be that any immediate sanctions relief may come only from the
iran nuclear deal | cover story
An Iranian staff member works at the South Pars gas field near the southern Iranian port of Assalouyeh. According to the International Energy Agency (IEA), the field holds an estimated 1800 trillion cubic feet (51 trillion cubic metres) of in-situ natural gas and some 50 billion barrels of natural gas condensate. (Image Arabian Eye)
157 billion
The number barrels of Iran’s proved crude oil reserves.
1193 trillion
Iran’s natural gas reserves in cubic feet.
EU, which could lift its ban on crude imports - totalling 0.7 million barrels per day (mbbl/d) before 2012 – and ease shipping restrictions ahead of the Americans. Indeed, before Ukraine crisis-related political pressures came to bear, the EU had already lifted sanctions on Iran’s biggest tanker firm, National Iranian Tanker Company. In any event, adds Mallinson, enacting early sanctions relief would take at least a month or two from July, so the real effects would not be visible until late Q3 15. “After a deal, Iran would struggle to raise output by more than 0.3 mbl/d at first – late 2015 – given the lack of investment and expertise, and as its buyback contracts will not lure international oil companies [IOCs] in straight away,” he furthers. Additionally, quite aside from the longterm nature of many of the contracts that Qatar has with its customers especially in its key target markets in Asia, there are significant geopolitical linkages between Qatar and Iran. Both, for example, are founder members of the Gulf Exporting Countries Forum (GECF), which, with the broad-based move across the globe away from high negative environmental energy sources (such as oil), and towards cleaner sources (particularly gas), is likely to increase its ability to influence global gas pricing in the future, in the same way
that OPEC has done for oil, provided that its members work in unison. Moreover, both also share the world’s biggest non-associated gas field: the 9700 square kilometre (sqm) basin that holds an estimated 1800 trillion cubic feet of natural gas and some 50 billion barrels of natural gas condensates, according to the International Energy Agency. Both Iran’s 3700 sqm South Pars share, and Qatar’s 6,000 sqm North Field portion are extremely significant to the two countries’ gas production going forward, confirms Mallinson, and both will need to work together to address the Energy Information Administration’s concerns that the high existing production rates on both sides of the border have caused the pressure to drop in many wells, so reducing flow rates. As a sign of greater cooperation to come, perhaps, Mallinson adds, Qatar has offered to give Iran advice on technology and share the results of the studies on the geology of the basin and Iran has stated that it wants the two countries to work together to maximise production and cooperate on development of the shared resource. Nevertheless, the imminent deal between Iran and the P5+1, should it go through according to plan, will change the status quo of the international energy sector indelibly and will be watched closely by the global industry with a vested interest, especially Doha.
A delegate visits the 20th Oil, Gas, Refining and Petrochemical Exhibition in Tehran, Iran, on May 6, 2015. Iran opened its international oil exhibition in Tehran to attract investment in its energy sector, possibly anticipating the reduction of sanctions should its nuclear deal with Western powers come to fruition. (Image Arabian Eye)
“With Injaz Qatar, I volunteered both as a programme instructor and as a master of ceremonies. With Injaz Qatar, I was passionate about what they’ve done and it is partly my voluntary engagements that made me grow up as an individual,” Emad Al Khaja, Injaz Qatar executive director, tells The Edge.
Connecting
corporate experience
with the educational sector Emad Al Khaja, Injaz Qatar’s newly appointed executive director, speaks of his team’s ongoing commitment to developing the next generation of business leaders. The Edge | 43
business interview | youth empowerment
As part of a Qatar corporate social responsibility event, sponsored by Qatar University, Emad Al Khaja with Sheikha Abdulla Al Misnad, president of Qatar University.
Training the youth for the job market and getting them employment-ready is a priority agenda in any nation. Qatar is no exception when it comes to structured and organised effort, with Injaz Qatar having played an increasingly important role in this area since 2007. With almost a decade done, Emad Al Khaja, Injaz Qatar executive director, talks exclusively to The Edge about Injaz’s achievements, challenges and plans in the coming years. by Aparajita Mukherjee
44 | The Edge
A
s the newly appointed executive director of Injaz Qatar, Emad Al Khaja graduated from New York Institute of Technology with a bachelor’s degree, specialising in economics and finance. Al Khaja followed that with an MBA degree in international marketing from Paris Business School in France. Commenting on his pre-Injaz Qatar work experience, Al Khaja says, “I’ve worked initially in the banking sector with HSBC, in their corporate and marketing division for around three years, followed by five years in Qatar Finance and Business Academy, a subsidiary of Qatar Financial Centre, in their marketing and business development, after which I joined Injaz.” Al Khaja reiterates that the transition from a career in the financial services industry to one that deals in a non-profit organisation has been part of a journey that he has taken with consideration. Detailing his voluntary work experiences, Al Khaja says, “Aside from my qualification,
experience and career background, I’ve always been involved in a lot of national development initiatives here in Qatar and in the region in a voluntary capacity. With Injaz Qatar, I volunteered both as a programme instructor and as a master of ceremonies, in addition to conducting programmes with Bedaya Center on a series of workshops for young entrepreneurs on how to market their businesses as well as being the master of ceremonies for Doha Film Festival. With Injaz Qatar, I was passionate about what they’ve done and it is partly my voluntary engagements that made me grow up as an individual.”
Achievements of Injaz
Injaz Qatar, set up in winter 2007, partners with the local business community, corporate volunteers and educators to inspire and prepare young people to succeed in the global economy. It is a member of Junior Achievement Worldwide (JA Worldwide), a global non-profit youth
youth empowerment | business interview
“We help students acquire a certain set of skills that prepares them for corporate life through our diverse programmes that focus on three different pillars – work readiness, entrepreneurship and financial literacy.” organisation dedicated to educating students from primary school through university on financial literacy, work readiness and entrepreneurship with experiential, hands-on programmes. JA Worldwide is the largest organisation of its kind in the world, working with local businesses and organisations across 120 countries. Since 2007, according to Al Khaja, Injaz Qatar has reached over 19,000 students across 45 schools in Qatar, from independent (public) schools to international or private schools . “In addition, we have reached six universities in Qatar, including Qatar University. Our network has been greatly helped by more than around 900 corporate volunteers who assisted in delivering the programmes to the students,” says Al Khaja. Has Injaz Qatar monitored how they have evolved and grown, specifically due to Injaz’s efforts? According to Al Khaja, Injaz Qatar’s targets are to keep increasing the quality of its programmes and reaching out to more volunteers by engaging corporate partners in order to achieve better results with a higher number of students. “Over
the past couple of years, we have also been trying to branch out and diversify into youth centres and sports clubs which have also become our target audience,” informs Al Khaja. Commenting on what Injaz Qatar does with the students and youth that it reaches, Al Khaja says, “We educate them. We help them acquire a certain set of skills that prepares them for corporate life. We have a list of programmes that focus on three pillars – work readiness, entrepreneurship and financial literacy – which we try to promote among our youth.” Al Khaja also mentions that Injaz Qatar starts its journey with the students right from the preparatory school stage and continues to high schools and then to their university life, offering a set of different programmes at each stage. He adds that this ensures a mentoring throughout the entire growth phase of the student.
Quantifiable benchmarks
Al Khaja mentions that, as an organisation, Injaz has set a metrics system that can help them measure the impact of each programme. “So we start with pretests (which is essentially done prior to delivering the programme), periodically assess students, within the scope of the programme just to measure their knowledge. This goes on until posttests which measure the challenges and lessons learnt, providing feedback on the programme content itself, on the volunteer performance and the percentage of student satisfaction,” he says. On the duration of the sessions, Al Khaja says, “It could start from around one hour and could go up to five hours, delivered once a week within or after school hours.” For Injaz, the corporate volunteers are a key differentiator in the way the organisation has envisioned itself. For Al Khaja, “They are the key element of our model and they come with practical knowledge based on their actual experience of the employment realities – be it regarding employment skills, career progression in related fields, whether it’s business, engineering or law.” Injaz, according to Al Khaja, links this kind of real world professional experience to the student. To date, Injaz has reached 900 corporate volunteers, according to Al Khaja, across the private and public sectors and spanning diverse industries.
Pan-Arab initiative
Injaz Qatar benefits from being a part of a wider global network, JA Worldwide, and being part of Injaz Al Arab which spans over 14 countries within the Middle East and North Africa (MENA) region. Delving on the advantages that Injaz Qatar derives from being a part of Injaz Al Arab, Al Khaja says, “Because Injaz Qatar is a member nation under Injaz Al Arab, we are in a position to share a lot of its welldeveloped programmes offered in Arabic, and localised them to fit the market and the culture.” Injaz Qatar has been able to draw on Injaz Al Arab’s experience and journey through the yearly initiative of the Annual MENA Training (AMT), which, in the opinion of Al Khaja, provides an opportunity for the “pan-Arab team to share ideas and learn from each other’s experiences throughout the whole process. AMT also allows us to train our employees for a certain set of skills that are needed for the job”. The AMT sessions are taken by two categories of trainers: one, outside experts and speakers who excel in their respective domains; and two, the employees of Injaz Al Arab who share their journey with the broader team. “These sessions help Injaz Al Arab arrive at best practices for the region,” says Al Khaja.
Integration of the youth in the workplace
With the purpose of easing work readiness and making the entry into the job market seamless for the Qatari youth, Injaz Qatar, in the words of Al Khaja, has three specific programmes: Steer Your Career, Career Success and Head Start. The target groups of all of these programmes are university, high school and preparatory school students. Elaborating on these programmes, Al Khaja says, “We try to make the programmes very practical for the students and one of the positive features is their structured nature, meeting the quality standards set by JA Worldwide.” Giving an example of how well structured the programmes are, Al Khaja mentions that for anyone who would like to volunteer to deliver any of these programmes, “the user-friendly manual or kit that they receive takes them step by step, guiding them how to do it while, at the same time, leaving enough room to also The Edge | 45
business interview | youth empowerment
To date, Injaz Qatar has reached more than 900 corporate volunteers, according to Al Khaja, across the private and public sectors and spanning diverse industries. Qatar University was the first local university to have extended support to Injaz Qatar since its inception in 2007. (Image Foto Arabia)
manoeuvre a distinct personal style”. Al Khaja highlights a particular initiative called the Job Shadow Day where Injaz engages corporate partners from the Qatari marketplace. “This programme,” mentions Al Khaja, “is targeted at high school and university students mainly. The implementation model is that students will shadow certain roles in the company and see for themselves what actually happens in the corporate world. The students get a peek into specific corporate roles; how the concerned people handle situations. We’ve had excellent feedback about this programme and are thankful for the guidance that we receive from our corporate partners.” Another initiative of Injaz Qatar is to connect university students with its corporate partners for internships. “And in some cases, they were actually hired after they finished their internships,” says Al Khaja.
Injaz and Arab entrepreneurs
Injaz Al Arab, on a broader level, and Injaz Qatar, locally, also have concerted efforts for aspiring entrepreneurs. This 46 | The Edge
is especially vital in a nation which is still primarily hydrocarbon-driven. Entrepreneurship is a very important pillar in Injaz Qatar, and this holds true for Injaz Al Arab on a wider scale, informs Al Khaja. “These programmes start from preparatory schools, continues to high schools and goes on to university,” says Al Khaja. “There is one programme in particular and it’s my personal favourite, which is called the Company Programme. Here we have teams from each school simulating a company.” The teams start with a business idea and Injaz Qatar volunteers lead them into how to develop the idea and guide them on the process of creating a company from scratch. “At the end of the sessions, they have a company that they become shareholders in, have operating assets and a capital base. In the course of these sessions, teams have actually come up with real tangible products or services,” informs Al Khaja. The format of the Company Programme allows a corporate volunteer to be a mentor by advising and guiding the students throughout the process.
19,000
The number of students Injaz Qatar has reached across all school categories since 2007.
This is the longest programme because it is around 12 sessions spread over four months which ends with a trade fair, which allowing student teams to sell their products, and a national competition built into the timeframe. Elaborating on the competition which is called Mubadara (which means ‘initiative’ when translated from Arabic), Al Khaja says, “It’s an annual two-day competition. The panel of judges is culled out mostly from the sponsoring companies, Injaz Qatar board members and partners as well as representatives from ministries. There are certain judgement criteria in terms of product quality, marketing strategy, financing, and teamwork.”
youth empowerment | business interview
“Corporate volunteers are the key element of how we run and they come with practical knowledge based on their actual experience in the work field.”
Injaz Qatar: Key numbers
Number of schools Injaz has reached
2008 6 schools
2011 15 schools
Number of Injaz Qatar volunteers
2015 2008 40 schools Cumulative number of schools to date is
23 volunteers
45 2011 2015 84 volunteers
245 volunteers
Collaboration with Injaz
Injaz Qatar, according to Al Khaja, welcomes any kind of collaboration with universities in Qatar. He cites, “Whether it’s reaching out to students, or getting volunteers from those universities or even having them support us to host our events, any kind of collaboration is welcome.” What new initiatives does Al Khaja plan to bring on board as part of his new role? Al Khaja also describes the designing/developing of a new localised programme for high school students as “one that will be dedicated to teaching them the mechanisms of investing in the stock market – buying, bid and sell price, broker services, including spending a whole day at Qatar Exchange and under a potential affiliation with them”. “When I see Injaz Al Arab and analyse the country data, I can feel Qatar’s presence growing in the overall developments, which is a humbling experience for me,” Al Khaja, adds “there are a few things that I am planning to work on and one of them is upping the marketing and publicity aspects, which is a natural thing for me, coming from a marketing background. Injaz Qatar has done an amazing job but maybe publicity wise, it needs to be showcased more and made visible by highlighting the success stories and the great initiatives.”
Number of students that Injaz has reached
2008 447 students
2011
1804 students.
2015
4750 students. Cumulative number of students up to date is
19,000
Cumulative number of volunteers since inception is more than
900
Injaz Qatar has collaborated with
75
corporate partners providing volunteers and sponsorships as main support. Injaz Qatar contributes
5
percent of Injaz Al Arab’s number of students
The Edge | 47
48 | The Edge
Experts in the field at EMC Corporation’s annual corporate gala for its clients, vendors and partners, held at Las Vegas, give their take on the level of technology adoption in the ME region.
Technology adoption in running a business is no longer an option – it is a necessity and one that has become indispensable for survival. Historically, while most information technology (IT) initiatives start with Silicon Valley, where does the Middle East rank in terms of technology adoption and what is the way forward on data safety in the context of large-scale usage of cloud and big data infrastructure? by Aparajita Mukherjee The Edge | 49
sector name feature story || banner IT infrastructure heading
D
igital services are witnessing a surge in demand in the Middle East, in tandem with a broader adoption of cloud computing. The latter has seen an increasing use in the number of data centres in the Gulf Cooperation Council (GCC) countries. This is reflected in the value of the data centre infrastructure management (DCIM) sector in the Middle East and Africa (MEA) region that is expected to reach USD397.1 million (QAR1.4 billion) in 2017 – up from
The Middle East, according to Chad Dunn, senior director, VSPEX Emerging Technology Product Division, EMC Corporation, is part of the company’s converged infrastructure segment and is growing surprisingly well.
50 | The Edge
USD41.6 million (QAR151.4 million) in 2012 – at a compound annual growth rate of 57 percent, according to a recent report released by MicroMarketMonitor. With these projected investment volumes, the demand for data storage and management will also see an increase. Revealing the demand of the data storage market in the region, The EMC Digital Universe, a study for the Middle East and North Africa (MENA) states that the digital universe is expected to see an increase an increase of more than 600 percent, over the current levels, by 2020. Bridging the investment potential of QAR1.4 billion in 2017 and the data platforms that companies such as EMC Corporation bring to consumers are technologies such as cloud, mobile data, social and big data or what International Data Corporation (IDC) refers to as the third platform of technology. These are designed to help enterprises achieve increasing staff mobility and reduce capital and operational expenditure on technology. Commenting on what prospects these global trends translate into the Middle Eastern markets for companies such as EMC which is a major player in the data storage market, Mohammed Amin, senior vice president and regional manager, Turkey, Eastern Europe, Africa, and Middle
Revealing the demand of the data storage market in the MENA region, the EMC Digital Universe states that the digital universe in the MENA will grow from 249 Exabytes (1 EB = 10006 bytes = 1018 bytes) in 2014 to 1835 Exabytes by 2020, an increase of over 600 percent. (Image Reuters)
QAR
1.4
billion
The projected value of the data centre infrastructure management (DCIM) sector in the Middle East and Africa in 2017.
ITsector infrastructure name | banner | feature heading story
East, EMC Corporation, tells The Edge, “This means that the patch of the digital universe that enterprises and their chief information officers now need to manage isn’t just growing in volume. It is also growing in terms of complexity. This means that enterprises are turning their focus to deploy specialised, agile and more scalable IT infrastructure to cope and effectively leverage this massive surge in information to power distinct business advantage, and fuel optimisation.” Amin also adds that EMC Corporation has a market share of 60 percent in the data storage infrastructure in Qatar (and ranges from 40 percent to 60 percent in the entire Gulf Cooperation Council). Amin mentions that across this region, players are increasingly seeing a convergence of three powerful drivers for the surge in data. These are: heavy adoption bringyour-own-device (BYOD) initiatives across large enterprises; increasing government regulations surrounding physical security; and finally, countries across the region are swiftly adopting the path to creating the ‘smart cities’ of the future – intelligent towns that will focus on using existing resources and infrastructure, to make them better, faster and more effective. The Middle East (ME) region, says Chad Dunn, senior director, VSPEX (which stands for the virtual systems specifications and is a set of 14 IT blueprints created by EMC) Emerging Technology Product Division, EMC Corporation, is growing surprisingly well. “The ME region is adapting more quickly than many of the countries in Europe. So, Saudi Arabia, United Arab Emirates and Qatar have all been very fast adopters of converged infrastructure both from the Virtual Computing Environment (VCE Company, the privately-held American computer integration company formed in 2009 by Cisco Systems and EMC Corporation), as well as VSPEX reference architecture (that provides a template solution and a common vocabulary for architecture for a particular domain),” says Dunn, adding, “In fact, right now, we’re working with some of our channel partners in the Gulf region to expand our footprint with VSPEX BLUE for our hybrid-converged solutions.” Qatar, for EMC Corporation, is an important market and the company ensures that it introduces its latest technology offering firsthand to the
A session at Redefine Next, EMC Corporation’s 2015 gala which saw major corporate announcements on open sourcing of software, data lake infrastructure and the like. (Image EMC/Flickr)
“Markets such as Qatar have the advantage of being younger, more ambitious, not hindered by the existence of legacy systems, and driven by the surge in economic growth.” – Mohammed Amin, EMC Corporation.
Qatari market. Commenting on the Qatari market’s place in EMC’s overall corporate planning, Amin, in charge of the region for EMC, says, “This is a time, where markets, such as Qatar have the advantage of being younger, more ambitious markets, not hindered by the existence of legacy systems and driven by the surge in economic growth. We look forward to working with our customers and partners in the region to enable both their IT and business transformation goals to create a sound platform for the future.” EMC Corporation, in Amin’s opinion, is able to deliver the triple play in the region at large: to gain market share, reinvest in the future, and deliver leverage. Amin emphasises, “We are especially excited about our prospects in the Middle East, especially in countries such as Qatar where ambitious government plans and forwardlooking industry professionals are investing heavily in solutions that can help attain sustainable growth, drive strategic insight, and enhance competitive efficiencies.”
Smart city offerings
As part of its regional initiatives, in the Arab Future Cities Summit (held in Doha in April 2015), EMC participated with its hybrid cloud offering. This was part of EMC Corporation’s efforts to work with customers and partners in Qatar to establish smart service infrastructures as part of Qatar’s National Development Strategy The Edge | 51
sector name feature story || banner IT infrastructure heading
Trusted infrastructure
Nicolai Solling, director of technology services at Help AG, tells The Edge, “We specifically utilise Hardware Security Modules (HSMs) which we integrate into storage and cloud environments, allowing full encryption and even more importantly, crypto key ownership of the data.”
2011-16. Through its participation, EMC Corporation highlighted the role of third platform technologies such as cloud, social, mobile and big data to boost information sharing, drive security, and enhance service delivery to improve the lives of citizens and expatriates across the nation. Commenting on EMC Corporation’s smart city offerings, Amin says, “Modern countries such as Qatar are fuelled by the need to secure intelligent insights from the mass of powerful and rich data that is being collected from multiple sources.” Among the sources Amin mentions are weather channels, street security cameras, social networks, sensor networks, in-car devices, location-based smartphone apps, radio frequency identification (RFID) tags, and others, adding, “Each of these adds deep insight into the life and choices of the citizens and residents of a city.” EMC Corporation also offers disaster avoidance solutions as well as intelligencebased security solutions that enable the government to not only protect citizens’ data but can also detect any abnormal behaviour in its network and control any threats linked to disrupted services or, fraud or access to citizens’ private data. “These solutions,” says Amin, “aim to ensure that the community remains secure as it engages in day-to-day communication, both on the ground and in virtual life to create a holistic environment based on trust.”
52 | The Edge
The issue of trust is highly linked to the use of IT, especially with the increasing adoption of cloud, big data and the like. Addressing the concerns around safety, IDC, in its white paper entitled, Impact of Cybersecurity Attacks and New-Age Security Strategies, lists the top 10 challenges for information security in the GCC. The document mentions that 60 percent of threats come from employees’ lack of adherence to IT security policies, 59 percent due to increasing sophistication of attacks and 39 percent due to shortage of IT security personnel, among others. Commenting on EMC’s guarantee on data protection and privacy in today’s climate, Dunn of EMC says, “You need protection of the data not through encryption alone but also through access. This is where RSA (the Security Division of EMC which is the provider of intelligence-driven security solutions) plays a very big role for us but it’s also intrusion detection and stopping bad actors in real time.” Citing an example of any company that has had a data breach, Dunn adds that the companies’ conversations with EMC from a security perspective hinges on not just authentication and encryption but also on factors such as mobile device management, “because users want to bring their own devices and we can’t stop it. We need to have security- and access-controlled technologies that don’t feel as intrusive to the end user but still are going to protect the data. So technologies that we have, such as AirWatch (that targets mobile data management) and RSA for authentication or the encryption when we place data on a public cloud, are useful for our customers across segments.” In this context, Dunn mentions CloudArray which allows to share data up on a public storage cloud, whether it is Amazon, Google or any other search engine, “but the key is the encryption that takes place on the site and very importantly, the customer always retains those keys and the service provider does not”. Nicolai Solling, director of technology services at Help AG (a
Mohammed Amin, senior vice president and regional manager, Turkey, Eastern Europe, Africa, and Middle East, EMC Corporation, tells The Edge, “Enterprises are turning their focus to deploy specialised, agile and more scalable IT infrastructure.”
“Saudi Arabia, United Arab Emirates and Qatar have all been very fast adopters of converged infrastructure.” – Chad Dunn, EMC Corporation.
ITsector infrastructure name | banner | feature heading story
A session at Redefine Next, EMC Corporation’s 2015 gala for its vendors, clients and partners held at the upscale hotel, The Venetian, located in downtown Las Vegas, Nevada, the United States in early May. (Image EMC/Flickr)
strategic information security consulting company, founded in Germany in 1995 and has been present in the Middle East since 2004) says, “There are a number of things that can be done. We specifically utilise Hardware Security Modules (HSMs) which we integrate into storage and cloud environments, allowing full encryption and even more importantly, crypto key
ownership of the data. This means that even if data was taken out of the cloud or data centre by any third party, it would be useless to them as they would have to break the encryption before they are able to see the data in clear-text.” Solling adds, “As one of the cryptographers said recently at the RSA conference in San Francisco: Encryption
will not be broken, but bypassed in closing.” In the context of bypassing security, Dunn mentions that no matter how tight the security is, “no technology will 100 percent protect all data. There has to be behaviour changes, there has to be organisation changes. Human beings are the most irrational piece of the equation and the battle is to discipline the human mind”.
EMC Corporation’s offerings for the small and medium enterprises (SMEs) come in the form of its VSPEX solutions make up a complete portfolio of solutions and products that give the client total choice when it comes to deploying the IT Infrastructure. Explaining the spread of products for the SMEs, Chad Dunn, senior director, VSPEX says that there are separate components to that: one is EMC’s reference architecture programme which are solutions that are built to achieve business outcomes rather than just selling EMC products.
Elaborating further, Dunn continues, “They include components from other alliance partners such as Cisco, HP, Brocade, Dell, but they’re all targeted towards a range of different sizes and solutions delivered by our partners. They can be customised by our partners and we build them, test them, validate them, and then we give the partners those blueprints that they can customise to get to the right price-point for these SMEs.” And how much of tailor making can really be done for this segment? Dunn says that “there’s quite a lot of tailor making for SMEs”, illustrating that when EMC Corporation publishes a reference architecture for VSPEX, “we will publish something, for example, to support 100 virtual machines, but within the reference architecture, we tell you what the building blocks are so if it needs to be 50 or 25,
you know what components need to be optional, exactly.” Commenting on the business prospects that Brocade foresees in the SME segment, the company’s senior vice president, Switching, Routing and Analytics, Jason Nolet, says that for a SME business, which do not have a big IT staff, large budgets, or expertise, what is crucial is the ability to deploy a network with the same plug-and-play ease with simple technologies such as hypervisors (or virtual machine monitor – VMM – a piece of computer software, firmware or hardware that creates and runs virtual machines) and servers. Nolet reveals, “This is an ambition that we’ve had for some time. Brocade helps reduce the operational overhead costs and this is really an area that we focus heavily on.”
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Manufacturing key in Qatar’s transition from a hydrocarbon economy In an exclusive conversation with The Edge’s Aparajita Mukherjee, Richard J. Keery, head of commercial banking, HSBC Qatar, gives his views on the opportunities that infrastructure investments open up for financial institutions, especially for relatively uncommon funding mechanisms in the region, such as export credit agencies. He also shares his recommendations on why free zones should be actively considered by the Qatari government.
54 | The Edge
Richard J. Keery, head of commercial banking, HSBC Qatar, says, “We are all very familiar with the Qatar National Vision 2030 and particularly the focus on diversifying the economy. The benefits associated with a diversified economy have been proven historically compared to an economy that is focused on one or two key industries.�
business interview | financial institutions
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s head of commercial banking for HSBC in Qatar, Richard J. Keery has served in several geographies including Egypt, Indonesia, and the United Kingdom and Ireland. “In Qatar, I am responsible for the coverage teams which, in HSBC, is large corporates and large family groups in the mid-market segment,” says Keery. With there hardly being a substantive dividing line between corporates and family groups in Qatar going by the nature of the economy, does it affect how the bank looks at the large corporates and family groups in isolation? According to Keery, one can look at the segregation between large corporates and large family groups in different ways – across scale, or the length of the establishment, or the scope of activity. Keery adds, “There are plenty of businesses in the middle market that are very fast growing and certainly are pushing into that sort of international space as well, which is one of the things that we look at to differentiate the two,” clarifying how the bank views the two groups of players as being dominant in the Qatar market. In addition to large corporates and family groups, Keery also looks after trade finance, payments and cash management. In Keery’s opinion, there is an increasing area of activity and interest among the banking community – “that’s in the area of manufacturing”. Commenting on HSBC’s outlook on the manufacturing activities taking place in Qatar, given the fact that the country is still predominantly an energy-driven economy with deliberate government efforts to facilitate the transition into a knowledgebased model, Keery says, “We are all very familiar with the Qatar National Vision 2030 and particularly the focus on diversifying the economy. The benefits associated with a diversified economy have been proven historically compared to an economy that is focused on one or two key industries.” Keery sees Qatar’s extensive infrastructure development as one of the mainstays of the economic activity outside the oil and gas sector, and pegs it in the context of the manufacturing sector saying, “It will be industries that are initially focused on supporting other infrastructure spending which is expected to reach USD30 billion (QAR109.2 billion) in 2015, in areas such as electricity generation.” He 56 | The Edge
Prime Minister and Interior Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani inaugurated the Annual Macroeconomic Forum 2015 wherein he mentioned that the Qatari economy, in the face of international crises, calls for continued development of the Qatari private sector and diversification of the national economy to reach the goals of Qatar National Vision 2030. (Image Reuters)
explains that obviously with infrastructure development comes the need for the expansion of the electricity grid and expansion of the network. Keery mentions that this is a pattern seen across the Gulf Cooperation Council countries, a region that is witnessing new investments when there have been discussions of a common grid, linking up the rail network, “so it’s quite practical to lay electricity grid at the same time, and combine the freight lines as well”. These regional developments tie in well with the Hamad Port and the mega infrastructure and big logistical developments, says Keery, adding, “So I think one of the immediate ones will be in that area of electricity production, so you are looking at cable manufacturing, the manufacturing or assembly plants, which make sense from an expediency perspective because with growing infrastructure, and developing the networks, there are definite economic advantages to having plants nearby that you can make use of and help develop.” Keery mentions that he sees a great opportunity for the private sector in the area of electricity production. “There are
QAR
109.2 billion
Total infrastructure spend in Qatar in 2015.
financial institutions | business interview
“Infrastructure spending is bringing more people, an expansion of communities, and these are increasing the use of vehicles, consumer goods and other facilities.” a number of family groups and a number businesses here that are working with a number of global producers, so there is an opportunity for them perhaps to bring production on shore or bring assembly lines, which can then support their servicing and support of Kahramaa.” Analysing the overall business spiral created by the infrastructure activity and the way the sector is catalysing prospects, Keery mentions, “Infrastructure spending is bringing more people, an expansion of communities, and these are increasing the use of vehicles, consumer goods and other facilities.”
Keery thinks that these can balloon as more infrastructure spending gets actualised and it requires greater ancillary support, adding, “I think that’s where I would see a greater scope for the manufacturing sector.”
Opportunities for the financial sector
The growth of the manufacturing industry, as a support to the infrastructure activities, presents a multi-layered opportunity for banks, financial institutions and funding mechanisms such as export credit agencies (ECAs), which are public entities that provide government-backed loans, guarantees and insurance to corporations from their home country that seek to do business overseas in developing countries and emerging markets. Keery talks about the various opportunities for banks – either to work on a sole basis, or in consortiums – and he adds that the business opportunities for banks will not be limited to Qatari banks alone. In Keery’s opinion, the banking industry is strong and time and time again banks have proven that they can work together to provide financial solutions. Keery points out that large projects can also attract ECAs. But as a mechanism, are export credit agencies well developed in the region, in the context of cash rich nations? Keery says, “Some are more active than others, but the ECAs are certainly well known and becoming more well known, particularly as we are seeing investment in rail for instance. There are opportunities to offer ECA investment in the electricity industry, which is again something that some of the European ECAs are very attracted to.” As a funding mechanism, ECAs not only bring in international expertise and international stakeholders, but very often the governmental support behind these
agencies, which, according to Keery, develops Qatar’s international connectivity. He clarifies that this connectivity is “something that we have seen a lot of focus on recently, Qatar reaching out and building relationships internationally”. He adds, “I think that’s an area that is quite exciting and one that can help develop manufacturing capability. So there is scope to make use of the local banks, their local networks, capitalise on the local balance sheet strength but also there is an opportunity to bring in some international financers.” In Keery’s opinion, the scope of financial solutions big ticket financing will be as varied as the projects themselves, but there is an opportunity for banks to work together on a syndicated basis, bring in investors or elements of expertise that can range from funding ability, market intelligence or aiding in the structuring of a particular project. “In this area, I foresee export credit agencies contributing to solutions,” he says. Keery further explains that every bank will bring something different into their offering in Qatar and adds, “HSBC brings the rich experience of 60 years’ presence in the country, a truly global network and the capacity to introduce foreign players into the market here. Recently, we have helped local businesses tie up with global players.”
Keery draws attention to the macroeconomic story of Qatar with a gross domestic product growing by seven percent annually, and says, “There are few markets such as Qatar that I am aware of and which are growing at this rate.”
The Edge | 57
business interview | financial institutions
Pictured is a pipeline for mega reservoirs, a Kahramaa project, which is part of the infrastructure overhaul of Qatar, the overall purpose of which is to meet the increase in water demand due to continuous population growth and provide seven days of strategic water storage within the Kahramaa network. Projects such as this have wider ramifications to creating investments in a locally-based manufacturing sector, according to Keery.
Construction finance
Without talking about HSBC specifically, Keery comments that there is a significant spend in the construction sector in Qatar, which opens up an opportunity for the financial industry to work together and to provide solutions to the multitude of projects. Commenting on the business prospects emanating from the construction sector, Keery draws attention to the macroeconomic story of Qatar with a gross domestic product growing by seven percent annually, an infrastructure spend of USD30 billion (QAR109.2 billion) though the outlook for the region is between USD200 billion and USD250 billion (between QAR728 billion and QAR910 billion). Keery adds, “There are few markets such as Qatar that I am aware of and which are growing at this rate.” However, while business volumes will likely be guaranteed by the strong fundamentals of the Qatari economy, doubt arises on the fact that with so much having been done with the 2022 World Cup, is there guarantee that the construction and infrastructure will be needed post the event? Keery is confident, saying, “That’s where we can really look at the Qatar National Vision 2030, which, for me, is the exciting time. There is a lot of preparation going up into the 2022 World Cup, and effectively the mega event almost looks like a launch event 58 | The Edge
in many ways as we work towards 2030”. In this context, Keery cites the recent speech given by the Prime Minister and Interior Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani while inaugurating the Annual Macroeconomic Forum 2015. HE the Prime Minister mentioned that the Qatari economy, in the face of international crises, calls for continued development of the Qatari private sector and diversification of the national economy to reach the goals of Qatar National Vision 2030. Keery also mentions that one can expect greater public private partnerships with the aim of creating a suitable legacy beyond the 2022 World Cup and towards the Qatar National Vision 2030. In Keery’s opinion, the advantage that the private sector can bring is innovative ideas and their capacity for fast turnaround. He says that with the guarantee and long-term financial weight that hydrocarbon wealth brings, Qatar also lacks in its intrinsic industrial capacity that is related to core manufacturing, beyond downstream oil and gas. Explaining the role of the private sector in Qatar’s transition from a hydrocarbon economy, Keery says, “There are no legacy industries here, so it is not like other parts of the world where industrial development is around fixing problems of the past and trying to layer in new industries on
“As a funding mechanism, ECAs not only bring in international expertise and international stakeholders, but very often the governmental support behind these agencies.”
top of that. Instead, Qatar’s chosen path, as detailed in the Qatar National Vision 2030, is about creating a knowledgebased economy, sustainable development, research and development, developing the sciences to actually bringing in new clean manufacturing, and, I would say, there is a huge opportunity to do that and this is where the scope lies for the private sector.” Giving some recommendations, Keery says that while the government has laid the roadmap for economic zones, these could be supplemented by the opportunity to add free zones as well, and help private enterprises to be linked with not just Qatar’s market alone, but to the wider region. In this context Keery mentions mega initiatives such as the Hamad Port and the rail networks that could help in the transition of Qatar as a regional hub.
Inside the minds of leading business figures
business insight Qatari customers show a mix of worldwide trends with local influence in their choices 60 In an exclusive conversation with The Edge, James McGowan, regional brand communication manager, Ikea Qatar, UAE, Egypt and Oman, discusses Ikea’s core business proposition and how the Swedish store caters for local taste in furnishing.
The Middle East present many opportunities for growth in the security, aerospace and commercial sectors 62 Andy Winns, chief executive, Lockheed Martin Middle East talks to The Edge about its Middle East business presence, prospects and what Qatar means to the company in terms of its business spread and portfolio.
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Pictured here is the Ikea store in Qatar. Commenting on the opening of the store, James McGowan, regional brand communication manager, Ikea Qatar, UAE, Egypt and Oman told The Edge, “We opened the doors to the Ikea store in Doha Festival City on March 11, 2013. The launch was our commitment towards the Qatar economy and we think the market has great potential for both growth as well as innovation.”
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business insight | furniture retail
BRAND LOCALISATION
Qatar’s Ikea customers show a mix of worldwide trends with local influence in their choices
In an exclusive conversation with The Edge, James McGowan, regional brand communication manager, Ikea Qatar, UAE, Egypt and Oman, sheds light on the company’s core business proposition and how the Swedish store caters for the local taste in furnishing.
What is your experience in the Middle East? I have been a part of the Ikea brand for 13 years, working in various positions, including store manager for the Ikea store in Yas Island. Leading the marketing team, I optimise the use of conventional as well as innovative marketing tools to bring the Ikea brand closer to its customers across the region. The team aspires to establish Ikea as a brand that offers products of great design at an affordable price to improve the lives of many. Please tell us about Ikea in Qatar – the number of employees, product range, sales growth, etcetera. We opened the doors to the Ikea store in Doha Festival City on March 11, 2013. The launch was our commitment towards the Qatar economy, and we think the market has great potential for both growth as well as innovation. So far, Ikea Doha has employed over 300 people and in the last year, we welcomed 1.4 million visitors. Our core product range includes approximately 7500 products encompassing our new and limited collections, which are introduced into the core range a few times a year. How do you assess your Qatari customers’ behavioural traits. What sets them apart? Across our Qatari customer base, we have noticed a strong mix of worldwide trends as well as local influence in the designs and styles favoured. In order to better understand how people in the local market lives and their home furnishing needs and preferences, Ikea conducts regular home visits every year. Based on this research, we have tried our best to encompass these local features within the global Ikea concept. For example, on average, Qatari homes may have multiple living/lounge spaces as compared to other markets. We use 60 | The Edge
this knowledge in our product choices as well as displays within the room sets to make Ikea more relevant to the Qatari customer. Ikea has had issues with stock shortages in Qatar. What are the reasons behind this, and how are you dealing with it? In the first three months of opening, we did face some challenges with stock availability due to the higher than expected demand from Qatari consumers. However, we have been operating for over two years now, and have a better grasp of customer shopping trends. This knowledge now helps us to secure product availability. How competitive is Qatar’s furniture and fittings market, both in terms of prices and quality? Over the past few years, we have seen a number of competitors enter the market. Our aim is to position Ikea as a leader in home furnishings with quality, and value for money products. What is Ikea’s unique selling point (USP) within Qatar? How is it different from the global USP? Our vision at Ikea is to create a better life for people. We do that by providing good quality products at great value. Irrespective of local taste preferences, this unique selling proposition remains Ikea’s focal aim across all markets. Within Doha, we keep the Ikea concept – created over half a century ago – to offer customers a complete family day out through catering to children’s needs at Småland play area, and a wide choice of refreshments at the Ikea Restaurant and Café. Having completed two years, what are some future strategies of Ikea Qatar? Any expansion plans you want to highlight? The essence of Ikea is to bring good ideas, show good solutions, create higher awareness about home furnishings and contribute to
furniture retail | business insight
“Ikea Doha has employed over 300 people and in the past year we welcomed 1.4 million visitors. Our core product range has approximately 7500 products encompassing our new and limited collections.”
James McGowan, regional brand communication manager, Ikea Qatar, UAE, Egypt and Oman, told The Edge, “The essence of Ikea is to bring good ideas, show good solutions, create higher awareness about home furnishings and contribute to improving everyday life experience of people.”
improving everyday life experience of people. The aim within Qatar is to keep improving our performance and services, focus on growing, and continue to offer customers welldesigned and good quality home furnishing products and services at a price that everyone can afford. At Ikea, we always have a long-term vision. We have had a very busy last few years. Soon after launching our store in Doha, we opened our very first store in Egypt’s Cairo Festival City. Our vision for the coming 10 years sees much potential and includes opening our first store in Muscat by 2017. The future looks bright, and at this point, most of the things still remain to be done. A large part of Qatar’s market is not used to the do-it-yourself (DIY) concept. How does it impact sales of smaller items as the free shipping and delivery service is valid only on amounts above QAR2500? The basic trend that we see regarding larger furniture purchases is that most customers choose to have them delivered and assembled. Purchases over QAR2500 are delivered and assembled free of charge. However, if your purchase is less than QAR2500, then delivery and assembly is still available, but at a small fee. Smaller items and accessories purchased are usually taken home immediately. What has been the response to your Corporate Social Responsibility (CSR) campaigns in Qatar? Please tell us about some key CSR activities in Qatar. We have successfully completed two years of running the Ikea Soft Toys for Education campaign in Qatar in partnership with United Nation’s Children’s Fund (UNICEF) and Qatar Charity, since we first launched it in 2013. During the campaign, each year, for every soft toy sold at Ikea stores worldwide, Ikea Foundation donates EUR1 (QAR4) to UNICEF. This donation is utilised for UNICEF’s many education programmes globally. As a local ‘give twice’ initiative, Ikea Qatar
customers were also encouraged to donate the Ikea soft toys within designated collection boxes located in the store. The last campaign successfully collected over 1000 soft toys which were handed out by Qatar Charity to orphans, children with special needs and young students supported by the organisations across Qatar. The campaign has been very well received and we are extremely pleased with the response we have received from the local customers. The Ikea Foundation, benefitting over 11 million children globally, launched the Soft Toys for Education campaign in 2003. Supporting over 99 projects in 46 countries worldwide, this campaign raised EUR67 million (QAR274.7 million) in total over the last 10 years and EUR10 million (QAR41.4 million) in 2013 alone. In the past, funds raised for UNICEF by this campaign have supported global efforts including improving school infrastructure, access to water and sanitation facilities, training teachers, and providing school benches, desks and educational supplies such as books, pencils, and writing pads for children and teachers. What are some key challenges of dealing in the Qatari market and what are some opportunities? As Qatar has such a diverse population, trying to keep up with changing styles and trends can be quite challenging. One of our key learnings from Qatar has been the need to add local cultural nuances within our designs. As mentioned earlier, we have worked very hard to understand the exact needs of this market, having conducted detailed studies of homes in Qatar through home visits and interviews with the families. A reflection of that study is strongly visible in the strategies we have employed within the Qatari market. For example, our store in Doha Festival City was the first to showcase a majlis setup using Ikea products. This was the first time in any Ikea store in the world, and a huge deviation from the basic concept. This was done with the specific aim to demonstrate how Ikea is relevant to local needs. The majlis shows that Ikea products can be moulded and used to create existing cultural designs and standards. Similarly, our store reflects the findings of our study to include more bathroom storage solutions. We have designed our room settings in a way to offer even more inspirations to utilise the extra space well. The Edge | 61
business insight | defence and security
Aviation INDUSTRY
The Middle East presents opportunities for growth in the security, aerospace and commercial sectors Andy Winns, chief executive, Lockheed Martin Middle East, talks to The Edge about the company’s regional business presence, prospects, and what Qatar means to it in terms of its business spread and portfolio.
East region. Lockheed Martin International has the responsibility for strengthening international customer relationships and industrial partnerships, as well as growing the company’s global business. Lockheed Martin International integrates our existing international business and operations and aligns our international employees under a customer-focused strategy, covering all of the countries where we do business today. The recent opening of our new, enhanced office in Doha is an example of that strategy in action.
Tell us about the company’s main Middle East business areas. Lockheed Martin has been a trusted partner in the Middle East and Qatar for decades and understands how to work with governments, local industry and academia to help achieve national goals. The company is committed to developing long-term business ventures, strategic initiatives and mutually beneficial local partnerships. There are many opportunities for growth in the Middle East region, in the security, aerospace and commercial sectors, due to the close alignment between our product portfolio and the challenges faced by our customers and partners. We established Lockheed Martin International in 2013 to ensure we are applying the correct leadership, more resources and more focus to our international growth strategy, which includes the Middle
How different are these from your global business areas? Rising global security tensions are prompting governments to think about their first priority – protecting their citizens and their national security – and the capabilities they need to fulfill it. In the Middle East, where empowering the next generation of scientific researchers, engineers, inventors, corporate leaders and entrepreneurs is a key national priority for many nations, the Lockheed Martin International team is focused on growing existing local partnerships with governments, businesses and leading universities to share knowledge, grow expertise and drive economic development. Partnerships are a great force multiplier. They bring the best insights and innovations into alliance, promote local jobs, and drive global economic growth to help meet national defence, industrial and social needs.
“Here in Qatar, we are committed to advancing local industry and academia through joint ventures, university partnerships and community projects.” 62 | The Edge
Of the things you do – aerospace and defence, IT, space, and emerging technology – which is biggest in terms of size and relevance to the Middle East? We are a broad-based business with a superior portfolio of products and capabilities that help address our customers and our partners’ most difficult challenges, whether these are in the security, aerospace or commercial sectors. From tactical aircraft and integrated air and missile defence to cyber security, radars, naval ships, training and airport management systems, Lockheed Martin brings proven performance to its customers and partners across the Middle East region.
defence and security | business insight
and academia through joint ventures, university partnerships and community projects. We want to play our part in sharing knowledge, growing expertise and driving economic development to help the State of Qatar achieve its national vision.
Andy Winns, chief executive, Lockheed Martin Middle East, told The Edge, “I am personally looking forward to working closely with local companies and academia to deepen our relationships to support Qatar National Vision 2030.”
Tell us about your Qatar plans. What can we expect to hear from you with respect to your Qatar operations? We recently opened our new Doha headquarters and this facility will enhance our team’s ability to develop business ventures and strategic initiatives, and develop long-term local partnerships, which help meet Qatar’s national defence, industrial and social needs. I am personally looking forward to working closely with local companies and academia to deepen our relationships, and in doing so, support Qatar’s National Vision 2030, which aims to transform the state into an advanced country, capable of sustaining its own development and providing a high standard of living for all citizens, for decades to come. We look forward to harnessing the energy and commitment of Qatari citizens, under the wise leadership of HH the Emir, Sheikh Tamim bin Hamad bin Khalifa Al Thani, to help achieve the State of Qatar’s National Vision 2030 and a strong national defence capability. With your industries, innovation is a key factor. What can you share about the innovation focus in Lockheed Martin? I am proud to work for a global technology leader which is focused on pushing the boundaries of scientific discovery to deliver products and capabilities our customers require, at a price they can afford. We are a company whose mission is to solve complex challenges, advance scientific discovery and deliver innovative solutions to help our customers keep their citizens safe and provide them with essential services. Here in Qatar, we are committed to advancing local industry
Can you share some key points that your president, chairman and chief executive spoke about in her address to the international media in Washington during February? During her Media Day speech, our president, chairman and chief executive, Marillyn Hewson touched on many of the complex security challenges facing the world today. She commented that, in today’s world, change is constant – political, economic, technological, social, and cultural. Hewson stated that what is even clearer the landscape is being reshaped by a series of megatrends – overarching forces that will affect how the world works in the decades ahead. Four of these megatrends are especially relevant to our work: the evolving global power dynamic and its impact on the global security environment; the rise of digital technology and the risk associated with the increasingly connected world; the increasing global population and the demands it puts on resources and the planet; and the worldwide economic uncertainty and how it influences the decisions and priorities of our customers. Each of these megatrends is powerful alone. Collectively, they are transformative – creating the most complex global security environment we have ever seen. At Lockheed Martin, we are working with our international partners, including those here in the Middle East, to develop and deliver revolutionary systems to meet these challenges. What is your take on the way corporations such as yours should look at energy efficiency? And how relevant is this concern in a region such as the Middle East with its hydrocarbon-driven economies? Energy is one of the fastest-growing markets for our IT and cyber security capabilities. We are already helping many utility companies protect the power grid while at the same time improving energy efficiency and implementing smart grid projects. Having built strong cyber defences for decades – for both traditional defence systems and for government IT systems – we are now offering the same capability that we use to protect our own network defences to commercial companies, such as those in energy - a highly targeted industry - so they can benefit from the same level of protection. In addition, with more than seven billion people on the planet and counting, we need to find new, clean ways of generating power to meet the growing demand for energy-dependent food and water production. Beyond traditional energy sources such as oil, gas, coal, nuclear and hydroelectric dams, new technologies are revolutionising our thinking. We are at the leading-edge of clean energy technology, advancing the science behind Ocean Thermal Energy Conversion, wave and tidal energy, the next generation lithium ion batteries, green IT systems and smart grid solutions. These developments are only possible because international partners, including those in the Middle East region, bring unique global perspectives which help us look at developing solutions to these challenges in new and innovative ways. The Edge | 63
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product & reviews
Reviews
Land Rover’s New Discovery Sport
L
and Rover’s highly anticipated new Discovery Sport was unveiled earlier this year in Qatar. It made quite a buzz in the market with the never-before-seen behind-the-scenes footage of the rigorous testing of the SUVs in the Middle East’s extreme desert heat and humid climate conditions. The prototypes were put through their paces during arduous hot weather tests, which included off-road desert capability, transmission calibration and brake noise temperatures up to a sweltering 50°C. The new Discovery Sport has been billed as one of the world’s most versatile and capable premium compact SUVs, unique to its segment, and is receiving an overwhelming response from car enthusiasts ever
since its worldwide debut at last year’s Paris Motor Show. A host of innovations means the Discovery Sport boasts a progressive new design approach and introduces the versatility of 5+2 seating into the premium compact SUV class for the first time. Coupled with supple long-travel suspension, the innovative rear axle also ensures the Discovery Sport is comfortable, refined and rewarding to drive on-road, while retaining the breadth of the class-leading all-terrain capability for which Land Rover is world-renowned. As with every new Land Rover, safety has been a key priority in the development of the new Discovery Sport, resulting in a first-in-class pedestrian airbag, autonomous
emergency braking, and a stateof-the-art bodyshell featuring both ultra-high-strength steel and lightweight aluminium. This represents a fraction of the advanced equipment available in Discovery Sport, which also includes Head-Up Display (HUD), an all-new eight-inch touchscreen infotainment system, and tilt-andslide row-two seating for maximum interior configurability. Alfardan Premier Motors Co. is the exclusive importer of Land Rover in the State of Qatar. The new Discovery Sport range of four-cylinder turbocharged petrol engines is available at Land Rover Showroom at Alfardan Plaza on Al Sadd Street, with a price starting from QAR159,000.
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products & reviews
Read it:
Mind Maps for Business
Mind Maps for Business: Using the Ultimate Thinking Tool to Revolutionise How You Work, by Tony Buzan and Chris Griffiths, discusses how businesses can benefit if people manage information through mind maps – a technique the authors explain as “an all-embracing visual and graphics thinking tool that can harness and help you express ideas and creativity that can lead you to broaden your business practices, solve problems, rethink sales strategies, organise a team or simply improve the day-today efficiency of the running of your business”. While explaining the benefits of mind maps, the authors rationalise the power of this technique linked to the brain activity that goes on in preparing a mind map. When engaging in a mind map, they state, a human brain thinks multilaterally
rather than linearly or sequentially. Building on mind maps’ ability to “unlock your brainpower”, they can transform businesses by positively impacting their daily functions, bringing diverse perspectives, while dealing with them concisely and efficiently. With infinite information now available to people, businesses can gain a competitive edge if employees have the ability to process this information intelligently and meaningfully through techniques such as mind maps. A mind map, the authors state, also boosts creativity by bringing a possibility of widening human imaginations through its graphic approach. After providing a general concept of how and why a mind map works better for business, through the latter chapters of the book, the authors look at the role mind maps can play in specific scenarios emerging during a regular business day. For those less familiar with the approach, the book provides a step-by-step guide to making a mind map. Making the reader more comfortable with the concept of mind maps, the authors apply this approach on the book itself by providing a quick mind map summarising the chapters to come. Similarly, the chapters begin with mind maps giving snapshots of what is to be expected in the following pages. Available at Virgin Megastores in Doha.
Read it:
Never Eat Alone
First published in 2005 and revamped last year, this book, as the title suggests albeit cryptically (and the subtitle gives away), is primarily about networking. Co-written by Americans Keith Ferrazzi, a business guru, and professional writer Tahl Raz, Never Eat Alone presents itself as a kind of guidebook for effecting, managing and taking advantage of one’s business relationships. But rather than coming across as some cold, factual manual, in the preface, Ferrazzi recounts his own humble working class beginnings in a small rural town in the United States (US). Starting out as a golf caddy at the local country club, he writes how he had an early epiphany, one that influenced the rest of his life and formed the catalyst of this book: that the realm of the successful, wealthy and privileged was not solely due to inherited wealth or status, or even talent. Though all these things of course matter, it was the relationships between these people, and how the top one percent or even 10 percent assist and help one another – to find jobs, to put their kids into good schools and with introductions to business associates, for example. These actions, Ferrazzi opines, are less about trying to promote some sort of reciprocal behaviour, but are more based in altruistic motivations, or the desire to truly help one another. Lack of access to these kinds of networks, he realised, is as
66 | The Edge
much of a hindrance to the poor and marginalised as a lack of capital. Indeed, Ferrazzi terms it social capital and has devoted his life – and with the help of Raz – wrote this book, which he claims inspired the likes of well-known US entrepreneur and angel investor Peter Thiel, among many others, to adopt its tenets. Networking for networking’s sake, Ferrazzi writes, was once a dirty word and a cringeworthy pursuit for many, but in the age of social media and a truly globalised business environment, it has lost much of that stigma. Moreover, when he argues that if one considers that developing relationships is central to our humanity and nothing in existence truly exists in isolation, Ferrazzi makes a lot of sense. What follows is an interesting insight into the world of business relationship management, peppered with sage advice, encompassing both the digital realm and the real flesh and blood world in which we all live. Available at Virgin Megastores in Doha.
products & reviews
FUJIFILM X-T10 CAMERA
Fujifilm X-T10, the latest premium interchangeable lens model to join the X-series digital camera line-up, offers outstanding image quality with a new AF system that excels at capturing moving subjects. The electronic real time viewfinder boasts an impressive 0.62x magnification ratio, high-definition precision 2.36 million dot display and the world’s shortest time lag of 0.005 seconds.
BREMONT KINGSMAN WATCH
App Reviews Scanbot
By M. Iqbal
This free app transforms your smartphone into a scanner. Fire it up, point the camera to a document and let it do its magic. It automatically detects the page and its edges, and saves it. You can also choose the page boundaries manually if the app has trouble detecting them. Once scanning is done, it stitches all the pages into a PDF, allowing you to upload it to a cloud service or email someone. The app also works with QR codes. A paid version of the app also allows you to convert images to text.
Trello
Trello is a free organiser app that promises to do it all. At the heart of it are cards, where you can have checklists, comments, deadlines and attachments. Moreover, you can collaborate with others on these cards, such as coworkers. Cards are arranged into lists that you define (for instance a list pertaining to completing a certain project). And finally, the lists are contained in boards (for example a board for your work, or a board for your home and hobbies).
Launched earlier this year, Bremont’s special edition Kingsman watch range, which was developed for acclaimed director Matthew Vaughn’s latest film Kingsman: The Secret Service, is now available for the first time in Doha. Three new models of the British luxury watch brand were featured throughout the film, which starred Colin Firth, Samuel Jackson and Michael Caine.
Truecaller
SONY A7 II CAMERA Sony’s new A7 II is the latest in the A7 series of interchangeable-lens models. The camera comes with an optical five-axis image stabilisation feature, designed for a full-frame image sensor. This makes it possible to shoot sharp handheld stills and videos that may have required a tripod in the past. In-camera image stabilisation also offers sharper images for those using A-mount lenses with a lens adapter.
Truecaller is the Caller ID for your phone that you always wished you had. The app has an exhaustive database to help you identify callers. This works especially well on Android, as every incoming call is accompanied by a Truecaller popup telling you who the number is registered with. On iOS, you have to wait until after the call to copy the number and search Truecaller’s database for the caller’s identity. Even so, it is a useful app to have. During testing, the app worked especially well with Qatari numbers, though your mileage may vary for countries outside of Qatar.
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