The Edge - June Summer Issue 80

contents

Summer 2016

Read more of the edge at www.theedge.me

28

34

–

Adapting to local realities, and tailor making solutions are, according to Steve Tzikakis, vice president and general manager, South Europe, Middle East, Africa, SAP, part of the company’s business model.

He speaks to The Edge about its key business deals in Qatar and how the company has adapted its business model to suit the local needs.

Revellers on Qatar National Day. Ostensibly thanks to the inclusion of non-Arabic speakers for the first time in the five years it has been published, Qatar slipped eight places from 2015 in the 2016 World Happiness Report – which included metrics such as life expectancy, social support and perceptions of corruption, among others – the country still finished up at 36th of 157 countries. (Image Getty Images)

cover story

Feature Story

Family-run businesses’ viability depends on smart ownership transition 38

28

Qatar and the United Arab Emirates made headlines last year when they were ranked as the 36th and 28th happiest countries on earth respectively, based in the 2016 World Happiness Report. The survey reflects a global trend where measurement of happiness in society and at the workplace is being treated as serious science and as a criteria for determining government policy. But how important is happiness really? Radhika Punshi and David Jones of The Talent Enterprise take a closer look.

Connect with us online www.gingercamelmedianetwork.com/edge facebook.com/theedgeqatar twitter.com/TheEdgeQatar linkedin.com/company/ the-edge-magazine-qatar

An AT Kearney study titled Family Business in the GCC: Putting Your House In Order mentions that, with market realities changing from a climate of plenty to one of cash rationing (especially relevant now in the current climate of fallen energy prices), family businesses will need “strong leadership to centralise management, address governance and succession issues.” (Image FotoArabia)

In conversation with local business leaders, The Edge’s Aparajita Mukherjee derives that a model of ownership transition, which the younger generation feel valued, adds to the longevity of a business that has been run under the guidance of the founding patriarch.

Business Interview

An opportune moment 44

Regional vice president and general manager of the Four Seasons Hotels and Resorts in the Middle East, Simon Casson, discusses current prospects for entrepreneurs in Qatar’s hospitality and tourism sector.

“If you were in the United States or in Europe you wouldn’t have such a close to hand, affluent target market with high disposable income as you do here.”

sectors

Finance and Markets 17

Qatar’s economic policy has been pushing recently for more diversification, driven by the Qatar National Vision 2030, which is about moving towards a knowledge-based economy. Two interconnected pillars that will help the country achieve it are entrepreneurship and start-ups, especially in the tech space, writes Dany Farha.

The Edge | 3

Contents

Energy & Sustainability 19 A recent APICORP report suggests that despite aspirations to include it in regional energy provision in recent years, the nuclear power ambitions of the Middle East have been curtailed severely and may only comprise three percent of the region’s capacity to generate electricity by 2040, as executive editor Miles Masterson reports.

Kaspersky Lab’s IT Security Risks Survey 2015 reveals that more than 90 percent of businesses worldwide have experience some form of external threat. Ghareeb Saad, senior security researcher, Kaspersky Lab, spoke to The Edge’s executive editor Miles Masterson about the cybersecurity situation in Qatar.

The International Energy Agency estimates that by 2030 oil and gas will still account for up to 70 percent of energy generation in Middle East and North Africa states and that nuclear will only comprise one tenth the remaining output capacity.

Real Estate & Construction 21

As Qatar plans to add 60 more public parks, the country aims at making these new facilities more advanced – both technically and technologically, writes The Edge’s deputy editor Farwa Zahra.

21 Al Khaliji HHP Issue80.pdf

Tech & Communications 23

1

With more than 80 existing public parks, Qatar looks forward to 6/1/16 3:16 PM develop 60 ‘smart’ parks budgeted around QAR1.5 billion. Pictured here is Doha’s Aspire Park.

Business Insight 49

Talking to The Edge, Mazin Khoury, CEO of American Express Middle East focuses on the main findings of their recent spending survey in Qatar and the region. Tarek Sabbagh, head of IT and Mobile Division, Samsung Gulf Electronics, speaks to The Edge about the innovations that the brand has implemented, local competition and their regional plans.

regulars From the Editor 6 Photo of the Month Business News 10 Qatar Perspectives Products 54

8 14

editor’s letter I write this editorial six years to the day since I first entered the offices of Firefly Communications to join The Edge’s editorial staff. I am simultaneously musing on the fact we are closing the 80th edition of the magazine and reflecting on some of the highs and lows I have felt here in that time.

One of the greatest zeniths for Qatar of course came when Sepp Blatter opened that envelope on a stage in Zurich in December 2010. Qatar had been chosen to be the hosts of the 2022 FIFA World Cup. The hooting of cars, screaming of voices and popping of fireworks erupted outside my villa and throughout the country almost immediately and the celebrations continued with gusto in Doha and environs for months to follow.

The significance slowly dawned on me that evening as I sat and watched Qatar’s royal family and other ruling elites hug and cry and jump and smile with joy in Switzerland. Just a few weeks before, I had been promoted to managing editor of The Edge. Right then I felt that this was meant to be. That I was in the right place at the right time and as newly appointed editor of Qatar’s leading business magazine, had a great opportunity to in some small way, contribute to the development of a nation-in-progress that much of the world had only just come to know even existed.

Into 2011 the subsequent buzz was electric throughout the country. By then the world economy had recovered from what had become known as the ‘Great Recession’ of 2008 to 2009 and Qatar was booming. Large tranches of state budget were being allocated to infrastructure development – both long-planned as part of Qatar’s National Vision 2030, and now being rapidly implemented in preparation for 2022 – and the sense of optimism here was palpable.

And so inevitably to a low point, a definitive nadir for me certainly in Qatar and ostensibly one of the most permanent blights on the country’s standing internationally: the Villaggio fire of May 2012. It was here, sitting at this desk, as I so often am, that I first became aware of the plumes of smoke emanating from the roof tops of the mall from the Doha News website.

It hit me hard, as only a few days before I had taken my two-year-old son there. As I stepped from the first floor lift, into the bright but windowless, ventless corridor leading to the children’s facility, my eyes locked with my wife’s and later we agreed that we both felt that something was off and we chose not to sign my young son into the facility that

6 | The Edge

day. As he played for a while, we briefly chatted to one of the staff there, a South African with whom we shared acquaintances, and then left.

We never saw her again, as three days later she lay dead, clutching a gaggle of equally suffocated toddlers beneath her clothing in a vain attempt to protect them from the deadly, acrid smoke. Our compatriot, three other staff, two firemen and 13 children died one of the most gruesome deaths one could ever imagine: trapped and suffocated in a burning building. It still makes me well up in tears every time I think about it.

Regardless of the outcome, the long court case, and who may or not be responsible, this incident – entirely avoidable, no matter what way you sway it or whom you ultimately blame – was an absolute travesty. Once more, as we did then and we have done numerous times since, The Edge offers its utmost condolences to the families of the victims of the 2012 Villaggio Fire of Doha, Qatar. May they never be forgotten.

Through all the ups and downs of the past six years, successful sporting events and achievements of Qatar’s athletes at the 2012 Olympics, COP18, workers rights, Kafala reforms, economic fluctuations, sporting and cultural achievements, political influence, building booms and oil price busts, mass layoffs and enforced fiscal frugality, it is these two moments - one high, one so low – that stand out the most for me.

And I sincerely hope that Qatar – a country to which I am grateful in that it has given me opportunity to grow and in which my tenure here has provided me many valuable lessons in life – experiences more highs akin to its World Cup coup and less disasters such as that horrible fire and learns its own special lessons from both.

I must also announce some exciting news.

This will be the last issue of The Edge in its current form as the magazine will be going on a temporary hiatus until after the summer, when we plan to relaunch The Edge alongside some innovative new print and digital projects from our parent company, Firefly Communications later in 2016. Fear not, we will be back soon to document the highs and lows of Qatar and the world around it, so thanks for all the support for the past 80 editions and see you then.

Miles Masterson Managing Editor

Avis VHP Issue80.pdf

1

5/29/16

2:23 PM

publications director mohamed jaidah m.jaidah@firefly-me.com general manager joe marritt j.marritt@firefly-me.com executive editor miles masterson m.masterson@theedge-me.com senior business editor aparajita mukherjee a.mukherjee@theedge-me.com deputy editor farwa zahra f.zahra@theedge-me.com associate editor ameen kader syed a.syed@firefly-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@firefly-me.com | +974 33325038 deputy sales manager shalaka dhaigude s.dhaigude@firefly-me.com | +974 66264790 senior advertising manager UAE nesreen shalaby n.shalaby@urjuan-me.com | +971 507199707 distribution & subscriptions joseph issac j .issac@firefly-me.com production manager/senior designer srimani welagedara junior designer genevieve barakat diab finaliser ron baron printer ali bin ali printing press Doha, Qatar

firefly communications PO Box 11596, Doha , Qatar Tel: +974 44340360 / Fax: +974 44340359 www.firefly-me.com

The Edge is printed monthly Š 2016 Firefly Communications. All material strictly copyright and all rights reserved. Reproduction in whole or in part, without the prior written permission of Firefly Communications, is strictly forbidden. All content is believed to be factual at the time of publication. Views expressed by contributors are their own derived opinions and not necessarily endorsed by The Edge or Firefly Communications. No responsibility or liability is accepted by the editorial staff or the publishers for any loss occasioned to any individual or company, legal or physical, acting or refraining from action as a result of any statement, fact, figure, expression of opinion or belief contained in The Edge. The publisher (Firefly Communications) does not officially endorse any advertising or advertorial content for third party products. Photography/image credits and copyright, where not specifically stated, are that of Shutterstock and/or iStock Photo or Firefly Communications.

The Edge | 7

Goodbye, Ali 8 | The Edge

photo of the month

A well-wisher holding a banner touches the hearse carrying the remains of Muhammad Ali during the funeral procession for the three-time heavyweight boxing champion in Louisville, Kentucky on June 10, 2016. As famous for his performances and trash talk in the ring as his statements and actions outside it, besides pugilism Ali was probably best known for his civil rights activism, conscientious objectionism (his refusal to be conscripted in the United States lead to him being banned from boxing for much of his 20s) and ultimately his conversion to Islam, which gained him further fame throughout the Muslim world.

Indeed, Ali performed the Hajj to Mecca in 1972, and in fact also visited Qatar the year before. (Image Phocal Media/Reuters) The Edge | 9

news

business news

‘Developed’ market status: Qatar bourse’s next logical step

main story

Two years ago, when the Qatar Stock Exchange (QSE) was upgraded from ‘frontier’ to ‘emerging’ market status, many rightly heralded that as a major step forward for the state’s capital markets. The exchange now is on the path to its next evolutionary stage – ‘developed’ market status, the first among the Gulf Cooperation Council (GCC) countries, writes Oliver Cornock.

The ‘emerging’ ranking, granted by the global index compiler MSCI, was welcomed by investors, businesses and analysts alike, who looked forward to the extra boost it would give to foreign capital inflows – as well as market standards.

Now, with this achievement, the QSE is looking to ascend to the next level. “We are committed to developing the efficient market infrastructure required for achieving ‘developed’ market status,” QSE’s chief executive officer, Rashid bin Ali al Mansoori, recently told a visiting MSCI delegation.

Yet, reaching developed market status will not be easy, with a number of new requirements having to be fulfilled before the coveted status can be awarded. Nonetheless, with this renewal of the QSE’s commitment to becoming the leading market in the region, investors may soon see further benefits emerging.

in the GCC. Moving up the ladder, however, means reducing the risk. This process takes many forms, with a strengthening of market infrastructure and the regulatory environment essential to its progress.

Market access is key here, which is why an Emiri decree in 2015 saw a boost in foreign ownership limits in a company’s capital from 25 percent to 49 percent. The 20 stocks in the QSE’s main index have also now been allowed to engage in margin trading, and liquidity providers have also been permitted to boost overall QSE liquidity.

Leading the charge

Looking back, the predicted inflow after the upgrade has clearly occurred, despite some rocky times in between for both global markets and Qatar’s economic growth.

Indeed, since the QSE was included in the MSCI Emerging Markets Index in May 2014, some USD30 billion (QAR112.8 billion) has flowed in from global institutional investors.

The MSCI upgrade was later followed by upgrades from a number of other international indices. In September 2014, a boost from S&P Dow Jones came into effect, and most recently, the FTSE announced in September 2015 that the QSE would be moved from its frontier market to its secondary emerging market board as of September this year. After the MSCI and S&P upgrades, daily trading volume jumped from around QAR300 million to QAR900 million, according to Al Mansoori. The FTSE upgrade is expected to see around USD1 billion (QAR3.64 billion) additionally, of passive inflows.

The reason for this major escalation is that the status upgrade triggers a whole series of responses from institutional investors worldwide. Some funds that are forbidden by their own rules from investing in riskier frontier markets are perfectly at ease with those holding emerging status. When this is raised to developed, it has the capacity to unlock even more investment, placing the QSE on the same level as exchanges in Europe, North America and the most advanced Asia-Pacific economies. Currently, there are no countries 10 | The Edge

Listed Qatari companies will have to be prepared for majority foreign ownership, while round-the-clock trading, better data accessibility and even greater liquidity are also pre-requisites.

Brent crude oil prices in 2016 (USD per barrel) 50 45 40 35 30 25 Jan-16

Mar-16

May-16

Sources: Bloomberg and QNB Economics Moving up to developed market status will require further hikes in all these aspects, though. Listed Qatari companies will have to be prepared for majority foreign ownership, while round-the-clock trading, better data accessibility and even greater liquidity are also pre-requisites. Short selling and a developed derivatives market are also on the FTSE list for developed status.

The transition is not always straightforward, either. The initial experience of the Tel Aviv Stock Exchange (TASE) after it was upgraded to developed status in 2010 was that coming into direct competition with Europe, North America and developed Asia-Pacific for fund managers’ attention was a tough call. The exchange had moved from being a big fish in the smaller, emerging market pond to a small fish in the much bigger developed one. The 23 countries on the MSCI Emerging Markets Index currently represent around 10 percent of global market capitalisation; the 23 on the developed, MSCI World Index represent around 85 percent.

Nonetheless, achieving the goal of developed market status means that the QSE will be required to move towards better, more robust regulation, wider asset and product ranges and deeper liquidity – all of which can only benefit the exchange in attracting investment inflows. It may not be the destination, then, but the journey, that really counts in establishing the QSE as the regional centre it aspires to be.

Oliver Cornock is the managing editor, Middle East, Oxford Business Group.

business quotes

news

“The UK should not only be part of the EU but should lead it.”

HE Sheikh Hamad bin Jassim Al Thani speaking to the press in early June on subject of Britain’s proposed exit from the European Union (otherwise known as ‘Brexit’), and the implications for the British economy. The former deputy head of the Qatar Investment Authority and former prime minister and foreign minister of Qatar is now a private businessman and billionaire who has many interests in the United Kingdom (UK). He was speaking in relation to fears by many Gulf Cooperation Council investors in Europe that a vote by the British public in favour of ‘Brexit’ could negatively affect not just the UK economy, but also that of the entire region. “In the Middle East we all want to see a strong Europe, and believe that economic integration is key to making it stronger,” Al Thani added.

“There are bubbles at the moment.”

In his first briefing to the media following his assumption of his post recently, Turkish economy minister Nihat Zeybekci offered a frank assessment of his country’s economic situation, referring in this instance specifically to the fluctuation of its currency, the Lira, which he said has lost just under 10 percent of its value against the dollar. However, despite this and recent central bank rate cuts, Zeybekci was positive overall about the state of his country’s finances, citing recent increases in the oil price one area to remain bullish, as well as expressing optimism about continued foreign investment.

“When we have a look at the European side, we see that Turkey is still a safe harbour for money to flock [to],” said Zeybekci, adding that he expected the Turkish economy to grow by around 4.5 percent this year and inflation to be capped at around 7.5 percent.

The Edge | 11

news

business in brief

Autolab Revolutionises Vehicle Servicing and Maintenance

COREO Launches new offices

The ribbon cutting ceremony for Autolab, featuring among others, Mohamed Jaidah, group executive director of Jaidah Group.

A sample of the kinds of offices that Coreo is showcasing.

Autolab, a new fully-fledged vehicle service centre is officially operational, and is authorised and equipped to service all car brands in Qatar, without voiding the warrantee terms of car owners, making it easy to provide certified repair services outside of specialised dealerships.

Mohamed Jaidah, Jaidah Group executive director inaugurated the new facility located on Salwa Road. Senior company official sattended the ceremony including Ahmed Zayan, Autolab General Manager.

Zayan mentioned, “Autolab’s objective is to increase the standard of car servicing in Qatar, driving a competitive market. Our customer focused approach provides all car owner a comprehensive assessment and maintenance services in a one stop shop, eliminating the hassle of visiting unauthorised garages.” Autolab is operating two service centres, one on Salwa Road, and one in Al Khor, with a third opening soon near Landmark Mall. Autolab’s facilities include two main service sectors; maintenance and auto repair services.

Qatar-based leading real estate agency Coreo introduced new property investment and management services in international markets, and welcomed guests to their brand new two-storey office located in The Pearl-Qatar, recently.

Coreo, a name that stems from the word ‘choreography’, reflects the agency’s mission to provide customised research and marketing services that best suits their client’s respective needs and demands.

Established in 2008, Coreo provides unparalleled services and real estate solutions for individual private investors, homeowners, and major developers. Some of their services include: rental support, resale and marketing. Coreo also provides resettlement assistance and solutions to newly relocated clients. A newly introduced expansion strategy is part of an initiative to boost international investment across a range of untapped opportunity markets, such as projects in Portugal, Montenegro, Mauritius, Spain, as well as select properties in Dubai and London.

Mall of Qatar welcomes retailers ahead of launch Mall of Qatar (MOQ), the soon-to-beopened shopping mall in Doha, recently organised a welcome aboard event for MOQ officials and retailers line up at the event recently. all major anchor retailers and future tenants. This event showcased MOQ at an advanced stage of completion with a site tour that detailed the readiness to the retailers. In fact, it marked the beginning of the countdown with over 100 retailers already shop fitting, and over 200 more expected to start fit out in the coming few weeks. Ahmed Al Mulla, CEO, MOQ, extended a warm welcome to the gathering, along with, Naomi Sargeant, marketing director, MOQ who stated: “Today marks the beginning of our journey to share with you the vision, mission, brand story, and messages we’ve created that will be our promise to deliver to the consumers’ needs and hopes.”

12 | The Edge

Rivoli Group enhances Customer Care Centres in Qatar Rivoli Group, one of the region’s leading luxury lifestyle retailers, has revamped their customer care centres in Qatar with an improved facility manning advanced equipment and trained staff for handling complex repairs, further giving watchowners the security that their luxury timepieces are in safe hands for any health check, service or restoration. The workshop facility comprises a team of skilled and professional watchmakers and specialists staff who are backed by their training in Switzerland at standard technical facilities of luxury watch brands such as Breguet, Blancpain, Glashutte, Omega, IWC, Jaeger Le Coultre, Montblanc, Zenith, Longines, Rado and many more. The workshop is equipped with modern tools and equipment to ensure that quality and accuracy requirements are met and that the job undertaken is executed in the best standards possible. Ramesh Prabhakar, managing partner of Rivoli Group said, “Customer care and service support are key pillars of Rivoli Group. At Rivoli, we understand that the purchase of a timepiece is just the beginning of the relationship as from there on the level and quality of support the owner receives is through customer care and this can either lead to building or breaking a brand’s reputation. At Rivoli, we believe in building lasting relationships with our customers.”

QGBC To Launch Qatar Sustainability Week 2016 Qatar Green Building Council (QGBC) is set to launch the first edition of Qatar Sustainability Week 2016. The event will take place from November 13 to 17 and aims to further engage the community in a wide range of sustainability-oriented activities. The week-long QGBC initiative will serve as a unique platform to promote the nation’s sustainability vision as well as community engagement with relevant stakeholders. The event will showcase the efforts of Qatar’s public and private sectors, providing the support, coordination and expert advice needed to unite under an overarching umbrella to achieve the nation’s sustainable development goals.

events Business events calendar 5-6 September Future Interiors Qatar

Interior of a health centre in Qatar. (Image Ashghal)

The interior contracting and fit-outs sector constitutes approximately 10 to 22 percent of the average construction project value in the Gulf Cooperation Council. To be held in InterContinental Hotel – The City, the Future Interiors Qatar 2016 is designed to showcase the latest interior design projects and opportunities for fit-outs in Qatar. The event is aimed at bringing together interior architecture, interior designers, hotel operators, developers, project owners/managers, contractors, project developers, design/architectural consultants, construction consultants, and principal and engineering consultants.

27-28 September Qatar Transport Safety Forum The two-day conference will focus on exploring development timelines to understand if cooperative systems are a possibility in the region; assessing the infrastructure preparedness that will be needed to facilitate a truly-connected transport network; A session in progress from last year’s ITS & Road Safety Forum Qatar analysing the safety 2015, the precursor to the Qatar Transport Safety Forum. benefits of connected vehicles in avoiding collisions and developing a safer transport system. It will also have dedicated sessions towards assessing road design features – whether or not geometric designs help in the construction and maintenance of roads and whether such designs help with increasing the safety features of the roads, by reducing accidents and minimising fatalities. Among the participants will be government stakeholders who can help corporate participants win business in Qatar’s fast-developing transport safety industry.

news

27-28 September 8th Edition Hotelier Summit – Middle East Since the last global recession between 2008 and 2009, the hospitality and tourism industry is currently on the cusp of a new growth phase with more than 1200 projects being showcased in this edition of the event. The Gulf Cooperation Council is leading in the construction and interiors world, on the back of events such as the 2022 World Cup, World Athletics Championship 2019 and Expo 2020. This exclusive closed-door deal flow platform is designed to conglomerate over 180 industry experts comprising international and leading hotel owners, operators, developers, architects, interior designers, consultants and service providers for one-to-one business meetings, making it the one-stop B2B solution platform for the Middle East hospitality industry.

Attendees are likely to meet buyers and project holders and a bevy of solution providers.

Events Listing 28-29 September

6th Edition RESCOM Summit - ME

24-25 October Future Landscape

9-10 November

Middle East Sustainable Water and Drainage Summit 2016

5-6 December Future Drainage

The Edge | 13

qatar perspectives

Effective PR campaigns need to dovetail wisely with marketing policies Jonathan MacPherson is a Regional director of Hill+Knowlton Strategies.

It has been notoriously difficult for marketing directors to demonstrate a measureable impact or return from the investment they made in marketing disciplines. How do you measure the business impact of a billboard on the Corniche for example? This is why marketing disciplines are often ignored in isolation and the impact is assessed as a whole and attributed against the entire marketing budget, writes Jonathan MacPherson.

Often considered the ‘poor cousin’ to advertising when marketing budgets are calculated, public relations used to be the worst offender when it came to measuring impact. The only way companies seemed to believe they could assess a return on investment, was to calculate how much the coverage achieved would have cost if they had to buy an equivalent space as advertising.

This so-called Advertising Value Equivalent (AVE) or what I prefer to call ‘vanity metrics’ is still in use by far too many companies today and does absolutely nothing for their business. The whole basis of why they use this metric is a flawed practice and a waste of the small amount of marketing budget they devote to public relations.

Now that statement may upset a few people but, if your company is using AVEs to measure PR performance, then it is time for your procurement department, marketing department, C-suite and board to sit up and take notice.

Here is the good news. You can change.

Public relations has moved on from the days when the most important thing was blanket coverage of your press release in all English and Arabic papers. It is a far more sophisticated business tool and can be used in alignment with your business strategy to help achieve company goals.

This has a great deal to do with the changing dynamics of how the public ‘consumes’ media. The trend is moving rapidly towards online channels, and companies that ignore the trend do so at their peril.

What must also be considered is that the basic fundamentals of effective communication have not changed. There still needs to be a good story for it to have an impact and campaigns should be structured around ideas, insights and data.

Using cutting-edge online tools companies can now ensure companies have their ‘finger on the pulse’ of public sentiment locally, regionally and around the globe. Good agencies are now able to counsel companies on how to get the best out of owned, earned, paid and shared media space and deliver credible, engaging ideas and stories that deliver measurable impact in an ‘always-on’ world.

Measurement can help evaluate the successes of company goals and demonstrate evidence of the value the communications disciple is delivering – to increase brand awareness and visibility, build brand preference and customer loyalty, extend corporate reputation and enhance thought leadership by: • Setting benchmarks as baselines; • Connecting each activity to outcomes; • Recommending strategic adjustments, where needed; and • Refining message points to truly maximise a company’s external presence around a variety of communications programmes.

Quantitative metrics can be qualitatively analysed to demonstrate the meaning behind the numbers. In other words, finding insights about successes that drive awareness and achieve an emotional connection with consumers.

14 | The Edge

Every campaign can employ a full range of traditional news and online qualitative and quantitative research tools to facilitate informed decision-making and effective management of communications initiatives for long-term success.

In other words, there are ways in which you can use marketing budget on efficient and effective communications campaigns that deliver value and now measure how they are helping the company achieve its objectives.

“There still needs to be a good story for it to have an impact and campaigns should be structured around ideas, insights and data.”

NEED DYNAMIC CONTENT? Print & Digital Corporate Magazines Contact Firefly Premium, Doha’s Electronic Newsletters most dynamic content provider. Commemorative & coffee table books Annual reports Sustainability reports Photography Videography Podcasts and audio content Application (apps) development Media sales Native content e-mail Roisin on premium@firefly-me.com or call +974 4434 0360 to schedule a meeting.

SANAE BOUGRIA Arabic Editor Exemplary Arabic content

JOE MARRITT MILES MASTERSON Executive Editor Expert in content development

General Manager Seasoned strategic director

ROISIN BAILEY Account Director Exceptional customer service

GENEVIEVE DIAB Graphic Designer Market-leading creativity

finance & markets

Venture capital can unlock the potential of entrepreneurs in Qatar As it strives to become a knowledge-based economy, Qatar has experienced a remarkable economic and social development over the last 30 years. The country’s economic policy has been traditionally focused on developing its vast oil and gas reserves but has also been pushing recently for more diversification, driven by the Qatar National Vision 2030 . The vision is about moving towards a knowledge-based economy.

Two interconnected pillars that will help the country achieve it are entrepreneurship and startups, especially in the tech space, writes Dany Farha.

O

The government has begun rewriting several existing rules to make it easier to start a new business and to encourage entrepreneurs to launch their new ventures. The most recent initiative by the Ministry of Economy and Commerce (pictured here) that was announced has relaxed some rules around business centres.

(Image FotoArabia)

pening the market to another pillar, an asset class such as venture capital (VC), will help further boost the drive towards knowledge economy, diversify it and grow the entrepreneurial ecosystem. By backing promising future technology leaders, through early stage growth financing and expert operational and technical support, VC can help shape up and nurture the entrepreneurship ecosystem. The VC industry can assist in building local tech success stories, ensure that Qatar participates in the tech revolution and contribute to the growth and prosperity of the start-ups and the small and medium enterprises (SMEs) in the country.

To achieve this, more needs to be done to involve traditional investors, including family businesses, high net worth individuals and financial institutions.

When such Qatari stakeholders are more cognisant of VC as an emerging asset class and more disposed to allocate some of their portfolio exposure to it, the start-up ecosystem will flourish and compete with The Edge | 17

sectors | finance & markets

By offering talent fulfilling employment and an attractive place to live and work, the finest and most productive entrepreneurs and employees will flock and stay.

Latest QNB Group Growth Forecasts (Real GDP growth rates, % change) 12 10 8 China

6

EMs SSA US GCC

4 2

EURO

0 -2

Area 2010

2011

2012

2013

2014

2015e

2016f

Sources: International Monetary Fund and QNB Economics forecasts

next door neighbours, not just in the Gulf Cooperation Council (GCC) countries but also beyond.

The Qatari government understands the importance of the technology revolution and has local plans to attract it home. For this to happen, the ecosystem needs all the support it can get from both the government and private sector players.

Proper funding needs to be secured from across all the stages of the cycle – starting right from angel investors, accelerators and incubators, VC firms, sovereign wealth funds (SWFs) and local institutional investors.

Support and investments in technology start-ups in particular may produce the next Qatari homegrown technology titans for the region, and maybe one day a Qatari unicorn. Building a new breed of technology entrepreneurs and investors will be one of the initial drivers that will unlock the potential of the entrepreneurial ecosystem in Qatar. Other operational challenges for opening a new business in the country would also need to be addressed, such as office space requirements, easier procedures for trade licensing and reduced barriers to banking and financing. At the 18 | The Edge

moment, entrepreneurs are still finding many difficulties in setting up their small businesses in the market.

Things are changing, nevertheless. The government has begun rewriting several existing rules to make it easier to start a new business and to encourage entrepreneurs to launch their new ventures. The most recent initiative by the Ministry of Economy and Commerce (MEC) has relaxed some rules around business centres.

However more needs to be done.

Entrepreneurs should have access to coworking spaces and faster and lower cost business licences. The latter relaxation should also apply to other countries in the GCC where licensing costs are still prohibitive.

By offering talent fulfilling employment and an attractive place to live and work, the finest and most productive entrepreneurs and employees will flock and stay. This, in turn, will propel the next generation of start-ups and SMEs and boost the activity in the ecosystem to create a virtuous cycle for the long-term.

All this needs to be supported by more flexible and reasonable bankruptcy laws and regulations and the adoption of easier

ways for talent to come to Qatar. As such, the country can harness the creativity of a talented workforce that the world over is competing for.

Qatar should continue to encourage fostering its knowledge economy and entrepreneurship sector. With more VC and more flexible regulations, Qatar can build a new breed of technology entrepreneurs and investors that can put the country on the world map of innovation.

Dany Farha is co-founder and CEO of BECO Capital.

energy & sustainability According to a recent Arab Petroleum Investments Corporation (APICORP) report, the International Energy Agency (IEA) estimates that by 2030 oil and gas will still account for up to 70 percent of energy generation in Middle East and North Africa (MENA) states and that nuclear will only comprise one tenth the remaining output capacity.

Qatar shelves nuclear plans as atomic power sidelined in MENA According to a report released by APICORP in June, despite aspirations to include it in regional energy provision in recent years, the nuclear power ambitions of the Middle East have been curtailed severely and may only comprise three percent of the region’s capacity to generate electricity by 2040, as executive editor Miles Masterson reports.

T

he Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). The organisation’s monthly energy research report reveals that Oman, Kuwait and Qatar have all cancelled proposed nuclear projects.

Though APICORP attributes this divergence to the literal and figurative fallout of the Fukushima disaster in Japan in 2011, it also acknowledges that the decline in interest in this particular mode of power generation has also been due to fiscal restraints in the region, ostensibly due to a low oil price and thus pressure on state budgets.

According to the report, the International Energy Agency (IEA) estimates that by 2030 oil and gas will still account for up to 70 percent of energy generation in Middle East

and North Africa (MENA) states and that nuclear will only comprise one tenth the remaining output capacity.

While lauding the benefits of nuclear power, such as its low greenhouse gas emissions and long-term cost effectiveness, APICORP acknowledges the short-term fiscal constraints, as all things must always come back to funding in some way, and cites numerous challenges for countries in the region in implementing nuclear power.

Convincing citizens and their rulers to

allocate budget will be the first, states the report, followed by attracting human capital and ensuring stable regulatory frameworks.

“The political ramifications of a nuclear industry in the region also need to be addressed,” it furthers. “Following the lifting of Iranian sanctions, there were concerns on how countries in the region would pursue their individual programmes and proposals were made to use the next decade to agree on region-wide restraints. These include banning the separation of plutonium from

For any country considering a nuclear programme, stockpiling uranium required for nuclear fission is an unavoidable prerequisite.

The Edge | 19

sectors | energy & sustainability

spent fuel, limiting the level of uranium enrichment, and placing enrichment plants under multinational control.”

For any country considering a nuclear programme, stockpiling uranium required for nuclear fission is unavoidable. As of now, only Algeria, Egypt, Iran and Jordan (only one of which, Iran, has a programme in place) have proven uranium reserves.

“But,” caveats the report, “at an average price of USD69 (QAR251) per kilogramme this year, production in the region remains uneconomical.

Therefore, countries considering nuclear will have to rely on uranium supplied largely from outside the region.”

Nevertheless, according to APICORP, public acceptance of the implementation of nuclear power remains higher than other parts of the world, particularly in the United Arab Emirates (UAE), which at present is the only Gulf Cooperation Council country with a nuclear programme. At the Barakah nuclear power plant west of Ruwais in the Abu Dhabi emirate, the Korea Electric Power Corporation is in the process of building four 1.4GW power plants. Each will cost USD20 billion (QAR73 billion) with the same allocation for the upkeep of each during their estimated 60-year operation lifetime. The first is due to come on line in 2017.

Although Saudi Arabia had announced grand plans to develop a nuclear programme that would have produced 14 percent of its total demand by 2032 or 18 gigawatts (GW), the country has recently announced a downscaling of this ambition to only 3GW by 2030. Elsewhere in the region, Jordan has ambitions to create 2GW by 2026 at a cost of USD10 billion (QAR36.4 billion) and Egypt and Algeria have both signed deals with the same partner as Jordan, Russia’s Rosatom to develop 4.8GW by 2022 and 1GW by 2029 respectively. Tunisia also agreed with Rosatom on plans to develop a nuclear power programme at an underdetermined point in the future.

“Nuclear power is putting down roots in the MENA region,” concludes the APICORP report, “but its full potential is unlikely to emerge before the middle of the century, and even then it will continue to face fierce competition from other energy sources. The smooth progress so far of the UAE’s nuclear programme is no guarantee that other states, particularly those without the benefit of substantial revenue from hydrocarbon exports, will find the going so easy.”

20 | The Edge

EY: Smart technologies can reduce utilities spend in the GCC

According to EY, smart technologies can help reduce the investment needs of new desalination and power plants in the Gulf Cooperation Council (GCC) countries by approximately USD10 billion (QAR36.4 billion) by 2030.

This can be achieved through a reduction in peak load demand, optimising capacity, improving maintenance and reducing overall consumption patterns.

“The GCC region is among the world’s top water consumers per capita,” said Christian von Tschirschky, Middle East and North Africa (MENA) power and Utilities Leader for EY. “Freshwater demand far outstrips supply in much of the GCC, requiring all countries to engage in energy-intensive desalination to meet daily needs. Smart water grid development would generate more data about water distribution and usage, and help GCC utilities to learn how to conserve and secure future water supply. Through smart technology, substantial capital expenditure reduction can be created throughout the region.”

Similar to other regions around the world, smart water is lagging the development of smart power grids. However, most smart meter pilot projects in the GCC involve dual meters to measure water usage along with power – a development facilitated in countries such as the United Arab Emirates and Qatar where utilities are responsible for both sectors. “This ownership structure is a unique opportunity for the region to co-optimise smart initiatives in water and power,” commented von Tschirschky.

The region’s utilities can also gain a firstmover advantage in developing downstream, beyond-the-meter services, due to large volumes of data generated by smart technologies. In the United States, utilities are seeing a 12 to 23 percent return on

25,000

The number of jobs that could be added in the MENA region if countries adopt smart technologies within the power, energy and water nexus.

“Smart water grid development would generate more data about water distribution and usage, and help GCC utilities to learn how to conserve and secure future water supply,” said Christian von Tschirschky, Middle East and North Africa (MENA) power and Utilities Leader for EY.

investment from a range of add-on services, such as home energy management products.

These value add services may contribute an additional 25,000 qualified jobs over the upcoming years. This will require utilities to think critically about data security and whether their data management systems can cope.

The smart transformation could also open up new cross-border business. The completion in 2012 of a GCC-wide electricity grid is already allowing member states – such as Kuwait – to tap into electricity reserves from neighboring countries, although differential subsidies have prevented a market emerging so far. Jon Blackburn, director, power and utilities, EY, added: “As countries start to invest in smart grids, they could look for opportunities over the border too, and even partner with their peers in the region to spread infrastructure costs and share commercial benefits.”

real estate & construction

With more than 80 existing public parks, Qatar looks forward to develop 60 ‘smart’ parks budgeted around QAR1.5 billion. Pictured here is Doha’s Aspire Park.

Qatar’s future parks to be more advanced, sustainable, smart As Qatar plans to add 60 more public parks, the country aims at making these new facilities more advanced – both technically and technologically, writes The Edge’s deputy editor Farwa Zahra.

I

n a recent announcement, Qatar’s Ministry of Municipality and Environment has revealed that its 60 upcoming public parks will be ‘smart’. Unlike some traditional outdoor parks, the new facilities will have advanced features on par with international standards.

In November last year, the Ministry of Municipality and Urban Planning (MMUP) unveiled a budget of QAR1.5 billion for the development of 59 parks. “All new parks will be different from the existing ones. We’re planning to incorporate innovative ideas, smart technologies, new plants, flowers and trees which are more resilient to the harsh climatic conditions such as dusty winds and high temperatures,” The Peninsula reported Mohammed Al Khoori, director, Public Parks

Department, saying on the sidelines of Project Qatar 2016. The department was also present at the exhibition with an aim to discover companies providing smart solutions for modern parks.

Anticipating the demand in future projects, a number of companies dealing in recreational equipment and tools were present at Project Qatar this year. To know more about the distinctive features of smart public parks, The Edge approached Keith Jones, senior key account manager export, eibe Produktion + Vertrieb GmbH & Co, who said, “Playgrounds today are not just swings and roundabouts, they are technically advanced play units that provide fun and entertainment over long periods of time.”

That, however, does not mean a

complete transition from Qatar’s existing parks. While swings and roundabouts are still involved, modern parks incorporate the elements of fitness, coordination, motoric, team play and imagination right from the

QAR

1.5

billion

The budget of the MMUP for developing 59 parks.

The Edge | 21

sectors | real estate & construction

design stage. “Due to the designs from the architects and the guidelines from the community planners, Qatar’s parks are getting more advanced and technically challenging with each project,” said Jones.

Though there is no question about the need for more public parks to meet the recreational needs of Qatar’s growing population, is the country’s weather appropriate for more outdoor facilities?

To make public parks more usable over a longer duration of time, there needs to be an appropriation of weather in designing these facilities. One way of doing this is by making these parks serviceable during evenings and nights when the temperature is more tolerable. In doing so, Mark Vowles, director, Nulty+ Dubai, mentions the role of advanced lighting solution, but making public parks smart is also a matter of keeping them sustainable over time. Mentioning rising energy costs as a major challenge, Vowles said that “much more consideration needs to be placed on the longevity of designs balancing space illumination and energy

“Playgrounds today are not just swings and roundabouts, they are technically advanced play units that provide fun and entertainment over long periods of time.” – Keith Jones, eibe Produktion + Vertrieb GmbH & Co. consumption levels carefully”.

Another aspect to consider is the use of materials that are suitable to last during the periods of heat exposure throughout the day. “The playgrounds here have to bear up to extreme weather conditions, heat, sand, wind, salt and glaring sun. This is not easy, but natural materials are really the only answer,” said Jones. One such material is wood, he suggested, adding, “Wood has been on this planet since before the dinosaurs and it has outlived them. It is used to harsh conditions and

needs very little servicing, it is pleasing to the eye and to the environment, it is warm and pleasant to the children’s touch and has a very comforting feel. This is what makes it ideal for the conditions here.”

Making Qatar’s future parks truly smart on the technological side, Al Khoori has said that the Public Parks Department is working on bringing free Internet connectivity in all the parks planned, while also introducing them in more than 80 public parks currently managed by the department.

Doha emerges as a regional leader in smart and sustainable development With 70 out of 100 points in Honeywell Smart Building Score, Doha has received the highest ranking, positioning it as a leading place for energy efficient and smart development in the Middle East.

According to Honeywell Smart Building Score, developed in partnership with researchers Nielsen and global advisors E&Y, Qatar’s capital has emerged as the regional leader in smart and sustainable development. Findings of the study are based on the analysis of 620 buildings in six major regional cities of Abu Dhabi, Dammam, Doha, Dubai, Jeddah, Kuwait City and Riyadh.

With the score of 70, Doha is 22 points ahead of the regional average of 48 out of 100. The cities were ranked on the basis of 15 technology assets representing three main areas – green features, safety and productivity – of the facilities.

The news comes at a time when industry experts have estimated that the Gulf Cooperation Council states alone can save USD3.5 billion (QAR12.7 billion) with sustainable buildings, as stated in a report by the Middle East Facility Management Association.

22 | The Edge

QAR

12.7 billion

The amount of money GCC countries can save with sustainable development.

Commenting on the results of Honeywell’s study, Norm Gilsdorf, president for Honeywell’s Middle East, Russia and Central Asia regions, said, “Doha has some of the smartest buildings in the Middle East, and we have found that the country’s 2030 vision and development strategy have created great momentum for smart and

“Qatar, as a leader for smart buildings, is a great source of best practice examples in the smart building arena and has experiences that could benefit the entire region,” said Norm Gilsdorf, president for Honeywell’s Middle East, Russia and Central Asia regions.

sustainable development.”

Explaining some possible reasons behind Doha’s highest ranking, Honeywell’s representatives mentioned the Global Sustainability Assessment System’s green standards, and the Ministry of Interior’s safety and security directives on safety codes of the buildings.

tech & communications

“Qatar’s cyber landscape scene has witnessed a number of advanced cyberattacks on organizations in the past years; making Qatar one of the most targeted countries in the Middle East,” Ghareeb Saad, senior security researcher, Kaspersky Lab tells The Edge.

Is Qatar under continued cyberattack?

The results of a recently published review and analysis of international Internet security conducted by Kaspersky Lab, IT Security Risks Survey 2015, reveals that more than 90 percent of businesses worldwide have experience some form of external threat. Ghareeb Saad, senior security researcher, Kaspersky Lab, spoke to The Edge’s executive editor Miles Masterson about the cybersecurity situation in Qatar.

In the report you mention a number of entities targeting cyberattacks on Middle East institutions. What are the motivations of these organisations?

Qatar’s cyber landscape scene has witnessed a number of advanced cyberattacks in the past years; making Qatar one of the most targeted countries in the Middle East. According to the IT Security Risks Survey 2015, conducted by Kaspersky Lab and B2B International, nine percent of organisations globally and eight percent in Saudi Arabia said they have experienced a targeted attack in the last year. Monetary gain is the primary, but not the only motivation as cyberspace also reflects the geopolitical and economic changes across the globe. Cybercriminals are tapping into

every open-source intelligence channel and outsourcing all components required to compromise conventional technologies and infiltrate the corporate perimeter. Although these threats represent a tiny fraction of the whole landscape, they also characterise the level of cyber risk companies are exposed worldwide.

How do they perform these attacks?

Qatar’s cyber realm has witnessed several cyberattacks, including advanced persistent threats such as ‘Desert Falcons’ and ‘MiniFlame’, discovered by Kaspersky Lab. Cyberattacks are continuing to rise at an alarming rate, deeming traditional security solutions inadequate. Businesses are becoming more concerned about targeted

attacks and advanced cyber-weapons used for the purposes of cyber-espionage or the disruption of business activity. Cyber criminals largely leverage a collaboration of varied intelligence and technical exploits openly available to develop a cybercrime campaign. Hence, it is of great importance for a knowledge-sharing platform such as Kaspersky Anti Targeted Attack to provide invaluable insights on the evolving threat landscape and help businesses allocate the right resources towards building a robust security infrastructure.

A local bank claimed a recent attack was meant to damage their reputation. Is this a common cyberattack motivation?

Qatar has emerged as a hub for banking The Edge | 23

sectors | technology & communications

and finance, which has made it a tempting target for myriad cyberattacks. Geopolitical developments and the level of hyperconnectivity fostered by the region makes it ripe for advanced threats. Having an unfavourable perception towards compromised organisations is the hidden cost of cyberattacks on businesses.

Businesses need to be well aware of possible attack vectors and indicators of compromise. They need to leverage their cybersecurity programme to an optimum to be able to distinguish normal operations from malicious activity. This requires strong security expertise combined with technology that is capable of spotting a criminal act in the guise of daily activity.

How prepared are our organisations?

Qatar leads a strong position at the frontline of finance, real estate, retail, energy and tourism, putting it in the crosshairs of advance cybercrime. Businesses need to overcome many cyber threats, including some of the most advanced ones, for which they need knowledge of how to maintain optimum visibility, identify malicious activity and mitigate threats. This requires strong security expertise combined with the right technology that is capable of vetting organisational assets and detect vicious cyber acts. Conventional protection technologies are very good at preventing

“Qatar has emerged as a hub for banking and finance, which has made it a tempting target for myriad cyberattacks.�

24 | The Edge

IT Security Risks Survey 2015

Saad is confident that entities in Qatar under threat from cyberattack can counter these with the correct strategy and approach.

generic threats and attacks, however businesses need to invest in advanced technology and proper security intelligence that can accurately highlight strong malicious intent.

What can they do to prevent them?

Businesses need to enhance their cyber resilience by building a cyber-safety culture and giving employees the right motivation and essential knowledge to recognise and avoid cyber threats. Most importantly, it is crucial to increase cybersecurity investments and adopt advanced security strategies to secure all functions across the enterprise, and not just IT, to help companies protect corporate data and reduce losses related to security incidents.

How can organisations mitigate the damage once they have been attacked?

Cyberattacks have swiftly moved beyond IT departments to targeting the board. There is a need to give immense importance to containment and remediation of the cyberattack to minimise the damage. In order to contain the attack, organisations need to block all services as they gauge the impact. Inability to halt all services can impair business workflows and processes.

Ensure the right technology is aligned to all necessary processes to keep the network and data secure. Thorough analysis and identity management procedures need to be performed for rigorous threat management. A readily available comprehensive cybersecurity incident plan can combat such situation with ease.

Once the perpetrator is recognised, the organisation can take the necessary action and inform the concerned authorities. To prevent such malicious intrusions in the future, it is vital for organisations to increase their cybersecurity investments and acquire effective technology.

Conducted by Kaspersky Lab and B2B International, the IT Security Risks Survey 2015 surveyed thousands of information technology professionals around the world, and revealed that

72%

of those surveyed would pay close attention to a bank’s security record, and

90%

would pay a premium to make their transactions more secure.

47%

also felt banks were not doing enough to secure transactions, while

47%

of organisations also felt their own IT security was inefficient.

73%

have had an internal security incident in the past year and

60%

of businesses that suffered a data breach found their ability to function afterwards severely reduced, with

87%

of data loss incidents requiring some form of additional assistance from third party professionals, including IT security consultants, lawyers and risk management consultancies.

‫هل تبحثون عن حمتوى ديناميكي ُمميز؟ جمالت مطبوعة ورقمية للشركات‬ ‫مبزود احملتوى األكرث نشرات إلكرتونية‬ ‫اتصلوا إذن ُ‬ ‫ديناميكية ومتيزًا يف الدوحة‪ .‬كتب تذكارية خاصة‪ ،‬وكتب لطاولة القهوة‬ ‫تقارير سنوية‬ ‫تقارير االستدامة‬ ‫تصوير ضوئي (فوتوغرافيا)‬ ‫تصوير فيديو‬ ‫ُمدونات وحمتويات صوتية‬ ‫تطوير التطبيقات‬ ‫بيع وتسويق اإلعالنات‬ ‫حمتوى أصلي‬ ‫راسلوا روجن عرب الربيد اإللكرتوين‪premium@firefly-me.com :‬‬ ‫أو اتصلوا على الرقم‪ +٩٧٤ ٤٤٣٤ ٠٣٦٠ :‬لتحديد موعد لالجتماع‪.‬‬

‫سناء بوكريع‬

‫جو ماريت‬ ‫جنڤياڤ دياب‬

‫مصممة جرافيك‬ ‫اإلبداع املُ َو ِّجه للسوق‬

‫مدير عام‬ ‫مدير اسرتاتيجي ُمحنَّك‬

‫روجن بايلي‬

‫مديرة حسابات العمالء‬ ‫خدمة العمالء االستثنائية‬

‫مايلز ماسرتسون‬ ‫رئيس التحرير التنفيذي‬ ‫خبري يف تطوير املُ حتوى‬

‫حمررة القسم العربي‬ ‫احملتوى العربي النموذجي‬

How important is it to be

happy?

Unlocking the mystery and potential of human happiness

wellbeing | cover story

Qatar and the United Arab Emirates (UAE) made headlines last year when they were ranked as the 36th and 28th happiest countries on earth respectively, based in the most recent World Happiness Report, a global survey measuring contentment in 157 countries. The survey reflects a global trend where measurement of happiness in society and at the workplace is being treated as serious science and as a criteria for determining government policy. But how important is happiness really? Radhika Punshi and David Jones of The Talent Enterprise take a closer look.

I

n the 2016 World Happiness Report, the UAE was ranked ‘happier’ than France, Thailand, Saudi Arabia and Taiwan, while Qatar preceded Spain, Kuwait, Italy and Japan. In the region, in terms of influencing good governance, a content populace is the prime focus of the Dubai Plan 2021, where the first objective is achieving people’s happiness.

To reaffirm its commitment, the UAE also appointed its first ‘minister of happiness’ Ohood Al Roumi as part of its new cabinet.

Worldwide, the happiness movement is also gaining momentum. Many prominent world leaders have included wellbeing as part of their national agenda, such as British Prime Minister David Cameron, German Chancellor Angela Merkel and South Korean president Park Geun-hye.

The earliest pioneer in adopting happiness as a national agenda was Bhutan, which it seems, claims to have introduced the term Gross National Happiness, or GNH as early as 1972.

Some sceptics might claim that since indices such as gross domestic product (GDP) as a sign of a nation’s progress are increasingly looking grim, or at best irrelevant after almost a decade of mediocre growth for the global economy, the introduction of new measures such as GNH are a mere distraction. But this does not detract from the increasing focus internationally on the wellbeing of people and what effect it has on the stability of societies and productivity in the workplace, to name but two areas.

But what is this elusive state of happiness and why does it matter to us in the Gulf Cooperation Council (GCC) or anywhere else for that matter?

There are a number of misconceptions and stereotypes about its meaning.

With its current popularity and the rapid emergence of self-appointed happiness ‘gurus’ and ‘consultants’, the

The pursuit of scientifically studying happiness and wellbeing is now rapidly expanding into an inter-disciplinary approach. term happiness faces the risk of being misunderstood, overused or trivialised.

What does, or does not, really constitute happiness?

Happiness is inside Happiness can often be misconstrued as a frivolous concept, often regarded as a permanent state that can easily be achieved through self-help techniques, such as ‘10 steps to become happy’ or books such as The Secret.

There is an important distinction between momentary happiness or

pleasure, which is short-lived, for example, experienced from the temporary emotional boost we gain from eating a great meal or buying a brand new car. Within the workplace, employees may believe that factors such as better perks and artefacts of status, such as big increment or a promotion may lead to their lasting engagement. Lasting happiness or wellbeing, on the other hand, is more enduring and related to overall life satisfaction. This can be achieved from a richer sense of meaning and purpose in our lives, our work and our societies. In

Also dropping a few places in 2016, the UAE finished within the top 30 of the 2016 World Happiness Report.

The country has made happiness a focus of its future plans, recently appointing a woman, Ohood Al Roumi, as minister of happiness and making the increased contentment of the city’s population a goal of the Dubai Plan 2021. (Image Getty Images).

The Edge | 29

cover story | wellbeing

Focusing on strengths helps us experience positive emotions: For too long, our approach to management has been too deficit-led, focusing on gaps and weaknesses. Shifting the spotlight to playing to our strengths, while recognising our potential limitations, can have a transformative effect at an individual, organisational and national level.

Helping Others and Giving Back: Experiencing a deeper sense of meaning by being involved in causes larger than ourselves, such as volunteering and giving back to society leads to a more lasting feeling of happiness.

Pathways to Happiness The following are some widely accepted methods to achieve contentment:

People who Exercise on Work Days are Happier: People’s moods significantly improve after exercising.

They are also more productive and equipped to manage stress in their workday.

Sources: The Talent Enterprise, HBR, Gallup, Anchor

30 | The Edge

Buying Experiences, not Possessions, Leads to Greater Happiness: Organisations can invest in identifying and providing individual and team incentives which focus on the quality of our experiences, and not just rewards or incentives.

The Contagion Effect: People who are surrounded by happy people are more likely to become happy in the future. Building a strong support structure with people who are positive and nurturing at work and in our personal lives is crucial.

The Power of Gratitude: One of the greatest contributing factors to overall happiness in life is how much gratitude we show.

wellbeing | cover story

Revellers on Qatar Natioanal Day. Ostensibly thanks to the inclusion of non-Arabic speakers for the first time in the five years it has been published Qatar slipped eight places from 2015 in the 2016 World Happiness Report – which included metrics such as life expectancy, social support and perceptions of corruption, among others – the country still finished up at 36th of 157 countries. (Image Getty Images)

sum, it comes from cultivating our own authentic selves.

A great example of a company highly applauded for embracing happiness as part of its corporate strategy is Zappos, a United States-based online retailer.

Tony Hseih, CEO at Zappos, says, “when people go to the office, they leave a bit of themselves at home, or a lot of themselves at home. And they have to put on this different persona, especially in the corporate world. When people are comfortable being themselves, we get the best out of them”.

Happiness is a science Happiness is not a new concept. It is deeply ingrained in our history, faith, values, societies and cultures. As early as 322 BC, the Greek philosopher Aristotle said that “happiness is mostly thought to be, for this we choose always for its own sake, and never with a view to anything further”.

However, the science of happiness itself is relatively new. In 1998, the then President of the American Psychology

Association and one of the most influential psychologists in the world, Dr. Martin Seligman, posited that the advancement of psychology and most social sciences to date had been limited in its worldview of focusing only on the negative. He stressed that the study of psychology should be as concerned about building the best, as much as it is focused on repairing the worst.

Positive Psychology is thus the scientific study of happiness, of the strengths that enable individuals and communities to thrive. The pursuit of scientifically studying happiness and wellbeing is now rapidly expanding into an inter-disciplinary approach, with a focus

36

th

Qatar’s ranking in the 2016 World Happiness Report.

on aspects such as Positive Education, Positive Organisational Behaviour, Positive Health and Positive Neuroscience.

As the science of happiness advances, we are understanding more about how to move our organisations towards optimal flourishing. One of the biggest shifts in this regard is moving from a deficit-based approach to one focused on strengths.

This includes not just a surface level shift in terminology, but embedded into the very DNA of how we manage and lead our companies.

Happiness requires effort We are not born happy or unhappy. Like anything else we hope to achieve in our personal and professional lives, we need to invest our time and efforts to be happier. And most importantly, the absence of unhappiness does not lead to the presence of happiness. They are two different things. Many people believe that they are genetically predisposed to being happy or unhappy, while others believe happiness is determined by the environment.

The Edge | 31

cover story | wellbeing

Research by Dr. Sonia Lyubomirsky, Professor of Psychology at University of California Riverside has established that personal circumstances, such as marital or financial status account for no more than 10 percent of happiness.

According to experts, happiness depends on our interpretation of circumstances.

Therefore, objective life circumstances do not figure largely in wellbeing, rather, how they are subjectively appraised and managed by individuals is more important.

Dr. Louise Lambert, psychologist and professor at the Canadian University in Dubai explains that happiness depends on our interpretation of circumstances.

Objective life circumstances do not figure largely in wellbeing, rather, how they are subjectively appraised and managed by individuals is more important.

From an organisational perspective, happiness and engagement is a twoway equation. Organisations need to genuinely invest in the well-being and engagement of their employees, and employees also need to hold up their end of the psychological contract, by investing in their own growth and development, building a strong support system and by finding purpose in their work.

Happiness is a place to visit Dan Gilbert, a leading psychologist at Harvard, asks if happiness is an elusive concept? Are individuals supposed to be happy all the time? From an evolutionary perspective, nature has designed us to have a wide range of emotions for a reason. Emotions are a primitive signalling system and how our brain tells us if we are doing things that enhance or diminish our survival chances.

Gilbert adds that we are supposed to be moving through these emotional states. If someone offers you a pill that makes you happy 100 percent of the time, you should run fast in the other direction.

It is not good to feel happy in a dark alley at night. Because happiness is a noun, so we think it is something we can own. But happiness is a place to visit, not a place to live.

This is consistent with our workplace research at The Talent Enterprise, where employee engagement is a ‘state’-based phenomenon, which fluctuates and varies from time to time. Hence, it needs to be measured as such, by ongoing, recurring 32 | The Edge

Happiness continues to demonstrate a tangible and compelling impact on our performance, productivity and engagement.

techniques with an aggregation of results. Once-a-year, static engagement surveys do not provide a realistic or sustainable measure of the overall level of engagement in our organisations, entities or social structures.

Happiness matters When our brains are in a positive state, we achieve positive personal and business outcomes. Hence, happiness is not a ‘soft’, ‘nice-to-have’ concept, but continues to demonstrate a tangible and compelling impact on our performance, productivity and engagement. As a case in point, in a research study by the International Society for ECT and Neurostimulation (ISEN), a group of physicians who were primed to be more positive before meeting with patients were able to integrate case information much faster, and were able to diagnose more effectively.

Hence, happiness impacts better decision making. Research has also shown that when we are feeling positive emotions, we are able to solve problems more readily, are more creative and also more flexible and open to information. In another study, ISEN found that negotiators were able to discover more integrative solutions in complex bargaining tasks.

Advances in neuroscience have established that happiness has a special function. When our moods are elevated, dopamine is released in our brains and

activates the brain’s learning centres.

Those moments when we feel positive and happy are also the moments when our brains are most able to take in information – and adapt to challenges. When we feel stressed out, or even neutral, our brains prevent us from learning and adapting.

However, how can one elevate the overall levels of national happiness? This is the rhetorical question that is increasingly being asked, sometimes in a somewhat simplistic way, by policy-makers across the Middle East region.

The fact is, happiness has only recently been touted as a potential addition to the pre-existing social contract. Both for nationals and for expatriates, loyalty and contribution has been bought by the quantity of life on offer, not necessarily by the quality of life. Within our workplaces, a relative lack of professional challenge is accepted for mercenary gains and personal sacrifices, previously with the tacit acceptance that happiness was simply not part of the equation. But, we seem to be collectively realising, the quality of our social relationships, a deeper sense of meaning and purpose, the quality of our life, especially our professional life are all essential.

Our research at The Talent Enterprise reveals that the GCC has some of the lowest levels of employee engagement and life satisfaction anywhere in the world.

At a macro level, a highly segmented, sclerotic labour market, and at a micro level, archaic, deficit-based management approaches, a reported lack of trust and empowerment, and the clash on intra-cultural and intra-generational expectations are all contributing to this phenomenon.

Moreover, the millennial generation feels unprepared for the world of work, often lacking the critical life strengths which are necessary for work and life satisfaction, such as self-efficacy, optimism, hope, grit, resilience and a growth mindset.

One of the corollaries of nationalisation and expatriation has also led to the lowering of incentives for self-development and an over emphasis on monetary rewards. The Chartered Institute for Personnel and Development has recently reported that job satisfaction is falling further in the UK, with employees feeling overqualified for their roles and

wellbeing | cover story

Happiness vs. productivity

There are clear tangible benefits of happiness that impact workplace and national labour market outcomes

Happy people are:

50%

more engaged at work

3x

as likely to persist in job searching

125%

less prone to burnout

300%

more innovative

Happy workers also experience:

44%

higher retention

37%

increase in sales

31%

increase in productivity

3x

increase in problem solving

Sources: The Talent Enterprise, HBR, Gallup, Anchor

stymied in their professional development.

There is ostensibly increasing inequality not only in income and job security, but also in stimulation and substance.

The cost of happiness How much does the possession of money and wealth impact happiness? According to a number of research studies, while there does appear to be some correlation between happiness and income when basic needs are not yet met, people tend to overestimate the influence of wealth on happiness by 100 percent.

In short, money will help increase happiness until it meets basic survival needs but adds little beyond that.

Money does not lead to nearly as much happiness as people think it does. The 2016 World Happiness Report stressed the importance of fairness and equity in driving the overall perception of happiness. As an example, happiness is

evenly distributed in Iceland because income and wealth is evenly distributed.

That is, most Icelanders are more or less equally happy, while in other nations – particularly many in the Middle East and Latin America – happiness levels vary tremendously.

This is important because new research suggests that people are significantly happier living in societies where there is less inequality of happiness.

In other words, we can achieve only so much happiness if others around us are miserable. Creating the ‘wealth’ of happier, healthier societies is a promise that we owe to our future generations here in the GCC. A world where our youth flourish with positive social relationships, engaging workplaces and a greater level of responsibility and connectedness to our communities.

It is therefore critical that happiness is part of the organisational and national

agenda if we seek to tap into the productivity, positivity and creativity of our workforce as the GCC nations evolve into transformational knowledge economies powered by our people.

Radhika Punshi is the managing director at The Talent Enterprise and an expert on happiness and wellbeing.

She is the first person from the MENASA region to have a Master’s degree in Positive Psychology. David Jones is the CEO of The Talent Enterprise, an HR expert and labour market economist.

Both Punshi and Jones have published a series of books on the region, including Unlocking the Paradox of Plenty – A Review of the Talent Landscape in the GCC and Game-Changers – On the Transformative Potential of Females in the Arab World.

The Edge | 33

sector name | banner heading

Steve Tzikakis, vice president and general manager, South Europe, Middle East, Africa (SEMEA) tells The Edge, “When I think of our customers in Qatar, we help them leapfrog their competition from other parts of the world especially given the multiplicity of technology platforms that are in use here, for any given company that has been using a particular set of technology for many years, the process of migration to a new solution, is always a challenge.�

34 | The Edge

software industry | business interview

Adapting to local realities, Tailor making solutions:

key business skills In Qatar for the SAP Forum held in Doha recently, Steve Tzikakis, vice president and general manager, South Europe, Middle East, Africa (SEMEA), SAP speaks to The Edge about its key business deals in Qatar and how the company has adapted its business model to suit local needs.

Tell us about the purpose of the SAP Qatar Forum and the main industry participants. Is the structure of the event reflective of the industries that participate?

The SAP forum is probably the most prominent annual IT conference that takes place in Doha, and has been happening for 10 years now. We have more than 500 customers and partners attending, C-suite executives and business owners from diverse industries seeking to understand how their business

can move into the digital era, how SAP can help them innovate and redesign and reimagine their business.

SAP addresses businesses in 25 different verticals, among the major technology vendors, which is our key strength and, in addition to the way we differentiate between those 25 verticals, we also differentiate between large and complex and local businesses. We don’t segregate them as small or medium or large but our nomenclature is global businesses or local businesses. The

differentiator is the complexity between the two segments of businesses.

How does SAP operate here in Qatar?

Do you deal directly with customers or is it through your local partners?

We have a direct operation, complete with an office and adequate staffing.

But our business could either be direct or indirect and we give our customers the choice of opting to tie up directly with us or through their preferred vendor which could be a local business or could The Edge | 35

business interview | software industryg

be a global systems integrator, such as Accenture or IBM. Talk us through some of the key topics that the forum has looked at. How do you foresee that the forum discussion points might impact the day-to-day realities of Qatar’s businesses?

The SAP Qatar forum is focusing on how megatrends such as hyper connectivity, cloud, smart world and block chain which are transforming the way people live and work. While the rest are more or less part of everyday vocabulary, block chain is kind of a digital currency such as bitcoin.

These trends exist in the global market and by extension in Qatar. When I think of our customers in Qatar, we help them leapfrog their competition from other parts of the world especially given the multiplicity of technology platforms that are in use here, for any given company that has been using a particular set of technology for many years, the process of migrate to a new solution, is always a challenge.

But the very composition of the workforce here makes solutions providers such as SAP optimistic. There is a growing proportion of millennials who are entering the workforce in this country. There is also a chain of global events such as the 2019 World Athletics Forum and the 2022 World Cup to be held here. All of these factors should combine to make the country a hub of technology and innovation adopters across both the public and the private sectors, and across several sectors and industry verticals, which, in turn, will lead to the fruition of the diversification plan for the Qatar National Vision 2030.

The AAB SAP team with Tzikakis at the SAP Forum held in Doha. The AAB deal won the bronze award at the SAP EMEA quality awards for one of the world’s fastest implementation of dealer business management which led to 36 percent higher business satisfaction.

Industry leaders at the Qatar SAP forum have agreed that digital transformation can double Qatar’s commercial output to over USD4 billion (QAR14.6 billion) by 2019. What role do you foresee SAP playing in this transformation?

Both the Qatar Digital Government Strategy 2020 and the Qatar National Vision 2030 have placed digital

“The prospective sectors here in Qatar are industry, financial services, construction, energy, retail, transportation, logistics, hospitality, sports and entertainment.”

36 | The Edge

transformation at a premium place. There is no option for Qatar but to walk down the road to digitisation. Within the overall business ecosystem, if one looks at B2B and B2C markets, they have the ability to double in size by 2019 which will likely yield a turnover of USD2.5 billion (QAR9.1 billion). The other USD1.5 billion (QAR5.5 billion) will come from the government and large enterprises.

What are some of the major business deals that SAP has signed in Qatar in the recent past?

There is Abdullah Abdulghani and Bros (AAB), the Al Faisal Holding and the Jaidah Holding deals that are worth mentioning.

The AAB deal won the bronze award at the SAP EMEA quality awards for one of the world’s fastest implementation of dealer business management, which led to 36 percent higher business satisfaction.

The AAB deal was based on the usage of Clariba, BPC and BI analytics for mobilefriendly dashboards.

AAB streamlined their processes, improved customer service with our

software industry | business interview

support. We don’t just sell. We partner to go live successfully in time and in budget and that is a major differentiator in favour of SAP. From a business point of view, while acquiring a new client, do you make it mandatory that the company/group has to buy the complete package or can they implement a SAP package in one of their businesses and continue with their legacy solution in others?

We respect customers’ choices and we respect the fact that for years they might have been investing in in-house or offthe-shelf solutions with other industry peers. We have open architecture for most of our products. We invite partners to develop on our platforms and we want our customers to choose whether they want it to be SAP or a solution they may have developed from the past. We believe in offering a symbiotic solution.

solutions. Their business diversification process received a fillip with the SAP products and they now have a comprehensive 360-degree view of their customers’ requirements.

The Al Faisal deal was an interesting budgeting and analytics business project using taskforces and mobile phones to support their business in Qatar, Egypt, Algeria, Germany, Italy and the United States.

Jaidah Holding started with the S/4HANA cloud mobility and analytics from SAP to support their global expansion.

Why do you think that SAP has won the trust from diverse business groups in Qatar?

First, if you look at industry analysts such as IDC, Forrester and Gartner, they are unanimous on SAP’s ability to implement that is backed by a better vision of the strategy for our customers. Second, all of our products have a distinct industry flavour and we will not sell to a retailer the same programme that we sell to a hydrocarbon player. Third, is end-to-end-

In an economy such as Qatar, which is in the throes of transition to a more globalised and diversified economy, what are the prospects for SAP? How suited is SAP to offering solutions based on local client needs?

The prospective sectors here in Qatar are industry, financial services, construction, energy, retail, transportation, logistics, hospitality, sports and entertainment.

These are just some of the booming sectors and we have landmark customers who know that with SAP they will have a solution that is going to help them beat their competitors and are guaranteed a trouble-free implementation by either SAP or one of our partners. We encourage the growth of our partners, which is also one of the reasons we are growing our local operations. We’ve grown our local office and have invested in our local consulting practice.

We understand that business in Qatar is done in an intimate and personalised way. We have adapted to this many years ago and continue growing.

650

Total number of SAP employees in the Middle East.

“SAP addresses businesses in 25 different verticals, among the major technology vendors, which is our key strength... we also differentiate between large and complex and local businesses.”

SAP understands that with the primarily family-held nature of businesses in Qatar and the local market being highly dependent on expatriate manpower, customers might run into a situation of not having the requisite resources for implementation. We have thus kept our offerings flexible and can tailor make the solutions, based on the client’s requirements.

If the client insists on local manpower, we can bring that in. In the Middle East, there are 1735 consultants, of whom 650 are SAP employees. In addition, there are centres in India, Portugal and in Eastern Europe that feed projects in the Middle East, added to which, there are global experts. We have created a structure whereby for the global and large clients who want global expertise, SAP brings consultants from all around the world to service them. In total, there approximately are 3000 to 4000 available resources for our Middle Eastern clients, added to the system integrators and the local partners who also pitch in with their dedicated resources that can help customers decide whether they want to do projects with people onsite, or whether they want to do projects in the cloud.

The Edge | 37

Owned by Salam International, the Gate Mall is in the heart of West Bay, Doha. AbdulSalam Abu-Issa, deputy COO of Salam International tells The Edge, “When we went public, we ensured that the family name was kept intact across generations while making sure that the board is composed of sufficient number of professionals and independent members too.�

family business | feature story

Family-run businesses’ viability

depends on smart ownership transition Family Business in the GCC: Putting Your House in Order, a study by AT Kearney recommends improving governance, refocusing the business portfolio and becoming a leaner, nimbler organisation as the three essentials to succeed in an era of transparent, professionally-run corporate business houses. In conversation with local business leaders, The Edge’s Aparajita Mukherjee derives an added dimension: model of ownership transition, in which the younger generation feel valued, adding to the longevity of a business that has been run under the guidance of the founding patriarch.

The Edge | 39

feature story | family business

P

earl Initiative is an organisation that works across the Gulf region to influence corporate accountability and transparency. Recent data from the organisation has shown that around 75 percent of the Gulf Cooperation Council (GCC) private sector comprises family-owned businesses, 25 of the largest family businesses collectively generate around USD100 billion (QAR364 billion) in annual revenues. If we contrast these figures against PwC’s 2014 Family Business Survey, we find however that less than six percent of family businesses survive beyond the third generation and even fewer, less than three percent, survive beyond the fourth generation.

The survey showed that only 14 percent of Middle Eastern family firms have a robust succession plan that has been discussed and documented. Further, 84 percent of families are not happy with their succession planning processes, with 52 percent of family firms citing succession planning as a concern over the next five years, compared to 36 percent globally.

What then are the challenges facing family-run businesses in the GCC? And what does it take to survive? The AT Kearney study revealed that with market realities changing from a climate of plenty to one of cash rationing, family businesses would need “strong leadership to centralise management, address governance and succession issues…The road to future growth and profitability means embracing new realities”.

Commenting on the key common priorities of family businesses, AT Kearney’s principal, Cyril Gourp mentions that each family business has different priorities depending on their maturity, size, current organisation. “But,” he adds, “I see some key recurring topics: investing in new sectors and new geographies to capture opportunities; strengthening competitive advantage and market positioning to reach international market standards; building competitive barriers against new market entrants; and rationalising investment and asset portfolios by divesting from or turning around value-destroying assets”.

Shared challenges Providing perspective on the three main issues that family businesses face in a global climate of more transparent, professionally-run corporations, Sheikh 40 | The Edge

Ahmad Nasser Sraiya Al Kaabi, chief operating officer of Al Sraiya Holding Group says, “Al Srayia Holding Group created a new leadership transformation model by preparing the new generations (the new family members) to comply with the future business needs according to the company’s vision.”

Mohammed bin Faisal Al Thani, vice chairman of Al Faisal Holding and Aamal Company mentions that the challenges facing professional and well-established family businesses that are expanding on a global scale are similar to those of other companies, regardless of their formation.

Sheikh Mohammed stresses, “There are three key elements that should be adopted by family businesses for enduring success: first, a well-managed family business that implements and adheres to corporate governance best practice; second, defined roles and responsibilities for the partners or

PwC’s 2014 Family Business Survey showed that only 14 percent of Middle Eastern family firms have a robust succession plan.

family business | feature story

family members alongside a well qualified executive management team; third, having a succession plan in place.”

Talking about the challenges that family businesses face in the current paradigm of professional management, Gourp addresses the factor of family business sustainability, breaking it down into a business and portfolio management component and a family business and governance component.

“On the portfolio management side, most GCC family businesses have a highly diversified and fragmented business portfolio with entities and assets in five to seven sectors for most of them,” Gourp tells The Edge, adding that this contrasts with family businesses in more mature European or North American markets where portfolios focus on clear business platforms.

“On the family component,” says Gourp, “the lack of clear governance structure drives a series of key problems jeopardising family business wealth and sustainability: the lack of segregation between business and family assets, the absence of efficient succession planning with abrupt or unprepared successions.”

Corporate governance Imelda Dunlop, executive director of Pearl Initiative stresses that family businesses in the region are facing the challenge of operating in a low-oil price economic climate while managing internal leadership transitions within generations.

According to Dunlop, family-run businesses must make a great deal of effort to develop robust corporate governance systems that mirror the family’s culture and ensure the continuous implementation of its vision and ethics.

“Setting out clear succession criteria and considered governance and transparency procedures is critical to securing an organisation’s success while avoiding controversy, particularly moving into the third generation in the coming years.” In her opinion, complacency in governance policies is becoming a real threat to the future success of family businesses. As the next generation comes through to take over the family firm, it is up to them to pass on the mantle of comprehensive corporate governance to ensure the business they pass on to their children is as robust as it can be.

“On the portfolio management side, most GCC family businesses have a highly diversified and fragmented business portfolio.

– Cyril Gourp, principal, AT Kearney.

GCC family-run businesses: Some key facts

75%

of GCC’s private sector is comprised of family-owned businesses.

25

of the largest family businesses collectively generate around USD100 billion (QAR364 billion) in annual revenues.

USD 1 trillion

of assets set to be transferred to the third generation in the next 10 years. less than 6% of family businesses survive beyond the 3rd generation less than 3% survive beyond the 4th generation

14% Dunlop also stresses that the company board is the link between family shareholders and management.

“Ensuring that the board has the right mix of experience and capabilities is critical. Developing clear criteria and a robust process for the selection of Board members whether from within the family, or for independent directors is important, because an effective Board that can lead the company well. Bringing in external members can revitalise the board and provide the company with a competitive edge.”

AbdulSalam Abu-Issa, deputy chief operating officer, Salam International, echoed the same sentiment, “When we went public, we ensured that the family name was kept intact across generations while making sure that the board is composed of sufficient number of professionals and independent members too.” He explains that their job is to keep

of Middle Eastern family firms have a robust succession plan that has been discussed and documented, compared with the global average of 16%

84%

of families are not happy with their succession planning processes

52%

of family firms citing succession planning as a concern over the next 5 years, compared to 36% globally.

The number of family firms looking to pass on management to the next generation was 38%.

Sources: Pearl Initiative and PwC’s 2014 Family Business Survey

The Edge | 41

feature story | family business

AT Kearney’s report, titled Family Business in the GCC: Putting Your House in Order study mentioned that with market realities changing from a climate of plenty to one of cash rationing, especially relevant now in the current climate of fallen energy prices, family businesses would need “strong leadership to centralise management, address governance and succession issues.” (Image FotoArabia)

the family on track since they come with varied corporate experiences. They are at liberty to disagree with our decisions and raise a flag when they see that the family is being too emotional about something. They keep us on track, keep us disciplined and this has improved the overall governance structure.”

Sadiq Hamour, director of Business Development at QFC Authority (QFCA) says, ”Securing the future and breaking the emotional ties with the past is also an absolute must. Albeit difficult to achieve, it requires willingness to make bold moves and take over new risks. This may take some families outside their comfort zone, but the sector as a whole was built on entrepreneurial energy and determination, and the families would not have survived such a tough business environment had they not had the qualities they will need to succeed now,” adding that ownership and succession in publicly-traded 42 | The Edge

companies are strictly business emotionfree decisions. “But in family businesses, ownership and succession can be very complex. Family businesses are potentially more vulnerable at times of succession.”

Succession planning Outlining several models of succession planning that can either operate in silos or coexist, Abu-Issa of Salam International Investment Ltd, mentions that it is wiser for the founder to gradually co-opt the younger generation into the business by allowing them to take charge of the nonessential, non-strategic aspects of the business “as that will leave the founder to still be in charge of the strategic aspects”.

This, in Abu-Issa’s view, can help the business with a multiplicity of views, preventing the owner from operating purely “like a one-man show which in effect is the biggest impediment to efficiently-run a business they once founded.”

Citing how succession has been planned in the case of their own company, Abu-Issa tells The Edge, “We are different on two counts. One, we decided to go public early on in our business. Second, our present chief executive officer and the chief operating officer are secondgeneration businessmen, and had taken over from the founder at a relatively young age – they had to, since our grandfather passed away early. What they are doing with us right now is to hand over the less critical decisions that pertain to day-today running of the business, keeping the strategic decisions to themselves.”

Sheikh Mohammed of Al Faisal Holding and Aamal Company says, “As the second generation, we are already involved in business strategy and management, with clear roles and responsibilities. We share the vision of my father Sheikh Faisal Bin Qassim and, in this way, we are able to make an increasing contribution to the continuing expansion and development of the business in line with this shared vision.”

Giving his opinion on the way succession planning is handled in the region, Firas Haddad, partner Risk Assurance Services, PwC Middle East is unequivocal when he says, “The issue of succession is not being dealt with as priority among familyrun businesses,” and goes on to add that numerous surveys have shown that the two greatest threats to the continuity of a family business are ‘conflict’ and ‘succession’.

Abu-Issa of Salam International and Haddad agree that succession has two dimensions: ‘succession in ownership’ and ‘succession in management’. AbuIssa mentions, “If there is ownership but no authority, it builds up frustration in the younger generation.”

In Haddad’s opinion, addressing these issues is often viewed as an extremely sensitive subject. He explains, “The next generation family members are hesitant to bring this up with the founding generation out of a sense of respect. In turn, the founding generation is fearful of a perceived loss of control. To ensure continuity and for the sake of future generations, neither of these factors should be viewed as deterrents in addressing what is the single greatest threat to the continuity of family businesses, that is, the lack of a formal structured and documented process for ensuring the succession.”

Ahmad Nasser Sraiya Al Kaabi, chief

family business | feature story

operating officer of Al Sraiya Holding Group, says, “Al Sraiya Holding Group created a new leadership transformation model by preparing the new generations (the new family members) to comply with the future business needs according to the company’s vision.” Hamour of QFCA is of the view that succession planning greatly varies depending on family members. Having family members as decision and strategy makers is not without its advantages, with short lines of communication and low costs, if they can agree on a vision and strategy setup. Many companies around the world are run this way, Hamour says, adding, “It is evident that an increasing number of family firms ensure – or even insist – that younger family members go through a proper development programme before entering the firm. In many cases, this includes a ‘training’ period of work outside the business. This “professionalisation” of the next generation is helping close the credibility gap that will breed managers with an invaluable insight into the crucial difference between owning and managing a business.”

While giving his take on the primary challenges that family businesses face today, Sadiq Hamour, director of Business Development at QFC Authority (QFCA) says, “When families are able to tap into the diverse views of involved members, which is easier said than done, the business can then grow stronger and respond to new market demands.”

“Effective corporate governance enables boards to better lead and provide oversight to their organisations.” – Steven Drake, PwC Middle East.

Listed entities Many family-run businesses which are listed on stock exchanges also have better corporate governance and disclosure standards. Does that help in running the organisation? Or is that done to meet the statutory requirements?

Sheikh Mohammed feels that following the requirements and guidelines of the Qatar Stock Exchange certainly adds value to their organisation as it enhances transparency and communication with all stakeholders, which, in turn, contributes to increased trust and engagement from shareholders, business partners and employees.

He continues, “Reporting in this way therefore demonstrates the professionalism of our organisation and enables us to convey, on a structured and regular basis, the strength of our financial and operational performance as well as the strategic rationale for the transactions, investments and other corporate initiatives that we undertake as we continue to deliver our long-term vision for the company.”

Dunlop of Pearl Initiative is of the opinion that the key drivers to improving governance and transparency in family

firms are generally not linked to disclosure requirements or an inevitable initial public offering. Dunlop explains that research has shown that the key driver for a family firm owner to improve governance is the desire to pass on a healthy, efficient and well-run organisation that can be successful and sustain through the next generation and beyond.

In this context, Steven Drake, head of Capital Markets and Accounting Advisory Services, PwC Middle East tells The Edge, “Effective corporate governance enables boards to better lead and provide oversight to their organisations.”

The future Dunlop explains that family and private companies in the region face many challenges, including that of an estimated USD1 trillion (QAR346 trillion) of assets set to be transferred to the third generation in the next 10 years, adding that she is optimistic about the future of family businesses over the next decade, “largely due to the fact that these businesses are recognising and prioritising the need for transparency, corporate governance and succession planning to enhance their credibility and standing among competitors in the dynamic and growing market.”

“A significant number of families will go through a generational change in the next 10 years in Qatar. However, regrettably not all will survive. I believe some will adapt and flourish, while others may be sold to larger international groups and some will simply no longer exist,” says Hamour of QFCA. He adds that globalisation and the digital advancement greatly accelerated the rate at which things change. Business cycles are getting shorter and faster. “The old saying ‘it takes three generations to build a business’ is already outdated and replaced by something along the lines of ‘one generation can build three businesses’,” says Haddad.

Al Kaabi of Al Sraiya Holding is of the view that family businesses for the coming 10 years will be looking more into corporate management due to their business expansion locally and internationally. He explains, “This way we can face all the family business challenges by creating a more corporate environment, set a formal base for creating a corporate business based on accurate polices that can be applied to all levels and benefit the business itself.”

The Edge | 43

An moment

Regional vice president and general manager of the Four Seasons Hotels and Resorts in the Middle East, Simon Casson, discusses current prospects for entrepreneurs in Qatar’s hospitality and tourism sector.

“I think an entrepreneur will look and see what the consumer is asking for, that is not being delivered to them, and ask: How can I fill that gap?” Simon Casson, Regional vice president and general manager of the Four Seasons Hotels and Resorts in the Middle East, tells The Edge. (Image courtesy Four Seasons).

hospitality entrepreneurship | business interview

Casson was in Doha recently as a guest speaker for the Qatar Business Incubation Centre (QBIC), in partnership with Qatar Tourism Authority (QTA), which hosted a Speaker Series focused on tourism incubatees and entrepreneurs. Casson spoke about how hotels and the hospitality industry can benefit from new products and services in tourism, what has worked across the region in the sector and how to build relationships in the hospitality ecosystem.

During his visit The Edge’s executive editor Miles Masterson caught up with the hotelier to discuss these and further related topics more in depth.

A

seasoned hospitality professional, Simon Casson knows a thing or two about start-ups in the sector in the Middle East – and in Doha in particular. He clearly recalls the early stages of construction of the Four Seasons hotel on the northern end of the Qatari capital’s Corniche a little more than a decade ago, to which he was assigned from the chain’s Park Lane establishment in London, to oversee the development of its first venture into the region.

“When we opened in Qatar,” describes Casson, “it was a fairly small hotel market, a fairly unknown destination, just at those nascent stages of exponential growth and we brought something very different to the urban resort. A building with architectural merit, and incredible partnering. Our owner was HE Hamad bin Jassim Al Thani and still is. He was the prime minister and the foreign minister when I arrived, and we had a great evolution with him. In those early days he was on site with me here with his hard hat on, pushing the contractors, and we ended up creating a fabulous hotel that became iconic in Qatar and grew with Qatar.”

Even just a decade ago of course, Doha was a different place. Far fewer hotels, a much smaller population and was almost unknown as a travel location to the wider world. So during the nine years Casson spent at the helm of the Doha Four Seasons, followed by the past three in Dubai, he has seen a lot of growth in the hospitality sector here.

“I think there was a shift from what was perceived as luxury in the Middle East was considered different for the residents of the Gulf when they went to London, Paris and New York,” Casson adds. “They accepted that there was a different calibre of hotel in their own backyard than that in which they stayed in when they travelled internationally. So

I think the arrival of brands such as Four Seasons, Ritz Carlton, Mandarin Oriental, brought a different level. And for sure when we opened in Qatar, it was pretty revolutionary. It was a fairly small hotel market, a fairly unknown destination, just at those nascent stages of exponential growth.”

Conceding of course that neither Casson nor anyone at Four Seasons could have predicted then that Qatar would become the global hub it now has. But the importance of the Middle East strategically was clear even then, he explains, and moreover, wealthy businessmen and royalty from the region were among their most regular clientele, with whom close relationships had been formed. The hotel group then seized the opportunity to introduce their brand of intimate, top-level hospitality to the region, under among others, the stewardship of professional hosts such as Casson.

“Clearly it made sense for us to be part of what was going on here,” he says, “and we saw also the opportunity for growth.

Our first Middle East hotel was in Cairo... and now other than Qatar, we have two in Dubai, one in Abu Dhabi, one in Bahrain, one in Riyadh and then one each under development in Kuwait and in Jeddah.

And then in the wider Middle East, we have four in Egypt, two in Morocco, one in Beirut, one in Damascus, one in Amman, Jordan, and several more under development. So from a non-existent presence to a fairly significant one now relative to the size of Four Seasons as a small player in a niche part of the hotel business.”

Tourism and technology

In January 2016, Qatar Business Incubation Centre (QBIC), in conjunction with Qatar Tourism Authority (QTA) launched the Middle East’s first-ever

“If you were in the United States or in Europe you wouldn’t have such a close to hand, affluent target market with high disposable income as you do here.”

The Edge | 45

business interview | hospitality entrepreneurship

entrepreneur incubation programme focused solely on the tourism sector.

The endeavour aims to develop small businesses within the industry subsectors of business events, urban and family entertainment, sports and recreation, and culture and heritage.

Notably missing from that list is hotels.

With many more establishments than there were just over a decade ago when Casson came to the region and scores more due to come online in the country

in the lead-up to the 2022 World Cup, he agrees that is not necessarily where the clearest gaps might be for those wishing to break into the sector. “I think for entrepreneurs it is to find where the missing is in terms of an unserved opportunity in the market – and for sure it is not going to be to open a hotel,” he says. “That requires significant capital and is not particularly new.”

Naturally, as with so many aspects of modern life and business incorporating technology, this, concurs Casson, could provide a great foundation for a startup looking to get into the hospitality and tourism industry. He cites the example of an idea that came from a small start-up that has now been implemented in a Four Seasons in Dubai, which uses subliminal marketing to encourage guests to spend more in the hotel by highlighting various promotions or attractions on screen in the hotel room, such as beach cocktails or a kids’ club.

“Those things increase their spend,” says Casson. “It’s very driven by data observation, by algorithms, predicting behaviours, and someone has to come up with that idea.”

This line of thinking could extend to mobile applications (apps) furthers Casson, such as the Four Seasons app, which he explains he utilised to personalise items for his room when checking into Doha, “I think there’s lots of opportunities and hotels mirror the life of those that stay in them so for our high end guests, their lives are heavily integrated with technology. They come with three or four devices and so our business has to stay current and relevant in that way.”

Now business centres are also disappearing in hotels, adds Casson “because everyone is an office and business is where they are at, on their phones. So the design of our hotels is

70,000 According to Casson, the Four Seasons seized the opportunity to introduce a new brand of intimate, top-level hospitality to the region, under among others, the stewardship of professional hosts such as himself. “When we opened in Qatar, it was pretty revolutionary. It was a fairly small hotel market, a fairly unknown destination, just at those nascent stages of exponential growth,” he says. (Image FotoArabia)

46 | The Edge

The number of jobs the Qatar Tourism Authority estimates the sector provides in Qatar.

hospitality entrepreneurship | business interview

In January 2016 QIBC, in conjunction with QTA, launched the Middle East’s first ever entrepreneur incubation programme focused solely on the tourism sector. changing to accommodate that. We have more social work spaces. You used to go to a business centre to find a computer and do your emails, now who needs that?

Now your business and your e-mails and your life are held in your hands.”

Beyond the opportunities that might present alone, another device-related opportunity to or a savvy entrepreneur in Qatar suggests Casson “could be in terms of technology, comparing hotels in Qatar, ratings like a Trip Advisor type thing.”

As far as other gaps in the market outside of the digital realm are concerned, Casson says entrepreneurs should focus on what services might be missing or underutilised. “They could be around transportation,” he says.

“They could be around local culture and connectivity, in terms of the tour guide kind of thing. They can be food delivery, to your home or restaurant, sort of open table concept of booking and restaurant recommendations, within the city. I think an entrepreneur will look and see what the consumer is asking for, that is not being delivered to them, and ask: How can I fill that gap?” says Casson.

“People have started obvious ones such as laundry,” he continues. “You build a laundry in every hotel versus having a centralised laundry in the country. The same with food imports. The vast majority of the raw food goods are exported from overseas so there is niche markets bringing truffles in season and having market monopoly and the ability to do that. So I think the more you scratch the

surface and look at it, the more inevitably you see.”

Support and networks

A comparative veteran of the hospitality sector in the region, someone of Casson’s stature was the ideal choice to share his experience and advice with aspiring tourism entrepreneurs at the QBIC Tourism Speaker Series. Casson, in turn, is highly complimentary of the concerted effort that is being made in Qatar to promote and support start-ups in this sector.

Casson agrees there are some major challenges for start-ups in the region in any business segment, including high set-up costs and daunting administrative challenges in terms of qualifying for business licences etcetera. But, he points out, “bureaucracy is present everywhere, and I thought it’s probably higher in certain ways in the Gulf, because they are all evolving to First World status, I think incubators such as QBIC help to cut through that. They provide a platform and a legitimacy that was not present before.”

Apart from gaining knowledge from talks provided by experienced industry leaders such as himself and mentoring, incubators and accelerators, adds Casson, provide a necessary focus on grassroots growth. “I think when an entrepreneur has an idea and wants to start something up, they generally have a lot of enthusiasm, a lot of ideas and energy but are often lacking the certain things you need to bring that to market – and one of them I think would be organisational structure, provision of office spaces, the discipline of having to put together a business plan and financial projections. And the other benefit is of course seed capital, funding, to get initial investment to help an idea materialise into some kind of reality.”

Organised efforts such as these and others like them can only benefit the sector, furthers Casson. Networking is to a larger or lesser degree beneficial to the participants in any sector, but in the people-centric hospitality field, meeting new people and exchanging ideas is essential, whether it be through industry associations or workshops within the auspices of tourism authorities.

Nevertheless, despite the progress being made, Casson still believes there could be more done in the region to

“A central tenet for QBIC is to be continually strengthening our start-up culture in Qatar,”says QBIC chairman and QDB CEO Abdulaziz Al Khalifa says, “not only by providing the support and space that every business needs, but by partnering for specific excellence and cutting-edge opportunity within prominent industries.” (Image courtesy QTA)

The Edge | 47

business interview | hospitality entrepreneurship

In his presentation, Casson urged young entreprenuers to seek out business partners who espoused high ethics and values. “I do urge you to look at what the company stands for, what you are giving your time and talent to and be sure that the values of the company inspire you and fit comfortably with your own,” he said.

(Image courtesy QBIC)

“I think for entrepreneurs it is to find where is the missing unserved opportunity in the market – and for sure it is not going to be to open a hotel.”

48 | The Edge

connect people in the wider hospitality sector, in which he includes not just hotels, but restaurants, attractions such as museums, and even the healthcare sector as hotels and hospitals are quite alike in many ways, Casson explains. “I think there is opportunity for dialogue,” he forwards, “in terms of getting industry leaders together and then communicating at that level and educating people at a different level. A gap for me in Qatar that is being reasonably well done in Dubai, is having a quality hospitality school, programmed for, whether it is hotel management, as one part of hospitality, or travel and tourism, travel agencies inbound, outbound, medical tourism in and out, a school that was able to develop some programmes to educate the youth.”

As our conversation winds down, the dialogue inevitably turns to the current challenging economic climate in the region due to depressed energy prices. “I think it a double-edged sword,” opines Casson. “The low oil price affects every industry across borders and globally on a macroeconomic level, it impacts every part of industry,” he explains, “and makes the Gulf more expensive for people to come into, so all of these things have an impact. The other edge of the sword is that I think it is a good natural correction. One that stops us overheating in the economic market. It also sobers up the national workforce to realise this is not just a gravy train that will run on endlessly.”

On a more positive note, Casson is quick to add that despite the economic challenges faced by all, but especially entrepreneurs, there is a large proportion of high net worth in a small area of the Arabian Gulf who are readily accessible to start-ups. “If you were in the United States or in Europe you wouldn’t have such a close to hand, affluent target market with high disposable income as you do here,” he says.

“You’re very fortunate if you’re born a Qatari in this generation,” continues Casson as a parting message to local entrepreneurs wishing to break into the hospitality sector.

“My challenge and encouragement to that generation is: how are you going to define your era in Qatar? How are you going to pioneer these marvellous foundational opportunities you have and then exponentially grow them to something beyond that which you have today? I think it is a real challenge but inherently a real opportunity for a young Qatari entrepreneur today to make a difference.”

Inside the minds of leading business figures

business insight GCC spending concentrated on life’s necessities 50 Findings from a recent survey commissioned by American Express Middle East across five Gulf Cooperation Council (GCC) countries show that the residents of Qatar spend more on luxury goods than the rest of the region.

Talking to The Edge, Mazin Khoury, CEO of American Express Middle East focuses on the main findings of the survey in Qatar and the region.

Innovations aimed at local market part of corporate culture 52

Tarek Sabbagh, head of IT and Mobile Division, Samsung Gulf Electronics speaks to The Edge about the innovations that the brand has implemented, local competition and their regional plans.

52

“In terms of luxury spending, 52 percent of Qatari respondents plan to spend on luxury experiences rather than luxury goods (a drop from 59 percent in 2014). When looking at average spending on luxury goods and experiences...the average spend was USD2000 (QAR7280) per month with Qatar leading at an average of USD4000 (QAR14,560) per month,” Mazin Khoury, CEO of American Express Middle told The Edge.

The Edge | 49

business insight | spending habits

payment methods

GCC spending concentrated on life’s necessities

Findings from a recent survey commissioned by American Express Middle East across five Gulf Cooperation Council countries (GCC) show that the residents of Qatar spend more on luxury goods than the rest of the region. Talking to The Edge, Mazin Khoury, CEO of American Express Middle East focuses on the main findings of the survey in Qatar and the region.

Tell us about the key findings of your latest survey conducted to study the consumer spending habits in this region. What are the main outcomes of the survey in relation to Qatar?

As part of the survey, we spoke to people in five countries: Qatar, Bahrain, the United Arab Emirates (UAE), Oman and Kuwait to understand their spending habits and preferences.

We noticed four key trends across the region: Firstly, even with difficult economic conditions, the majority of residents did not cut back their spending in 2015. Second, we noticed that although the majority did not cut back their spending, the balance of spending towards life’s necessities, such as transport and rent has taken place.

There was a notable rise in spending on clothing and footwear and holidays. Finally, spending on luxuries remains buoyant, particularly spending on experiences, a pattern that was also one of the key findings in the 2014 survey.

Looking at Qatar specifically, four prevalent trends were: just 24 percent have cut back their spending over this past 12 months, slightly higher than the regional average; average spending on luxuries is USD4000 (QAR14,560) per month – this is the highest of the five countries surveyed; personal wellness will be a priority for spending in 2016; and Dubai is the number one destination for luxury shopping for Qatar residents.

Have you observed any significant changes in spending habits of people in the recent times? In Qatar, your survey suggests that Qataris spend more on luxury than rest of the region. What are the factors responsible for that?

50 | The Edge

The results showed that spending was on the rise across all categories but was noticeably up on necessities such as rent, food and drink, transport, and household items. Seventy three percent said they spent more on food and drink at home while 68 percent spent more on rent, followed by 67 percent spending more on household items. The shifting patterns of spending have also impacted respondents’ savings and pensions with 43 percent cutting back in this area. A further 42 percent have cut back their socialising budgets, and 38 percent have reduced spending on dining out.

The story is also broadly similar across all five countries surveyed. In Qatar, over these past 12 months 79 percent spent more on transportation, 74 percent spent more on rent, 63 percent spent more on household items while 42 percent reduced contributions to savings or pensions.

In terms of luxury spending, 52 percent of Qatari respondents plan to spend on luxury experiences rather than luxury goods (a drop from 59 percent in 2014). When looking at average spending on luxury goods and experiences among those surveyed who had a yearly minimum income of USD75,000 (QAR273,000), the average spend was USD2000 (QAR7280) per month with Qatar leading at an average of USD4000 (QAR14560) per month. This represents around nine percent of the monthly Qatari household income. As with everyday spending, there is also a change in the way people spend on luxuries. In Qatar, nearly a quarter (24 percent) of respondents plan to prioritise personal wellness in the next 12 months.

How has the current economic scenario impacted the spending habits of people?

Despite the economic headwinds impacting the GCC region, our research shows that consumer spending will follow similar patterns in the next 12 months. Eating at home, savings and pensions contributions, rent and transportation will take priority.

We have seen some variances in spending patterns based on age. Most notable is that the younger demographic is spending more on non-necessities. The reason for this is that many in this age group are still living at home and are not paying rent, so they have the

“The results showed that spending was on the rise across all categories but was noticeably up on necessities such as rent, food and drink, transport, and household items.”

spending habits | business insight

disposable income to do so. For the rest, life’s necessities still look set to dominate spending in the next 12 months.

The number of credit card users is lower in comparison to debit cards in Qatar and cash on delivery is a prominent trend. What are the key factors responsible for that? How do you overcome these challenges as a company that is to grow in this region?

We believe that strategic innovation is the key to business success and leadership.

The payment card industry is under tremendous pressure to grow and gain market share as we move from a cashbased society towards more sophisticated and technology-driven buying habits.

The only way for card issuers to address this is to embrace continuous strategic innovation, which can often mean completely changing the way business has been conducted for years. Customers are starting to prioritise credit cards over cash as their preferred payment method.

Our 2014 research shows that 61 percent of respondents across the GCC prefer to use credit cards especially when it comes to luxury purchases. Cash is no longer the preferred method of purchase for premium consumers with credit cards now being the number one preference.

According to an industry report released earlier this year, the majority of Qatari residents (mainly locals) are in debt, and one of the factors responsible for this is the excessive usage of credit cards. What have you found in your survey with regard to credit card debt? Is it increasing or stagnant?

Responsible lending has always been at the heart of American Express Middle East’s operations, and offering financial services in a safe, trusted and responsible manner forms the basis of all of our interactions with our cardholders.

We are committed to ensuring that customers have not only the right information, but also the financial literacy to make the right decisions when it comes to their finances. We adopt responsible lending practices which are benchmarked against competitors through assigning credit limits that are proportionate to the income of the cardholders and their ability to make repayments.

Mazin Khoury, CEO of American Express Middle East told The Edge, “In Qatar, over these past 12 months 79 percent spent more on transportation, 74 percent spent more on rent, 63 percent spent more on household items while 42 percent reduced contributions to savings or pensions.”

How do you address issues relating to loan defaults and non-payments? What precautions can be taken to minimise payment defaults?

At American Express Middle East, we follow prudent guidelines for card approvals and payment recovery. We carefully target our products at suitable consumer segments and our robust risk management policy helps to ensure we focus on consumers who are financially responsible and will honour payments.

While responsibility for spending ultimately lies with the individual cardholders, we support them in areas such as: offering them a wide range of cards from which to choose and in keeping with their lifestyle and financial background; ensuring that we assign credit limits that are proportionately adequate to the cardholders’ income levels and their ability to make repayments; and educating our cardholders through regular communication on our website and through direct mail.

We also provide online services accessed through our website where cardholders can view safety tips on protecting their card and monitor their transactions and statement balance to keep track of their expenses.

The Edge | 51

business insight | technology

mobile telephony

Innovations aimed at local market ingrained in corporate culture Tarek Sabbagh, head of IT and Mobile Division, Samsung Gulf Electronics speaks to The Edge about the innovations that the brand has implemented in the realm of their camera upgradation or processors, his take on competition and their regional plans.

Tell us about Samsung’s latest mobile innovations .

We are building a whole product universe around our flagship S7 and S7 edge smartphones, which launched in Qatar recently. These devices are bold representations of our commitment to the customers around the world who love our products and inspire our work.

We have invested in camera technology, longer-lasting battery, processors and optimisation for gaming which are just some features making these an innovative smartphone in the market.

Smartphones will be central to the whole Samsung ecosystem connecting seamlessly with integration and interoperability. For example, content filmed on the Gear 360 camera can be viewed on the Gear VR connected to the S7/S7edge.

Similarly, the S7/S7 edge connects easily with our SUHD Smart Hub and Wireless 360 speaker range. They also connect seamlessly to the Gear S2, our latest innovation in the wearables category, which is more versatile, intuitive and customisable than ever before.

How are you working to benefit customers in the Gulf region?

We always listen to feedback from our customers and create new innovations that meet their needs. We have created an entire ecosystem of products around the new Galaxy S7, offering consumers greater connectivity and flexibility.

52 | The Edge

We have also created several applications to benefit users in the Gulf region. According to the Vision Council, there is an increase in myopia that scientists attribute to a mix of genetic and environmental factors, including increasing near-range activities such as the use of digital devices, and decreasing exposure to natural light through outdoor activities. Digital eyestrain can also affect children and teens, whose eyes may fatigue after long periods of use.

In response to this, Samsung Gulf Electronics developed Safety Screen, an app that helps users hold their mobile devices at an ideal viewing distance from their eyes.

Available for download on the Google Play store and the Samsung Galaxy store, the Safety Screen runs in the background on mobile devices and can even be passwordenabled by parents, to make sure their children do not disable it. When Safety Screen is activated, the device can only be used when it is held at the minimum recommended safe distance, as a friendly animation pops up to shut down the screen when it is too close to the eyes.

Another application we have developed to benefit consumers in the Gulf region is KalimaLock, a smart app ready to revive the use of the Arabic language and help Arab children to improve their Arabic, and expatriates to connect with the society they live in.

The app works like a smart lock feature on a phone. In order to unlock the screen, the user must connect dots that correctly form the Arabic word on the touchscreen. When the dots are connected correctly, the meaning of the word in Arabic and English will appear on screen along with its pronunciation, before the device can be used.

What are the differentiating factors of the Samsung S7 and S7 edge in the local market where options are many?

Without compromising design, Galaxy S7 and Galaxy S7 edge both have increased utility with IP68 water and dust resistance, meaning that they are completely dust tight, and protected against water to a maximum of 1.5 metres for up to 30 minutes. Edge UX, the advanced edge experience available on Galaxy S7 edge, provides convenience and increased efficiency by creating easy shortcuts to users’ most loved functions such as email, selfie mode, panorama mode or third-party applications.

These smartphones (the 5.1-inch Galaxy S7 and 5.5-inch Galaxy S7 edge) are designed with sleek glass and metal. They are durable and ergonomic, making them comfortable and reliable, and the powerful processor and bigger battery capacity ensure longer time for gaming and watching movies, catering to a modern consumer lifestyle.

In addition to these new and improved features, the Galaxy S7 edge comes preloaded with the Galaxy Entertainer App, offering over QAR390,000 worth of international benefits.

technology | business insight

What is Samsung’s strategy to lead in a competitive market scenario?

At Samsung, it is our biggest priority to offer customers top-of-the-line products regardless of whether we are talking about smartphones, wearables, TVs or home appliances. We offer a wide range of products and are always looking for new ways of making consumers’ lives easier and provide them with a unique peerless user experience. There is incredible potential for growth in the Gulf, and the number of people that are fans of our devices here have increased continuously over the past years.

“Samsung Gulf Electronics developed Safety Screen, an app that helps users hold their mobile devices at an ideal viewing distance from their eyes. Available for download on the Google Play store and the Samsung Galaxy store, the Safety Screen runs in the background on mobile devices and can even be password-enabled by parents, to make sure their children do not disable it,” Tarek Sabbagh, head of IT and Mobile Division, Samsung Gulf Electronics tells The Edge.

“In the Gulf region, we develop initiatives specifically with our consumers in mind, such as the KalimaLock app, which works to improve the use of the Arabic language.”

What are your corporate plans in the region for the next three years?

This year we are focused on building an ecosystem of devices and services that are connected and powered by the smartphone. The new Galaxy S7, Galaxy S7 edge, Gear 360 and Gear S2 perfectly exemplify this approach, and we are proud to continue to create innovations that integrate seamlessly with consumers’ lifestyles rather than the other way around.

2015 was an excellent year for us.

Not only did we grow in volume, but also we grew in value, achieving a growth rate of 13 percent compared to 2014.

This trend has continued in 2016, with our Q1 2016 results moving in the same direction. This was supported by the great results of our flagship models, which are leading a disproportional growth of 25 percent over Q1 last year.

How much of your corporate plans are determined by your South Korean headquarter?

Technology and communication have reshaped our world, making it a small town. Hence the consumers in our region are very much aware of new innovation around the globe. As a global company, we focus a lot on innovations that provide solutions to the consumers’ needs as the foremost priority.

In the Gulf region, we develop initiatives specifically with our consumers in the Gulf region in mind, such as the KalimaLock app, which works to improve the use of the Arabic language among children.

The Edge | 53

products & reviews

Read it:

Seducing Strangers

Author Josh Weltman is a co-producer of Mad Man, the multiple Golden Globe and Emmy award-winning television series about New York’s Madison Avenue advertising industry. Weltman has spent his career as a creative director, crafting on-message campaigns, 30-second TV spots and single-page print ads. That much is clear in Seducing Strangers: it is short (at 177 pages, you could finish it in a single international flight), sharp (designed to be reused and referenced) and to the point.

Weltman works on the premise that everybody, in every industry, is in the business of persuasion and sales. “Persuasion,” he writes, “is about getting someone to do your will. Sales is about making your proposition, goods, or services attractive, visible and well priced.” But, he argues, persuasiveness and salesmanship alone are not enough. One must also seduce.

But “seduction” in this context is not meant in a sleazy or romantic sense. Rather, Weltman believes that seduction entails “listening to customers and understanding their feelings, wants, needs, and motives”. To achieve this successfully, he writes, requires insight, words, images, stories and music, which evoke emotions in the customer, client or consumer. It is an ad man’s sales pitch, but it works on both a practical and businessphilosophical level. To this end, Seducing Strangers explores the

Read it:

Available at Virgin Megastores in Doha.

59 Seconds

This is a self-help book whose basic premise, or at least one of them, is that most self-help books are bunk. Or at least that they perpetuate a lot of myths related to self improvement, which author Richard Wisemen seeks to thus debunk. But it is also full of a lot of wonderful, original advice and entertaining anecdotes about most facets of life, to facilitating an enduring state of happiness, to dieting and child rearing.

Wisemen himself is touted in the book as Britain’s only professor of the public understanding of psychology. He has conducted a large amount of research into the self-help ‘industry’ as it is called in the book, and the genre of literature it has spawned, much of which he concludes, is quite misleading.

This he does right from the first page, tackling the concept of visualisation leads to achieving one’s goals. Much research in fact, shows the exact opposite, with visualisation of an ideal outcome leading people to be unprepared for the challenges and setbacks on the path towards that goal, causing them to give up on it early.

Similarly, in chapter two he tackles the topic that is the subject of The Edge’s cover story this month, happiness. One popular concept in self-improvement is that wilfully pushing negative thinking out of one’s mind and replacing it with positive thoughts is an important aspect of a sunny disposition.

54 | The Edge

hows and whys of using sensitivity, insight and emotion to – as Weltman puts it – “get someone somewhere to do something”.

Is it manipulative? Yes, of course. But that is how advertising works, and that is why it works so well.

Seducing Strangers demonstrates the value of taking those same principles, which have served the advertising industry so well for so many years, and applying them to other industries.

The latter part of the book gives pointers for effective (and seductive) presentations and proposals, bringing it all back to those simple but powerful principles.

It is designed as a textbook of sorts, with key points extracted and highlighted in the margins, and space on each page for the reader’s own notes and thoughts. Throughout, Weltman shares anecdotes from his advertising career, with the odd Mad Men reference added in for good measure. Familiarity with the TV series is not a prerequisite for reading the book, but it does help… and by the time you are finished reading, you will probably feel prompted to go looking for Season 1 in Virgin’s DVD section.

Despite its brevity, the book has depth and immediacy, drilling down into practical problems like how to work on limited budgets, how to motivate people to work together, and how to sell a struggling product. In this region, this market and this economy, Seducing Strangers is a timely arrival. You will be convinced by Weltman’s arguments. Possibly even seduced.

Citing various experiments and studies conducted by esteemed psychologists and others, Wisemen argues that in fact suppression of ‘bad thoughts’ rather leads the thinker thereof to dwell on them more and indeed increase such negative thinking.

These insights are all very interesting, but it is in the application of the psychology surrounding them through certain techniques where the real unique value 59 Seconds lies, as well as the reason for its name. Wiseman summarises each chapter in a succinct manner, often offering up exercises (such as writing to your loved ones to show your appreciation to them to promote happiness) and actions one can take to achieve the kind tangible self-improvement results that many books in this field claim to promise – but often fall far short of actually enabling their readers in any meaningful way. Call it the anti-selfhelp book.

Available at Virgin Megastores in Doha.

products & reviews

SCAFOGRAF 300 timepiece The Scafograf 300 has all the main features required of a dive watch: automatic with a shockresistant steel case with a graduated black bezel to control elapsed dive time, a high-contrast dial with luminescent hands and markers. This watch is a mechanical, self-winding diving watch, with an unidirectional rotating bezel in ceramic, with luminescent markings on the first 15 minutes scale, curved sapphire glass and a helium escape valve at 9 o’clock. The clean and precise lines of the watch are also well suited to a more casual-chic use out of the water.

App Reviews

By M. Iqbal

Tiny Scanner (iOS, Android) Tiny Scanner is a nifty little app that turns your phone into a portable scanner.

There is a scanner beneath the simple interface that is presented when you load it up. The non-intrusive interface lets you scan from your phone’s camera or import an image from the gallery. The app can scan multiple pages, stitching them into a PDF for you to share with others via email or a file-sharing service.

The iris 870 Lava International has recently launched a range of new devices with premium configurations and quality user experience.

The phone comes with a rear camera, Largan 9574 Lens, 1.4 micron large pixel size, F2.0 large aperture with 20 percent more light and 10 percent more sharpness compared to ordinary 8 MP cameras. There are four battery-saving modes, with an increased battery life by 16 percent.

Instant Heart Rate (iOS, Android)

Instant Heart Rate is the answer to people who would like to keep an eye on their heart rate without shelling out for a dedicated gadget, or dealing with inconvenient straps that go around the chest. This free app enables you to just put a finger on the camera and wait for it to get a read on your heart rate. The app works best on phones with flashlights, but does work with non-flash phones in good lighting.

You can get away with not making an account, but the app constantly badgers you to make one.

QualityTime (Android)

2016 Camaro Jaidah Automotive, the exclusive dealer of Chevrolet in Qatar, launched the 2016 Chevrolet Camaro recently. The new 2016 Camaro comes with a reduced vehicle mass which has created a responsive driving experience, alongside a new 6.2L directinjected small block V-8 rated at 455 hp (339 kW) and 455 lb-ft of torque (617 Nm).

It also has the magnetic ride control active which reads road and driving conditions 1000 times per second, and automatically adjusts the damper settings to optimise ride comfort and control.

If you are addicted to your smartphone, Quality Time may just be what you need. This Android-exclusive app helps you monitor your phone habits.

In other words, it tells you what exactly you have been doing while you have been on your phone. You can also set the app to help you keep a check on your phone usage, by taking ‘breaks.’

During these pre-defined break times, notifications, phone usage or even calls and texts may be blocked or restricted to help you keep your focus away from the phone.

The Edge | 55

comes to Qatar How do great brands become superbrands?

Will your brand make the cut?

Find out at the exclusive Superbrands tribute event where Qatar’s first-ever Superbrands coffee table book will be launched – the only book of its kind dedicated exclusively to Qatar’s leading brands.

awarded

Ch ho oice arr’’ss C e Q Qata 2016

For more information e-mail julia@superbrandsqatar.com or call +974 5592 7740.