The Edge December Issue 2015

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December 2015

Read more of the edge at www.theedge.me

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54 “District cooling is 40 to 60 percent more energy efficient than conventional systems with substantially lower operating costs, and higher operating reliability and availability,” says Yasser Salah Al Jaidah, CEO, Qatar Cool.

Bilateral relations: HH the Emir of Qatar Sheikh Tamim bin Hamad Al Thani with Turkish President Recep Tayyp Erdogan at a joint press conference in the new Turkish Presidential Palace in Ankara, December 19, 2014. (Image Arabian Eye/Corbis)

cover story 48

Between selfies, status updates and social media posts, Millennials make up the most well What do documented Millennials generation in want? human history – but they are also the most misunderstood. Effective advertising A closer look at the research, Qatar and Turkey globally and in the Gulf, reveals a surprising picture of Millennials: Qatar’s majority demographic by far. By Mark van Dijk

Business Interview: Business case for district cooling with Qatar Cool CEO Yasser Salah Al Jaidah

- December 2015

Vol. 7 No. 12

- QATAR’S BUSINESS MAGAZINE - Vol. 7 No. 12 - Issue 74 - December 2015

Taking a closer look at the Gulf’s largest workforce: Gen Y

Doha’s leading agencies talk shop

PLUS:

Solving Qatar’s food wastage problem QFC to ease foreign investment criteria Toward short-term LNG contracts State budgets impact Doha real estate

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Yasser Salah Al Jaidah, CEO of Qatar Cool outlines the business case for district cooling and explains why it should be the technology of choice across Qatar.

comprehensive, have been topical in insurance markets in the Gulf Cooperation Council (GCC) over the past year. But with more comprehensive measures, what will the cost implications be?

feature stories

Energy & Sustainability 35

District cooling is both cost Finance and Markets 33 Regulatory changes, varying from specific to and energy efficient 54

Growth potential of bilateral trade 58

Diplomatic relations between Turkey and Qatar have grown closer this year, with 2015 marking a ‘Year of Culture’ between the two countries. But are the benefits of this being reflected in growing bilateral trade?

Special Focus:

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As Qatar strives to retain its position as the world’s top liquefied natural gas (LNG) exporter, it will need to continue its transition from long-term fixed contracts to more flexible, short-term ones, writes Simon Watkins. Part of a Qatargas plant involved in the production of the 42 mtpa of LNG that Qatargas produces. (Image Qatargas)

Effective advertising: Doha’s agencies talk shop 64 Aided by a young population, increased consumer spending, the impact of online media spend is more quantifiable.

Food for thought 70

About one-third of the food produced around the world goes to waste every year – and Qatar is among the biggest culprits. Real Estate & Construction 39 Given that the country has to import about It has been a period of mixed performance for 90 percent of its food, why are we throwing Qatar’s real estate sector during the third quarter of so much of it away? 2015, writes Syed Ameen Kader. The Edge | 5


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Tech & Communications 43

Qatar has some very specific threats facing government entities, says a regional expert. These come from regimes opposed to regional politics as well as those wishing to benefit from industrial espionage, writes Colin Saldanha.

As Qatar is under continual threat from cyber threats, both the private and public sectors need to be increasingly vigilant.

Business Insight

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Alniz Popat, CEO of Lifecare International, speaks about its corporate values, its business plan in Qatar and the factors that contribute to the company’s success. Dr. Narimane Hadj-Hamou, CEO of the Center for Learning Innovation and Customized Knowledge Solutions (CLICKS), explains the role that e-learning plays in today’s education environment, and her assessments of Qatar’s education sector.

“In our part of the world, developments in e-Learning particularly for higher education have been growing at a slower pace,” Dr. Narimane Hadj-Hamou, CEO of CLICKS, told The Edge.

regulars 10 Photo of the Month 16 Business News 18 Qatar Perspectives 28 Products 81 From the Editor

6 | The Edge





editor’s letter Differences between generations will always elicit numerous opinions, extensive research and reams of press and other forms of coverage. Each generation will feel it is misunderstood by its elders, who in turn oftentimes tend to believe the worst stereotypes about the generations younger than themselves. Which led The Edge to ask the question: ‘What (do) Millennials want?’ for our cover story on page 48. Actually, this is not strictly true as we originally framed December’s cover story along the lines of the working title ‘Managing Millennials’. This was following the train of thought from an earlier editorial in which this writer mused about how, because Millennials are the largest group in the workforce in the world right now, it behoves their Generation X and Baby Boomer managers to get to know them a bit more closely in order to better deal with them. But in compiling this story this month an epiphany of sorts manifested: that is a highly condescending way of looking at it, certainly for Millennials themselves. This is because while angling the story in such a way might prove useful to older managers, it will not appeal to the majority of the readers of The Edge, who we believe reflect in many ways the demographic make-up of Qatar. The stand-out figure that changed this viewpoint? The fact that 95.8 percent of Qatar’s population are under the age of 55. No doubt, many of these are Gen X managers, but the vast majority are of course Millennials, who are either already in management positions or rapidly working their way toward those. Would it not be less condescending to rather focus on them from a more objective point of view? Of course it would, which is what feature writer Mark van Dijk has done for us this issue, using all sorts of research data to come up with an ostensibly more inclusive overview of this generation and its attitudes towards the workplace from a global, regional and local perspective. One impression emerges: Millennials might have their flaws, but they are as a whole ambitious and enterprising, and will, I believe, surprise us and take us forward into the future in a positive way. Their influence is already being felt elsewhere

too. Indeed connected to our lead article, senior business editor Aparajita Mukherjee focuses her scrutiny on the advertising and marketing sector in ‘MENA advertising moving towards online media’ on page 64. The link to Millennials is clear here too, as the population of this region skews younger by the day, the shift from the public consuming traditional mediums such as print and radio etcetera to more digital content will follow rapidly. On the trade front, despite regional tensions that threaten to undermine such relationships across the Middle East, the strong trade relationship between Qatar and Turkey, topical as we reach the conclusion of the celebration of a year of culture between these nations, is the subject of another of our features in this edition. Bilateral trade between the two Islamic states is considerable and growing rapidly, with the potential to expand much further in the coming years. Not surprisingly given the current status quo, defence forms part of this conceivable growth from the Turkish perspective, as does construction and investment by Qatar in the Turkish energy, tourism, manufacturing and agricultural sectors. Lastly, on the latter point, though great strides have been taking domestically to increase farming production, as a country that imports most of its foodstuff, Qatar is one of the leading nations in food wastage. It is a hard-to-stomach truth that The Edge environmental journalist Sybrandus Adema tackles on page 70 in ‘Food for thought’. It must be said of course that this is a massive problem worldwide, with more than a third of food grown, processed and purchased thrown away globally every year. Qatar’s food wastage legacy is of course a remnant of an old paradigm of high oil prices and excessive disposable wealth that is rapidly fading into the past, to be replaced by a more austere, fiscally responsible national mindset. The country’s authorities are also clearly aware of this problem and have implemented various steps to combat it, as you can read in our final article for the year. Of course it is not just up to the government to help curb food wastage, but also all of the people in Qatar. Some food for thought then indeed as we celebrate the end of 2015 and look towards 2016. See you in the New Year.

Millennials might have their flaws, but they are as a whole Miles Masterson ambitious and enterprising. Managing Editor 10 | The Edge





In focus: Business ‘rankings’ and the decline of real journalism The Edge examines the prevalence of rankings and lists in regional print and online media and what they reveal about the standard of journalism in the Middle East.

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s of late, it seems that an ever-increasing number of business rankings have been appearing in numerous publications in the region, many of which claim to focus and specialise on our nation. But the inaccuracies that appear in these rankings are mind boggling. Fairly recent rankings such as the 2015 Qatar Power List are full of these unacceptable mistakes, something even more objectionable when it is

taken into consideration that these publications profess to be focused on Qatar and the correct information is but a Google search away. Occasional errors are an unfortunate part of media production, but these inaccuracies have not gone unnoticed in Qatar’s business circles. For example, HE Mohammed bin Saleh Al Sada, chairman of Qatar Petroleum, was also listed as chairman of Industries Qatar, a position that has been held since March

If the purpose of good journalism is to provide accurate information and quality analysis, and thereby to overall add value to the local market, it can be argued that inaccurate and subjective business rankings do not achieve these aims for Qatar in the slightest.

2015 by Saad Al Sherida Al Kaabi. Or, in the same list, one of the rankings is attributed to the CEO of Qatar Petroleum International (QPI) when that company was dissolved and closed earlier this year (their website – www.qpi. com.qa redirects you to Qatar Petroleum main website) and moreover, a few days before the publication of the list, Ooredoo, Qatar’s main telecom provider, announced through all the local news outlets the appointment of a new CEO through a senior management reshuffle, but the list still names the previous CEO. Ever since the establishment of the mass media as a commercial avenue for advertising revenue, the necessity of quality editorial for publishers and broadcasters has been pitted against sales targets and profit margins. Incisive editorial and superior content attracts a discerning audience and select marketers wishing to reach this particular niche, but has never been as nearly commercially viable as mainstream or popular media. Such is human nature:

that which attracts the largest numbers – tabloid newspapers, trashy magazines and television reality shows – brings in the most advertising spend. Yet it is rarely meaningful, nor does it add any lasting value. Even before the Internet, newspapers and current affairs periodicals started slashing budgets, reducing the ability of journalists to put out anything of real substance or veracity. Digital media has only escalated this trend. Quality content does survive off- and online, but remains a viable business proposition for few. Unfortunately, it seems a deluge of banal and biased content, bolstered by sensationalist headlines and hyperlinks, is edging out real journalism. Moreover, much of this content is incorrect, exacerbated across social media, with falsehoods often swiftly shared and then accepted as fact. Notably, much of it is compiled in the form of articles as lists – also known as ‘listicles’ – which take little effort to create, further maximising profits and shareholder value.


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In the Middle East, where print still reigns as the preferred mass medium over digital (though this is changing rapidly), this kind of editorial approach – ranking people or entities into top 10s or 100s ad infinitum – seems more prevalent than advanced media markets. Of course, legitimate lists of this nature do serve a real purpose. The 500/5000 companies ranking published by Inc., for example, provides intelligence to the business community in the United States. Many top-end Middle East business outlets also publish similar lists of best performing firms, chief executives and business educational institutions, et al. However, some regional and local rankings (and a lesser proportion of international ones too, to be fair) are ostensibly little more than subjective estimations of status or influence in sectors and industries, based only on personal opinions or scant or incorrect information. In fact, it seems that many are not based on any real data, such as net worth, bourse performance or final earnings, or even public surveys. The difference is thus in the metrics and/or reasoning. Granted, the lack of public information may be a factor in the Middle East – but then why create rankings or awards if the criteria are not 100 percent quantified or reasonably justified? No doubt, many of the individuals and companies ranked on these lists or awarded accolades deserve to be recognised. To say otherwise would be disingenuous. However, for some observers at least, a few selections or rankings of individuals or entities are arguably amiss. And whether their subjective nature is been acknowledged or not by their creators aside, some of these lists also contain obvious factual errors or dated information. This is where both legitimacy as journalism and of the usefulness of these lists come into question. Firstly there is the potential damage to the business community, if these are considered as factual and used a primary source of information by many inside and outside the country who do not know any better. Arguably, they also undermine the status of media professionals as a whole in the region, in this case encouraging scepticism regarding the credibility of business journalists in particular. There are therefore many in both the media and business worlds who would like to see this practice stopped – or at the very least performed in a far more objective and conscientious manner. Indeed, if the purpose of good journalism is to provide accurate information and quality analysis, and thereby to overall add value to the local market, it can be argued that these inaccurate and subjective business rankings do not achieve these aims for Qatar in the slightest.

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Introducing The Edge magazine’s

WEEKLY PODCAST

Business news from Qatar and beyond

The Edge now has a 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 current affairs, business news and analysis of the main news stories across all sectors related to the economy and society in Qatar, as well as Arab countries and rest of the world.

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French fraternitĂŠ


photo of the month

The Eiffel Tower in Paris, France is illuminated in the red, white and blue colours of the French flag, in honour of the victims of the November 2015 terrorist attacks on November 13, 2015 in Paris. Countries across Europe joined France to observe a minute’s silence in an expression of solidarity with the victims of the terrorist attacks, which left at least 130 people dead and hundreds more injured. The attacks have had most of Europe on a state of high alert, with manhunts continuing for the perpetrators and their accomplices. (Image Getty Images.) The Edge | 17


news main story 18 | The Edge

business news

New Qatar Financial Centre law to ease procedures for foreign investors Qatar Financial Centre (QFC) recently announced that it will introduce revised regulations in the first quarter of 2016 which will ease onshore access for foreign investors and address issues pertaining to listing of QFC firms on Qatar Exchange (QE). By Aparajita Mukherjee. “The new set of laws, which will be more aligned with the rules of Qatar Central Bank (QCB) and other regulatory bodies, will provide the QFC-registered companies more access to the local market, including listing on the Qatari bourse and also help launching ExchangeTraded Funds (ETFs),” said Yousuf Mohamed Al Jaida, CEO and Board Member, QFC. Currently, there are no QFC registered firms listed on the QE, but there is a long list of firms which are keen to join the stock market. The revised QFC law, expected in 2016, will attract more Foreign Direct Investment (FDIs) to Qatar and allow international investors access to the local market. Speaking to reporters at a round table in November, Al Jaida spoke about other regulatory reforms such as the plan for a combined regulatory framework between the QFC and the Qatar Financial Market Authority (QFMA) and QCB to regulate asset management. Aside from asset management, the regulatory reforms will include banking and insurance, Al Jaida added. According to Al Jaida, legal revisions are taking place within the QFC. “The QFC law allows more room for onshore access. There are certain efforts that cannot be done unless these laws are revised, including the listing of certain QFC funds that are not working unless this QFC law revision takes place,” he explained. The QFC is based on English Common Law, while the state laws are predominantly based on Arabic laws. As a result, there is a contradiction in rules and regulations between the two jurisdictions, Al Jaida mentioned. “With the revised laws, which is to be enacted by the first quarter of 2016, the QFC companies will be able to conduct business more freely and smoothly across the country, and ensure better market stability, which will eventually attract more international companies and FDI,” he said. Al Jaida noted that the drop in the oil price has worked as a blessing in disguise as it has further accelerated the efforts towards economic diversification and the promotion of private sector development, both on the priority agendas of the government. “Listing follows market dynamics. Some companies may have changed their decisions by now because of the oil prices. But what we want is to allow the mechanics and let the companies decide whether

“The QFC law allows more room for onshore access. There are certain efforts that cannot be done unless these laws are revised, including the listing of certain QFC funds that are not working unless this QFC law revision takes place,” said Yousuf Mohamed Al Jaida, CEO and board member of QFC.

they want to list or not, depending on the market dynamics,” commented Al Jaida, adding that revising the QFC law would help expand the centre’s judicial environment, allowing international companies in Qatar to use the QFC courts. “For the next expansion phase, these issues have to be addressed in order to


The revised QFC law, expected in 2016, will attract more Foreign Direct Investment (FDIs) to Qatar and allow international investors access to the local market.

attract more companies. If you want a better market and better stability within the market, FDIs would have to be comfortable in a friendly business environment.” Asked about the recently announced moratorium on registration of new law firms in QFC, he said there are enough QFC-listed law firms that are occupying a significant share of the market, which is saturated to some extent. “We have not shut down on new law firms. We are going to have the first Qatari law firm in QFC within a week or so. However, we also do not want to be a jurisdiction licensing only law firms as we want other companies to thrive,” Al Jaida added. QFC, which is celebrating its 10th anniversary, has achieved great success and growing fast. Last year, 60 new firms (from non-regulated areas) registered at QFC, witnessing a 100 percent growth compared to the previous year.

Global oil prices and production

Left axis: USD/b; Right axis: Oil production ( k b/d) 125

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news

“Weakness is apparent in some areas, but corporate profits are at record highs.” Japanese economics minister Akari Amari, commenting on recently released data related to the Japanese economy, which is in recession for the second time under prime minister Abe Shinzo, as its gross domestic product (GDP) declined in the third quarter of this year by 0.8 percent. The shrinking Japanese economy has a number of analysts concerned that the country could see even more negative GDP growth, but Amiri seemed less concerned albeit cautiously so. “The employment and wage environment is improving,” he added optimistically. “The gentle recovery in the economy is continuing… the problem is that capital spending is not robust, which indicates that the mindset of company executives remains deflationary.”

“We stand in solidarity with Turkey and support the territorial integrity of our NATO ally.” Secretary-General of the North Atlantic Treaty Organization (NATO) Jens Stoltenberg confirming that the Europe-based entity would be supporting Turkey and its claim that it shot down a Russian war plane due to violation of its airspace, despite several alleged warnings. Stoltenberg requested that countries involved resolve the dispute diplomatically to avoid any further escalation, but also said: “I have previously expressed my concerns about the implications of the military actions of the Russian Federation close to NATO borders. This highlights the importance of having and respecting arrangements to avoid such incidents in the future.”

Sources: Intercontinental Exchange, Joint Organisations Data Initiative (JODI) and QNB Economics

The Edge | 19


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Business News in Brief Local and international companies exhibit at QIBS 2015

The third edition of the Qatar International Boat Show (QIBS) was held from November 10 to 14 at Mourjan Marinas in Lusail City. The event was inaugurated by HE the Minister of Economy and Trade, Sheikh Ahmed bin Jassim bin Mohamed Al Thani. Exhibiting companies representing the Qatari maritime industry included Nakilat Damen Shipyards Qatar, Halul Boats , Balhambar Boats and Al Udeid Boats. Many of the international exhibitors at QIBS 2015 were prominent names in the maritime industry, such as Azimut, Sea Ray, Princess, Ferreti, Riva, Gulf Craft and Sunseeker.

HE the Minister of Economy and Trade, Sheikh Ahmed bin Jassim bin Mohamed Al Thani, at the inauguration ceremony of QIBS 2015.

W Doha Hotel named favourite Middle East hotel for business travel

W Doha Hotel & Residences has earned the accolade for Favourite Middle East Hotel for Business Travel by Conde Nast Traveller Readers’ Choice Awards Middle East. The hotel offers a number of services and amenities for business travellers, including meeting rooms equipped with state-of-the-art technology and multiple venues for business events and conferences. It has gone one step ahead to mobilise technology, and allows guests to make reservations via social media by using the hotel’s official hashtag #WDoha.

“W Doha works hard to ensure that every guest who arrives at our hotel has an exceptional experience,” said Safak Guvenc, general manager/area manager, W Doha Hotel & Residences.

20 | The Edge



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business in brief

Turkish Airlines reports 4.6 percent growth in passengers carried from Qatar

During the period between JanuarySeptember 2015, Turkish Airlines’ capacity offered in Qatar in terms of available seat kilometres grew by 3.8 percent compared to the same period of 2014. The number of passengers carried increased by 4.6 percent to reach close to 100,000. The company has disclosed a net profit of USD877 million (QAR3.2 billion), outperforming the first nine months of 2014 by 21 percent. Turkish Airlines is currently running a promotion from Doha for Europe’s top destinations with fares starting at QAR1970, including taxes.

Qatar Investment Authority’s fund with Ascott acquires properties in Paris and Tokyo

Capitaland’s wholly-owned serviced residence business unit, The Ascott Limited’s serviced residence global fund with Qatar Investment Authority has acquired two prime properties in Paris and Tokyo for USD104 million (QAR378 million). The fund will invest another USD33 million (QAR120 million) to convert the office building in Paris into a luxury serviced residence, and embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to USD137 million (QAR 499 million).

Education in sustainability for Qatar’s sustainable growth

In collaboration with the College of Science and Engineering at Hamad Bin Khalifa University, Qatar Green Building Council has developed a core module focusing on the essentials of sustainability for students in the newly launched Master of Science and PhD. in Sustainable Environment and Sustainable Energy programmes. This collaboration is aimed at generating innovative solutions to the existing sustainability challenges by bridging the gap between academia, research and industry in Qatar. According to Dr Cynthia Skelhorn, post-doctoral research specialist, QGBC, standardised green degrees are vital in tackling existing sustainability challenges in Qatar.

22 | The Edge

Start-up Watch

Susanna Ingalls (seated) started the project along with her MBA classmate to offer everything from weekend excursions to one-of-a kind events, exclusive gourmet dinners and seasonal family outings.

UrbanPoint

UrbanPoint began as an MBA project between two students, Susanna Ingalls and Saif Qazi, who envisioned bringing brick-and-mortar businesses online to create new opportunities in the Gulf. Today, the company is a growing e-commerce platform that attracts Doha consumers to local service-oriented businesses through promotions. Tell us a little bit about your company. What was the idea behind starting this? UrbanPoint.com is a growing marketplace that connects consumers with quality businesses in Doha by promoting exquisite experiences, services and great value offers. It serves as a discovery platform that helps premium businesses connect with customers in their city. The platform was launched shortly before Ramadan and, based on months of analytics, is evolving into exciting new partnerships and a new format. What is the background of your team members? How did that help you better understand the needs of the market? UrbanPoint has four co-founders with backgrounds in financial consulting, entrepreneurship, information technology, telecommunications and traditional lines of business including energy, and oil and gas. The diversity and international profiles of the co-founders have enabled the team to adapt quickly to the market and meet the needs of consumers. Soon, UrbanPoint will launch its new format to be ‘available on demand’ and help consumers while exploring Doha onthe-go. What have been the main challenges in setting up this company? The main challenge in setting up this company has been finding and hiring the

right talent. Visa issues, the high cost of living and weather are among the barriers to, and deterrents for, recruiting talent, which is critical for growing from a start-up to a fully operational company. What has the response been like so far from the market? What type of clientele do you cater to? Thus far, the most popular items have been in the fitness, beauty and dining categories. We were surprised at the mobile traffic on our website, and we have used a lot of analytics from our beta launch to reshape our offering. How do you compete with other portals or companies, which are already present in this space? We have positioned ourselves in such a way to bring more value to merchants and consumers than do current players in the market. This requires some creative business modelling and strategic partnerships, and we are excited at how these are developing. What is your marketing strategy to promote the company? Since Doha is a great place for community building, UrbanPoint hosts events such as ‘Doha’s Best Cheesecake Competition’ and will host ‘Doha’s Best Gelato Competition’ in February. www.urbanpoint.com


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CHANGES TO LAWS FOR EXPATRIATE EMPLOYEES By Samy El Sheikh and Carlo Procacci On 27 October 2015 the Emir of Qatar promulgated the new law regulating the entry, exit and residence of expatriates in Qatar being Law No. 21 of 2015 (the “Expatriates’ Law”). This law replaces the previous law of 2009. Whilst a number of the provision of the 2009 law remain the same, there are a number of significant changes introduced in the Expatriates’ Law The changes that will be of most interest concern (1) the system of exit permit for expatriate employees wishing to exit Qatar and (2) changes to the requirements in relation to requirement to obtain a no-objection certificate (“NOC”) from a current employer if the employee seeks to obtain employment with another employer in Qatar. EXIT PERMITS Under the 2009 law, employees in Qatar sponsored by an employer could not temporarily or permanently leave Qatar unless having first obtained an exit permit from their employer and an application for any exit permit needed to be made by the employer. Whilst the employer may still organise an exit permit for any employee, the new Expatriates’ Law introduced changes such that (1) an employee can apply for an exit permit provided at least three days’ prior notice is given by such employee for any intended exit from Qatar by an employee; and (2) in the event that there is an objection by the employer or the authority, then the employee can appeal to a special committee established by the Ministry of Interior for the that purpose (known as the Expatriates’ Exit Grievances Committee) and that committee is required to make a decision, which in case of emergency must be made within three working days. There are no details relating what will comprise an “emergency” situation or the timeframe in which a decision has to be taken by the committee in absence of an emergency situation. Furthermore, it is not stated as to what methods or time periods an employer can object to the granting of the exit permit. One would assume that a detailed procedure will be put into place by executive regulations of this law whenever the same are implemented, although this may not be until around the time the law comes into effect. CHANGING EMPLOYMENT Under the 2009 law transfers of employment in Qatar required certificate no objection certificate (“NOC”) from the outgoing employer, as well as the approval of the Ministry of Interior. Another of the major changes that has been introduced by the new Expatriates’ Law is the introduction of some amount of flexibility with regard to expatriate employees changing employers within Qatar. The Expatriates’ Law now provides that in order to change employers in Qatar, an employer’s provision of an NOC is no longer required for employees on fixed-term employment contracts when such contract comes to completion of the stated term. The employee now only requires approval from the Ministry of Interior

and the Ministry of Labour and Social Affairs. However, this dispensation refers only to fixed term contracts. For unlimited term contracts, Article 21 of the Expatriates’ Law provides that an NOC from an outgoing employer and consent from the Ministries is required unless the employee has completed a minimum five years’ employment with the employer. Already there have been reports in the press of how these changes may be interpreted. For example, it has not been specifically stated whether the five year service period shall apply to existing contracts or only those contracts made after until there are executive regulations clarifying the situation in these cases, then this will be open to argument, so it is hoped that any such questions be dealt with by executive regulations around the time the law comes into operation. Changes in the law as aforementioned may have significant impact on the way businesses handle their employment situations. The changes may well see contracts moving to unlimited terms rather than fixed terms, but more importantly, employers will have to be cognisant of how their longer term employees are being treated, with employees of over five years service having the freedom to change employers. Only contented employees will be mindful of remaining with employers once their five year term comes to an end if other opportunities are available.

CARLO PROCACCI

SAMY EL SHEIkH

Associate c.procacci@tamimi.com Al Tamimi & Company

Associate s.elsheikh@tamimi.com Al Tamimi & Company

Follow us on Twitter @AlTamimiCompany Join us on LinkedIn - Al Tamimi & Company www.tamimi.com


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events

Business events calendar December 2015 – January 2016 9-10 December Euromoney Qatar Conference 2015

After the 2014 edition of the conference, the 2015 Euromoney Qatar Conference aims to provide a strategic view of the new reality, the new threats and the new opportunities in the global financial market. (Image Flickr/ Euromoney Conferences)

To be held under the patronage of HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister, State of Qatar, the 2015 Euromoney Qatar Conference will have four main themes – global order, finance/economics, energy and technology. Each panel of the conference will address one global theme and specifically focus on what it means for Qatar and for Qatari investment/finance. The event aims to bring together practitioners, expert analysts, policy makers and financiers to analyse, review and discuss what is happening, why, and how the financial sector should respond.

10-12 January 2016 QBX Expo

14-16 April 2016 Office World Exhibition

The Office World Exhibition (OWE) is an educational and interactive forum that gathers industry professionals in various fields with their suppliers and marketers to discuss the latest challenges imposed by office equipping technologies. To be held for the first time from January 7 to 9, the event aims to promote communication and interaction between the government, businesses and society to find innovative sustainable solutions. Covering an exhibition space of 5000 square metres, exhibitors will be classified into eight sectors: office furniture, technology and communication, stationary and consultations, internal design and technical equipment, services, recruitment, banks, airlines, insurance companies, and concerned governmental and semi-government authorities.

DEC 2015 - FEB 2016 6-9 December International Petroleum Technology Conference 7-8 December Future Drainage and Stormwater Networks 7-8 December GCC Turkey 9 December Datacenter 360 Roadshow 14-16 December Made in China

According to the organisers, the main purpose of Qatar’s Office World Exhibition is supporting the stationary industry in Qatar through the exchange of ideas and experiences within a professional context.

The inaugural Qatar International Exhibition for Support Services Business Solutions (QBX Expo) aims to bring together every business activity, from start-ups to the most advanced, established businesses. The exhibition will act as a broad and direct communication channel between supply and demand companies. To be held at the Doha Exhibition Center, the event is for everyone who wants to keep up with the latest and most forward-looking support services and business solutions to improve productivity and operations. Some objectives behind QBX include raising awareness about initiatives and programmes provided by the public sector in support of all business sectors and operating companies in Qatar, and providing optimal solutions in the QBX Expo will provide an opportunity for the support services and business solutions services and solutions companies to be identified. fields in order to overcome the obstacles The event will bring together main players in the national and international markets so they can and difficulties that companies face while exchange knowledge, identify opportunities and conducting development operations. improve strategies. 24 | The Edge

Events Listing

18 December Qatar National Day 9 January International Conference on Economics and Finance Research 23-26 January 2nd International Conference on Desalination and Environment 25-26 January Major Projects and Infrastructure Qatar 3-4 February Waste Management and Recycling Summit





qatar perspectives

Tobacco taxes: For health and revenue Dr. Nasser Saidi is the founder and president of Nasser Saidi & Associates, and former chief economist at the Dubai International Financial Centre Authority.

Oil and gas revenues account for more than 85 percent of the GCC governments’ revenue. This high dependence on hydrocarbons makes them highly vulnerable to oil price fluctuations, with the recent decline in oil prices bringing fiscal sustainability concerns to the forefront. The International Monetary Fund (IMF) expects the fiscal balance of the GCC to turn from a surplus of USD76 billion (QAR276.6 billion), or 4.5 percent of gross domestic product (GDP), a year ago to a deficit of USD113 billion (QAR411.3 billion), or about 8 percent of GDP, in 2015. According to the World Health Organisation (WHO) and Tobacco Free Initiative (TFI), a 10 percent price increase on a pack of cigarettes would be expected to reduce the demand for cigarettes by about four percent in high-income countries and by about five percent in low- and middle-income countries, where lower incomes tend to make people more sensitive to price changes. The Middle East and North Africa region is one of the fastest growing consumers of tobacco products, especially cigarettes. In 2010, the region accounted for a 7.1 percent market share of global cigarettes volume, the fourth largest globally. Saudi Arabia, with the largest GCC population, is the largest market in the region for the cigarette industry at 67 percent, closely followed by the United Arab Emirates at 15 percent, Kuwait, nine percent and Qatar four percent. 28 | The Edge

To address their revenue vulnerability and fiscal sustainability through efficient fiscal reform, the Gulf Cooperation Council (GCC) countries should introduce both broad-based sources of taxation (such as Value Added Tax and corporate income/ profit taxes) and indirect taxes (excise taxes) on specific goods and services. Tobacco should be among those goods, writes Dr. Nasser Saidi.

Qatar residents purchase at least one billion cigarettes a year, while the annual smoking rate is roughly 12,000 cigarettes per person. It was revealed, in a recent Global Adult Tobacco Survey (GATS) study, that overall 12.1 percent (representing 51,000 individuals) of Qatari adults currently smoke tobacco.

Tobacco taxation in the GCC

The uniform system of cigarette taxation places the Common External Tariff at 100 percent of the CIF price (ad valorem) and a minimum specific duty equivalent to SAR100 per 1000 cigarettes, whichever is higher. The minimum specific duty was first introduced by Saudi Arabia in the 1990s, and was fully harmonised among GCC member states when Kuwait adopted the current KWD8 per 1000 cigarettes minimum in 2002, while Qatar had a price of QAR100 per 1000 cigarettes. In the years that followed, manufacturers have increased prices of many brands above the levels at which the minimum duty applies, thus increasingly subjecting them to the ad valorem component of the tariff. However,

the minimum specific duty was not systematically adjusted for inflation and its real value and incidence has declined. The way forward is that the GCC countries, through the respective ministries of finance, should agree and introduce excise taxes on tobacco consumption as a policy tool to increase tobacco prices for health reasons and to raise revenue. Ideally, the introduction of domestic excise taxes on tobacco should be in the form of a specific nominal excise tax to be introduced in each GCC member state, consisting of a fixed amount per 1000 cigarettes or equivalent units of other tobacco products, such as shisha. Additionally, there should be GCC policy harmonisation – the introduction of tobacco excise taxes should be applied uniformly (including on domestic production), equally and in a synchronised manner in all countries in order to prevent arbitrage opportunities and illicit trade or smuggling. The process of implementation of the new tax structure should also be gradual: large, sudden tax hikes would encourage smuggling and illicit trade.

Qatar residents purchase at least one billion cigarettes a year, while the annual smoking rate is roughly 12,000 cigarettes per person.



qatar perspectives

Establishment of a social insurance system through Seha

Alanoud Al Mannai is the manager of Customer Services at NHIC.

Seha was born out of Qatar’s long-term development goals, in particular the Qatar National Vision 2030 and the National Health Strategy 2011-2016, which calls for the establishment of a social health insurance system that brings greater efficiency and transparency to the nation’s healthcare sector. According to recent statistics, since the launch of Seha in July 2013, more than 107 million medical services were provided to members, writes Alanoud Al Mannai. The National Health Insurance Company (NHIC) manages and operates the Seha scheme in Qatar. The scheme currently covers the Qatari nation under the mandatory health insurance programme. All Qatari nationals are covered for the full spectrum of basic health services, including in-patient and out-patient services, emergency treatment, maternity and fertility, laboratory tests, prescribed medicines, dental, vision and much more. In addition to the standard benefits covered under the scheme, Seha offers its members the Nbareek health management programme, which covers diabetes, heart diseases and maternity. Through this programme, a team of nurses follows up with members, 30 | The Edge

working in tandem with their physicians to ensure their well-being, to see that they are following medical advice and for any other healthcare-related assistance. The scheme is based on Qatari ID and when a member visits the service provider, it is mandatory to present their ID at the registration desk to verify the identity and scope of coverage within the scheme. If the member is using Seha for the first time, they are asked to confirm their residential address and contact details. An updated mobile number is essential for the member to receive Seha SMS notifications under the ‘Be Our Eyes’ campaign. Once the member signs on the consent form at any Sehaaffiliated service provider, an SMS is automatically sent to confirm the transaction. If the member receives an SMS without having visited the service provider, they can report this to Seha via its customer service channels. These channels include a 24/7 call centre (8008800), or the Facebook (facebook.com/SehaQatar) and Twitter (@SehaQatar) accounts. This service has been launched primarily to detect any potential fraud or misuse attempt and preserve the members’ rights. The call centre has received about 80,000 calls since Seha’s inception in July 2013. More than 1500 complaints have been handled by the team, with a closure rate of 97 percent. The remaining three percent are still active. Seha members can get their medical services through a network that includes 222 service providers from both the public and private sectors, ensuring the freedom of choice according to location, service provided and personal preference.

Seha members can get their medical services through a network that includes 222 service providers from both the public and private sectors.




finance & markets GCC insurance companies and regulators must improve vastly Regulatory changes, varying from specific to comprehensive, have been topical in insurance markets in most countries of the Gulf Cooperation Council (GCC) region over the past year. Countries are taking differing measures starting from risk-based laws to an increase in capital requirements. But are these enough, and with more comprehensive measures, what will the cost implications be? By Emir Mujkic.

W

Qatar and the UAE have specialised insurance hubs, the Dubai International Financial Center (DIFC) and Qatar Financial Center (QFC) (pictured here) supervised by a more advanced, independent framework set up by the designated regulatory bodies in these zones.

hile the Central Bank in Qatar and the Insurance Authority in the United Arab Emirates are introducing more thorough, risk-based laws, regulators in other Gulf countries are focusing more on specific aspects such as an increase in capital requirements, as well as improvements in asset and underwriting guidelines for both conventional and Islamic (takaful) insurers. Standard & Poor’s Ratings Services (S&P) welcomed the steps to enhance regulation by introducing risk-based solvency capital calculations, increases in minimum capital requirements, compulsory independent actuarial reviews of all solvency calculations and technical reserves, enhanced risk management procedures, and more formal investment limits. These changes are likely to provide more comfort to the overall financial soundness of the industry in the long run, leading to better policy holder protection, and improved credit profiles of insurers, resulting from better capital management and optimised operational controls. However, in the short term, S&P anticipates that the cost of regulatory compliance will rise, as insurers will need to add expertise and improve their systems to meet the new regulatory demands. S&P believes that smaller and less wellcapitalised insurers will find the new regulations particularly challenging, while larger companies should be able to cope with the extra demands. S&P also expects that with the implementation of new regulations, the days of fierce price wars may come to an end in most of the Gulf countries as premiums need to be based on actuarial pricing. The Edge | 33


sectors | finance & markets

Smaller and less well-capitalised insurers will find the new regulations challenging, while larger companies should be able to cope. Using Saudi Arabia as an example, premiums for the two most common lines of businesses – motor and medical – have increased by 15 to 20 percent, according to market participants. That is because the local regulator (the Saudi Arabian Monetary Agency) enforced stricter rules on reserving in 2013 and introduced mandatory actuarial pricing reviews. Although there has been some evidence of price increases in some states, we expect local markets to remain competitive. This is due to excess capacity and a large number of insurers servicing the Gulf’s relatively small insurance markets. Although S&P views the regulatory developments as positive for the credit characteristics of the market, and for policyholder protection, it notes that despite increasing economic collaboration and policy coordination within the GCC, insurance regulations and supervisors are still at different stages of maturity within the region. S&P sees little evidence of regional collaboration, and thus a lack of standardisation and ambition in the approach to regulation of the insurance industry. For instance, in Bahrain, Oman, Qatar and Saudi Arabia, central banks are the regulatory authorities. The United Arab Emirates (UAE), however, has an independent Insurance Authority with no formal ties to the central bank. In Kuwait, the Ministry of Commerce & Industry carries out regulation. What is more, Qatar and the UAE have specialised insurance hubs, the Dubai International Financial Center (DIFC) and Qatar Financial 34 | The Edge

Snapshot of Qatari insurance company ratings by S&P Company

Rating

Outlook

Qatar Insurance Company S.A.Q.

In July 2014, affirmed its ‘A’ counterparty credit and financial strength ratings.

Stable

Doha Insurance Co. Q.S.C

In July 2015, affirmed its ‘A-’ insurer financial strength and counterparty credit ratings.

Stable

Doha Bank Assurance LLC

In May 2015, raised its long-term counterparty credit and insurer financial strength ratings to ‘BBB+’ from ‘BBB’.

Stable

Center (QFC) supervised by a more advanced, independent framework set up by the designated regulatory bodies in these zones. S&P believes the effectiveness of the new regulations will be determined primarily by the commitment of regulators in ensuring adoption by the market and consequently enforcement by supervisors. Local regulators in the Gulf, which have a mixed track record in enforcing regulations, will need to step up their game in order to take on the additional and more sophisticated supervisory requirements. Furthermore, S&P expects the full effect of the new regulations will take some time to play out, given grace periods for

insurers to implement new regulation, which can be up to three years for certain rules such as the application of more structured investment portfolios.

Emir Mujkic is an associate for the insurance sector at Standard & Poor’s Ratings Services in the Middle East.

Real GDP growth by sector in Qatar (%) change, year-on-year

Non-Hydrocarbon

Hydrocarbon

Total

20% 15%

13.4%

10% 4.9% 5%

4.6%

4.0%

4.8% 2.3%

0% -5% 2011

2012

Source: MDPS and QNB Economics

2013

2014

Q1 2015

Q2 2015


energy & sustainability The EIA has been quoted as saying that several recent agreements between Qatargas (pictured here is part of a Qatargas plant involved in the production of the 42 mtpa of LNG that Qatargas produces) and international LNG importers are of short-term variety, including a deal based on continental European prices rather than on oil-indexation for the first time in the company’s history. (Image Qatargas)

Qatar to continue contracts transitioning ahead of 2020

As Qatar strives to retain its position as the world’s top liquefied natural gas (LNG) exporter, it will need to continue its transition from long-term fixed contracts to more flexible, short-term ones, writes Simon Watkins.

Q

atar’s long history at the forefront of the global LNG market affords it a number of competitive advantages over those (notably Australia) seeking to take its position as the world’s number one LNG exporter. Chief among these is the fact that its highly developed LNG infrastructure and abundant natural gas supplies mean that it can produce LNG at a cost of about USD2 (QAR7.29) per million British thermal units (BTU), as

opposed to the USD8 to USD12 (QAR29 to QAR44) cost price in Australia, the United States (US), East Africa and Malaysia. In order to retain its top spot, though, Qatar will need to continue to transition from long-term fixed contracts to shortterm flexible ones, according to United States Energy Information Administration (EIA) in its most recent report. According to industry data, the year 2021 will see as many as 10 major long-

term Qatari contracts with key customer Japan come to an end, with a similar number also concluding with major global importer South Korea in 2023. With the recent extended drop in the global hydrocarbons pricing complex, buyers in the future are unlikely to want to sign long-term contract structures again. “This long-running decline in the oil price, with no concerted attempt by the key Organization of the Petroleum The Edge | 35


sectors | energy & sustainability

QATAR’S POSITION IN THE GAS MARKET QATAR’S TOP LNG EXPORT DESTINATIONS* Japan

21.9 UK

10.4

PRODUCTION*

South Korea

India

17.7

16.2

United States

728.3 = 21.4%

share of total

China

9.2

* trade movements in 2014, in billion cubic metres

Qatar

177.2 = 5.1% share of total

PROVEN RESERVES* Iran

Russian Federation

34.0 = 18.2%

32.6 = 17.4%

share of total

Turkmenistan

17.5 = 9.3%

Qatar

25.4 = 13.1%

Canada 162.0 = 4.7% share of total

of total

* at end 2014, in trillion cubic metres

Russian Federation

578.7 = 16.7% share of total

LNG EXPORTS* Indonesia

Qatar

21.7 = 6.5%

103.4 = 31% share of total

share of total

Trinidad & Tobago

Algeria

17.3 = 5.2%

19.3 = 5.8%

Iran

172.6 = 5.0%

share of total

share of total

share of total

* in 2014, in billion cubic metres

* in 2014, in billion cubic metres SOURCE: BP Statistical Review of World Energy, June 2015

Exporting Countries (OPEC) producers to act for the greater good of the big oil and gas producers, has shown customers that there could well be a very extended period of low prices and that even a significant rise in hydrocarbons pricing could be very short-lived, so the consensus is that getting tied-in to long-term contracts is pointless,” Sam Barden, CEO of Middle Eastern energy consultancy and trading firm, SBI Markets, in Dubai, and former Wood Mackenzie trader, told The Edge. Perhaps cognizant of this – and prompted possibly by the re-negotiation by India of its long-term LNG purchasing contract 36 | The Edge

(see The Edge, June 2015), Qatar has already started the process of allowing for shorter-term deals and trading in the spot market. Aside from showing much greater flexibility in delivery options for PetroChina to skew the shipping of LNG to the winter period, transactions have recently been announced with Egypt, Jordan, Pakistan and Eastern Mediterranean buyers that are all either of the short-term contract variety or were straightforward open sales in the global LNG spot market. The EIA highlights that Qatar has notably shifted towards this type of

deal structure and away from the longterm, oil-indexed contracts that used to characterise the vast majority of its LNG business dealings. “Several recent agreements between Qatargas and international LNG importers are of shortterm variety, including a deal based on continental European prices rather than on oil-indexation for the first time in the company’s history,” the EIA states. Looking further ahead, the supply and demand mix portends well for those companies that retain their leading positions in the global LNG business. “We believe that economic growth, urbanisation,


energy & sustainability | sectors

Qatargas’ COO Alaa Abujbara expects global gas demand to grow about two percent over the next five years.

environmental policies and the application of new technologies all support the longterm future of our industry,” said Qatargas’ chief operating officer (commercial and shipping) Alaa Abujbara (pictured right), adding that he expects global gas demand to grow about two percent a year over the next five years. Although this is slightly lower than previous industry forecasts, due to lower electricity demand growth in Asia and lower oil prices leading to less infrastructure development in the Middle East, overall growth will nonetheless be supported by a strong political will for clean air policies across the globe. Given this, although global LNG trade currently stands at around 250 million tonnes per year (mtpy), Abujbara expects this figure to reach over 400 mtpy. Additionally, he concludes, despite there being over 100 million tonnes of liquefaction capacity under construction around the world, there are questions as to whether there will be sufficient supply to satisfy demand after 2020.

Although global LNG trade currently stands at around 250 million tonnes per year, Alaa Abujbara, COO, Qatargas expects this figure to reach over 400 mtpy.

RasGas signs Helium 3 Project deals RasGas has awarded two major contracts for its new Helium 3 Project, located in Ras Laffan Industrial City. With industry data suggesting that world demand for helium has ballooned by nearly three percent since 2013, Qatar is seeking to consolidate its status as one of the world’s leading producers and exporters of the gas. In line with this, RasGas has awarded one contract each for sales and purchasing (S&P) and for engineering, procurement and construction (EPC) for its Helium 3 Project – a new plant – to Air Products and Chiyoda Al Mana, respectively. The Helium 3 plant, to be located in Qatar’s Ras Laffan Industrial City, is expected to produce up to 0.4 billion standard cubic feet (Bscf) of liquid helium per annum, once it becomes operational in early 2018, according to Qatar Petroleum, which – together with ExxonMobil – owns RasGas. “The Helium 3 Project’s source of supply is unique, with extraction processes unlike any of the previous two helium plants, and this shows our ability to leverage existing available capabilities in the country,” said Hamad Mubarak

“The Helium 3 Project’s source of supply is unique, with extraction processes unlike any of the previous two helium plants.” – Hamad Mubarak Al Muhannadi, CEO of RasGas. Al Muhannadi, CEO of RasGas. The first helium plant – designed to extract, purify and liquefy helium from the Qatar’s giant North Field – was established in 2003, and came on stream in 2005, while the second helium plant began production in June 2013, bringing the total liquid helium production capacity to 1.96 per year. Helium is essential to many applications, such as magnetic resonance imaging, fibre optics and semiconductor manufacturing, and in the metallurgical sector, among others. It is a by-product of RasGas’s broad range of activities connected to developing the natural

3%

Increase in worldwide demand for helium since 2013.

gas reserves of the North Field, and its derivatives, including the LNG form, of which it produces around 37 million tonnes per annum for export to Asia, Europe, and the Americas. The Edge | 37



real estate & construction

The recent fall in oil prices has resulted in many Qatari institutions revising their budgets, which has had an impact on demand for office space in Doha. (Image Arabian Eye/Corbis)

Revised government budgets impact real estate sector in Q3

The third quarter of 2015 has been a period of mixed performance for Qatar’s real estate sector, writes Syed Ameen Kader.

T

he falling oil prices that prompted the government to revise its spending plans have had some impact on the real estate industry, primarily the commercial sector, but the overall performance has been stable, according to the Q3 report released by property consultant DTZ Qatar. “While the real estate market performed well in Q2 and Q3 2015, we

have seen a change in trends emerge in recent months,” said Johnny Archer, associate director, Research & Consulting, DTZ Qatar. He pointed out that take-up of new accommodation in the office sector has fallen significantly in 2015. “This is largely due to the fact that the government and the hydrocarbon sector have withdrawn from the market in recent months as their budgets are reviewed,”

Archer explained. Further analysis of the sector suggests that most of the commercial activities in recent months have been limited to the private sector, where lettings of smaller office suites of less than 500 square metres (sqm) have been most prevalent. Kenneth Corbin, head of Commercial Agency, DTZ Qatar, said, “This has resulted in a shortage of smaller offices in the market with it being The Edge | 39


sectors | real estate & construction

“The prime retail malls are all experiencing high occupancy levels, which is putting upward pressure on rents.” – Johnny Archer, associate director, Research & Consulting, DTZ Qatar. most pronounced in West Bay. This has created upward pressure on rental pricing for those occupiers looking for offices of less than 500 sqm.” On the parts of residential sector, the increase in vacancies – primarily in the prime residential market – due to recent redundancies in the oil and gas sector, did not result in softening of rental prices because of the overall population growth in the country. According to government data, Qatar’s population reached 2.37

Prime apartment rents, QAR/month 25,000 20,000 15,000 10,000 5000

2009 2010 One bed

2011

2012 Two bed

2013

2014 Q3 2015 Three bed

Source: DTZ Research

million in May 2015, representing an increase of 9.2 percent year-on-year. However, other two sectors that continue to perform reasonably well are retail and hospitality. “The prime retail malls are all experiencing high occupancy levels, which is putting upward pressure on rents. There is strong demand for new retail accommodation from retailers who will welcome the arrival of new retail malls in the next 12 months,” said Archer. On the other hand, the hospitality

1.7

million sqm

Available purpose-built office space in West Bay, which represents approximately over 40 percent of total supply of office space in Doha.

Levels of office stock & availability/000 sqm 25%

1800 1600

20%

1400 1200

15%

1000 800

10%

600 400

5%

200 0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3 2015 Diplomatic District Source: DTZ Research

40 | The Edge

Vacancy Rate (%)

sector has largely been driven by increasing tourist numbers, which stood at 2.25 million in the first nine months of the year, according to Qatar Tourism Authority’s latest figures. The increase in tourist numbers resulted in an increase in occupancy rates by two percent between January and June compared to the corresponding period in 2014, despite the addition of 15 new hotels to the market. However, Average Daily Rates (ADR’s) for the same period fell by two percent, following the downward trend which has been evident since 2008. The DTZ report suggests that the occupancy levels would come under pressure in the coming years as up to 4000 new hotel rooms are scheduled to come to the market by the end of 2016.




tech & communications Meeting Qatar’s cyber threats: an ongoing challenge for private sector and government

As Qatar is under continual threat from cyber threats, both the private and public sectors need to be increasingly vigilant.

Qatar has some very specific threats facing government entities, says a regional expert. These come from regimes opposed to regional politics as well as those wishing to benefit from industrial espionage, writes Colin Saldanha.

A

s many attacks occur from inside an organisation, it’s necessary to ensure that all traffic is screened at both the ingress and egress points within a government, says Glen Ogden of A10 Networks Middle East. Meeting these concerns is a difficult task,

one that requires a multi-level approach to security, which provides strength in depth. At the perimeter, securing services with DNS Firewall and ‘Volumetric Attack Prevention’ is critical; internal threats are more difficult to counter. The proliferation of SSL (Secure Sockets Layer), the standard security technology for establishing an encrypted link between a web server and a browser, explains Ogden, has enabled many malicious applications to effectively hide their existence once activated, bypassing existing security methods such as Internet filters etcetera because SSL traffic is encrypted and cannot be inspected. Governments, like Qatar’s, must enter into discussions with security vendors who

have countered this threat by developing highly scalable SSL Intercept technology. This allows government entities to intercept all SSL communication destined for the Internet originating inside an organisation, and strip off the encryption, thus allowing existing security products to fully monitor the payload before re-encrypting the data and sending it to its final destination, should it pass internal security checks. Existing security products that inspect payload are not suited for this task due to the high volume of SSL encryption/ decryption required. Therefore a best of breed technology in this space that can scale regardless of SSL key strength is an absolute requirement if government is to avoid service impact due to performance problems. The Edge | 43


sectors | technology & communications

Sound strategy

A security strategy should always be fully encompassing, dealing with both physical and logical security. Typically, says Ogden, government entities in Qatar have a high level of physical security in place already. Unfortunately, modern threats tend to favour logical security breaches rather than physical penetration of a government entity, meaning that new strategies are required to cope. “Critical infrastructure and data are often in some ways synonymous, since they both require logical protection, As many attacks occur from inside an organisation, it’s necessary to ensure albeit of a very different kind. that all traffic is screened at both the and egress points within a You cannot protect data if you ingress government, says Glen Ogden of A10 don’t adequately protect the Networks Middle East. perimeter, therefore a solution that offers both perimeter protection of firewalls, Domain Name System (DNS) infrastructure must be mirrored by internal protections of applications via Web Application Firewalls (WAFs) and importantly, the ability to inspect all communication destined for the Internet regardless of whether it is encrypted or not,” said Ogden. Historically, such protection has proved very expensive to procure due to vendors licensing all features on an appliance; this has limited governments, specifically, from enjoying the same level of protection as their commercial counterparts. However some vendors do not have any licensing, allowing any customer to enjoy all the acceleration and security features for a fixed ‘capital’ and ‘operational’ expenditure perspective. “Unfortunately, government spending on security, beyond Firewalls and Anti-viruses, tends to be viewed in the same way as disaster recovery, that is, only spend after a breach or a failure. In an increasingly connected world, security should be a very high priority for government as e-government is on the rise and both inter-government and citizens mandate their data is both secure and protected. Most CTOs understand this requirement and we are expecting spending on security to increase especially as many government departments are wishing to adopt Cloud services,” Ogden stated. As attacks increase, a governing body is essential to ensure all relevant parties have somewhere to obtain information. Moreover, any entity that helps define protection standards is typically welcomed by those departments that aren’t able to execute their own due diligence in security matters. It is likely that we will see each state have their own entity and this should be considered welcome by the community as a whole. Even if there is a central body that is set up to regulate defence against cyber-attacks, each government or ministry still needs to take action to ensure the region as a whole is fully protected top to bottom. So while entities are of clear importance, that should not be at the expense of individual government departments ensuring they are adequately protected against the very real threats that the country faces daily. 44 | The Edge

Regional youth assertive about cyber security Around eight in 10 youth in Qatar feel confident about their knowledge of cyber-related issues and the elements involved in cyber security, significantly higher than the global average. By Bilal Iqbal. This was revealed by a survey commissioned by Raytheon Company and the National Cyber Security Alliance. Conducted by United States based-firm Zogby Analytics, the survey tabulated responses from about 4000 young adults aged 18 to 26 from the Gulf Cooperation Council (GCC), Europe, Asia Pacific and the United States, who answered a variety of questions about their education, backgrounds, interests and professional goals and perceptions. The results of the survey, however, indicate disparity between GCC citizens’ comfort with their level of education and competence in the cyber realm, and their interest in seeking a career in cyber fields. The survey indicated that about 42 percent of men and women in the GCC were less likely than a year ago to consider a career where they could make the Internet safer and more secure, in comparison to only 16 percent globally. That said, the survey indicates that many young GCC adults possess and want to utilize skills that cyber security careers require, such as data analysis (42 percent), programming (32 percent), problem solving (28 percent) and management (48 percent). On top of that, 79 percent of GCC respondents said that they have pursued activities that would give them an edge in cyber fields, such as cyber competitions, scholarship awards, internship positions, mentor programmes or job fairs.

Cyber-savvy youth

42% of GCC youth are more

likely to pursue a career in Internet security than just one year ago.

26%

above the global average of 16% .

32%

and programming.

42%

Of these, would like to pursue data analysis.

48%

aspiring to become technology security managers.

Source: Raytheon Company and the National Cyber Security Alliance.





Taking a closer look at the Gulf’s largest workforce: Gen Y

What do Millennials

Want ?

48 | The Edge


managing millennials | cover story

Between selfies, status updates and social media posts, Millennials make up the most well documented generation in human history, but they are also the most misunderstood. A closer look at the research, both globally and in the Gulf, reveals a surprising picture of Millennials: Qatar’s majority demographic by far. By Mark van Dijk. Generation Y has been editorially covered by several publications and Time has categorised it as “The Me Me Me Generation” (Image Arabian Eye/Corbis)

T

his is the year the kids take over. In 2016, according to research by global consulting firm PwC, Millennials will make up 80 percent of the global workforce. The rise of ‘The Millennials’ (also known as ‘Generation Y’), the largest generation globally, has enormous implications in the Middle East – and in the Gulf Cooperation Council (GCC) countries especially, where more than 70 percent of the population are under the age of 25. In Qatar, that bulge in the population pyramid is particularly pronounced, with an overwhelming 95.8 percent of the local population aged younger than 55. By Millennials, we mean people who came of age around the turn of the millennium, or those born between 1980 and 2000. While it is difficult to pin exact timeframes on generations, this generation is generally considered to be the one that follows the so-called ‘Baby Boomers’ (people born before 1965, during the population boom that followed the Second World War), and ‘Generation X’ (people currently aged between 35 and 50). In a recent Ashridge Business School report titled A New Generation: The Success of Generation Y in GCC Countries, Rory Hendrikz, Director, Ashridge Middle East noted: “Whilst Generation Y is a global phenomenon with an increasing preoccupation amongst organisation leaders around the world, it holds significant importance in the GCC

countries, with the region’s demographic youth bulge and strategic focus on localisation.” The challenge in understanding Millennials is particularly acute for Gen-Xers, who, though they are outnumbered by Gen Y, are often directly in charge of them in the work place and will be for at least another decade. The test for them arises through a natural generation gap – and is exacerbated by significant misunderstandings and stereotypes about who Millennials are and what they want. As demographics in the world’s largest democracy marched towards this year’s tipping point, there have been numerous editorials worldwide on the subject in recent years. In a September 2013 cover story, the influential United States (US) magazine Time called this ‘The Me Me Me Generation’, with writer Joel Stein branding Millennials as “lazy, entitled, selfish and shallow”. The IBM Institute for Business Value Millennial Survey 2014 restated this widely-held perception, saying that Millennials are commonly depicted as either “lazy narcissists or energized optimists bent on saving the world”. But the IBM survey also quickly revealed those perceptions to be entirely inaccurate, and a growing body of research is finding that Millennials are much the same as older generations. The only significant difference lies in their relationship with technology. So, if Millennials are not lazy know-italls with little or no desire to develop their skills… then who, or what, are they? The Edge | 49


sector name | banner heading

More than half of Qatari Millennials are planning on leaving their jobs within the next 24 months.

65%

Qatar’s Millennials who have already had three or more jobs. 76 percent of the GCC Millennials surveyed recently said that they felt a ‘strong’ pressure to succeed at work. The percentage in Qatar and the UAE was highest, at 80 percent. (Image FotoArabia)

And what exactly do they want?

Whether you are a Millennial yourself (and, statistically speaking, if you are reading this you probably are), or a Generation Xer who is trying to understand your younger, more switched-on colleagues, the answers to these questions might surprise you.

Workplace success

In the Ashbridge study, 76 percent of the GCC Millennials surveyed said that they felt a ‘strong’ pressure to succeed at work. The percentage in Qatar and the UAE was highest, at 80 percent. Crucially, though, the survey found that most of that pressure came from the Millennials themselves (59 percent). Compare that to a survey published in early 2014 by the GCC recruitment agency 50 | The Edge

Bayt.com, titled Millennials in the Middle East and North Africa. Here, 46 percent of GCC respondents aged over 35 described their Millennial colleagues as being ‘hard-working’. In Qatar that figure was even higher, at 62 percent. In that same Bayt.com survey, 35 percent of Qatari Millennials said they are willing ‘to a large extent’ to sacrifice their personal or social life to further their careers. For colleagues over 35, that figure is only 21 percent. So not only are local Millennials ambitious; they are also willing to work hard and make sacrifices to achieve their goals. Here, the relationship that Millennials have with technology plays an interesting role. Millennials have grown up with technology that allows them to access their work e-mail anytime, anywhere. They are always connected – and, by extension, always

connected to the office. This blurs the lines between their job and their private life. As United States (US) author Chip Espinoza told Fast Company magazine recently: “They don’t mind accessing their work life during their personal life, but they also want to access their personal life during work.” For Millennials, then, there is no such thing as work-life balance; it is more like a work-life blend… and with that blurred line comes an expectation for flexibility.

Technological secularism

If you were to do a Google Image Search on the word ‘Millennial’, your search results will produce thousands of pictures of young people either texting on their smartphones or using their smartphones to take ‘selfies’ with their friends. And while Millennials may share many things in common with their


managing sector name millennials | banner | cover heading story

older colleagues – from their shared work ethic to their common desire to grow and develop in their careers – this is the area where the generation gap is at its widest. Millennials, naturally, have a completely new take on technology. Baby Boomers did not even have mobile phones until many reached middle age, and the Internet was still a nascent technology when Generation X reached their 20s. As the IBM report states: “The fundamental distinction between Millennials and older employees is their digital proficiency. Millennials are the first generation to grow up immersed in a digital world. Using mobile and social technologies, immediately accessing data, ideas and inspiration and instantly communicating and collaborating is second nature for these digital natives.” In that IBM study, 96 percent of global Millennials claimed that their organisation has issues implementing new technologies. For Millennials, technology – whether that be mobile devices, applications or social

ON THE MOVE?

Millennials in GCC countries are divided when it comes to their geographic ambitions, after completing their education.

34 percent would like the

opportunity to move abroad

18 percent want to move to a different town, city or region 48 percent would prefer to stay where they are. Source: The Talent Enterprise

According to research by The Talent Enterprise, GCC Millennials such as these students at Doha’s Texas A&M University place a high premium on tertiary education, and highly value mentorship in the workplace. (Image Arabian Eye/Corbis)

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cover story | managing millennials

networking tools – are simply a part of life. Why should their employers not see technology in the same way? And even here, Qatari Millennials have a surprising approach. According to the Bayt.com study, if given a choice of communication method, local Millennials would prefer a face-to-face meeting (52 percent), rather than speaking on the phone (24 percent). For Qatari Millennials, email is a last resort (23 percent).

Desire to learn

In the Bayt.com survey, almost all Qatari Millennials (92 percent) said that they believe their education has prepared them for the workplace, either completely (44 percent) or at least to some extent (48 percent). Yet Qatari Millennials also rate themselves very highly as students. In a survey of GCC Millennials conducted by The Talent Enterprise, 29 percent of GCC national students rated themselves as ‘exceptional’ students – far higher than the GCC expatriate students (3 percent) and UK students (5 percent) surveyed. Yet 76 percent of Qatari Millennials still feel the need to pursue higher education in order to enhance their promotion prospects or to find a better job, or to meet the requirements of the job market in their industry. This is consistent with the response among GCC Millennials (73 percent). So Millennials want to learn – and, specifically, they want to learn from their mentors. In the Ashridge study, 28 percent of local Millennials said that the biggest difference between them and their older colleagues is that “I am willing to share all the information I find. I don’t keep it secret.” The inference was, “I don’t keep my knowledge a secret… but my older colleagues do.” Added to that, the Bayt.com survey found that 59 percent of Qatari Millennials agree to a large extent that they can learn a lot from their older colleagues.

Governing the Gulf

While Western Millennials are widely regarded as anti-establishment – and, to a degree, anti-government – this is not the case in the Gulf. In The Talent Enterprise survey, 34 percent of GCC nationals said that they hoped to work for the government after completing their education. For expatriate students and UK students, those figures were a mere five percent and four 52 | The Edge

While Millennials globally and in the Middle East have many similarities with Generation X, these ‘digital natives’ are naturally much more adept with technology, which is deeply embedded in almost every aspect of their lives.

95.8% The percentage of the population in Qatar under the age of 55.

percent respectively. What’s more, only seven percent of GCC students said they hope to work with private sector employers. For GCC Millennials, then, a government job appears to be first prize. Among Qataris, this finding is confirmed in the Bayt.com study, where 40 percent of respondents younger than 35 named the public or government sector as the sector they would prefer to work in. A further 20 percent of Qatari Millennials listed a multinational company in the private sector as their employer of choice, compared to just five percent who said they would prefer to work for a large local company. Asked to select their reasons for their preferred employment sector, Qatari


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SOCIAL BUTTERFLIES While Millennials have a reputation for being obsessed with technology, research indicates that the older generation uses their personal social media accounts for work purposes more frequently. Use social media to communicate with colleagues and/or business partners Millennials: 55 percent Generation X: 59 percent Baby Boomers: 41 percent

Use social media to get information about their industry/market Millennials: 55 percent Generation X: 59 percent Baby Boomers: 40 percent Market or sell their organisation’s products or services Millennials: 54 percent Generation X: 62 percent Baby Boomers: 46 percent

SOURCE: IBM Institute for Business Value Millennial Survey 2014

‘‘The fundamental distinction between Millennials and older employees is their digital proficiency.’’ – IBM Report

Millennials listed ‘attractive salary’ (51 percent), ‘greater job satisfaction’ (44 percent), ‘more opportunities to learn on the job’ (43 percent), ‘more opportunities for career growth’ (42 percent) and ‘better work-life balance’ (42 percent) as their top reasons. Again, the idea of Qatari Millennials being unambitious or unwilling to learn appears to be completely unfounded. The key finding here for employers is that only nine percent of Qatari Millennials currently work for the government – suggesting that those who are currently in the private sector will move on, if given the opportunity. And make no mistake: Millennials will move for the job they want. In the Bayt.com survey, 24 percent of Qatari Millennials said that they only intend to stay with their current employer for less than a year, with a further 31 percent intending to move on within the next two years.

That means that more than half of Qatari Millennials are planning on leaving their jobs within the next 24 months. This is consistent with the short-term approach many Qatari Millennials have to employment in general. The Bayt.com survey found that 65 percent of Qataris under the age of 35 have already had three or more jobs, and 12 percent have already had more than five. The message, then, is clear for GenXers and Baby Boomers who are tasked with managing a team of Millennials: Don’t expect your younger staff to stay with you for very long – at least, not unless you can offer the job satisfaction, career development and work-life blend that they – or we, as Qatar’s most signification population group – now demand. Mark van Dijk is a freelance journalist based in Cape Town, South Africa.

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business interview | district cooling

“TSE in the Middle East and other Gulf countries is a resource that is under exploited, with 40 to 60 percent discarded to the sea unutilised,� says Yasser Salah Al Jaidah, CEO, Qatar Cool.

54 | The Edge


district cooling | business interview

District cooling

is both cost and energy efficient Yasser Salah Al Jaidah, CEO of Qatar Cool, in an exclusive conversation with The Edge, outlines the business case for district cooling and explains why it should be the technology of choice across Qatar. By Aparajita Mukherjee.

Y

asser Salah Al Jaidah, CEO of Qatar Cool, has spent much of his professional career outside the country, serving in various roles and accumulating over a decade of energy experience. Al Jaidah has held positions throughout the energy field – from maintenance, operations engineering and project management to marketing and venture projects – on four continents in countries such as Qatar, Japan, France, Norway, the United States, Italy, Singapore and the United Kingdom (UK). Immediately preceding his present stint, Al Jaidah was the general manager and director of South Hook LNG in the UK, the largest liquefied natural gas (LNG) terminal of Western Europe and presently the provider of 20 percent of the UK’s liquefied natural gas (LNG) consumption. Commenting on his career before joining Qatar Cool, Al Jaidah tells The Edge, “I established the first liaison office for RasGas in South Korea and have also held a position of Inlet Facilities Project Lead for the RasGas expansion phase two project and was seconded to ExxonMobil as a project execution engineer in Houston, Texas.” Explaining why he chose to return to Qatar, Al Jaidah mentions that as a Qatari citizen, he feels a sense of responsibility in helping the country utilise his worldwide experience in its journey to realise the goals laid out in the Qatar National Vision 2030.

National role

In Al Jaidah’s opinion, Qatar Cool has a significant role to play in the context of Qatar’s growing population and economy. Elaborating

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business interview | district cooling

on the role that Qatar Cool is likely to play, Al Jaidah says, “With growth of Qatar’s economy, its need for reliable and efficient energy distribution will also increase. District cooling is therefore one of the key technologies for Qatar’s future, and a central pillar of the Qatar National Vision 2030.” How does Al Jaidah assess the achievements of Qatar Cool since it was set up? Al Jaidah mentions that Qatar Cool has witnessed significant growth over the past 10 years. The company now has three operational plants, two in the West Bay area and one on The Pearl-Qatar. A fourth plant, situated in the West Bay area, will be opened in 2016 to meet the growing demand for district cooling. He adds, “At the same time, we are working with many major developments in the country to establish a district cooling system in their projects.” “The company,” Al Jaidah says, “has been recognised for our innovative practices by the International District Energy Association (IDEA), and the System of the Year award for both our districts, from IDEA. This is the highest honour to receive from such a prominent association.” Qatar Cool has also received the International Safety Award by The British Safety Council, the Industrial Building Conservation Award from Tarsheed Kahramaa and the best District Cooling Provider at the Climate Control Middle East award ceremony, among others. Talking about technology that Qatar Cool uses and how it achieves its objective of cooling without exploiting the environment, Al Jaidah mentions, “District cooling has minimal environmental impact and energy consumption compared to conventional cooling systems.” Al Jaidah adds that district cooling plants are operated more efficiently with less harm to the environment by eliminating factors such as noise pollution and “allows us to economise on natural resources”. Speaking about the technological preparedness of Qatar with respect to district cooling, Al Jaidah says, “Local authorities in Qatar have developed a conservation plan with all major district cooling companies in the country, which have access to readily available Treated Sewage Effluent (TSE) to make the switch from potable water to TSE.” With respect to TSE and where Qatar Cool fits in, Al Jaidah says, “We are in the process of making the switch in our West 56 | The Edge

Qatar Cool’s facilities in the Diplomatic Area of West Bay.

490

million kilograms The reduction in CO2 emissions achieved by Qatar Cool since 2010.

Bay plants. TSE in the Middle East and other Gulf countries is a resource that is under exploited, with 40 percent to 60 percent discarded to the sea unutilised.” Citing Qatar Cool’s contribution to the environment, Al Jaidah tells The Edge, “We have prevented the emission of around 490 million kilograms of CO2 from the atmosphere since 2010. This is equivalent to removing over 93 thousand vehicles from the roads or planting 13 million mature trees.” District cooling is a sustainable solution, and is a viable business model, especially

in a country such as Qatar which witnesses extreme heat for around eight months of the year. Al Jaidah places the business context of district cooling in a wider picture by saying, “The country is seeing growth in its population, which currently sits at a little over two million, which has led to expansion of its commercial and industrial markets.” This growth, adds Al Jaidah, although contributing to the development of the country, has also led to an increase in the demand for water, power and cooling. Due to its energy efficiency, reduction in carbon emissions, and environmental benefits, the continued implementation of district cooling systems in Qatar will play an influential role in the country’s vision towards a greener future, through efficient and sustainable energy, Al Jaidah tells The Edge. Commenting on the cost implications of cooling skyscrapers on The PearlQatar and how that cost is charged to the customers, Al Jaidah mentions that district cooling has substantial benefits for the developer/customer and these benefits are not restricted to cost alone, but relate to enhanced aesthetics and


district cooling | business interview

“District cooling has minimal environmental impact and energy consumption compared to conventional cooling systems.” – Yasser Salah Al Jaidah, CEO, Qatar Cool.

more flexibility in the building design. District cooling is 40 to 60 percent more energy efficient than conventional systems, says Al Jaidah, adding “it has substantially lower operating costs, and higher operating reliability and availability. District cooling reduces construction cost – air conditioning systems typically constitute up to 10 percent of overall building costs – by outsourcing airconditioning requirements developers are able to reduce their overall building cost”. District cooling also reduces maintenance costs of air-conditioning systems, especially in large buildings which require regular professional maintenance, informs Al Jaidah, adding, “District cooling increases revenue-generating potential. Airconditioning systems are usually installed on the roof or in individual offices/apartments. By utilising district cooling, these airconditioning units are no longer required.” In the longer term, district cooling also provides financial gain, since electricity is a subsidised commodity, and the impact on its demand is an impact on national

resources. “Also reducing the demand of natural gas for power generation, in line with the National Gas Conservation Strategy, is beneficial to the developer and customer,” comments Al Jaidah.

District Cooling System Benefits to Society, government and users Reducing pollution caused by the refrigerant gases used in conventional airconditioning systems that deplete the ozone layer.

Expansion plans

Talking about Qatar Cool’s expansion plans beyond The Pearl-Qatar and West Bay, Al Jaidah tells The Edge that the company works closely with the district cooling regulators in Qatar to ensure that “we continue to be knowledgeable of any regulatory changes in the market in order to ensure that our expansion plans are not delayed. I believe the government can do a lot in regulations to encourage or even impose a long-awaited measure that covers the country as a whole, given the numerous advantages that district cooling offers over conventional cooling.” At present, adds Al Jaidah, district cooling systems appear viable only in high density areas, due to the high electricity rates in the current market structure, making it difficult for district cooling to capitalise and benefit on the existing low power prices. Al Jaidah suggests, “The government can help by regulating the water and electricity tariffs for district cooling providers, making the industry more competitive.” Commenting about the corporate plans of Qatar Cool in the next three years, Al Jaidah stresses the importance of thinking wisely about establishing new district cooling plants, adding “as we foresee some changes in market dynamics, we still believe that decisions regarding new plants will depend on different variables such as geographical location, economic feasibility and population density.” Qatar Cool, he says, is optimistic about the future of the industry and looks forward to seeing district cooling as the cooling technology of choice in the State of Qatar, building on the sustainable development pillar of the Qatar National Vision 2030. Pegging his role in the corporate plans, Al Jaidah mentions, “I am committed to continue and build on Qatar Cool’s success by empowering the Qatar Cool team to reach its full potential as we enter the next stage of growth, which must go hand in hand with the expansion of Qatar’s infrastructure.”

Reducing electrical consumption by almost half as electric consumption by airconditioning systems is estimated to peak up to 75% of the overall electricity consumption during summer months. Being 40 to 60% more energy efficient than conventional airconditioning systems such as air cooled chillers, split air-conditioning units and window air-conditioning units. Substantially lowering operating costs and increasing operating reliability and availability of air-conditioning. Reducing the demand for natural gas for power generation. Since natural gas is one of the sources for power generation in the State of Qatar, it is therefore in line with the National Gas Conservation Strategy. Reducing construction costs as air-conditioning systems typically constitute up to 10% of overall building costs which developers are able to save by outsourcing air-conditioning requirements. Source: Qatar Cool

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feature story | qatar–turkey

Special focus: Turkey

Unleashing THE growth potential of bilateral trade

Istanbul, which straddles Europe and Asia across the Bosphorus Strait, is one of the world’s most popular tourist destinations. The number of Qatari travellers to Turkey increased by 35 percent in the first nine months of the year, exceeding 31,500 visitors.

Turkey is one of the strongest and long-time regional allies of Qatar in the Middle East and North Africa region. Diplomatic relations have grown even closer this year, with the visit of Turkish President Recep Tayyip Erdogan in December when both the countries signed several agreements. But are the benefits of this being reflected in growing bilateral trade? By Syed Ameen Kader.

A

lthough the volume of trade between Qatar and Turkey was only USD1.31 billion (QAR4.7 billion) in 2014, this figure is not a true reflection of the deep business relations these two countries share. The Turkish President Recep Tayyip Erdogan’s visit to Qatar this month has further strengthened the political, economic and military relations between the countries. Qatar and Turkey signed 16 agreements and memoranda of understanding in the areas of defence, energy, education and travel. Among the most significant ones are the long-term liquefied natural gas (LNG) sale deal between Turkey’s state-owned gas grid BOTAŞ and Qatar’s national petroleum company, Qatar Petroleum.

58 | The Edge

Besides these new agreements, which are expected to open up fresh business opportunities, Turkish companies are already involved in a staggering amount of construction work in Qatar. Industry data suggests that close to USD15 billion (QAR54.8 billion) worth of construction projects have already been undertaken by Turkish firms in Qatar. The iconic Museum of Islamic Arts, Hamad International Airport and Qatar National Convention Centre have all been constructed by one of the many Turkish companies operating in the state, as have other significant projects, such as Salwa Road, North Road, the Ras Laffan-Mesaieed Gas Pipeline project, and Qatargas’ onshore facilities.


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“Our aim is to increase the business volume of the Turkish defence industry in Qatar to USD5 billion (QAR18.2 billion) in the medium term (in 10 years).” – Hakan Kurt, general coordinator of the recent High Tech Port event, Doha.

Turkish companies such as STFA Construction, Nurol, Enka, Tekfen Construction, Yuksel Construction and TAV Construction all have a strong presence in the Middle East, and in Qatar. STFA Qatar’s finance and administration manager, Turgut Dizdaroglu, is also chairman of the Dohabased Turkish Businessmen Association (TBA-Qatar). He says that the association represents nearly 45 Turkish members who are doing business in Qatar, and Turkish professionals working for nonTurkish companies or institutions. These include contractors, mechanical, electrical and plumbing (MEP) companies, steel manufacturers and erectors, logistics, equipment and materials suppliers, and

service providers for large- and mediumsized companies. Ahmet Demirok, Turkish ambassador to Qatar, says, “Turkish and Qatari markets are growing rapidly and there are a lot of opportunities for businessmen from both sides. Turkish contractors have enough technical and financial capabilities, enthusiasm and cultural adaptability to enhance business volume by contributing to Qatar’s infrastructure and urban structures.” But trade relations between Turkey and Qatar go far beyond the construction sector. For example, Turkey exports a range of products, from iron and steel, electronic devices and equipment to transport vehicles, construction materials, furniture, textile products and food items, to Qatar. Last year’s export volume from Turkey to Qatar was close to USD345 million (QAR1.2 billion). On the other hand, Turkey is one of the largest buyers of LNG, chemical and plastics products from Qatar. The total import from Qatar was pegged at USD965 million (QAR3.5 billion) in 2014. The new energy deal will further boost the trade volumes. Qatari investors have also invested heavily in real estate, banking and the media industry. Turkey expects to see more Qatari investment in profitable areas such as agriculture, energy, tourism and manufacturing.

HH the Emir of Qatar Sheikh Tamim bin Hamad Al Thani with Turkish President Recep Tayyp Erdogan during a joint press conference in the new Turkish Presidential Palace in Ankara, on December 19, 2014, when the two countries signed an agreement for the establishment of a “Strategic Committee” to intensify their already growing relations. Both the countries signed 16 new agreements during the Turkish president’s visit to Qatar this month. (Image Arabian Eye/Corbis)

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Defence cooperation

Another area of key strategic partnership between the countries is defence. This received a further boost earlier this year when Qatar and Turkey signed a comprehensive military accord. This strategic agreement will not only allow both countries to deploy soldiers in each other’s territory, but will also help increase cooperation in the areas of military training, defence industry and joint military drills. The Turkish president’s recent visit has further strengthened this tie. Not just the military cooperation, both countries have a huge defence market potential to tap. This October’s High Tech Port fair in Doha, in which close to 70 Turkish defence companies participated, is testament to the shared view that both countries have of the huge potential that they can explore together. In fact, Turkey has a strong domestic manufacturing industry, with its defence exports in 2014 rising to an all-time high of USD1.65 billion (QAR6 billion), a 17.7 percent increase over the previous year. Turkey is developing its first indigenous military-civilian regional jet, TRJet – a prototype of which was showcased at the High Tech Port event in Qatar. Hakan Kurt, general coordinator of High Tech Port, says Turkey has an important engineering capacity and products that give the country a 60 | The Edge

(Right) HE Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani, the Prime Minister and Minister of the Interior, Qatar, along with Turkish Defence Minister Vecdi Gönül, Nail Olpak, President of MUSIAD, and other dignitaries during their official visit to the High Tech Port fair held in Doha in October (above).

strategic advantage, whereas Qatar has a dynamic investment capacity and an ability to create aggressive trade models. “Combining these two potentials would upset the balance in the region, while also bringing a partnership that would lead to significant shifts in the global level,” he adds. It can ostensibly be a beneficial situation for both countries, as mutual projects developed in defence and aviation industries could increase the common market of Qatar and Turkey. The distribution of profits can take the relationship between the two countries from a market relationship to a strategic partnership. “Our aim is to increase the business volume of the Turkish defence industry in Qatar to USD5 billion (QAR18.2 billion) in the medium term (in 10 years). Turkey has both the capability and the potential partnership projects to achieve this aim,” Kurt says. In the near future, he adds, Qatar and Turkey will carry out significant projects in the areas of high technology, defence and construction. “I personally find the BMC partnership to be very important in that respect. A partnership between one of Turkey’s biggest industries, BMC, and Qatar, Ministry of Defence will generate a highly crucial player for this region,” he adds. According to Kurt, Turkish companies that participated in the fair left Qatar with a business volume of USD500 million (QAR1.82 billion). At the end of 600


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partnership meetings, Turkish Airlines Technic had generated a business worth of USD50 million (QAR182 million) through its agreement with Qatar Airways; while Qatar’s Ministry of Science and Technology, ictQATAR, signalled that a business volume of USD200 million (QAR728 million) will be created with Turkey, especially in the areas of cyber security and smart cities.

Culture and tourism

The Turkish president who was bestowed with Qatar University’s honorary doctorate during his visit also announced that the two states have decided to lift the visa requirement for travelling between the countries. Qatar and Turkey have been celebrating 2015 as the Year of Culture, which has seen a number of cultural events taking place throughout the year. Demirok, the Turkish ambassador to Qatar, tells The Edge, “Turkey and Qatar are home to rich and diverse cultural practices and this year gives a great opportunity to release the potential in cultural and social fields and to cement our relations at grassroots level.” Events such as these are obviously organised to encourage the tourism sector. In the first nine months of 2015, the number of Qataris who travelled to Turkey increased by 35 percent compared to the same period in 2014, exceeding 31,500 people. Mehmed Kursad Caymaz, general manager, Turkish Airlines, Qatar, says, “Qatari tourists used to travel to Turkey

“This year gives a great opportunity to [...] cement our relations at grassroots level.” - Ahmed Demirok, Turkish ambassador to Qatar.

Mehmed Kursad Caymaz, general manager, Turkish Airlines, Qatar, says, “Qatari tourists used to travel to Turkey for short holidays, but now it has been observed that many visitors own properties and have started to discover new domestic destinations, all leading to longer stays in Turkey.”

“Turkish contractors have enough technical and financial capabilities, enthusiasm and cultural adaptability to enhance business volume by contributing to Qatar’s infrastructure and urban structures,” says Turgut Dizdaroglu, chairman, Turkish Businessmen Association.

for short holidays, but now it has been observed that many visitors own properties, have made investments and have started to discover new domestic destinations, all leading to longer stays in Turkey.” Currently, Turkish Airlines operates 14 weekly passenger flights and with the newly added cargo flight, the number has increased to 15 flights between Istanbul and Doha. Furthermore, Qatar Airways flies to three destinations – Istanbul Sabiha Gökçen Airport, Istanbul Ataturk Airport and Ankara – from Doha, taking its total flights to 18 per week. Caymaz acknowledges the importance of the rapidly-growing Qatari market. “Turkish Airlines already flies twice daily to Istanbul from Doha. We are planning to start flying to even more cities so that the entire country can take advantage of our network and visit Istanbul and other Turkish destinations,” he adds. The Gulf Cooperation Council (GCC) region currently contributes five percent of Turkey’s tourism revenue, with Qatar being one of the highest contributors. “Turkey is considered a promising investment destination by Qataris who are now looking beyond just real estate investments in Turkey and this is a good sign,” he says, adding that both need to cooperate on a variety of sectors from travel and tourism to engineering and technology. The Edge | 61


feature story | qatar-turkey

Bilateral trade volume REACHED QAR4.8 billion in 2014 In conversation with Syed Ameen Kader, Ahmet Demirok, the Turkish ambassador to Qatar, discusses the recent major contributors to the buoyant trade relations between Qatar and Turkey. How would you like to analyse the economic and cultural relations between Qatar and Turkey? How have the bilateral relations between the two countries evolved over the years to reach a stronger position today?

Economic relations are not indifferent from the dynamic growth of our relations in all fields. I am glad to say that our economic ties are getting stronger each day. Of course, the brotherly relations between Turkey and Qatar motivate the two nations to deepen their business and trade relations. Investment opportunities in our countries are also important. It is for sure that the expanding political and economic relations will further consolidate ties at grassroots level. Turkey and Qatar have a shared history and cultural affinity and cultural relations are getting stronger. We are celebrating 2015 as the Year of Culture between Turkey and Qatar. We are witnessing a chain of colourful organisations throughout the cultural year. ‘Qatari Cultural Week’ in Istanbul and ‘Turkish Festival’ in Doha that started recently will display effective parts of historical and modern aspects of Turkish and Qatari culture. As a concrete fall out, I see with great pleasure that Turkish and Qatari people are getting more and more interested in knowing each other.

What are the areas and sectors of business in which both the countries have traditionally been stronger and have witnessed healthy import/export numbers?

Qatar is of course very strong in liquefied natural gas (LNG) and Turkey imports substantial quantities from Qatar. Our export items to Qatar include furniture, machinery, electrical appliances and steel. In addition, Turkish construction companies are very capable and making business all over the world.

Can you name any specific Turkish expertise which has seen greater demand in the Qatar market? Similarly, what are the key sectors or areas within Turkey where Qatari companies/ investors can see trade in?

The construction sector in Qatar uses sizeable Turkish capital and expertise. Cumulatively, the total value of construction projects undertaken by Turkish firms in Qatar amounts to USD15.1 billion (QAR54.9 billion). Among these, the Museum of Islamic Arts, New Doha International Airport, Qatar National Convention Center, Salwa Road, North Road, Ras Laffan to Mesaieed Gas Pipeline project and Qatargas Onshore Facilities are the most prominent. We are eager to expand our cooperation in other sectors as well. Turkey, with its updated, modernised and simple legal framework for foreign investors offers ample opportunities for Qatari businessmen. Qatar has already invested in several projects in Turkey, primarily in the real estate, banking and media sectors. We expect to see more Qatari investment in Turkey. Investment is of greater significance given the notable growth and dynamism demonstrated by the two countries. We 62 | The Edge

“In the bilateral economic relations perspective, construction, energy, health, agriculture sectors and plastic and aluminum industries have particular potential for cooperation.”


qatar-turkey | feature story

perceive that both countries are key players in the global markets and share common interests and opportunities. In this context, in the bilateral economic relations perspective, construction, energy, health, agriculture sectors and plastic and aluminum industries have particular potential for cooperation.

Could you please share any the trade and business volumes between Qatar and Turkey?

Bilateral trade volume touched USD1.3 billion (QAR4.8 billion) in 2014. The exports of Turkey to Qatar were USD344 million (QAR1.3 billion) and imports of Turkey from Qatar were USD965 million (QAR3.5 billion). In my opinion, this does not reflect the true potential of our countries. There is still room to advance our trade relations. We believe that the exports of Turkey to Qatar will further increase as we have diversity in our trade relations.

What’s the history and growth prospect of cultural and tourism relations between the countries?

Human to human contact is very important. That is why we attribute greater importance to our cultural and educational relations, and we work a lot on these fields. We believe that our shared history and culture form the basis that connects Turkey and Qatar. An important part of human-to-human contacts is education and one of our main objectives is to enhance cooperation in this field between our brotherly countries. The first Turkish school will start next year. Accordingly, we are happy to see that our Qatari brothers and sisters are more and more interested in Turkish culture and history. That makes a positive impact on tourism statistics as well.

What are the new and emerging sectors that have greater growth potential in the future – something that both the countries can capitalise on?

There are strategic sectors that always have importance such as energy, mining, construction, banking and finance. I believe there are concrete opportunities that can be capitalised. Healthcare is a particularly promising sector. I believe Turkey has a vast experience with its skilled doctors and nurses and good-quality hospitals and services in health sector. There is a lot to share in this area. I also would like to draw your attention to food security. This will increasingly be a critical issue for the world. Obviously the resources are limited, yet both the world population and consumption are increasing. Securing the production of, and access to, food will gain further significance. Moreover, we need better technologies in agriculture. This could potentially be an important area of cooperation.

Ahmet Demirok, the Turkish ambassador to Qatar, tells The Edge, “The construction sector in Qatar uses sizeable Turkish capital and expertise. Cumulatively, the total value of construction projects undertaken by Turkish firms in Qatar amounts to USD15.1 billion (QAR54.9 billion).”

The Edge | 63


feature story | media industry

64 | The Edge


advertising industry | feature story

effective advertising:

Doha’s Leading agencies talk shoP Countries in the Middle East and North Africa (MENA) region, compared with many of the developed advertising markets, show a marked preference for online media exposure. This is on the back of a growing young population, an increased volume of consumer spending and the quantifiable nature of online media spend on corporate profits. Industry insiders talk to The Edge’s Aparajita Mukherjee on the medium, the language, the quality of clients’ briefs, and how the region fares compared to global standards. The Edge | 65


feature story | advertising industry

Kristian Hlousek, senior strategist, Lara Nakhle, creative group head and Ali Al Saeed, creative copywriter at 60 Degrees.

R

ecent research on the advertising and media industry by think-tank A.T. Kearney point out that contrary to global patterns of shrinking advertising revenues, “the pan-Arab media industry is growing faster than the economy in general, at about 19 percent per year, with both online and offline channels expanding and even feeding off one another”. The appeal of the sector to investors, adds A.T. Kearney in its report entitled Middle East Media on the Move, is expected to continue to grow as Middle Eastern consumers spend more disposable income on the media industry. Highlighting the issue of consumer spending strategy&, in their paper, How Young Arabs are Fuelling the MENA Media Market that was released at the Abu Dhabi Media Summit last year, underlined that

Hussein Fakhri, CEO Triple Two, says that his agency has invested in running an annual online survey, ‘State of the Net’, to get vital insights into how people in Qatar are consuming digital content. 66 | The Edge

the overall population is expected to grow 1.9 percent in the next five years, from 317 million in 2014 to 349 million in 2019. Consumer expenditure should see even more dramatic growth during the same period, increasing 10.6 percent from USD1.2 trillion (QAR4.4 trillion) to nearly USD2 trillion (QAR7.3 trillion). This consumer spending is in tandem with the transition of the economies away from an overdependence on hydrocarbon revenue “toward more knowledge-based economies, and media is being targeted as a priority sector”, states A.T. Kearney. A.T. Kearney notes that the Middle Eastern market stands out, compared to the developed markets in the West, in terms of its potential for growth across all media segments, “without the cannibalisation, particularly from online channels that is prevalent in many mature markets”. Speaking about the preferred mode of advertising in the region, Lara Nakhlé, creative group head, 60 Degrees, a Dohabased advertising agency, is of the opinion that usually it depends on the target audience and what medium is best to reach the audience in question. Nakhle adds, “Nevertheless nowadays, most clients would usually insist on focusing on digital and social media platforms. Traditional mediums like print in newspapers and magazines are no longer as effective as online and mobile platforms. Staying in line with the region where more and more people are being immersed in digital and online, is a great way to be as accessible as possible to the public and provide them with the best customer experience.” Hussein Fakhri, CEO, Triple Two says that his agency has invested in running an annual online survey, ‘State of the Net’, to get vital insights into how people in Qatar are consuming digital content. Commenting


advertising industry | feature story

on the initiative, Fakhri says, “This is just one of many ways we keep our finger on the pulse and stay on top of changing attitudes towards digital and other media.” He adds that one surprising insight that their survey uncovered was the quick rise in popularity of Snapchat, particularly amongst Qataris, which has reached 54 percent in usage.” Such information is valuable to help ensure, he says, agencies use the right tactics and channels to reach the right audience at any given time. Alaa Qassim, the marketing and business consultant at ADabisc, says that his experience shows the same mix of media –

outdoor press ads and social media. Qassim adds, “This is regrettable because there is not much experimentation. But this country offers amazing opportunities to develop very unique advertising or communication experiences. Qatar also has the needed technology infrastructure to do so. The challenge is to manage the long processes of decision-making and approval permits, which hamper innovation – especially when a campaign has a tight timeline.” Regional agency Kilma’s co-founder Daneesh Surkari comes across clients who have been placing a heavy emphasis on innovations such as aestheticallydriven videos and photos for Instagram and Facebook. Rami Shanaah, group managing director, Frame Communications, agrees that online and digital advertising has surely become the preferred mode and has sparked massive changes. “But, in this region,” Shanaah says, “it is not only digital advertising that is needed. This region has left a large space for print to continue to thrive within. Unlike other parts of the world, the press remains strong here and most fundamentally is supported by the government. Online and digital activations are key, but offline activations are still championed and exist as a close second.”

Alaa Qassim, the marketing and business consultant at ADabisc, says that his experience shows the same mix of media – outdoor, press ads and social media.

Quantifiable impact of a campaign With good briefs and super campaigns, the question naturally comes: does advertising have an impact on corporate bottom lines? Kristian Hlousek, senior strategist at 60 Degrees, says that while it is difficult to quantify, “with the right tools you will be able to calculate the return on investment on your marketing spend. One of the reasons why digital marketing has gained such a popularity is that it is also easier to measure – you can see in real time how many impressions, clicks, and conversions your campaign is generating. And we don’t stop here – what we do in cooperation with our clients is to optimise campaigns on the go based on the continuous results obtained through analytics.” In Qassim’s opinion, getting to that data will depend on whether or not the campaign followed through with measurement of audience response. He cites the example of ADabisc’s Tarsheed Qatar campaign which was developed for Kahramaa during the summer of 2012, using social trends to educate, inform and encourage people towards more responsible resource use.

“Many clients in the GCC are usually afraid of taking unfamiliar steps, afraid of being the first to establish something new within the region.” – Lara Nakhle, creative group head of 60 Degrees.

The Edge | 67


feature story | advertising industry

“Kahramaa announced that at the end of 2013, the consumption of electricity per capita had decreased by 10 percent and water decreased by six percent,” he said. Quality of client briefs The advertising market is, to a large extent, dependent on the quality of briefs that an agency gets from a client. For Hlousek, the critical element of a great creative brief is the very basic prerequisite of a great campaign. “But,” adds Hlousek, “it often gets forgotten in the attempt to get things done quickly. However, it is basically the agency’s task to arrive at a crystal-clear brief that triggers a creative idea.” Therefore, the agency tries to talk to clients as much as possible in order to understand the brand’s history, the client’s understanding of the market, the current business issue, and how marketing communications can help to resolve it. Fakhri of Triple Two is of the view that agencies say the work is as good as the brief, and while that is certainly true, “it also means agencies should be asking the right questions. It’s really the agency’s role to find that one sentence or insight that will help them write a brief that can inspire creatives. The true challenge is then how we translate the brief into a meaningful campaign”. Tamara Bullock, deputy CEO for Middle

“In this region, it is not only digital advertising that is needed. This region has left a large space for print to continue thriving within.” – Rami Shanaah, group managing director, Frame Communications. 68 | The Edge

East, Turkey, and Africa, at Grayling, tells The Edge, “In the past five years since we’ve been operating in Qatar, we have noticed a huge improvement of client briefs, better understanding of correlation between the organisation’s business objectives and communications’ function, and especially embracing the need for integration of communications services from media relations through digital to above the line.” Talking from the clients’ perspective, and assessing the quality of turnaround that they receive from an agency, Maher Eldaly, head of Brand and Communication, Vodafone Qatar says that it really depends on three things: the size of the campaign; type of campaign (whether it is ad hoc, reactive, new launch or others); and most importantly, the budget. Eldaly adds, “In a very fast-paced industry such as telecom, our briefs’ turnaround should be quite fast.” Educative role of agencies if client brief is an integral part of a successful campaign, agencies have an equally important role in educating clients. Explaining the role that agencies play, Nakhle of 60 Degrees tells The Edge, “Many clients in the Gulf Cooperation Council are usually afraid of taking unfamiliar steps, afraid of being the first to establish something new within the region. Simply put, everyone is waiting on everyone else to make the first move because they aren’t sure of how the public would react. So it is the agency’s role to explain and educate the client on what is best for them, even if it seems like foreign territory.” ADabisc, says Qassim, engages with its clients, giving them input and guiding their thought processes. He adds, “We

“The mentality of the people remains traditional and as such appreciates the print model. Online and digital activations are key, but offline activations are still championed and exist as a close second,” says Rami Shanaah, group managing director, Frame Communications.


advertising industry | feature story

QAR

7.3

trillion

Effective advertising: Campaigns that stood out and why? The perspectives

Projected consumer expenditure in 2019, according to strategy&. share examples of tried and tested local and overseas experiences in order to equip clients to make the right choice for their campaigns.” For Shanaah of Frame Communications, any successful agency believes in collaboration between themselves and clients. He explains, “By working with clients to fully understand what they’re looking for, we can then inform them of what’s needed. ‘Educating’ them may be too strong a word in this case, as the clients’ talent pools have become increasingly strong. Not all of them have experience dealing with agencies however, and this has required helping clients understand our internal processes so that we can deliver the work needed.” Bullock of Grayling believes that Qatar has a completely new generation of young Qatari communication/advertising professionals who are eager to follow global trends and adjust them to local business culture. She adds, “In many cases our role as Grayling is to help them build the knowledge bank and operational capacity to achieve those goals.” Language advertising Industry insiders feel that the choice of the language used by their clients depends on the target audience and their scope of operations. A multinational, for instance, is more likely to use English, as opposed to Arabic in their communication. Eldaly of Vodafone Qatar comments, “As a brand for everyone, we have to be bilingual. Targeting is something we definitely look closely at, especially when we have specifically designed products for certain segments.” With the native language of Qatar being Arabic, the country’s advertising, according to Qassim of ADabisc is neatly split with 60 percent English advertising and 40 percent Arabic, which, he says, “is a reflection of the

The Perspectives Campaign of Emirates NBD (pictured here) stands out in Alaa Qassim’s (ADabisc). opinion. He explains, “This campaign targeted a specific problem in the region and drew attention to kids with special needs, repositioning them as artists and bringing them into the mainstream.” (Image Creative Criminals)

Project akshar

Project Akshar (pictured here) is a campaign that stands out in Lara Nakhle’s eyes. She tells The Edge, “ The campaign was socially responsible, making a change within the community and bringing awareness to some of the problems people are facing in the region and how to overcome them. Usually, all it takes is the simplest idea to leave a lasting impact. (Image Ads Of The World)

Hello happiness

Daneesh Surkari, co-founder of Kilma, a Dubai-based agency says, “In my opinion, the most impactful campaign from last year was the ‘Hello Happiness’ campaign by Coca-Cola. The agency was tasked with “Increasing love” for Coca-Cola in the UAE. The campaign saw a number of branded phone booths being installed in labour camps across the country that allowed labour workers to make phone calls to their friends and family abroad by inserting bottle caps from Coca-Cola soft drinks into the phone booth.” (Image Coca- Cola)

Continued on page 80

The Edge | 69


Food for

thought About one-third of the food produced around the world goes to waste every year – and Qatar is among the biggest culprits. Given that the country has to import about 90 percent of its food, why are we throwing so much of it away? asks Sybrandus Adema.

70 | The Edge


food wastage | feature story

F

ood wastage is a huge issue in Qatar, In 2012, the last year for which there is recorded information, a massive 1.4 million metric tonnes of food was consumed and wasted in Qatar. This figure, divided by the then population of 2.05 million, equates to an average of 636 kilograms (kg) of food per person for the year, or 1.74 kg per day. Given the benchmark of two kg per person per day (preferably nutritious fare that does not contain too many kilojoules), that does not sound too excessive. But if you remove the young, elderly, short-term visitors/workers and people who consume less than two kg per day from the equation, it is clear that much more than two kg per adult is either consumed or wasted. This only compounds the country’s rapidly growing and expensive obesity problem. Added to the wasted food are the litres of bottled water and soft or hot drinks that are consumed every day. The average Qatari resident uses 675 litres of water per day (drinking, washing and waste), at a rate double that of the average European. Over and above the 1.4 million tonnes of wasted food, an additional 14 percent – representing nearly 20 million kilograms – is also discarded or destroyed before it even reaches the Qatari end-consumer. This food is either past its sell-by date or spoilt due to problems with the cooling chain. On one hand, this is due to a lack of effective agricultural planning, and decades of environmental degradation (after all, even the local fish industry is but a shadow of its former self). But on the other hand, Qatar’s growing and increasingly affluent population means that money is no deterrent in terms of the quantity and quality of food demanded. Huge banquets, often with expensive exotic food, are commonplace, and Qatar is the fastest-growing food consumption market among Gulf Cooperation Council (GCC) countries. According to data published by the United Nations Food and Agriculture Organization (FAO) in 2014, the average local inhabitant wastes up to 250 kg worth of food per year, compared to just 70 kg in other regions. But while Qatar as a country, and the Gulf as a region, are among the biggest culprits, food waste is a global problem. Nearly 30 percent of all food fails to end up in someone’s mouth, and if the total worldwide food loss and waste were a country, it would be the third largest CO2 offender on the planet. The Middle Eastern ecology activist

Most of the discarded food in Qatar has been produced somewhere else in the world, packaged, transported and distributed before finally reaching customers – who then throw away a huge amount of it. (Image Arabian Eye/Corbis)

The average local inhabitant wastes up to 250 kg worth of food per year, compared to just 70 kg in other regions. group EcoMena estimates that about half of the waste sitting in Qatar’s landfills is made up of leftover food. The combination of the country’s very high consumption rate and very low recycling rate, mean that mountains upon mountains of food are being dumped. Furthermore, only a minimal portion of this discarded food is being composted, despite the short supply of good soil. EcoMena’s research shows that up to 25 percent of all food prepared during Ramadan is eventually thrown away – even at a time when the distribution of leftover food to the poor is traditionally at its highest.

Getting to the bottom of it

Qatar is trying to solve the issue, starting with better research. This year the Qatar National Research Fund (QNRF) announced that it would investigate food distribution waste and consumption in the state. The project, entitled Safeguarding Food and Environment in Qatar (SAFE-Q), intends to focus on the long-term sustainability of Qatar’s food supply chain, including its green aspects, and the interconnection of these aspects with the population’s health and economic development. According to co-lead principal investigator Zeynep Topaloglu, adjunct assistant professor of Economics at Georgetown University in Qatar (GU-Q), the current statistics point to a huge waste on many levels. Most of the discarded food in Qatar has been produced somewhere else in the world, packaged, transported and distributed before finally reaching customers – who then throw away a huge amount of it. As a result, hundreds of thousands of animals and plants are sacrificed every year for nothing. All the pollution that is associated with harvest/slaughter, processing, cold storage and destruction also helps explains why Qatar has, per capita, the second worst carbon footprint on the planet. The Edge | 71


feature story | food wastage

Onethird of all food produced for human consumption is lost or wasted globally.

Topaloglu says, “We propose a threestage methodology composed of problem structuring, operational modelling and generation of a repository for risk assessment for the implementation of the policies that aim to reduce food waste in Qatar. My specialisation has always been risk management, yet for this project my role is to conduct risk analysis for the food supply chain.” Topaloglu says it is crucial to understand exactly how much food is wasted in Qatar. “At this stage, there is scattered information from different stakeholders,” she says. “In addition, we would like to engage the consumer through the sharing of their food waste diary, which would record the types or kinds of products wasted, the reason why they discarded it as well as whether it could be avoidable or reused/recycled in another way. This will be a totally voluntary activity,

Over and above the 1.4 million tonnes of wasted food per annum, an additional 14 percent – representing nearly 20 million kilograms – is also discarded or destroyed before it even reaches the Qatari end-consumer.

1.74 kg

Food consumed (eaten or wasted) by the average Qatari resident per day.

In 2014, Qatar’s 2.235 million residents spent a collective USD11 billion (QAR40 billion) on food. This represents an annual average of almost QAR18,000 worth of food per person – including children, the elderly and low-income migrants, who make up the bulk of the residents.

72 | The Edge

because changing consumption habits and practices cannot be enforced and will only occur if people really want to make a change.” Some local organisations, such as Food Savings Bank, are trying to collect leftover food and distribute it to the poor. One of them reports retrieving up to 10 tonnes of food over the course of two days, which they then transform into meal packages. This is often the remains of endless buffets, or food that is close to its sell-by date, which does not necessarily mean it is unsafe to eat. The SAFE-Q project forms part of one of Qatar’s national priorities: food security. An entire government department is devoted to the Qatar National Food Security Programme (QNFSP), which has held numerous conferences since 2008. Billions of riyals have been set aside to make Qatar less dependent on food imports, but the QNFSP has already been scaled down to ‘only’ aim for a 40 percent local food production by 2023. It is uncertain what causes the greatest ecological damage: importing soil and fertiliser, and desalinating millions of litres of water to grow a few thousand hectares


food wastage | feature story

THE WORLD’S WASTED FOOD Global quantitative food losses for each commodity group per year:

45%

45%

Roots & tubers

Vegetables

30%

35%

Cereals

Fish & seafood

20%

20%

Dairy products

Oilseeds & pulses

20% Meat SOURCE: Food and Agriculture Organization of the United Nations

of food, or continuing to import food, albeit hopefully from countries closer by?

Weighing up the cost

In the meantime, the problem is only getting bigger. More than 70 percent of Qatar’s indigenous population is currently described as overweight or obese, and between 15 and 25 percent are believed to suffer from diabetes. Qatar’s percentage of overweight, obese and/or diabetic children is among the highest in the world, which does not bode well for future medical costs. The country is confronting this with, amongst others, videos highlighting the link between overshopping and health problems. A local app, called Basket, has also been developed to make people more aware about what they are buying and wasting. This will still take time to sink in. Of the approximately 280,000 Qatari nationals, 1000 to 2000 undergo bariatric (weightloss) surgery every year – and this is increasing. Food over-consumption is also good for the bottom-line of pharmaceutical companies that sell medicines to counter

675 litres

of water used by the average Qatar resident per day.

heartburn, cardiovascular problems and various diseases related to nutrition. It is also good for the thousands of restaurants, from super chic to plastic shack, for fast food chains, for stores crammed with food, and for the catering industry, not to mention the advertising money that goes with it. In 2014 Qatar’s 2.235 million residents spent a collective USD11 billion (QAR40 billion) on food. This represents an annual average of almost QAR18,000 worth of food per person – including children, the elderly

and low-income migrants, who make up the bulk of the residents. Writing recently for The Edge, Sanjay Bhatia, managing director of Alpen Capital Investment Bank (Qatar), stated that Qatar is expected to be the fastest-growing market for food consumption during 2014 to 2019 at a compound annual growth rate (CAGR) of 5.5 percent. By 2019, the country will in all probability consume 2.2 million metric tonnes of food. Given the current trend, this will translate into even more food being wasted and ending up in landfills. “While our study primarily focuses on Qatar, the results may have a regional and global impact,” says Topaloglu. “Similar studies have been conducted around the world. By taking a closer look at the situation in Qatar, we can try to address the issue. However, for the project to be an overall success, we are highly dependent on the co-operation of the public and policy makers in Qatar.” Sybrandus Adema is a South African environmental journalist.

The Edge | 73


The Edge is international

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Inside the minds of leading business figures

business insight “We identify the right product with the right provider, keeping customers’ needs in mind” 78 Alniz Popat, CEO of Lifecare International, in an exclusive conversation with The Edge, spoke about its corporate values, its business plan in Qatar and the factors that contribute to the company’s success.

Ensuring alignment between market needs and graduate skills is a must 76 Dr. Narimane Hadj-Hamou, CEO of the Center for Learning Innovation and Customized Knowledge Solutions, spoke to The Edge about the role that e-learning plays in today’s education environment, and her assessments of Qatar’s education sector.

78

In the opinion of Alniz Popat, CEO of Lifecare International, the UAE and Qatar markets do differ in terms of health insurance. In the UAE, health insurance is compulsory and largely served by the private sector. In Qatar, the health service provided by the government and the Supreme Council of Health (pictured above is the SCH’s office) plays a major part in meeting the people’s needs.

The Edge | 75


business insight | education

E-LEARNING

Ensuring alignment between market needs and graduate skills is a must Dr. Narimane Hadj-Hamou, CEO of the Center for Learning Innovation and Customized Knowledge Solutions, spoke to The Edge about the role that e-learning plays in today’s education environment and her assessments of Qatar’s education sector. Tell us about your professional career. I started my career over 15 years ago as a faculty member teaching various subjects in the field of computer science, including teaching programming, management information systems and the use of IT application in business, system analysis and design, among others. After holding a teaching position for a few years, in 2003 I joined the e-TQM College, known today as the Hamdan Bin Mohamed Smart University, in Dubai. Here I assumed different roles, from being their e-learning director, dean of learning and technologies and acting dean of student services to later assuming the role of assistant chancellor for learning and academic development. Being in charge of the academic and research vision of the college, which became the first online university to be recognised by the Commission of Academic Accreditation in the United Arab Emirates (UAE) in 2009, I was involved with the design, development and accreditation of several programmes, ranging from bachelor degrees to doctoral degrees. I have been involved in pioneering projects such as launching the first regional association for e-learning and the International Consortium for Teaching and Learning. I think this was what prompted the shift in my career from a teaching faculty to more of an academic administrative role. In 2012, I was involved with the setting up of the Center for Learning Innovations and Customized Knowledge (CLICKS) as a unique non-profit organisation supporting the advancement of higher education in the region. Given your vast experience in the field of education, what do you think needs to be done in the education sector in the Gulf Cooperation Council (GCC) countries? I think placing more emphasis on building capacity among various higher education stakeholders from members of governing bodies to staff working in student services and in support functions 76 | The Edge

“I believe the government of Qatar understands that while oil and gas are a blessing, they will not last forever, and supporting human capital development is the real wealth of the country.” should be top of the list. This becomes particularly crucial as more and more emphasis is being placed on improving the quality of universities’ offerings and the skills of graduates. There are many positive things happening in the region such as the establishment of accreditation agencies to support the improvement of quality, the setting up of a national qualification framework, the emphasis on supporting research, and scholarly work by many governments, etcetera. Perhaps another element will be to continue to ensure alignment between market needs and programme and graduate skills. Opening up the dialogue and establishing strong links between academic and industry particularly in areas related to research would be essential as we move towards being more of a knowledge-based society. With e-learning taking up more importance in the world’s education delivery mechanism, how would you quantify its contribution? There seems to be universal agreement that e-learning worldwide is becoming a significant market - whether this is translated in the world wide e-learning market, growth in the number of e-learning products, the number of online and blended learning programmes or the number of students enrolled in this new type of education. According to a recent study by Ambient Insight Research,


education | business insight

the worldwide market for self-paced e-learning is expected to reach USD47.9 billion (QAR174.4 billion) in 2015. The fiveyear compound annual growth rate is flat at one percent, but revenues are expected to reach USD50.4 billion (QAR183.5 billion) by 2020. The five-year regional forecasts for three types of e-learning products are provided for seven regions: Africa, Asia Pacific, Eastern Europe, Latin America, the Middle East, North America, and Western Europe. In our part of the world, developments in e-learning, particularly for higher education, have been growing at a slower pace because of several factors including the lack of recognition of this type of learning by many ministries of higher education, and the cultural readiness where different forms of technology enabled education are not yet widely accepted among employers, parents and even students.

programmes addressing various higher education key players (leadership teams, governing bodies and faculty members, etcetera), transfer of ‘know-how’ and advisory in a number of key areas including, leadership development and governance; innovative learning and teaching including technology integration in higher education; strategy development; research and quality, accreditation and institutional excellence. How do you assess the educational initiatives of Qatar? I would rather speak about higher education. I believe the government of Qatar understands that while oil and gas are a blessing they will not last forever, and supporting human capital development is the real wealth of the country. As such, it has placed multibillion investment in education. The establishment of Qatar Foundation few years ago and the setting up of eight international leading universities is an example of the government emphasis on higher education specifically. Speaking about the World Innovation Summit for Education Summit which has been running for a number of years, the launch of prizes for education have all been tangible examples of the government’s support of innovation.

Qatar and the other GCC nations are all working on developing a sustainable knowledge economy. What do you think can be the role of the education sector? Today, a knowledge-based economy is a vital component of modern economies where growth in developed economies is more and more based on knowledge. This of course requires investment in building human capital, widening access to education and supporting research and innovation and its commercialisation. Universities are increasingly understanding the shift in their role from being pure teaching institutions to becoming more entrepreneurial universities. As part of their responsibilities, they are aligning their priorities with the national strategies in their respective countries, and are encouraging and supporting the creation, spreading, transfer and utilisation of knowledge. Many initiatives are happening in several Arab countries including Qatar, the Kingdom of Saudi Arabia, the UAE, and others in this regard. Tell us about CLICKS. What does it do and what are its plans for the next three years? CLICKS was established mainly to support universities and colleges in areas which need to ensure academic excellence and the ability of institutions to meet international quality standards; as such it supports capacity building through offering a large range of training

“In our part of the world, developments in eLearning particularly for higher education have been growing at a slower pace because of several factors including the lack of recognition of this type of learning by many ministries of higher education and the cultural readiness where different forms of technology enabled education are not yet widely accepted among employers, parents and even students,” Dr. Narimane HadjHamou told The Edge.

The Edge | 77


business insight | health insurance

life coverage

We identify the right product with the right provider, keeping customers’ needs in mind

Alniz Popat, CEO of Lifecare International, in an exclusive conversation with The Edge, spoke about its corporate values, its Qatar business plan, and the factors that contribute to the company’s success. Tell us about your professional background and what led to the establishment of Lifecare International. After graduating from university with a finance and economics degree, I started my career as a management trainee in insurance. A personal family event in Kenya highlighted to me the need for credible health insurance in the region, and ignited my passion for helping people. This passion along with the knowledge and experience that I gained, led to me establishing Lifecare International. We were the first company to introduce Bupa, an internationally recognised, leading health insurance brand, into the region. Focusing on the local community and providing value added services such as a 24-hour emergency helpline, differentiated the company from the market and led to its subsequent success. Expansion into the Dubai and Qatar markets followed and contributed to the growth and success we have achieved over the last 15 years.

Commenting on expansion plans in the region, Alniz Popat, CEO of Lifecare International told The Edge, “We have no immediate plans to move into other countries of the region but are monitoring the regulations, investment and growth of the healthcare industry in each country.”

78 | The Edge

What are the corporate values of Lifecare? Our business is built upon five core values,


health insurance | business insight

three of which stem from my own family values. These values are embedded into our culture and are reflected in everything we do. Caring is not only a value, but the reason the business exists. I want our customers to be shown empathy for what could be a very difficult time for them. In order to become trusted advisors, we need to be open and transparent and conduct business with the upmost integrity. We deal with people, whether that is customers or providers, which means building and maintaining strong relationships. We strive to build a world-class sustainable business. Being adaptable, embracing change and always looking to improve will ensure we are successful, evolving into the business our customers deserve, providing unparalleled excellence. We recognise that just creating fancy buzzwords for corporate values serves no purpose. What is essential is that we live these values. Our recruitment process seeks to identify individuals who would be a great fit within the team and who reflect the values we live by. We also share stories internally about times when members of the team have demonstrated the company values. This ensures the values remain vibrant and active within our culture. Health insurance in the Gulf Cooperation Council (GCC) is a very competitive business. What factors ensure that you are ahead of the rest? We have established a successful business in the GCC based upon putting the customer first. There tends to be a perception by customers that we work for the health insurance companies. Of course, it is important to have good working relationships with the insurance providers to facilitate price negotiations or resolve claims issues, but we are beholden to no one provider. This allows us to give objective, unbiased advice. There are 40 plus health insurance providers in the region with various product ranges, which makes it extremely difficult for a customer to identify the right product with the right provider that suits their needs. That is our place in the market. We take the time to not only explain the options available, but also help identify a solution that matches the customer’s needs. Times have changed, and trying to push products on people is no longer the way to do business. To build a long-term

sustainable business, you need to listen to your customers. That is why we have a retention rate of over 90 percent.

percent. The provider of this plan is Bupa. Bringing this plan to the Qatar market is a major part of our strategy.

Tell us about your pricing model. Pricing can be quite complex, and varies on a customer-by-customer basis. Factors such as benefits required, claims history and chosen network of health providers, contribute when calculating price. We negotiate on behalf of our customers to get the best possible outcome, given these factors. Another way in which we differentiate ourselves against the market is that we partner with our customers in reducing the number of claims, which effectively reduces costs upon renewal. We use strategic cost management skills to help customers cleanse their claims data. We help them identify where utilisation is either misused or abused and put barriers in place to ensure that it is protected for next year’s premium renewal.

Has your business experience in the United Arab Emirates (UAE) helped in your Qatar operations? Our established relationships with providers, product knowledge and expertise in giving advice have certainly helped us to penetrate the Qatari market. However, the UAE and Qatar markets do differ. In the UAE, health insurance is compulsory and largely served by the private sector. In Qatar, the health service provided by the government plays a major part in meeting the people’s needs, and in some cases a need for good health insurance is not recognised.

What is your exposure to the Qatar market? How many companies and individuals do you cover? We are relatively new to the Qatar market, and have spent time building a strong team and establishing a foothold. This foundation is now in place and we expect significant growth over the next two years. We are looking to insure 5000 lives during this period. The Qatar market predominantly contains oil and gas companies. In the past, these companies were benefit-driven when arranging health insurance for their employees. However, the fall in the price of oil has seen these companies become more price sensitive and they are now more costdriven. Due to this shift in requirements, we have worked with one of our providers to produce a plan that fits the market’s needs. For the mining and energy sector, we now have a plan that provides the same level of benefits, with no dilution, at a reduction of premiums on average of 30

What are your expansion plans in the region, in terms of countries like Oman, Bahrain or Kuwait? We have no immediate plans to move into these regions, but are monitoring the regulations, investment and growth of the healthcare industry in each country. Our current strategy is to consolidate in the areas with which we do have a presence, grow and focus on sustainability. Our longer-term strategy involves expansion into other regions within the GCC and Africa. Tell us about your corporate plans – business drivers, manpower planning, new markets – for 2016 and 2017. Our main business driver is to increase the number of lives insured through us by 15,000 over the next two years. Reaching this goal will ensure we meet our revenue and profitability growth targets. As mentioned previously, we have no plans to enter other regions but have diversified our offering by providing wealth management services and general insurance for business protection and personal lines.

“We recognise that just creating fancy buzzwords for corporate values serves no purpose. What is essential is that we live these values.” The Edge | 79


Continued from page 69

effective advertising: Doha’s Leading agencies talk shoP

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www.qatarconstructionnews.com 80 | The Edge

very unique demographics in Qatar. He explains, “We try to avoid simple translation of communications because this can easily lead to inexact phrases and metaphors. This approach results in messages that really can get lost in translation. Instead, we develop campaigns and content that is appropriate for the language medium. That increases the power of messaging.” Fakhri’s take is that there is not nearly enough use of the Arabic language in advertising. He believes that the industry still tends to create in English, even when producing Arabic communications and “we need to change that to have a truly authentic voice”. MENA and global advertising standards According to Ali Al Saeed, creative copywriter at 60 Degrees, the thinking generally is still quite traditional and does not fully push the boundaries of creative innovation. Exploring the reasons behind this, Al Saeed feels that it is the cultural limitations that are restrictive to an extent the impact of campaigns. Qassim of ADabisc is of the opinion that different cultures have different approaches. In Qatar there is a propensity towards similarity, which holds an edge over individuality and differentiation. He adds, “Often this translates into marketing. So agencies that venture into bold concepts, who step out to do something edgy or different, are likely to be more the exception than the norm.” Fakhri’s opinion is that the gap is certainly closing. Speaking of the region, he tells The Edge, “We have seen great spikes in creativity in Egypt and Lebanon and we’re experiencing the same in Kingdom of Saudi Arabia (KSA) now. TripleTwo has expanded into the KSA and is lucky to be at the heart of the evolution of the communications market there. What is even more exciting is that we are able to channel this creativity back to Qatar.” For Hiba Fares, general manager, Snowcomms, the region is still far from such benchmarks, and “the market is still in baby steps mode. The region would have to revise the book of rules and regulations, but to be quite honest, I do not see it happening. What defines the GCC region is simply its culture. So why change that?”


products & reviews

Reviews Hyundai’s All-New Tucson launched in Qatar

N

ational Car Company, the sole distributor for Hyundai vehicles in Qatar, has officially launched the All-New Tucson SUV, available in GL or GLS trim levels. By combining competitive pricing with a model that embodies the Hyundai Motor Company’s Modern Premium brand direction, the third generation Tucson is perfectly placed to build on the popularity of its predecessor, which was the company’s third biggestselling model across the region and the volume leader in the compact SUV segment in 2014. Available with 10 exterior colour options featuring two entirely new variants, the model has sharp lines, from the signature hexagonal grille and sleek headlamps at the front,

along the dynamic side profile with its expressive ‘Z’ character-line and ‘square-shaped’ wheel arches, to the distinctive rear lamps and wide, bumper at the rear. The interior features high quality and soft-touch materials along with passenger power seats offering lumber support. Additional cabin features include a newly designed dashboard featuring an eight-inch display and extended super vision cluster and new door trims for a sportier feel. The new model also introduces Blind Spot Detection system that monitors the side and rear of the vehicle for approaching vehicles. From a safety point of view, the AllNew Tucson has been designed to be one of the safest cars in its class, as

reflected by the five-star rating it has received in both the European and North American NCAP crash tests. The luggage compartment is over 10 percent bigger than in its predecessor, while the larger dimensions deliver more headroom, shoulder room and front row legroom. Taking the region’s climate into account, fans under the seat cushions pump out chilled air on models equipped with air-ventilated front seats, while rear air vents and a panoramic sunroof are also available. Ensuring that customers can choose from a range of engines to complement the high quality driving experience, the new Tucson offers a choice of NU 2.0 MPI and THETA 2.4 GDI petrol engines.

The Edge | 81


products & reviews

Read it:

The Art of the Start 2.0 What is abundantly clear these days is that global – but in particular American, and specifically Silicon Valley – start-up culture is, in many ways, as a Warhoesque pop culture as any other, such as music, fashion or film. It has its heroes, villains, visionaries, icons, prolific creatives and legendary success stories and spectacular failures. Where he fits in terms of these is up for debate, but it is certain that the name Guy Kawasaki is as synonymous with tech start-up culture as George Lucas might be with Hollywood. The Art of the Start 2.0, as the name implies, is the second incarnation of his book, the first having been published in the dark post-dotcom days of 2004. However to be fair, though Kawasaki made his name in the tech world (most notably as a marketing executive for Apple), this book is not just about starting a hardware company or designing an app-based disruptor. Reflecting the evolution of starting a business to start-up culture, the author explains that more than half of this sequel is new content and aimed squarely at anyone who wants to start any form of business. Drawing on his extensive experience in the business world and as a successful investor and entrepreneur, and to keep it interesting and engaging, Kawasaki presents his knowledge in a variety of formats covering every step of the start-up process, including lists and series of difficult questions any entrepreneur might care to ask themselves. Reading this book might not help make your new business a success, but it certainly would not hurt.

Available at Virgin Megastore in Doha.

Read it:

The Upside of Stress

Kelly McGonigal is a health psychologist who teaches at Stanford University, who believed in the conventional view that stress is bad for everyone. But when a few years ago she came across research suggesting that stress is only bad for someone when he/she believes it to be damaging, she reconsidered her position. Indeed, the same research found that people who lived with stress but did not view it as harmful were the healthiest people of all. McGonigal argues that by recognising and working with stress, rather than trying to ignore or suppress it, we can perform better and achieve more. It is a bold thesis, and she makes quite a good case for it. In particular, she forces the reader to take a more nuanced view. For example, there is more than one kind of response to stress. There are alternatives to “fight or flight”. We can also rise to the challenge. McGonigal says that stress is an important signifier, not something to be ignored. “You don’t stress out about things you don’t care about, and you can’t create a meaningful life without experiencing some stress,” she writes. She suggests a three-step approach to change the mindset: acknowledge stress, welcome the stress by recognising that it is a response to something one cares about, then make use of the energy it gives. McGonigal has the zeal of a convert, which possibly leads her to believe she has cracked the problem. She does concede that stress can be harmful when three things are true: when one feels inadequate to deal with it; when one feels isolated by it; and when one feels trapped against one’s will. Unfortunately, for quite a lot of people at work, that unholy trinity can apply all too often. Available at Virgin Megastore in Doha. 82 | The Edge


product & reviews

Sony Camera Sony has announced the latest addition to its award-winning series of compact, full-frame α7 cameras with the introduction of the α7S II. Offering ultra-high sensitivity and wide dynamic options across the entire ISO range and five-axis image stabilisation for greater shooting control, the α7S II delivers stunning image quality for photographers who shoot in the most challenging light conditions. The camera delivers a sensitivity range of ISO 50409600, thanks to the combination of its 35mm full-frame 12.2 megapixel image sensor and image processing engine. The α7S II can also record 4K movies with more detail.

Seiko Watch Astron GPS Solar watch connects to the GPS network and automatically adjusts, at the touch of a button, to every time zone on earth, showing the time with the precision of one second every 100,000 years. With the new Dual-Time calibre, you can read not only the time where you are, but also the time in your home time zone on a simple 12-hour sub-dial with a separate AM/PM indicator. In addition, the day of the week is displayed in a retrograde display at the two o’clock position, with the date at the four o’clock position. The date is correct every day until February 28, 2100. Thanks to the electronic setting function in the crown, the watch is simple to operate and a joy to wear.

App Reviews By M. Iqbal

RealCalc (Android)

Need a scientific calculator? Why don’t you save yourself a trip to the store and some money by downloading RealCalc. Designed to look and work like an actual scientific calculator, this app transforms your Android smartphone into one. The app offers the functions that you would normally expect from a scientific calculator, along with features such as histories, memories, unit conversions and constants.

Howlak (iOS) This app was conceived and developed in Qatar and brings an interesting twist to social interactions: It is a photo-sharing app that only allows audio messages as an accompaniment. For each photo that you share (publicly, or privately with your friends and families), you are allowed to upload a 10-second audio clip. Others can respond with audio messages of their own – strictly no writing allowed (save for the essential web URLs, tagging users and hash tags). Currently available only for iOS (iPhone and iPad), the developers have plans to expand to other platforms.

Quip (iOS, Android, Web)

Epson Printer The four-in-one L655 offers a new way of printing that delivers hassle-free results, with 11,000 pages of ink included right out of the box. Ideal for price-conscious office users, it features an integrated ink tank for fast, reliable double-sided A4 printing that ensures low cost per page. In fact, it can save you up to 90 percent on your printing costs. WiFi connectivity with Epson Connect makes printing from smartphones and tablets easy. WiFi Direct® is also available on the L655, allowing users to connect directly to other WiFi devices without the need for a wireless access point, such as a router.

If you would like the word processor on your mobile phone or tablet to do more, Quip is the answer. Designed for smartphones, the app allows you to collaborate on documents with other users. Booting up, the interface bears a strong resemblance to gmail’s interface, which is to say it feels clean and simple. The home page is full of examples to help you ease into the app and start creating your own documents and spreadsheets. Before long, you will be collaborating with others on documents.

The Edge | 83


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