editor’s letter
FROM THE
EDITOR
LIGHTS, CAMERA…ACTION?
Managing editor Kelly Lewis k.lewis@firefly-me.com +974 5067574 staff writer Reem Shaddad r.shaddad@firefly-me.com +974 3220947 Sales & marketing manager Emma Tapper e.tapper@firefly-me.com +974 3197446 Creative director Roula Zinati Ayoub Art AND DESIGN Lara Nakhleh Rena Chehayber Rana Cheikha Larry Issa Finaliser Michael Logaring printed by Ali Bin Ali Printing Press Doha, Qatar
Firefly Communications PO Box 11596, Doha , Qatar Tel: +974 4340360 Fax: +974 4340359 www.firefly-me.com
While filming of the first Qatari film, Aqaribabzah (Clockwise) is due to wrap this month, there remains much industry speculation as to whether enough is being done to holistically support filmmakers in the Arab region. Well-known Tunisian film producer and distributor Tarak Ben Ammar, perhaps plucked the words from the industry’s mouth when he directly questioned the substance of recent filmmaking initiatives during a Doha Talks panel at the Doha Tribeca Film Festival last month: “The real question is, will oil money go to Arab culture, or will it go to Hollywood? “Can I count the number of buildings that are outside this hotel [the Four Seasons]…do you know how many Arab films could be made for one building?” His comments spurred consenting echoes and drew applause from the industryheavy crowd that were on hand to hear panellists debate the future of the film industry in the Middle East. Not disputing the number of film funds and festivals that have been established in the region in recent years, these announcements have done much to grab the short-term attention of the global and local media. But serious questions remain over what tangible and long-term benefits these ‘film initiatives’ will deliver for the regional film production industry. Film funding and distribution ventures largely remain a ‘hotly contested’ issue of debate for their failure to directly address the palpable needs of the local industry. Additionally, many filmmakers have challenged the credibility of regional film funding schemes as they have turned their attention away from the local landscape in favour of financing substandard Hollywood fare. And the alluring cash wealthy image that the Middle East (most notably the Gulf region) has created of itself abroad has also added to the industry’s woes. This facade has caught the attention of international filmmakers, who are now pulling at the purse strings of pliable Arab investors for production funding, which only creates added financial strain and fierce competition among local film folk. While the Gulf has shown its ability to turn on the festival ‘glitz and glamour’ and to ink deals with Hollywood-based entities, it needs to ensure that when the illumination from the fireworks fades that they have left a flare for filmmakers to find their way.
Kelly Lewis
Managing Editor
TheEDGE is printed monthly © 2009 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 TheEDGE or Firefly Communications. 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 Getty Images and/or iStock Photo.
DECEMBER 2009
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contents
DECEMBER 09
Contributors .6.
A brief introduction to the specialised team of contributors, who regularly lend their expertise and insight to TheEDGE.
.10.
NEWS IN BRIEF .8.
A snapshot of the latest business developments affecting the business landscape within Qatar and the GCC region.
NEWS IN QUOTES & NUMBERS .10.
Powerful statements and important statistics that made an impact.
BUSINESS INSIGHT .12.
.26.
.30.
TheEDGE speaks with key business people from in and around the region to discover what is in store for Qatar.
MARKET WATCH .22.
Martin Menachery discusses the new directions that Qatar is taking to diversify its hydrocarbon economy.
INSIDE EDGE .26.
Rajesh Mirchandani checks the pulse of the global economy and investigates consumer spending ahead of the festival season.
SPECIAL COVER STORY .30.
Kelly Lewis examines the Middle East film industry and speaks to key players to get their views on the developing, yet still challenging nature of filmmaking, financing and distribution in the Middle East.
TAKEOFF OR TOUCHDOWN? .39.
Rob Morris takes a look at the Middle East aviation industry and how it has fared in 2009.
ECONOMIC BAROMETER .44.
Karim Nakhle explores the current economic environment and examines the heads and tails of a penny in today’s economy.
DECEMBER 2009
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contents
DECEMBER 09
ON THE PULSE .48.
.48.
Edward Jameson continues his investigation into the nuclear ambition of the Gulf region.
SPECIAL REPORT - TRANSPORT .52.
Oxford Business Group’s Daniel Moore discusses Qatar’s multibillion-dollar transportation project.
BUSINESS VIEWS - REAL ESTATE .54.
Edd Brookes explores the impact that the city’s future Doha Metro will have on the local real estate market.
LEGAL INSIGHT .58.
Clyde & Co’s David Salt and Emma Higham discuss Qatar’s new immigration framework.
INDUSTRY FOCUS - EDUCATION .61.
Reem Shaddad takes a look at Qatar’s race to be the ‘education hub’ and explores the complexities this ambition poses.
HOW-TO GUIDE .65.
In this edition TheEDGE tells you how to make your business emergency ready.
EVENTS & CONFERENCES .75.
A round-up of key industry events taking place in the MENA region and abroad in December.
TECH TOOLS .68.
TheEDGE takes a look at the latest tools and gadgets hitting the shelves.
LIFE & STYLE .71.
TheEDGE takes to the ocean and gets some wind in its sails, with the help of the Doha Sailing Club.
QATAR PROJECT NEWS .77.
An update on key projects that are underway within Qatar as well as Qatari developments abroad, and a listing of the latest tenders open for biding. DECEMBER 2009
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contributors
EMMA HIGHAM
Associate - Corporate and Commercial - Clyde & Co, Doha, Qatar Emma Higham is a corporate and commercial lawyer based in Clyde & Co’s Qatar Financial Centre office. With more than seven years legal experience under her belt, Higham draws on her extensive knowledge of Qatar’s legal framework to advise professionals both locally and globally. Higham’s legal expertise extends to a broad spectrum of corporate and commercial matters, including local establishment by way of joint venture and banking and finance matters. Previous to joining Clyde & Co, Higham assisted with the start up of Qatar Telecom’s (Qtel) operations. Preceding this, she was employed with an international law firm for six years and worked in audit and corporate recovery for PricewaterhouseCoopers also.
David Salt
Partner - Corporate and Commercial - Clyde & Co, Doha, Qatar David Salt re-joined Clyde & Co in March, 2007, having previously been a partner with the firm for 12 years. A corporate and commercial lawyer based in Doha, Salt has extensive experience advising on energy projects, as well as a broad range of corporate finance work. Salt has advised numerous international companies on ‘setting up in Qatar’, including in the Qatar Financial Centre and Qatar Science and Technology Park, and advised on the first ever debt/equity swap in the Gulf. Salt is a well-respected figure within the business community and has considerable involvement in the Qatar British Business Forum and British Embassy activities.
Edward Jameson
Senior business journalist - Middle East North Africa region Edward Jameson is a seasoned business journalist operating out of the GCC. Jameson’s editorial expertise extends to the construction, logistics and environmental sectors. After earning an MA in Journalism in the UK, Jameson traveled extensively throughout Australasia, South East Asia, the UK and, most recently, the Gulf region. Throughout Jameson’s career his work has featured in numerous global leading publications in both print and online mediums.
Karim Nakhle
Senior business strategist – Doha, Qatar Karim Nakhle, based in Doha, is a business strategist with more than eight years experience in financial advisory, M&A, investor relations, business development, strategic planning, corporate communications and banking, having worked with HSBC, KPMG, International Bank of Qatar and National Bank of Kuwait, in Europe, the Middle East and North Africa. He is a member of the Economist Intelligence Unit, and a consultant with Standards and Poor’s Society of Industry Leaders. Nakhle has published various market reports, country economic and financial analysis, and thought leadership publications. Contributing for TheEDGE as the ‘Economic Barometer’, Nakhle will offer his sharp analysis to tackle key business and economic issues. 6
DECEMBER 2009
contributors
Edd Brookes
Director - DTZ Middle East Operations, Doha, Qatar Edd Brookes, based in Qatar for the past four years, is a professional member of the Royal Institution of Chartered Surveyors and a director of DTZ Middle East Operations. In addition to being head of DTZ Middle East Valuation, Brookes runs the Agency Department, which is involved in the sale and leasing of a number of key projects. The diverse calibre of Brookes’ work has seen him operate out of various MENA countries. He is a regular guest on the BBC’s World Middle East Business Report and a speaker at key regional events.
Rajesh Mirchandani
CEO - Dun & Bradstreet South, Asia Middle East Ltd, Dubai, UAE Rajesh Mirchandani is a postgraduate from Indian Institute of Management Studies (IIM-C) and is currently responsible for the South Asia, Middle East and Africa (excluding South African bloc) operations of Dun & Bradstreet. Mirchandani led the management team responsible for the buyout and creation of Dun & Bradstreet South Asia Middle East Ltd. Mirchandani has exceeded Dun & Bradstreet corporate objectives each year of the past 10 years and has achieved the highest score globally on the Dun & Bradstreet Employee Satisfaction Index. He also serves on the board of directors for several companies in India and aboard. Prior to his current post as CEO, Mirchandani was the managing director of Dun & Bradstreet ASEAN/ South Asia. Preceding this, he was managing director of Meridian VAT Reclaim.
Daniel Moore
Editorial manager - Oxford Business Group, Doha, Qatar Daniel Moore is the editorial manager (for Qatar) of the global publishing, research and consultancy firm, Oxford Business Group. Moore has been operating out of Qatar for the past two years, as well as working in an editorial and research capacity throughout East and South Africa and Europe. In addition to this international experience, Moore worked for two years, with an American-based consultancy company on international project development and coordination initiatives, as well as business development projects in Europe and Africa. He holds a Bachelor of Science in Marketing, with certification in international business, as well as a Bachelor of Arts in French from Texas A&M University in the US. Moore has also completed certification courses and undertaken extensive studies in international business and modern French at L’Université de Lausanne in Lausanne, Switzerland.
Nathalie Martin-Bea
Journalist – Summit Communications - Middle East North Africa region Nathalie Martin-Bea is a seasoned journalist and has been published in leading media titles around the world, including The New York Times, The Daily Telegraph, Capital, Wirtschaft Woche, Le Nouvel Économiste, Fortune and China Business News. Based in Doha since 2007 and working under the banner of Summit Communications, Martin-Bea has compiled three country reports on Qatar as published in The New York Times. Martin-Bea started her career as a broadcast journalist for Radio Canada and the Canadian Broadcasting Corporation. Martin-Bea’s broad experience in journalism and politics has seen her work for some of the industry’s most esteemed press agencies, including Oriental News, PM Communications, Globus Vision and Star Communications. DECEMBER 2009
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NEWS
NEWS IN BRIEF GLOBAL WARMING TO HIT ARAB STATES HARD Global warming will have a severe impact on Arab states where water is already scarce, a regional report warned ahead of this month’s Copenhagen environment summit, the Associated Press reported. Some of the most feared effects include depletion of agricultural land, spread of disease and endangerment of many plant and animal species, the report by the Arab Forum for Environment and Development (AFED) said. The AFED report, released in Beirut, said sea level rises will mostly threaten Qatar, United Arab Emirates, Kuwait and Tunisia, affecting “one to three percent of land in these countries”. In Egypt, the Arab world’s most populous nation, more than 12 percent of the country’s best agricultural land in the Nile Delta is at risk from sea level rises (SLR). The report comes just weeks ahead of a global conference in Copenhagen this month, which aims to strike a deal to replace the 1997 Kyoto Protocol. Under the current treaty 37 industrial countries are required to cut heat-trapping greenhouse gas emissions. It warned that developing nations might not be too enthusiastic about any radical steps that could impede their economic growth. “Looking ahead to the negotiation in Copenhagen, it is clear that developing countries are hesitant to commit to any obligations that place significant restriction on their economic growth,” the 150-page report said. DUBAI WORLD DEBT ‘NO GUARANTEE’ IN SIGHT The Government of Dubai has announced it will not guarantee the debt of Dubai World, which caused global panic because it cannot immediately pay back creditors, BBC Middle East reported. The statement came after stock markets in Dubai and Abu Dhabi saw 8
DECEMBER 2009
sharp falls last month. “[Creditors] think Dubai World is part of the government, which is not correct,” said finance minister Abdulrahman Al Saleh. Abu Dhabi’s main stock market lost a record 8.3 percent, while Dubai dropped 7.3 percent – the most in a year. “Creditors need to take part of the responsibility for their decision to lend to the companies,” Saleh told Dubai Television. The central bank of the United Arab Emirates (UAE) has said it is setting up a facility to provide banks with extra liquidity, as it seeks to battle perceptions that Dubai cannot support its own companies. Saleh’s statement caused surprise in Dubai as people who invested in Dubai World effectively did so on the assumption that the government would guarantee their investments, BBC Middle East business reporter Ben Thompson said. Dubai World said it was hoping a restructuring plan would cover US$26 billon (QR95 billion) of debt. QATAR’S NEW TAX BREAK Qatar’s new tax law will bring about a change in tax planning and strategies for international organisations based in the country, said accountancy firm Ernst and Young. The legislation comes into effect on January 1, 2010. The new tax law to be enacted by the government is set to lower the tax rate on foreign companies to 10 percent from 35 percent. Finbarr Sexton, partner for the Tax division at Ernst and Young Qatar, said: “The new tax rate for companies aims to boost international investments and help diversify Qatar’s economy away from hydrocarbons.” Sexton said soaring hydrocarbon revenue had allowed Qatar to
sidestep the global recession and attract foreign companies. “In the coming years, however, competition to attract inflows will be intense. The relatively high rate of corporate taxation is a major obstacle to encouraging foreign investment,” he added. There are several key changes in the new law, including the introduction of withholding taxes on a number of sources of income. It also signals the first steps towards transfer pricing rules, with the law clearly highlighting the importance of arms length pricing principles for transactions between related parties. Banks operating in the domestic market will benefit from the reduced 10 percent rate, which, thanks to the government, creates a level playing field across the sector, according to Ernst and Young. The firm added that such a move was consistent with the government’s plan to have a single regulator for both markets.
NEWS
QP INKS US$4 BILLION DEAL IN VIETNAM Siam Cement, Thailand’s largest industrial conglomerate, told Reuters it had signed a deal with Qatar Petroleum (QP) to invest in a petrochemical complex in Vietnam worth an estimated US$4 billion (QR14.5 billion). Under the framework agreement, Vietnamese partners including Petrovietnam and Vinachem would hold 29 percent of the project, while non-Vietnamese partners, including Siam Cement, Qatar Petroleum International and a trading firm, would hold the remaining 71 percent. Officials said QP would also provide feedstock for the project under the agreement.
INTERNATIONAL COOPERATION URGED TO CURTAIL ILLEGAL FISHING As food security issues continue to mount around the globe the world’s fishery managers have come under intense scrutiny for failing to manage fish stock numbers. A group of nations recently announced a move to add a record number of commercial marine species to the international endangered list, putting them with such iconic land species as rhinos and elephants. But with significant financial interests at stake, these new efforts are encountering resistance. “We need to use the arrows in our quiver so we can address the threats that are out there,” said Tom Strickland, head of the Fish and Wildlife Service who will lead the United States delegation to the Convention on International Trade in Endangered Species (CITES) in March. “No one country, even if it takes aggressive action, can make a dent in the problem unless there’s international cooperation.” CITES has restricted the trading of a few marketable marine species in the past. But when 175 countries convene in Doha (March 13 to 25) they will consider a list that includes eight
shark species, 26 kinds of precious red and pink corals, bluefin tuna and the polar bear, a marine mammal. During the past 40 years, the adult population of eastern Atlantic and Mediterranean bluefin tuna has declined 72 percent and the same segment of the western Atlantic stock has dropped 82 percent – all while governed by the International Commission for the Conservation of Atlantic Tunas (ICCAT), which sets catch quotas for the fish and works to curtail illegal fishing. FRENCH FIRM TO BUILD MEGA COMPLEX IN DOHA The construction division of French conglomerate Bouygues SA, told Dow Jones it had a EUR950 million (QR5.2 billion) contract to build a large-scale real estate complex in Qatar. The construction will take threeand-a-half years and will be carried out in collaboration with Qatari companies Midmac Contracting and Aljaber Engineering. Bouygues said the complex will include nine 18 to 52-storey buildings and a five-star hotel.
OIL CONTRACT DISPUTE FORCES FIRM INTO ADMINISTRATION A multi-million dollar legal dispute over a Middle East oil contract has forced one of East Anglia’s biggest engineering firms into administration. The directors of Britishbased SLP Engineering called in the administrators at the end of November after months of speculation about the firm’s future and wrangling over a Qatari oil deal. Forty-five management jobs were lost “with immediate effect”, though the administrators said around 700 jobs were safe until SLP completes a separate project for BP next spring. Concerns were raised last year when it emerged that SLP was caught in a US$91 million (QR331 million) claim-and-counter-claim legal dispute with Maersk over a contract in 2006 to build accommodation modules for rigs in the Al Shaheen oilfield in Qatar. Maersk claimed there was a “series of commercial, financial and scheduling problems with SLP” over the deal. SLP said the claims were “completely misleading and inaccurate”. Last month, Stephen Oldfield a joint administrator at PricewaterhouseCoopers, said the dispute had put a “significant financial strain on the business” and that the search was now under way for a buyer for the business. “The directors have been exploring a number of options for the business over several weeks but were unable to find a solution,” he said. DECEMBER 2009
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NEWS IN QUOTES & NUMBERS
news in quotes
news in numbers
3.2
What observers said about the fallout from Dubai’s debt crisis: “Dubai is the most indicative of the huge global liquidity boom, and now in the aftermath there will be further defaults to come in emerging markets and globally.”
Nick Chamie, chief of emerging market research at RBC Capital Markets, told Bloomberg.
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“I would not rush into talking about contagion. Anything from Abu Dhabi or Qatar is backed by serious money. Dubai is a lot more leveraged. There will be some level of solidarity from the emirates and the big neighbour, Saudi.” Youssef Affany, relationship manager at Citi Bank told Reuters.
“Watch for the risk that this hits emerging market sentiment and the risk trade, as the market is far away from the days where asset pricing reflected any real potential for a large financial-centred shock. As we’ve learned from the crisis, financial distress in one part of the world risks contagion in others…and the impact of a Dubai default could have serious repercussions, particularly in other countries whose banking sectors have significant exposures to the region.” Scotia Capital said in a research note.
“It should be seen as a country-specific issue. It’s not something systemic. It’s about risk appetite. It’s a reason for some of those involved in the market to scale back a bit, while we try to understand what’s going on.” Georgina Taylor, equity strategist, Legal & General Investment Management, to Reuters.
A remote sensing study (on the impacts of global warming on the Arab region) released by the Arab Forum for Environment and Development revealed that a sea level rise of one metre would directly impact 41,500 square kilometres of the Arab coastal lands. Given that most Arab countries concentrate their activities in the coastal zone, a sea level rise of just one metre could dramatically impact countries such as Qatar, Kuwait, Bahrain, UAE, Egypt, Tunisia, Morocco and Algeria. the report revealed that a rise of one metre would directly affect 3.2 percent of the population in these countries, compared to a global percentage of about 1.28 percent. The report explores such issues as food production, fresh water, human health, ecosystems and biodiversity, infrastructure and tourism. There are also reports on international climate negotiations and the interrelation between climate change and trade negotiations.
Pic Of the month
“Dubai isn’t doing risk appetite any favours at all and the markets remain in a vulnerable state of mind. We’re still in an environment where we’re vulnerable to financial shocks of any sort and this is one of those.” Russell Jones, head of fixed-income and currency research at RBC Capital Markets, London, told Bloomberg.
“The Dubai situation signifies that although the major central banks around the world have stabilised the financial system, they can’t make all the excesses simply disappear.”
Arnab Das, chief of market research and strategy at Roubini Global Economics, London, told Bloomberg.
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- A British farmer at Laverstoke Park Farm feeds the farm’s organic Norfolk Black turkeysv before preparing the birds for the Christmas table. (Photo by Matt Cardy/Getty Images). -
BUSINESS INSIGHT – TECHNOLOGY & INNOVATION
THE FUTURE OF EDUCATION
A topical point of discussion with education bodies, governments and technology companies at present is the need to move towards a more global and technologically-advanced education system. However, many questions remain, such as how this will be achieved, who will play what role and how such initiatives will be financed? Greg Butler, the education strategy director for Microsoft International’s Education Solutions Group, was on hand to speak to Kelly Lewis about these issues during Doha’s hosting of the World Innovation Summit on Education (WISE) last month. 12
DECEMBER 2009
TECHNOLOGY & INNOVATION – BUSINESS INSIGHT
- Greg Butler. -
What will be some of Microsoft’s biggest education developments in 2010? A key development for Microsoft next year will be to build on our partnership with Cisco and Intel (announced in January 2009), which is aimed at underwriting multi-sector research projects to develop new assessment approaches, methods and technologies for measuring the success of 21st-century teaching and learning in classrooms around the world. Together we have sponsored the collective creation of more than 100 academics from around the globe to address these problems. We are now at a stage where we can reveal our assessments and we will be making a major announcement in January, which will directly benefit and impact many countries, governments and education houses worldwide.
can build innovation into teachers and their teaching methods to enable better education practises. To address this we run a range of global programmes called Innovative Teachers, Innovative Schools and we are going to run another programme called Innovative Systems, which we will work with individual governments to address issues surrounding technology in teaching. The challenge about technology in education is to help teachers bring into place new practices that will allow them to engage kids to get better results. Last month in Brazil, we ran a World Innovative Teachers Forum bringing together more than 400 teachers from 60 plus countries. They are all identified as being some of the most innovative teachers in their countries and during the forum they discussed how different styles of innovation can be adapted at a global level to share and build capacity, and to identify methods of best practice. What were some of the findings from this forum? There were more than 100 great examples of innovative practices on display, but one of the initiatives that I found really interesting was the use of Mp3 players to teach students about music.
There were teachers that had created videos and music files and made them downloadable via a website they created so students could access these files at home, school or wherever they wanted to. It’s about changing the boundaries of education; it’s not about teachers telling students how to play music, it’s about giving people the access to tools that will help them learn to play music in their own way. There was a teacher there from the AlBayan Independent Secondary School for Girls in Qatar, who also participated in the forum. The school educates around 500 girls aged 15 to 17-years-old and as part of our Innovative Schools Programme, AlBayan was selected to be one of our 12 mentor schools. So we work with them providing assistance in human capital, projectplanning resources, facilitating sound organisational practices, and access to an international network of thought leaders. You talk about information sharing between teachers and students as being vital for the development of global education. This is an important point because those students and countries that are excluded from access to information are the ones that will fall behind. Therefore, governments
What role does digital technology play in aiding different learning styles/abilities, and in education going forward? It plays a huge role because it allows personalised delivery of information and it targets specific learning needs, which means there is a much higher chance of students retaining the information and being able to apply that skill or the competency in a more effective way. However, while all of those things are capable through the power of Information Communication Technology (ICT), the idea of just pumping information through ICT is not a great use of the technology. What is Microsoft doing to improve the use of innovation in learning environments globally? Microsoft’s focus is around how we
- Technological advances are helping to improve the learning ability and social skills of children in an interactive environment. -
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BUSINESS INSIGHT – TECHNOLOGY & INNOVATION
- Teachers need to adapt new learning methods in their teaching, rather than returning to traditional 19th or early 20th Century models of education. -
have a huge role to play in facilitating access to education on all levels, but it comes back to the ‘public versus private’ debate: who is going to pay for this and what is Microsoft’s view on the matter? That’s a great point you raised because unfortunately too much of the debate is about private versus public. We as a company, as a global citizen and as an employer, have a responsibility to be part of this change. It doesn’t mean we need to lead it, but we need to be part of that. Some of the things we’ve done during the past seven years have been significant. One is that we have announced our Partners In Learning programme, which is our global investment in education initiative that we announced in 2003 with US$250 million (QR910 million) investment over five years. In 2008, we extended our commitment by nearly US$250 million during the next five years. So that’s almost half a billion dollars, plus we have 100 people within the company whose core focus is on supporting education systems. We have done that because we know the size of the challenge and we also know that it’s not a year’s investment or a three-year term; this is a decade investment. The second thing we did when we launched this was to 14
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move to a mode of public and private multi-sponsored partnerships. We launched our first education PrivatePublic Partnerships in Education initiative in 2003. We now have almost 300 either bilateral or multilateral partnerships with governments around the world in more than 100 countries. The other point to consider, particularly in this part of the world, is that some countries have the purse strings to buy cutting-edge technology, but not necessarily the right people to implement them. There is no point having access to great technology if it is not utilised properly. Adding to this is that teachers need to ‘learn how to learn’ from students and community members if they are to adapt to expanding technological advances and changing education trends. It’s almost like a family structure; it doesn’t work holistically without all the supporting elements. How do you view these areas for concern? Also, the traditional 19th or early 20th Century models of education were largely restrictive in catering to people with special needs or learning difficulties. How are advances in technical innovation helping to aid them now?
Accessibility and inclusion are critical, and we have a group at Microsoft that just focuses on accessibility. We have tools built into our applications that aid the visually impaired and another great thing for this region is our speech to text engine, which covers a multitude of languages, including the different Arabic dialects and helps those with hearing difficulties. One of Microsoft’s technology partners in the United States has developed a voice-to-sign application, which allows people to speak freely and the software will create sign language on the screen, which is a phenomenal advancement. We also have a Local Language Programme and Language Interface Pack (LIP). We work with governments, universities and local language experts to develop software that caters to many languages, as well as aiding the preservation of minority languages, some of which are spoken by as few as 10,000 people. We combine this application with the LIP, which is a high-quality, localised ‘skin’ for emerging or minority language markets that is based on Multilingual User Interface technology; LIP provides the desktop user with approximately 80 percent localised experience.
BUSINESS INSIGHT – EDUCATION
A HEAD FOR BUSINESS
In the wake of the global downturn much of the world’s financial community has been cast into the spotlight for failing to implement a framework that could have helped minimise the impact. This in turn has forced businesses across all sectors to rethink the way they manage day-to-day operations and equip their workforce. Kevin Dunseath, the director for the Dubai arm of the London Business School, spoke with Kelly Lewis on the vital role that sound education plays in whether businesses succeed or flounder. - Kevin Dunseath. -
H
aving spent the past 12 to 18 months licking their wounds and tallying up losses, businesses across the globe are now looking to get operations back on track in 2010. In Dunseath’s view, the current economic climate provides an optimal time for businesses to review their strengths and weaknesses, and for them to invest in the quality of human capital. “The days of easy money have gone and the competition for executive positions is increasing,” stated Dunseath. “We believe that the demand for quality education is counter signal, so in difficult times, people revert to fundamental values such as education. “When times are hard, people need to have a competitive advantage, which a topped rank MBA is going to give them. So, although now there might be 100 people applying for a job instead of two, if you have a DubaiLondon Executive MBA (EMBA) you are going to be ahead of the pack. “However, I am not saying that having this degree will ensure that a person gets the job, but they’ll make the short list – whether they get a job or not will often depend on a person’s soft skills.” London Business School set up its Dubai-based operations in 2007 and operates from the free zone of Dubai International Financial Centre. Since its inception, the school has expanded to include a twice-yearly
intake (September and January) with a capacity of 78 students for each round. Next month will mark the fifth intake for the EMBA programme. While the Dubai centre is the first time London Business School (LBS) has established a physical base outside the United Kingdom, Dunseath said the school had academic partnerships with Columbia Business School in New York and with the University of Hong Kong, “In addition to the EMBA, we also offer open-enrolment short courses for executives that are open to individuals, who want to study in a particular area of interest. Whether it’s finance, leadership, strategy, general management or marketing, we offer custom executive education programmes for corporate clients,” he said. “For example, we work with the Saudi Arabia Basic Industries Corporation and in Egypt we work with the Orascom Group to design personalised programmes to help them meet their individual corporate needs. These types of education initiatives are programmes that we’re happy to work with on a needs specific basis. Dunseath said LBS was in discussions with some organisations in Qatar, but was not at liberty to divulge names. He did say, however, that LBS welcomed interested parties in Qatar – looking to build specific education models – to contact the school for a custom “needs” analysis and tailored programme.
In London, both the EMBA and the MBA programme are offered, however, Dunseath said while the academic content of each was the same, the student profile is different. In Dubai, LBS does not offer the full-time MBA, it offers just the EMBA programme, he added. The only difference being, whether it is in London or in the Gulf, is that people remain in full-time employment. “In fact, it’s a prerequisite that they are in full-time employment,” Dunseath stated. “The reason for this is we want them to adopt the ‘learn-apply’ cycle, so basically they will come to us, study intensively for four days each month – it’s pretty gruelling, but very stimulating – then return to their company where they can immediately add value.” The other difference Dunseath highlighted was that the average profile of a full-time MBA student was somebody with four to five years of work experience. Whereas on the EMBA programme, in London and the Gulf, people have an average of 10 to 11 years of experience and they tend to be of a more senior level. “We are looking for people with leadership potential. So if somebody is doing exactly the same job for 10 years without any advancement, then we would have question marks about his or her commitment to career development,” he remarked. “In terms of the application process for the programme, it’s not possible to DECEMBER 2009
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BUSINESS INSIGHT – EDUCATION join our EMBA course without any professional experience. Applicants are required to have a minimum of four years of what we call managerial experience. Now managerial does not mean that your job title necessarily says ‘manager’, but it does mean that you’ve had experience of managing and that can be in the form of managing people, reports, projects, budgets or it could be you’re a consultant.” However, Dunseath also identified the difference in career advancement periods between the Gulf region and Europe as being much more rapid, which allowed for some flexibility with individual applications. “Gulf nationals tend to rise to higher levels of responsibility at an earlier age relative to their counterparts in the West and Europe. For example, in London people might reach a particular level of seniority after 20 or even 30 years of work, but here in the Gulf you can do that in five to 10 years if you’re smart,” he claimed. “We do, therefore, recognise this situation exists here, but as long as the applicants have those four years of managerial experience, then we are happy to consider them for the programme, provided they also meet our other criteria, which is usually demonstrated through their academic transcripts from their first degree. “Occasionally and exceptionally, we will admit somebody that doesn’t have a first degree, so the door is open. We remember, of course, that Bill Gates and Richard Branson don’t have first degrees and look at what they’ve achieved professionally.” The EMBA is the flagship program for LBS in this region. One of the advantages it poses for professionals working in the region is its locality – up to 70 percent of the programme is conducted in Dubai, requiring students to travel occasionally to London to undertake the remaining 30 percent of the course. With the average time of completion for an EMBA being 18 months, students would only travel to London about six times (depending on the subjects) to complete the weeklong study blocks abroad. A key benefit to having such a degree on offer locally is that companies can train, while retaining staff, Dunseath stated. He added that it also enabled businesses to attract top-level talent from abroad because it allowed professionals to combine employment and career 16
DECEMBER 2009
here in this region better; they want development by undertaking one of the to make good connections and some world’s top ranked EMBA programmes. “Normally it would be very difficult will relocate here as a personal choice or because their company for professionals to do this as they is branching out in the region. But would likely have to redeploy back to overall, they really want to leverage Europe,” he said. their understanding of the business But the overriding factor, which environment in this region.” Dunseath said positions LBS above The first intake for the Dubaiother business schools in the region, London EMBA programme graduated was that all programmes are taught earlier this year, and while it is still entirely by a handpicked LBS faculty. early days Dunseath said there had “An essential marker for us is already been a number of success quality assurance. To do this we only stories from graduates. use our own faculty, we don’t use any “Since their graduation, we know local hired faculty, because the most of people that have been promoted to important thing we have of course much more senior roles either within is our reputation and we will do their own organisation or another. everything we can possibly to maintain, Some graduates have gone on to protect, and of course enhance it,” Dunseath stated. “Additionally, we are very keen to preserve the integrity of our academic programme. In other words, this is not a watered down or a diluted version of our LBS EMBA, it’s the same academic content; the admission criteria is the same, the assessment criteria is the same and we have the same examiners and faculty.” On another note, Dunseath said LBS was - The current economic climate provides an optimal time for businesses to well aware of the low review and invest in the quality of their human capital. participation rate of set up their own businesses. But as professional female nationals in the these programmes are designed for Gulf, with LBS working to bridge the ongoing and long-term development, gap. He strongly encouraged highwe don’t expect graduates to calibre female applicants to join become successful entrepreneurs the course. only six months after completing the A key component of the learning programme,” he said. environment within LBS is its ‘global’ In terms of Qatar’s needs going atmosphere, not just in its curriculum, forward, Dunseath said that every but in the academics it attracts. nation, particularly a rapidly developing At present, Dunseath said 25 one like Qatar, needs good leadership. percent of LBS students in Dubai “It doesn’t really matter whether come from beyond Gulf Cooperation it’s good leadership of the banks, the Council (GCC) countries. energy sector, or hospitality, leisure “Every month we have students and tourism sectors; whatever industry, fly in to take the programme. One Canadian student flies in from Toronto they all need good leadership and the fundamentals are the same the worldundertaking an 11 thousand kilometre over, which is what we’re looking to journey and another works for the install in our students. United Nations in Rome and flies in The tuition fees for the Dubaievery month,” Dunseath informed. London EMBA are US$88,200 “You might question why (QR321, 000). Fees are payable in some people don’t take the EMBA two instalments if you are company programme in London? Well the sponsored and three instalments if you reason is because they want to are self-funded. understand the business environment
BUSINESS INSIGHT – WEALTH MANAGEMENT
TO SERVE AND PROTECT
To ensure best practice among financial advisory firms in the state, the Qatar Financial Centre Regulatory Authority (QFCRA) authorised the arrival of leading British financial consultancy group, Guardian Wealth Management (GWM) in October. The announcement saw GWM become the first UK and Financial Services Authority (FSA) registered independent financial advisory practise to officially set up shop in the Qatar Financial Centre (QFC). And to mark the rollout of GWM’s operations H R H Prince Andrew and John Hawkins, the British Ambassador in Qatar, attended the official launch ceremony. Kelly Lewis spoke to chief executive David Howell and financial consultant Leighton Jones to find out about the group’s initial operations and GMW’s plans for 2010.
- David Howell. -
So now that the dust has settled how are things going for GWM? DH: In the beginning there were hurdles to overcome in establishing ourselves here and it has taken a long time, but things are looking positive and the opening of our Doha office builds upon the company’s strong presence within the UK and Europe where we have a presence in 10 countries. Doha marks our 11th destination and it starts our expansion plans throughout the Middle East. Our core platform is providing independent advice and support to professional expatriate workers,
- Leighton Jones. -
and we see a large market share for us in the region. In terms of our strategic partners or stakeholders, we work with Zurich here because it’s a regulated entity. However, we can use other companies such as Royal Skandia, Generali, Friends Provident and other multinational carriers, which would sit alongside Zurich as a provider. GWM offers a range of services that include family protection through life insurance, lump sum investments and savings and education fee funding and retirement planning through pension provision.
There is a need for expatriates to make sure their assets are protected and that they are planning for the future, regardless of their location. So what is the background for GWM and what regulators does it operate under? DH: The history of the company dates back to1993. GWM was born out of the UK and we later expanded into Europe. In the UK we are regulated by the FSA, in Europe by the Commission bancaire, financière et des assurances (CBFA) and in Switzerland we operate under a self regulatory organisation. DECEMBER 2009
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BUSINESS INSIGHT – WEALTH MANAGEMENT In Qatar we operate on principlebased regulation, which enables us to set the benchmark for industry in the region. We apply the highest level of industry standards and regulation within our framework, because regardless of where we operate from we will always apply the same ethical business approach. Do you have further plans to expand in the Middle East market? DH: We do have some visionary and challenging plans for expansion. Doha will remain as our Middle East head office, but Dubai will be our next stop then Abu Dhabi, Bahrain, Saudi Arabia and Oman. These are the plans in the pipeline for the first two quarters in 2010. We will establish our office infrastructure with the Ministry of Insurance in Dubai and Abu Dhabi, with the Central Bank in Bahrain and the Central Bank in Saudi Arabia. We will also consider looking at setting up in Jordan and Yemen. Aside from the Middle East, GWM is also looking to expand into Singapore, Hong Kong, Tokyo, Shanghai and South Africa in either 2010 or 2011. What are the most important areas to focus on and how will you approach the local market? DH: Repeated service is paramount. Clients have to trust that you are doing the right thing for them. GWM isn’t going to disappear in six or 12 months from now, we are going to be here to offer that longevity of service.
We are in the UK and Europe and we are expanding; we are not batting down the hatches. We see the whole economic shake up as an opportunity for us to expand in other jurisdictions, because so far we’ve got it right and we want to build on the service we give clients because it’s paramount. LJ: Due diligence is a key area for us also. During the market rally for the past three years, there were many boutique investment houses opening up, with a majority turning good profits. But many became too big for their own boots, which resulted in them getting hit quite badly. One thing we’ve always been very good at is making sure that our due diligence can always be relied on. As you mention, the last few years has seen some of the most challenging financial conditions. In a bid to support the development of credit bureaus and enhance credit information sharing across the region the Middle East Credit Reporting Association was recently formed. How will this affect business in the region? DH: In any market, especially an emerging one, it is essential that sound infrastructure be implemented. In some areas of Eastern Europe it’s not transparent, it’s smokes and mirrors. So I agree with what’s being done in the region to improve transparency because in these changing times it’s important to ensure that everybody knows where they stand and what the risks are.
- The financial downturn has prompted the need people for people to revise their asset management strategies. -
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In regard to the insurance and reinsurance market, which products will generate the greatest amount in capital for GWM? DH: The greatest demand for products will be seen in financial consultancy and in the uptake of life and non-life insurance products in the GCC region. There is a major gap here in the Middle East when it comes to financial planning. Financial planning is a very mature market in the UK, but it doesn’t really exist in the Middle East at present. One of the most underinsured areas in the Middle East region is life insurance or protection products, as well as income protection or the critical illness on life cover. Off the back of the financial crisis, Shariah compliant products have come to the fore and are recognised as being more ethical and less risky products. Will GMW offer these products in 2010? DH: Yes, these products are on our backburner at the moment, but it is something that we are looking at potentially offering clients here in the region. LJ: There is a large swing towards these types of products currently and certainly in Europe as well. Given our lengthy product offerings in the market there is nothing that we cannot offer clients, so if somebody wants pure Islamic investment options then we can access those; we can access virtually anything that is available in the world. DH: However, if we do decide to go down this path, we may consider setting up a different company to handle the operations.
BUSINESS INSIGHT – ENERGY & INDUSTRY
BEYOND THE CITY LIGHTS - Oryx GTL plant at Ras Laffan Industrial City. -
Situated on more than 100 square kilometres sprawling along Qatar’s northeast cost, Ras Laffan Industrial City (RLIC) has transformed itself from a once baron landscape into a bourgeoning energy industry and investment hub. Positioned as one of the world’s fastest growing industrial cities, with a core focus on sustainable development, Nathalie Martin-Bea of Summit Communications spoke exclusively with the city’s director, Sheikh Khalid bin Khalifa Al Thani to discover more about the industry heavyweight’s strategic plans.
- Ras Laffan Industrial City director Sheikh Khalid bin Khalifa Al Thani. -
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H H the Emir is leading Qatar’s development by diversifying the economy and preparing the next generation to become future business leaders. How is RLIC contributing to this initiative? Ras Laffan is part of Qatar Petroleum (QP), which has an established training facility that complements the development programmes offered by our subsidiaries or partners like RasGas, Qatargas and Shell. We believe that it is important to expose our people to the culture within international companies like Exxon Mobil or Shell that carry out training abroad. But we have the facilities and the programmes here in Qatar to form training programmes as part of the vision for sustainable development. H H the Emir and H H Sheikha Mozah have brought some of the best faculties and colleges to Qatar that offer prime specialised education. Investing in human capital is key to the country and to us at RLIC.
You mentioned that Shell and Exxon Mobil have their own training programmes. What are you looking for in international partners? Firstly we look at diversification, which is very important for sustainable development. We like to bring different know-how and technologies into Qatar. All the joint ventures QP is involved in with international companies are designed for partnership and not just technical execution. It is a long-term commitment and not just a profit-based venture where our partners make money and then leave. Those companies are participating in our society at many levels, whether it is social and community programmes in Qatar, education, the environment, sports or research. All those companies have research facilities, which can lead to new business opportunities. My message to foreign investors is come and invest in Qatar, participate in our socio-economic development and find new benefits; the sooner you come
BUSINESS INSIGHT – ENERGY & INDUSTRY the better the opportunity, especially for the big multinationals that we call ‘hub companies’. We want to bring them to Ras Laffan so they can participate in energy and dry dock ventures. How will you include smaller service companies in RLIC’s master plan? Our master plan identifies the type of industry that could come here, whether it involves vessels maintenance of turbines or pumps. A support service area measuring four square-kilometres will be developed to receive international industries. We also have incentives for the big multinationals; we want them to come here and bring smaller companies from other industries with them. We encourage support industries to come and establish themselves here; they might not only do business with Ras Laffan but also extend their services to Mesaieed and the economic zone that is also coming up. So, the service will not only be limited to Ras Laffan, giving the investor more business opportunities and reason to come to Qatar.
- Covering 106 square kilometres at present, Ras Laffan Industrial City will expand to cover up to 250 square kilometres in the near future. -
What investment opportunities are there for international companies at RLIC and how can they establish bilateral relationships? Our role is continually planning and developing common infrastructure facilities for present and future industries in addition to the support services industries, such as land and utilities. Land has been allocated for existing and potential investors to service and support the various industries and plants in the city. The rules and regulations set by QP/ RLIC are created to ensure the safety, security and well being of industries and their workforces. We believe the creation of such infrastructure and regulations encourages international companies to establish their businesses within the city.
the projection of 77 MTPA of LNG and 57.6 MTPA of associated products, comprising condensate, liquefied petroleum gas (LPG), gas to liquids (GTL), and solid petrochemicals. In addition to the currently operational Oryx GTL plant, phase one of the Shell Pearl GTL Project will start production by the end of 2010, and phase two by 2011, establishing Ras Laffan as the LNG and GTL capital of the world. To service our industries, a third power plant is under construction and will start generating 2730 megawatts (MW) of electricity and 55 million gallons per day of water by 2010. The port expansion will be completed by 2011. New LNG and LPG berths will be established in addition to new facilities, such as ship repair, ship construction and dry dock facilities. The development capacity for RLIC’s major gas industries is fixed for between 2012 and 2014. Beyond that, a full evaluation study of the North Field reservoir will be completed in 2014.
What are your strategic vision and expansion plans? Currently, 11 liquid natural gas (LNG) trains from Qatargas and RasGas are fully operational. There are also three additional mega trains, two for Qatargas and one for RasGas, with handling capacity of 7.8 million tonnes per year (MTPA). Each will come on line by 2010, thus enabling us to reach
How will Ras Laffan compete with the New Doha Port, and Mesaieed Port? The New Doha Port and port in Mesaieed have different functions. At RLIC, we want to continue developing the upstream while introducing more downstream industries, so when the petrochemical projects come here we will have a self-sufficient industry. We have the
biggest port, the largest complex in the world in terms of growth and more room to grow. Looking at the future, RLIC, in coordination with oil and gas and downstream venture directorates in QP, will establish a task force team to look into potential downstream industries that can be established in Ras Laffan. The team will also allocate appropriate sites, common infrastructure and synergies accordingly. We have allocated in our revised master plan a multipurpose support service area to attract international investors to the city. What professional experience do you bring to Ras Laffan? I have been working with QP for 18 years. I have had the opportunity to work with some of the best professionals in the energy sector while I was at Mesaieed Industrial City. Throughout my tenure, I have gained valuable experience from my colleagues. Ras Laffan and Messaied are two industrial cities that complement each other with regards to basic infrastructure and facilities provided. I would say that my performance was important in developing valueadded facilities as well as customer and support services. The ‘one-stop–shop’ strategy is considered a key element in both cities. My main responsibilities were based on the single business unit development and ‘Internal Rate of Return’ for each project. This policy and strategy is implemented in QP. DECEMBER 2009
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MArKet WAtcH
DIVERSIFYING QATAR’S HYDROCARBON SECTOR
Martin Menachery, the senior editor with Arab Capital Markets Resource Center, Dubai, United Arab Emirates, discusses the new directions that Qatar is headed with its hydrocarbon sector.
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MARKET SECTION WATCH
A
lthough a country rich in its hydrocarbon deposits, Qatar has not been escaped the affects of the global economic slowdown. The steep drop in oil prices, from US$147 (QR535) per barrel in mid-2008 to near US$50 (QR182) per barrel in 2009, has surely upset the overall economic activity in Qatar. As per the International Monetary Fund (IMF), the real gross domestic product (GDP) growth of Qatar is projected at 29 percent in 2009, while inflation is projected to reduce from 15 percent in 2008 to10 percent in 2009. Yet, the country is moving forward strongly, and investments in its hydrocarbon sector remain progressively steady. By year-end, the Qatari economy is expected to have recorded one of the highest GDP growth rates in the world, which is largely due to the natural gas segment of its hydrocarbon sector. To uphold its growth momentum, the Qatar government, in its 2009/10 expansionary budget of QR94.5 billion, has allotted huge amounts for planned infrastructure development projects in its economy. The hydrocarbon sector in Qatar contributes to 56 percent of its GDP. And, falling oil prices are not likely to pressure the hydrocarbon investments in the country as liquefied natural gas (LNG) projects have been invested under long-term contracts. Many of Qatar’s current projects in the hydrocarbon industry are already well into their progression. In fact, the country has managed to keep its hydrocarbon investments on track because of its efficient long-term LNG deals with fixed prices that are less prone to market risks.
improve. In particular, the third quarter of the year displays major progress in the number of business units expecting an increase in sales volume. However, although the pressure on prices seen lately seems to be decreasing, access to finance remains a major issue for many businesses. As for the hydrocarbon sector, there appears to be a mixed response. The D&B BOI survey suggests companies in the hydrocarbon sector anticipate that oil prices will decline since the present high prices do not appear to be supported by real progress in demand. The D&B BOI for the level of selling prices stands at -17; a 10-point plunge from the second quarter rating of minus seven. However, companies are more positive in terms of recruitment plans, with the D&B BOI for number of employees standing at 14 in comparison to -11 in this year’s second quarter. Possible project delays were also conveyed as a crucial issue for the industry in the third quarter as indicated by 61 percent of the survey respondents. It appears that a major part of Qatar’s business community believes that a global economic recovery is still some way off and will only begin next year. However, people in finance, insurance and real estate are more positive, with half expecting the recovery to begin this year. Around 51 percent of the respondents from the non-hydrocarbon
sector anticipate the global economic recovery to start in 2010, while 29 percent of the companies belive it will begin in 2009. Elsewhere, eight percent of the businesses are unsure of how long the global economic recovery will take.
HYDROCARBON OUTLOOK
The Organisation of the Petroleum Exporting Countries (OPEC) reference basket gained 14 percent in May 2009, registering an average of US$56.98 (QR217.3) per barrel – the highest level in seven months, which has been encouraged by the improving economic outlook. Crude oil prices have also been supported by a rally in equity markets, weakening of the United States dollar as well as the speculative flight of capital from the fluctuating dollar to the commodity market, as revealed by D&B BOI. The OPEC basket attained a peak of $70.87 (QR258) on June 11, 2009 after falling to US$38.10 (QR138.7) per barrel on February 18, 2009. However, due to the current economic scenario, demand for oil is not likely to increase radically in the coming months, supporting oil prices only in a limited way. Demand for OPEC crude is predicted to have dropped from 30.8 million barrels per day (bpd) in 2008 to 28.6 million bpd in 2009.
LOCAL VIEW
According to the Dun and Bradstreet (D&B) Business Optimism Index (BOI) for the third quarter of 2009 Qatar’ outlook is improving, with rising demand for oil expected amid a global economic recovery. The D&B BOI survey reveals that the business community in Qatar displays a positive outlook and anticipates levels of demand to
- Crude oil is trading near its important concentration level at US$79.20 (QR288) per barrel and is expected to trade within this price in the early part of this month. The medium-term trend is bullish. Analysis: Taimur Saadat (CMT, MBA) Source: Arab Capital Markets Resource Center, Dubai, UAE.
DECEMBER 2009
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MARKET WATCH
Regionally, economic growth is aimed for 2013, indicating a growth 124,000bpd in 2013. to slow down by around half to 3.5 of 31 percent. In 2009, production of Meanwhile, gas production is percent in 2009, since the Middle around 389.5bcm is expected, with to touch 135bcm by 2013, up from East collected around US$300 billion the measure predicted for 2013 at 77bcm in 2008. Consumption is also (QR1.09 trillion) less from crude oil 610.4bcm, pointing to a 98bcm rise in likely to increase from 20bcm to exports than in 2008. net exports by the end of the period. 24bcm during the period, allowing However, considerable development In 2008, Qatar consumed 5.06 for exports of 111bcm. of Qatar’s natural gas sector has helped percent of the region’s gas. In addition, BMI predicts a rise of 60.9 the economy move at a nominal its market share is forecast at 4.60 percent in Qatar’s oil and gas liquids rate of 44 percent during 2008. percent by 2013. Meanwhile, Qatar’s production between 2008 and 2018, In addition, the Qatari economy contribution to 2008 regional gas with volumes increasing gradually to did not witness any major impact production had been 19.66 percent, and 2.22 million bpd by the end of the due to the global economic crisis. is likely to account for 22.22 percent of 10-year forecast period. Qatar’s oil and gas sector continues supply by 2013. However, oil consumption is to to be the main economic driver for BMI ranks Qatar first in its updated rise by 59.4 percent between 2008 the country, fuelling its reserves as Upstream Business Environment rating. and 2018, with growth slowing to well as the government’s economic BMI sees only a small risk of its position an assumed six percent per annum diversification plans. towards the end of the But business optimism in period, and the country Qatar, in terms of profitability, using 166,000bpd by 2018. “It is predicted that Qatar will Gas production is predicted is unchanged at ‘zero’ from the second quarter level, as to increase from 77bcm to account for only 1.02 percent per D&B BOI. 162bcm by the end of the of the Middle East regional period. The 2008 to 2018 UPSTREAM verses demand growth of 41.4 oil demand by 2013, while DOWNSTREAM percent presents an export It is predicted that Qatar will providing 7.07 percent of supply, capacity increase from 57bcm account for only 1.02 percent to 134bcm by 2018. as stated in the latest of the Middle East regional In a nutshell, growth in oil demand by 2013, while from Business Qatar’s hydrocarbon sector providing 7.07 percent of outperformed other sectors Monitor International.” supply, as stated in the latest in 2008, where the LNG Qatar Oil and Gas Report sector doubled in size as well - Martin Menachery from Business Monitor as overtook oil as the main International (BMI). contributor to GDP, owing However, the regional to higher energy prices and oil use of 8.24 million bpd in 2001 being challenged in the short-to-long- continued increase in output volumes. climbed to 11.25 million bpd in 2008. term. Qatar benefits from its gas wealth, Qatar’s continuous efforts to boost its It is expected to average 11.30 strong output growth prospects, high gas output are expected to support the million bpd in 2009 and rise to reserves-to-production ratios (RPR), strongest Gulf Cooeration Comission around 12.17 million bpd by 2013. along with an appealing licensing system. growth in 2009 and 2010. However, BMI ranks the country fifth In 2001, the regional oil production The growth in Qatar’s oil and gas was 22.87 million bpd, which in in its updated Downstream Business sector is likely to continue, and the 2008 averaged 26.29 million bpd. It Environment rating, with a few high hydrocarbon sector’s contribution to is expected to climb to 28.01 million scores, but longer-term progress up the real growth could be even greater in rankings unlikely. bpd by 2013. the coming years. There is steady growth in oil The country’s present crude oil exports. The region was sending FUTURE OUTLOOK consumers are also to a certain extent overseas an average 14.63 million State-owned, Qatar Petroleum (QP), an assurance of its future revenues. bpd in 2001, which rose to 15.04 has signed various deals with a number million bpd in 2008, and is predicted of international oil companies (IOCs), The views expressed in this article to reach 15.84 million bpd by especially in the field of gas development are opinions derived from available 2013. Qatar has the second largest and export projects. BMI estimates economic and market data and not assume that there will be 1.40 million necessarily endorsed by Arab Capital production growth potential. As for LNG, in 2008 the region bpd of oil and liquids production in Markets Resource Center. consumed 391.5 billion cubic metres 2009. BMI expects oil demand to Nisha Abraham also provided (bcm), with a demand of 512.8bcm increase from 104,000 bpd in 2008 to editorial input for this article.
and Gas Report
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Qatar Oil
INSIDE EDGE
A GLOBAL OUTLOOK AHEAD OF THE FESTIVAL SEASON
CONSUMER SPENDING:
INSIDE EDGE
DECEMBER 2009
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INSIDE EDGE
Rajesh Mirchandani, CEO of Dun and Bradstreet South Asia Middle East, gives the global economy its quarterly ‘check-up’ and assesses the state of its health.
- Rajesh Mirchandani. -
T
he global economy has witnessed tremendous recovery in recent months as government measures taken to boost liquidity into the system have started yielding the desired results. The global financial sector at present is in a far better shape than it was exactly a year ago when it was struggling to stand on its own feet after consumer and business confidence tumbled significantly and impacted business activity across the world. The fiscal stimulation pages and low interest rate regime, instigated by governments and central banks throughout the world, has averted a complete global economic meltdown and, by and large, has succeeded in nursing a recovery in consumer demand. Taking an optimistic view, we can infer that the seeds for a broad-based economic recovery are well placed, and going forward the outlook for the global economy is looking encouraging. The United States recently posted gross domestic product (GDP) growth rate of 3.5 percent for this year’s third quarter, representing its first expansion in more than a year. The continued spending under the US government’s US$787 billion (QR 2.9 trillion) stimulus package will provide further strength to the economy – as of the end of the third quarter, only 26 percent of the total sum allocated had been drawn against. With the Federal Reserve likely to keep its interest rates at near zero levels, there should be adequate liquidity to stimulate the economy in the near to short term. Every cloud has a silver lining and there is a positive side to the crisis for the US economy. As financial institutions are still risk-averse in their approach towards consumer lending,
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the effect should be to reduce further household debt as a percentage to the country’s GDP, estimated at around 95 percent for the last year. We are arguably past the worst, but the notion of a bumpy road towards a fully-fledged economic recovery immediately gathers many supporters. If we spend a little time analysing the trend witnessed in the US, with respect to retail sales and consumer spending, the picture still looks depressing at best. Spending by US consumers accounts for a mammoth 70 percent of the country’s GDP, which is by far the highest in the world. This would suggest the US recovery is primarily driven by consumer spending, which is almost flat since the beginning of the year. The US reported a 1.5 percent decline in retail sales during
INSIDE EDGE
September after following a revised 2.2 percent jump in August. The September contraction was the largest since December 2008, and has been attributed to tumbling auto sales after the government withdrew its ‘cash for clunker’ scheme. This recent economic indicator shows that if the government reverses some of its support lent to stimulate growth, the economy could face the risk of a double dip recession. Consumer confidence (as measured by the consumer confidence index) has also been relatively weak so far, despite some obvious signs of stabilising economic activity. The index reported a 47.7 reading in October after touching 54.1 in August. This was due to retail sales data continuously falling short of expectations for some time, and unemployment rising to 10.2 percent. This in turn has prompted consumers to cut back on spending, leading to an increased savings rates in the US.
On the flip side, consumer lending in the US fell again in September marking eight straight months of decline as thousands of people lost their jobs and banks continued to be risk averse. Borrowing fell by US$14.8 billion (QR53.9 billion) to US$2.4 trillion (QR87. trillion) in September. The situation is expected to deteriorate further before an actual recovery in consumer lending emerges, with unemployment likely to continue rising until next year’s opening half. Although the Gulf Cooperation Council (GCC) region has been affected by the financial crisis, the severity of the impact has been less obvious when compared to other parts of the world. The governments in the region have taken counter cyclical measures to boost lending in their respective economies by reducing lending rates. However, the regional banking institutions, just like their global peers, have increased provisions against loans and advances. And in many cases they have made the lending criteria more stringent, keeping the money supply low since the second half of last year. The Qatari government took unorthodox measures earlier in the year when it bought-up investment and real estate portfolios of local banks to inject liquidity into the financial system. The move came following a seven percent fall in total
lending from banks between quarter four of 2008 and this year’s first quarter. Despite the current glitches facing the Qatari economy, the retail sector appears quite upbeat about its outlook in the medium-to-long term future. With large-scale retail oriented projects in the planning stage or under construction, and strong domestic and international demand, Qatar’s retail sector is poised to register a positive growth rate. A large amount of this new retail space is being developed in concurrence with colossal property projects, such as The Pearl Qatar, which has around 200,000 square metres (sqm) of dedicated retail space, in conjunction with the 50,000 sqm Lagoona Mall. Additionally, retailers are likely to benefit from an expected sharp decline in inflation from 15 percent in 2008 to four percent in 2010. Though a drop in prices has benefited consumers and retailers, high overhead fixed costs, especially rental costs, are still noted as an overriding concern. According to a DTZ report, rental costs are not expected to retreat mainly due to the ongoing demand for retail space. The vacancy rate in existing properties has dropped below one percent and the fact remains that malls and shopping districts are often locked into long-term lease deals with predetermined rental rates. Another positive attribute for Qatar’s retail sector is the improving confidence among the business community, which is reflected in the Business Optimism Index (BOI) survey conducted by Dun and Bradstreet South Asia Middle East. According to the BOI survey, business expectations for quarter four in 2009 have improved compared to the previous quarter, with sales volumes, profitability, optimism and expected selling prices all showing significant upward trends. Positively, respondents are also showing confidence in recruitment of new employees, signifying an expectation that the business environment is recovering. Although the consequences of the recession have been felt globally, different measures have been taken by individual governments to reduce the impact of the crisis on respective economies. With some economies more reliant on consumer spending as an economic driver and others battling with the effect of addressing cripplingly high household debt, the pace of recovery has not been uniform. While the traditionally strong developed economies of the US, United Kingdom and Europe are slowly recovering, other Asian emerging markets hardly experienced a dent in consumer demand. India and China continue to establish their credentials as the new economic powerhouses by being at the forefront of the recovery, with domestic consumers driving a strong growth trajectory within the markets.
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SPECIAL COVER STORY
AN INDUSTRY IN FOCUS
In recent times there have been several film funds and festivals established in the Middle East. While such announcements have done much to grab the shortterm attention of the global and local media, serious questions remain over what tangible and long-term benefits these ‘film initiatives’ will deliver for the regional film production industry. To date, film funding and distribution ventures have failed to directly address the real needs of the local industry, which compromises (among other things) the ‘independent’ storytelling ability of filmmakers, as well as the regional and global reach of their films. Raising further concern, some regional film funding schemes have turned their attention away from the local landscape in favour of financing substandard Hollywood fare. In addition, the Middle East (most notably the Gulf region) has created an alluring cash wealthy image of itself abroad. This facade has caught the attention of international filmmakers, who are now pitching for production funding from pliable Arab investors, which creates added financial strain for local film folk. In this special feature, Kelly Lewis puts a series of somewhat rhetorical, but nonetheless crucial, questions to key players in the film industry to explore the developing, yet still challenging nature of filmmaking, financing and distribution in the Middle East.
D
uring the past few months the Middle East has played host to a bounty of film festivals, including the ninth Beirut International Film Festival, and the third Middle East International Film Festival in Abu Dhabi. This year has also seen the Doha Tribeca Film Festival’s debut, the Cairo International Film Festival’s 33rd anniversary, the ninth International Film Festival of Marrakech this month and the sixth Dubai International Film Festival to round out the events calendar.
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During a string of these festivals, Kelly Lewis spoke with Mohamed Al Daradji (Iraqi filmmaker), Sandy Climan (CEO of 3ality Digital and president of Entertainment Media Ventures), Frederic Sichler (president of Rotana Studios) and Cat Villers (film producer) to get their views on the situation. In the second instalment of this special feature, Kelly Lewis speaks directly with film director Louie Psihoyos to explore the importance of his investigative film, The Cove. The environmental documentary is making social and political change around the world for its exposure of Japan’s bloodied secret – the capture and slaughter of thousands of dolphins driven by a multibilliondollar entertainment industry and an underhanded market for mercury-tainted dolphin meat (story continues page 37).
THE SITUATION IN THE GULF
After announcing its ambitions to become the ‘filmmaking and financing hub’ in the region three years ago, Abu Dhabi is showing signs of intensifying the fight for the title. The Middle East International Film Festival (MEIFF), held this year for the first time under executive director Peter Scarlet, witnessed the screening of a bevy of Arab films and an awards ceremony with more than US$1 million (QR3.6 million) in prize money handed out. Also, under new leadership was industry initiative, the Film Financing Circle, with film commissioner David Shepheard officially launching the Abu Dhabi Film Commission. The aim of the commission is to assist the development of local filmmakers and encourage foreign productions to the emirate’s capital. The city has also made a series of multimilliondollar financing deals with United States banners through its US$1 billion (QR3.6 billion) production arm Imagenation. The deals include a US$10 million (QR36.4 million) development pact with Walter Parkes and Laurie Macdonald, as well as a US$75 million (QR273 million) joint fund with Singapore’s Media Development Authority (MDA) and Hyde Park Entertainment Group (HPEG), which will see the trio fund up to four cross-cultural English-language features each year during the next five years. This joint fund is an extension of the US$250 million (QR910 million) joint venture announced with HPEG in October last year. To foster the growth of local language films, former Abu Dhabi Media Company executive Weera Saad has overseen the development of Imagenation’s Arabiclanguage projects and is soon to announce the company’s first slate of projects. However, while the objective is to make projects on local soil, even Saad admits, “these things take time”. The UAE’s sister-city also sports an annual film event under the banner of Dubai International Film Festival (DIFF). In line with the festival is its co-production market the Dubai Film Connection (DFC). The industry body launched in 2007, is the Middle East’s first fiction and documentary film development initiative to support film folk and stimulate the growth of Arab film production in the Middle East and North Africa region. As part of this it awards more than US$110,000 (QR400,000) in ‘seed funds’ each year. From the 33 film projects selected in the 2007 and 2008 editions, 17 are in various stages of production and five are completed. Several have gone on to receive critical acclaim at the Sundance, Berlin and Cannes festivals. This month, DFC is presenting six awards during the DIFF event, including US$8400 (QR30,500) prize from ARTE France, the US$10,000 (QR36,400) Bahrain Film Production Company DIFF Development Award,
the US$25,000 (QR91,000) Desert Door DIFF Work in Progress Award, and three US$25,000 DIFF prizes. Winners of the three DIFF awards also receive entry into the Producers Network at the Cannes Film Festival. While neighbouring cities in Gulf states have led the charge with film festival and funding initiatives in recent years, Qatar largely remained a non-player until the October debut of its three years in the making, Doha Tribeca Film Festival (DTFF) event (as covered exclusively in TheEDGE this October). DTFF has set about laying the groundwork for its own local film industry, with initiatives including film workshops, the recently announced directing and screenwriting ‘lab’, and a training exchange programme with New York Tribeca, to be launched next month. During the inaugural DTFF, Qatari media group Alnoor Holdings made the timely announcement of its US$200 million (QR728 million) Alnoor film fund, which will finance and produce up to 15 features for the international market during the next five years. Alnoor Holdings, which has built up its investment stake in the Arab media sector in recent years, will directly invest US$40 million (QR146 million) into the fund, with the remaining cash stemming from private investors in the Gulf region. However, the fund is aimed squarely at Hollywood and international projects. Additionally, Alnoor Holdings is consulting entertainment capital advisers on the ‘best suited’ projects to invest in, which will see financing favour ‘family-friendly projects’, while shunning films that raise ‘contentious themes’ such as sex and politics. Working in the background for roughly a year, Alnoor has already invested US$15 million (QR54.6 million) in projects and is currently in talks with various studios and groups in the United Kingdom (UK), the United States (US), South Africa, Brazil, Mexico, India and elsewhere for partnerships. Additionally, it has signed a formal partnership with the Financial Times (FT) where a jointly held annual event, FT Business of Film Summit and FT Business of Film Gala Dinner, will be held in Doha starting next March. However, while the Gulf has shown its ability to ink deals with Hollywood-based entities, a resounding tone of dissatisfaction still rolls from the tongues of many working within the Arab film industry. Tunisian producer and distributor Tarak Ben Ammar raised the issue during the DTFF Doha Talks panel on film financing, setting the tone for this feature: “The real question is, will oil money go to Arab culture, or will it go to Hollywood?” he questioned. The consenting echoes of the industry-heavy crowd spurred his next comment of debate: “Can I count the number of buildings that are outside this hotel [the Four Seasons]…do you know how many Arab films could be made for one building?” DECEMBER 2009
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Sandy Climan
Frederic Sichler
Cat Villers
Mohamed Al Daradji
SPECIAL COVER STORY
Do you think there have been token efforts rather then enough viable options presented to filmmakers in the Middle East, or do you believe there are sufficient initiatives actively bridging the gap? Mohamed Al Daradji (MD): Well, to be honest in my own experience, no, there is not enough being done to support filmmakers in the region. While there are a few regional film funds [as mentioned previously] many of these funds are more like film finishing funds, with generally small financial offerings of less than US$50,000 (QR182,000). When you compare the difference in the financial resources that these funds are allocating to regional films as compared to mainstream American films, it’s quite ridiculous and it’s unacceptable. There have been positive initiatives made, for example MEIFF provided some funding to help me finish Son of Babylon and without this funding I couldn’t have finished it. However, regional film funding and access to funding needs to be further addressed as well as promoted. We would like to create a proper film industry, but for us to do that, we need support for our local film industry. We cannot buy film culture from the West, we need to create and build our film industry. The most important thing is to help filmmakers, with the establishment of the right bodies that will help them make the right decisions. Frederic Sichler (FS): The Middle East is experiencing a very exciting new era. If we honestly look at what has happened in the Gulf region over the past three years, we can only be positive. Talent is there, we know it; the problem is how to help people formulate their ideas at the highest professional level. It is, first of all, a learning process, and actions monitored by TwoFour54 or the DTFF connection can fulfil that need. On the other side, the creation of the various funds shows that countries and private people in the Middle East are ready to invest in films. These are two very positive points. I am confident that other initiatives will follow. Cat Villers (CV): There appears to be a disparity between the sizes of the film funds available from the Gulf, most of which seem to look towards the West and Hollywood, and the lack of funds available for Arab filmmakers. There is a real need for more money to fund independent Arabic cinema and the exciting new film voices that are emerging. It is interesting that many of the films that have been made have received strong funding support from Europe. Sandy Climan (SC): There is a rich history of storytelling throughout the Arab world and across the Middle East and North Africa (MENA). The new investment funds from the MENA region should focus on three objectives: Encouraging storytelling that supports and enhances the world view of the MENA region and culture; bringing film production to the region, with all the employment, training and industry growth that comes with it; and encouraging the next generation of filmmakers and storytellers from the region, who will help build a regional film and visual arts industry, as well as bring their skills to the global entertainment industry. So how can the industry connect filmmakers with the right level of film funding, while also supporting local talent over international content? MD: What I can say is, here in the region I believe there
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should be two types of financial assistance bodies established, one government and one publicly funded. Combined, these initiatives should help develop filmmaking in the region, while promoting film education and culture. There is a real lack of film education and appreciation in this part of the world. By educating people about film and cinema it will help to open the eyes of Arab nationals as well as expatriates living in the region. There is the potential to make many commercially successful films in the region, but questions remain: How can we ensure that filmmakers have the right level of access to film funding to enable them to make films that are commercially viable as well as culturally significant? FS: A difficult question, which is almost impossible to answer. It is not the filmmakers, which are connected to the right level of film funding, but the films, which are directly connected to funding. That means that a film is a script plus a filmmaker plus a producer. Everywhere in the world it is the responsibility of the producer to help the filmmaker design their film in such a way that it can be financed and properly exploited to recoup its investment. In cinema, everything in the Middle East (which is not true for Egypt, Lebanon and Syria) is at an early stage of development. I’m confident that in the coming years, producers with the right skills and good knowledge of movie production will appear. Then the relationship between film and money will be handled in a proper way. As we say in France ‘Paris wasn’t built in a day’, therefore one can’t expect a movie industry in the Gulf region to reach the maturity of countries where the industry has been in existence for a century. With my experience with people in the Middle East, I can only be optimistic. The decision, if it happens, to support local content instead of so-called international content is not a decision of the industry, but the investors. CV: In an ideal world experienced film producers and creative film funding should be able to support filmmakers and connect them with international co-producers, funding bodies and distribution. If you help the filmmaker grow, support their second and third films, nurture independent cinema and its distribution then an industry will grow with the filmmakers rather than losing them to an ailing Hollywood. Powerful, good cinema creates its own momentum. SC: MENA organisations and individuals, who intend to fund films, will be overwhelmed with proposals and requests very quickly. My advice is to have a firm strategy for investment in place, to find trusted advisers that are truly knowledgeable about both the creative and business processes; to go slow, and to develop a true personal understanding of the complex nature of a business that is built as much on vision and dreams as concrete business practices. Filmmaking is as much an art as a business. No two concepts or economic deals are exactly alike. Finding the correct creative path and business structure is a team effort that needs to be managed with as much flexibility as firmness. It is easy to be seduced by creative enthusiasm. However, the long-term game is played by those with good advisors, common sense and by building truly collaborative relationships with great creators. Frederic and Sandy, do you think investment into the Middle East film industry is a viable or lucrative
option for foreign independent investors as well as companies? And, what are the trends being witnessed with film funding at present? FS: You raise two questions: Is independent investment lucrative, yes. But, I don’t see it a priority considering the problems any industry has to face in its own territory due to the current global economic situation. In terms of the trends, there is a lack of cash and difficulty to fund films worldwide. SC: Good stories coupled with good business practices attract capital anywhere in the world. I’ve personally been extremely impressed with the creative community that is enthusiastic to tell stories from the diverse cultures and geographies of the MENA region. How important is it for the industry to support and uphold independent storytelling that both culturally and correctly reflects a region, while also enabling political stories to be honestly portrayed from the filmmakers’ perspective? MD: It’s very important. I received my independent film and cinema education in The Netherlands and in the UK. To make a film that benefits a culture and educates other cultures, we as filmmakers need to be totally independent from any political agenda. To preserve our culture, we need to tell our story how we see it as a filmmaker and we need support – this is essential. Imagine if the Iraqi government had supported my point of view [with the making of Son of Babylon] in exposing the issues that reside between the Iraqi government and the Kurdish people living in Northern Iraq. How beautiful it would have been if they said: ‘we’ll agree to disagree; we disagree about the political issues you raise, but it’s important for you as a filmmaker to make this story and to convey the suffering of the Kurdish people’. How important this would be for the political process in Iraq, but unfortunately they aren’t at this level yet, so we need to continue putting pressure on them to bring about social and political change. FS: I can’t answer this question. The film industry is a business, its only purpose is to produce and deliver good content to the public and make money. Nobody has the legitimacy to say whether a storytelling reflects correctly and culturally a region. CV: Good storytelling can be culturally specific, independent and honest. Indeed, good independent cinema is important for these very reasons, as these are the films that can tell us who and what we are, can help us understand each other and be truly universal. This is the reason that strong creative film making voices with integrity of spirit need to be supported. SC: You could ask the same question about any region in the world. Cultural and political stories have been part of the world of cinema and television from the very beginning. I believe these stories must be both entertaining and thought provoking, and I believe there must be truth to them as well. Among my favourite films are movies that have touched on difficult cultural and political stories: The Lives of Others, Z, Hotel Rwanda, The Last King of Scotland, Amistad, The Bedford Incident, Fail Safe, On the Beach, Cry Freedom, The Killing Fields, Guess Who’s Coming to Dinner, these films get people talking, which is an important step in reaching understanding between people and cultures. We need more DECEMBER 2009
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of this kind of filmmaking supported from and around the MENA region. On the other hand, it’d also be wonderful to see films that are not political or controversial, but bring forth the human qualities of life in the MENA region. Recent favourites of mine are the brilliant films Caramel from Lebanon and The Yacoubian Building from Egypt. As someone who is heavily involved with independent cinema, what do you consider the biggest challenges facing independent film writers and directors at present? MD: If we talk about the Gulf region, we do not have a real film industry. Let’s be honest, we don’t have a film culture in the region – in Saudi Arabia there’s no cinemas and in Iraq the film industry was destroyed by Saddam Hussein’s regime. The key challenges facing independent filmmakers are the lack of film culture, no real film education and the lack of finance. I know 10 Iraqi filmmakers with fantastic scripts, who could likely make their films, win awards and get distribution if they lived in the West. But unfortunately they cannot make films in this region because of these problems. FS: Every artist is by definition independent in the Middle East. The challenges faced by writers and directors is totally different from one country to another. The Middle East can’t be approached as a monolithic concept. CV: It is the same the world-over; how to get your film made and once made how to get it to an audience. Of course, each country also has specific and various problems to address, but funding and distribution for independent cinema is getting increasingly difficult everywhere. This is why funding from the Middle East could make an important and real difference to the new, independent Arab filmmakers that lack funding, distribution, and in some countries infrastructure and creative producers. If you support the films and the filmmakers, you can build industries. SC: I have been blessed by working with gifted filmmakers driven by the mission of telling great stories. While they always think about making a profitable production, the underlying goal is the creative drive and the need to bring a great story to their audience. This is especially true in the increasingly difficult world of independent cinema. My message to independent filmmakers is: Stay true to your creativity and fight to tell the great stories that inspire you. Nothing is easy in the world of entertainment, so you might as well fight for a goal that will make you proud to have spent the years required to turn out a great movie. The films Out of Africa, Rain Man, A River Runs Through It, and Forrest Gump were all turned down for years before someone had the courage to finance a film that was not a ‘rock-em-sock-em’ action picture or a broad comedy. Whether independently made or financed through the studio system, these are the films that are worth fighting for and will be remembered long after the ‘fluff’ films have faded. Cat, you have worked on various films around the world and I understand that you are currently working on several Arabic-language films with Khalid Abdalla and Tala Hadid. Can you discuss, from a cultural, financial and distribution point of view, the differences of making a film in the Arab world compared to Europe and the US? 34
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CV: Each film is different, with its own specific problems and requirements, and at the moment each film also struggles to get made. The film of Tala Hadid is a co-production between the UK, Morocco and France, which tells a culturally-specific story. We have been lucky enough to have great co-producers in Morocco and France and support of the UK Film Council and the Moroccan Cinema Centre (CCM) – funds like these are really important support for filmmakers. Mohamed, Sandy and Frederic, what are your thoughts on this subject? MD: In Europe, there are established institutions funded by government or cultural bodies to support filmmaking and the distribution of film. In The Netherlands, the UK or Europe, filmmakers can get the financial support to help them distribute their film. My previous film Ahlaam, was screened in 25 independent cinemas in the UK and I received financial support to enable this. In the Arab world there is nothing currently like this and there is only one real independent cinema here in Lebanon. Either you do it yourself or with a distributor and you fight for it, or nothing – we have a long battle left to fight to get to the level of Europe unfortunately. FS: Because of the reasons mentioned in my previous response, I can’t really answer the question. But Egypt has a cinema history as long as the US and France. This is also true for Lebanon and Syria, albeit shorter than Egypt. Other countries, as earlier mentioned, are building up energetically their history from scratch. The process is the same everywhere. The differences come from history and whether time has already given the possibility to build up the appropriate structures or the legal/financial/technical environment at each step of the process. This question poses a different answer for each country. SC: Between the Arab world and Hollywood at its core, the balance of creative and business acumen is needed exactly the same way in both. Certainly, the choice of story and actors may differ considerably, but the thought process and the distribution systems, whether regional or global, operate with much in common. I am particularly encouraged by the growth of digital media, where the opportunity to reach an Arab-language audience, or a more culturally specific Arabic-interested audience, will soon be possible. The growth of video-on-demand and electronic sell-through on rapidly expanding Internet-enabled computer, television, and mobile platforms will allow audiences to find the entertainment that is of interest. It will also help create communities to support the kinds of films and filmmakers that could herald a new visual renaissance from the MENA region. Cat, during the DTFF Doha Talks panel discussion (on film distribution and production), you said you believed that the business model of making films was a complicated story that goes beyond the commerce versus art debate. You also said that “really good films tend to be culturally and economically successful, but you can’t take the importance of the stories that need
Special COVER STORY
to be told around the world and put business models around them”. Can you expand on this? CV: Film is one of the most powerful mediums of communication that we have and we need to honour the cultural importance of independent film. In my experience, really good independent films can find their way to be both culturally and economically successful. While festivals, international awards and distribution have their part to play in providing the platforms that can push a film to visibility and success...good creative funding and producing has a key part to play in identifying and supporting the new voices. The existing Western independent business models, which rely on forecasts of international sales to justify even state investment, don’t sit easily with Arab-language films without internationally recognisable stars or bankable directors. Having said that, those very business models no longer really work in the West either, so this is potentially an interesting time for change. Mohamed, Frederick and Sandy, during the (above mentioned) panel discussion, Cat also raised a series of questions, which she said the industry needed to ask itself. In her words: “This is a really exciting time for the film industry, there is a huge shift economically and the world’s turning away from the West right now. What’s going to happen next? How are we going to pay for it? There are huge piracy problems globally, so how do we get people to pay for content when we have a generation growing up that wants things for free? How do we cope with all of this? Plus, how do we allow indigenous films to work as well as nurturing them and allowing them to flourish?” Cat raises some very valid and topical points. What directions need to be taken and what do you consider as the way forward for the industry? MD: I think the solution is to make access to films cheaper and easier for people; if people can buy a genuine copy at a similar price to what they would pay for a pirate copy, they would always opt for the genuine version. The other thing is to promote mobile cinemas. In Iraq, we ran a free-to-access mobile, open-air cinema that screened four Iraqi films. We did this to encourage people to come to the cinema, to appreciate it and understand what films offer in their real light – on big screen on 35-millimetre projector, not what’s seen on a cheap pirate copy. FS: Piracy is a global problem. We all know it is mainly a political problem worldwide too. Almost all countries have copyright laws to protect intellectual property. But there is little political will to have a real efficient copyright enforcement for a number of reasons. SC: The best way to combat piracy is to provide easy to acquire, reasonably priced, high-quality digital distribution of films. And, if you can provide an overlay of community involvement on the film watching experience – people sharing their thoughts, feelings, and reactions to the story – you have a winning proposition to combat piracy and will build a profitable business in the MENA region and around the world. I don’t think people are ‘turning their backs’ on Western filmmaking. I think the audience is expanding its appetite for
great stories, well told, from anywhere in the world. There’s a transformation taking place in India, China, and elsewhere, to create films that don’t lose their cultural identity, while also being popular enough to travel around the world for distribution. Censorship remains an encumbrance for filmmakers in many parts of the world, but in regard to the Middle East how does it affect storytelling (in regard to both content restriction but also censoring through financial restraints e.g. government backing)? MD: Censorship is one of the things that shouldn’t exist in filmmaking or art. Of course, there needs to be limits and you can’t make films without some form of control, but it’s essential for societal development that social and political issues are brought to light correctly. The screening of sexual content is a highly sensitive topic; I don’t want to show films that support pornographic themes but, for example, it’s important for violent sexual acts like rape scenes to be shown without censorship, otherwise how to you educate society that these acts are criminal? FS: I don’t have any legitimacy to answer that question. CV: I don’t know enough regionally to be able to answer this important question with ease. Censorship exists all over the world, but operates in different ways. Hollywood often censors on a commercial level by insisting on replicating the same old formulas and failing to deliver films to thrill and inspire. Every filmmaker has to look at the source of money, whether for development or production, and consider what restrictions – commercial, moral or political – come with the funding. Some of the Gulf or Middle Eastern funds may want to avoid content that may offend and that’s their prerogative. The real danger comes when funding bodies are so careful or political that they effectively prevent any dissident voices reaching the screen. That may be where the Western independents have to step in. SC: On my first trip to the UAE, I found a new world of friends who loved cinema with a passion. And this has been true in all of my encounters throughout the MENA region. DTFF is the latest in a long-line of events that demonstrate the love affair between countries in the MENA region and global storytelling. Filmmakers have always been aware of cultural sensitivities – sometimes related to violence, sexual matters, politics or cultural and racial issues. Great filmmakers know how to inspire thought about important issues of the day without crossing into areas that may shock or provoke beyond a level of cultural comfort. I have seen very brave films made in the Arab-language, touching on subjects that I would have thought taboo. These films have been particularly important to me as I’ve learned more about Arabic culture and the lives of people throughout the region. Having said all that, the availability of uncensored films on the Internet or elsewhere may well help accelerate a broader acceptance of film to be seen by an age appropriate audience. I have always been more a fan of restricting films by ageappropriateness than eliminating the opportunity to see them altogether. As you know, in the US we have a voluntary, industry-administered rating system for films. DECEMBER 2009
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SPECIAL COVER STORY I still believe that the best filter for the films available to a young person are vigilant parents that understand the nature of the entertainment and can help the child decide (or decide for) whether a particular film is appropriate within the personal practices of their family. In regard to the challenges and the changing nature of film distribution, what role do you think the digital word will play in shaping distribution in the future? MD: This is an important topic for me. I’m an old-school filmmaker and right now I don’t think this region needs new technologies to aid in filmmaking or distribution. I do not want people to see my film in just a digital context – before we jump into new technologies we need to address the basic fundamentals of good filmmaking and the foundation of long-time existing technology. Even the latest cutting-edge technologies of today and the future will continue to be built upon using traditional filmmaking methods – these will always remain as the guiding principals for future generations. In our region, we are not so technologically advanced. Budding filmmakers need to learn the basic foundations of cinema, film and art. They have to study and learn about filmmaking, and get this experience under their belt before looking to advanced digital technologies. Sometimes I teach cinematography in universities and one of the most important things I tell people is ‘before you work in digital, what you need to do is go and shoot on 35, 16 and eight-millimetre’ (mm) cameras. Because when you master this, you can make films using any medium. It is the same with the distribution in the region; we still need to build cinemas that use 35mm projectors. Once this is achieved then we can move to this new technology, but I believe we are far away from this. FS: I need at least 200 pages to answer that. But the only relevant question for the film industry is how any new form of distribution will bring back to the industry the accurate revenues, provided piracy problems are reasonably solved. CV: I think video-on-demand and digital distribution are key to the way we exploit films now and in the future, and will eventually allow filmmakers and producers a bigger stake in their own asset. I think the Internet is key to how we market films, but I also believe that audiences will continue to want to see films on a big screen, in the cinema, as part of a shared experience. I expect we will see more day and date releases. SC: I believe that this is the most exciting time in the history of filmmaking and the visual arts. With digital distribution, there’s now the opportunity for new stories and new storytellers to find their audience, locally, regionally, or globally. Filmmakers can now find their audience through social networking, and can communicate with that audience during every step of the creative process. Communities gather to enjoy and share this creative work, and those community members become the most effective marketing agents any filmmaker or film could ever have. We have just begun this new and amazing chapter in global creativity, and the opportunity for this blossoming of creativity to positively impact intercultural understanding throughout the world is profound. The more people gather to share their own stories, the more hope we have for peace in the world. It is important to remember that many films are censored or completely banned from being screened in areas of the Middle East due to political or graphic content, but ironically such films are widely available as pirate DVDs 36
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as soon as the film is released internationally. This is a complex problem and it goes back to the commerce versus art debate; the message of the film gets to reach and educate its audience, but is done so illegally without any profit going back to the filmmaker or industry. Further to this, access to cinemas is limited in areas of the Middle East especially in places like Iraq and Israel, places that particularly need storytelling for political and social change as well as cultural development. However, while many filmmakers are utilising Internet portals to screen content and gain a community following around the world, individual governments in the Middle East are able to block websites as another form of censorship and do so on a regular basis. So where do you even begin when trying to combat the above-mentioned issues and what is being done, or needs to be done, on a local and global level to try and abate piracy, ease censorship restrictions and improve access to film? MD: Personally, I believe the first response is the need to educate people about film culture. In Iraq [before the regime], we had around 275 cinemas. In the past 25-years most of the cinemas have been destroyed and in Iraq, where 31 million people live, we are left with just three or four cinemas. I believe any person can watch a film, but only those educated about independent film will appreciate and understand it within the right context…everything else stems from there. FS: The way we in the West approach or analyse problems and situations compared to how people in the Middle East do it is mostly irrelevant. Either our approach is systematically ideological or our analysis is a standalone one. The Middle East is a vast world with huge differences between countries, with media and cinema industries at very different phases of development. If we think (which I do) that those countries have potentially all the human, intellectual and financial resources to build up industries in each country, there’s only these questions to ask: How do we help them do so? And how do we help them in each country to precisely have in place, at every step of the production/distribution process, a film with the appropriate structure/environment? In this sense, initiatives taken by the Gulf countries are totally consistent because they have concentrated on the non-material aspects of the process, which, by definition, are potentially pan-Arabic, talent development and funding. All other steps of the process need local structures/partners/ organisations to be implemented. It’s much more complex – it takes time, but it will happen. CV: The simplest answer is that political and religious censorship has always been with us and yet artists have always found a way to reach audiences and communicate their experience. When you think of how hard it was for the work of Aleksandr Solzhenitsyn [major Russian literary figure] to reach the West and the effect it had, [it is now much easier] with us having access to the Internet, which, even with some blocking, enables content to be consumed worldwide and upholds the power of cinema. If governments block important works, yet the rest of the world embraces them, you have the beginning of change. Nothing – governments, religions or tyrants – can ultimately resist the power of public opinion provoked by art. On one level that’s why we make films. So we have a responsibility and the opportunity to offer as much help as we can to filmmakers to enable their work to be distributed internationally. SC: I addressed this in a previous response.
Special COVER STORY
‘THE COVE’ OF NO RETURN Five million dollars and three-and-a-half years later, co-founder of the Ocean Preservation Society (OPS) and former National Geographic photographer turned filmmaker, Louis Psihoyos has achieved what many dubbed the impossible – exposing Japan’s bloodied “systematic cover up” with the Tokyo screening of The Cove. Kelly Lewis speaks one-on-one with the man whose film is making a global impact.
T
he investigative documentary goes deep into the heart of a remote Japanese fishing village, Taiji, where thousands of dolphins – driven by a multibillion-dollar dolphin entertainment industry and an underhanded market for mercury-tainted dolphin meat – are captured and slaughtered in an annual hunt. Since its debut at the Sundance Film Festival in January, The Cove sent waves of protest surging towards the shores of Japan’s fishing authorities and political figures, forcing the country to publicly, yet reluctantly, admit its misconduct. The Cove has reaped industry accolades from across the globe and is named as one of the 15 finalists nominated for an Oscar in the Documentary Feature category as part of the 82nd Academy Awards. It is also in the running for a possible seven awards categories during next month’s Cinema Eye Honours in New York. Psihoyos has also been nominated for the esteemed National Geographic Adventurer of the Year award. However, Psihoyos correctly sets the tone for his work by saying: “The awards and accolades are collateral…I consider this a movement, not a movie.” The seed for the making of the environmental documentary was planted when Psihoyos attended a marine conference where Richard O’Barry (former dolphin trainer turned fervent activist) was listed to be a keynote speaker. The director was piqued by a last minute ‘schedule change’, carried out by event sponsor Sea World, which saw O’Barry banned from the event.
Much of the dolphin meat sold around Japan is mislabelled or sold as counterfeit whale meat, which fetches higher prices. Hundreds of samples of dolphin meat tested from Japan’s waters all show toxic levels that far exceed their own ministry of health recommendations. Some internal organ meat for sale at the Okura markets near Taiji was analysed to have 5000 times more mercury than the health advisory of 0.4 parts per million. In the 1960s, O’Barry’s career as a dolphin trainer hit an all time high when five of the dolphins he captured and trained starred in the hit American television series Flipper. After the death of Kathy, the TV show’s lead performing dolphin, and 10-years promoting the entertainment of dolphins in captivity, O’Barry hit the brakes on his involvement with the “dolphinarium” business. He has spent the past 38-years “trying to tear-down the industry that he helped create”. O’Barry’s passion to environmental activism compelled Psihoyos’ filmmaking hands into action. However, Psihoyos knew that unearthing what Japan had worked so hard to cover-up would require a specialised team and an “unconventional” covert film operation. Using military grade equipment, a crew of expert underwater sound and camera operators, marine explorers, a special effects team and world-class free divers, Psihoyos and his “Oceans Eleven style” crew set-out to expose to the world what was going on above and below the waters of Taiji’s remote cove – a sight sealed off from prying eyes by hostile fishermen, barbed wire and ‘Keep Out’ signs.
SPECIAL COVER STORY
- Louie Psihoyos and his specialised crew undertook a covert operation to make The Cove. -
After making global media headlines with its screening at a string of key film festivals, The Cove witnessed hankering media appetite for its controversial Japanese debut during the Tokyo International Film Festival (TIFF) in October. “I felt like I was stepping back, perhaps unnecessarily, into harm’s way by attending the premiere of the movie at TIFF,” Psihoyos recalls. “What made me nervous were the outstanding arrest warrants – trespassing, conspiracy to disrupt commerce, and photographing police without permission were just a few of the charges.” Initially TIFF refused to include The Cove in its 2009 green-themed ‘Action for the Earth’ schedule due to its “sensitive” nature, but persistent interventions by supportive key film industry folk and free speech advocates saw the organisers yield. However, while The Cove was included, it was not endorsed by TIFF, which Psihoyos says continued to undercut the screening, especially after the town of Taiji threatened to sue the festival for showing the film. The blackballing continued when Psihoyos arrived on the festivals ‘green carpet’ when he and the assembled media discovered that TIFF had ‘suddenly changed’ the photo rules. Citing the “privacy rights” of the building owner, TIFF stated no one was allowed to shoot Psihoyos on the green carpet entryway (where the glitterati photos are always shot) or under the towering TIFF entry sign. Psihoyos says as teams of news crews were turned away from the festival’s property, and organisers roped off his entry via the green carpet, he and his crew had to take an escalator, out of sight from the media’s vision, to a disclosed lounge area for their ‘protection and privacy’ until the post-showing question and answer session. In the light of day, Psihoyos never expected a toasty reception for his presence, especially as he was putting the country in the unwelcomed gaze of the international media. But the initial unease of arrest threats and the toilsome TIFF cancellations proved nothing more than a façade built from fallacy. “It was groundbreaking to show The Cove at TIFF as it hadn’t been possible a few months ago. The only thing that changed was the government; the movie’s still the same, it’s the same one that they rejected a few months ago.” Psihoyos informs. During a sold-out screening in Tokyo, Psihoyos recalls that a row of seats had been allocated for Taiji officials, including Taiji’s Mayor Sangen and “Private Space” [a prominent 38
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fishing figure as referred to in The Cove]. Seating was also reserved for several Fishery Agency suits, including Masayuki Komatsu, the notorious Fishing Agency spokesman, who once famously declared that minke whales were “the cockroaches of the sea”. At the film’s end, the audience broke into applause, but sporting lips laced with aversion, the entourage of Taiji’s officials rose from their seats and made a hasty exit before Psihoyos appeared to begin the film’s post discussion session. Psihoyos says he knew during “the screening of The Cove at the Japanese film festival I definitely wasn’t going to be preaching to the choir. I was deep into enemy territory, but I was armed with the most powerful weapon in the world, a film”. As the film’s screening was sold-out, Psihoyos offered to screen The Cove for the town of Taiji. He also officially offered to donate 100 percent of OPS profits from the film in Japan if Taiji locals agreed to stop capturing dolphins for meat or for the entertainment industry. “It’s a small price to pay…but [there has been] no official response from their side…at least they will know I’m not here for the money,” Psihoyos confirms. “There are a couple of small offers on the table now by nervous Japanese distributors, but we’re very cautious that somebody could license the film here just to have it buried. Maybe we should go the YouTube route. OPS’s main backer is inventor and venture capitalist Jim Clark and his son-in-law is Chad Hurley, the CEO of YouTube. My fear is that if you give a film away, that may be its perceived value.” The Cove has been instrumental both for its social and political change. Dolphin meat used to be part of the government’s school lunch programmes in Taiji. Since the making of The Cove, school children across Wakamaya prefecture are no longer fed the confirmed toxic dolphin meat for school lunch programmes. O’Barry and the OPS had a hand in this. “Our work with a toxicity expert there eventually reached several Taiji town council members, who had their own children in the school system, and who did their own tests on dolphin meat. These confirmed our findings. As a result, the head of the fisheries, Hideki Moronuki, who had set the quotas for dolphins and porpoises and whales, has been fired,” Psihoyos informs. “But the hunt for dolphins is still going on. Now the Japanese people know about it, we hope this awareness will shut the dolphin drive down by next year. “The time is now for the Japanese to solve this problem. We made a movie, but now it’s up to the fishermen to stop slaughtering dolphins and poisoning its people.”
AVIATION INDUSTRY
ALL QUIET ON THE EASTERN FRONT? Big stories were in short supply at last month’s 2009 Dubai Airshow as Middle East airlines used to dominating aviation headlines shunned the media spotlight. So after years of rapid expansion, has the financial crisis finally forced local carriers to take stock? Rob Morris investigates.
AViAtion industrY
T
he sun may have shone perpetually throughout last month’s five-day airshow, but the event itself was a wash out compared to previous exhibitions. While no local carrier was expected to match the record US$34.9 billion (QR12.7 billion) aircraft order, placed two years ago at the last event by United Arab Emirates carrier, Emirates, the customary headline-grabbing deals from previous shows were conspicuously absent. Not that anyone was surprised. Qatar Airways set the tone for more cautious growth among local carriers that had spent billions of dollars on rapid expansion before the global economy nosedived last year. The airline had a sizeable outdoor chalet and two aircraft, the Boeing 777-200LR and Bombardier Challenger 605, on display at the biennial event, but remained tight-lipped throughout with nothing to report. With the global aviation industry sent into a tailspin by dwindling passenger traffic and soaring oil prices, Qatar Airways’ low-key involvement at the Dubai-based event was understandable. But that did not stop the airline’s chief executive, Akbar Al Baker from talking up Qatar Airways’ prospects before the show. 40
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“Over the next few years, Qatar Airways will be receiving on average more than one aircraft per month, which shows our confidence in the aviation industry against the economic situation that has been making headlines around the world,” he said. “We are positive about the future of the industry and setting a positive signal for the world’s aviation industry.” Al Baker’s confidence is fuelled by the airline’s growth in recent years, with 220 aircraft worth US$40 billion (QR14 billion) on order and corporate
jet subsidiary, Qatar Executive recently launched. He will also be satisfied after adding new services to Melbourne, Goa and Amritsar this year, with Sydney and two unconfirmed European destinations to come in 2010. On the passenger side, Al Baker tells TheEDGE that Qatar Airways’ premium travel remains strong despite tough economic conditions. “It is true that in some parts of the world the market has softened, but other booming regions have subsequently grown in demand all the more,” Al Baker says.
AViAtion industrY Additionally, he notes the airline is expected to carry more than 14 million passengers from 2009-10; a 25 percent increase compared with the previous financial year. He then references another development to underline Qatar Airways’ continued expansion in tough times. This particular event (as reported by TheEDGE last month) occurred in October when the airline became the world’s first to operate a commercial flight using fuel derived from natural gas. An Airbus A340-600, flying from London Gatwick to Doha, was powered using a blend of oil-based kerosene and gas to liquids kerosene. The synthetic fuel produces fewer emissions than conventional jet fuels. Still, despite a busy year, Qatar Airways had nothing to divulge at last month’s airshow. But the silence was broken by other airlines with updates
Meanwhile, the only story coming out of Emirates was a potential order for 11 new Boeing and Airbus aircraft. The airline’s chief executive, Tim Clark, said a decision on whether to purchase more planes would be made by January next year. But he ruled out increasing the carrier’s order for 58 super-jumbo A380s unless space constraints at Dubai International Airport could be addressed. In addition to the A380s, Emirates also has 70 A350s on order. “We signed a letter of intent last year that gives us 30 more A350s”, Clark told reporters during the Dubai Airshow. “That hasn’t been exercised as we’re just trying to finalise what’s going to happen at Dubai International Airport with regards to its expansion and whether there’s going to be room to fit another 30 aircraft in.” Despite remaining silent throughout the event, Emirates did make a big
to report. James Hogan, CEO of Abu Dhabi airline Etihad Airways, unveiled a US$750 million (QR2.73 billion) investment in the carrier’s workforce, in-flight entertainment and aircraft maintenance. On a less positive note, he also reiterated the airline’s 2010 breakeven target would not be met, having admitted as much earlier this year. Hogan blamed the global financial crisis and H1N1 virus outbreak for hitting yields and slowing passenger traffic. “Due to the crisis the yield pressure will slide that [Etihad’s break-even point] to 2011,” he said. “In 2010, at this stage from yields we are seeing positives...the big wild card is the pandemic as we move forward, but we are comfortable our costs are under control and we are seeing positive signs and continue to work through it.” Etihad’s US$750 million (QR2.73 billion) investment included a $200 million (QR728 million) aircraft overhaul deal with International Aero Engines. No additional planes were ordered following the airline’s US$43 billion (QR157 billion) deal for 205 wide and narrow-bodied aircraft at last year’s Farnborough Airshow.
splash last month when publicising its latest financial report. For the half year to September 30, the carrier generated a US$205 million (QR746 million) net profit – up 165 percent compared to just US$77 million (QR280 million) in the corresponding period last year. Unsurprisingly, Emirates said the downturn and crippling oil prices, which peaked at US$147 (QR535) a barrel last summer, were behind the airline’s vastly reduced profit in 2008. Richard Vaughan, the carrier’s divisional senior vice president for commercial operations worldwide, says a drop in premium traffic, which is now starting to pick up, contributed to the profit plunge. “Like everything, corporate business has tailed off and that has caused a drop in yield, but it’s starting to climb again,” he says. “On the leisure side, first and business class haven’t changed at all so it’s a corporate thing where companies have cut back. That said, Mauritius, Seychelles and the Maldives still have strong premium traffic.” To offset the drop in premium seat demand and rising fuel prices, Emirates
slowed its recruitment drive last summer. The decision was taken following a sharp decline in natural attrition as the job market dried up. “We cut back on a lot of recruitment because the attrition rate for cabin crew virtually went to zero and that was indicative of the fewer choices in the global job market,” Vaughan explains. “People weren’t leaving so we had to stop recruitment for quite a while, but that has since been reintroduced. We held back lots of jobs that weren’t required at the time including cabin crew. Natural attrition has started to pick up, indicating the economy is bottoming out and climbing up again.” More positively for Emirates, average seat loads across the airline’s network have stabilised at 70 percent. Whether bosses at Etihad and Qatar Airways are satisfied with their financial performances is unclear; neither have disclosed their respective fiscal positions. But Bill McKnight, principal and aviation expert at global management consultancy AT Kearney, insists they, along with all other Middle East airlines, have suffered amid the crisis. “I don’t think any of the region’s airlines have escaped the downturn,” he says. “Carriers have had to “buy” traffic with deep discounts and premium cabin traffic has been reduced measurably. Most of the carriers have reduced staff and cut other costs quietly.” McKnight’s comments are supported by the International Air Transport Association’s (IATA) figures. In March, the airline industry representative predicted that Middle East airlines would report US$900 million (QR3.28 billion) losses for 2009. By June, the organisation increased its forecast to US$1.5 billion (QR5.46 billion), but slashed the figure three months later to US$500 million (QR1.82 billion). In contrast, the global aviation sector is expected to lose US$11 billion (QR40 billion) during the same period. By the end of 2010, IATA predicts a US$200 million (QR728 million) loss for local carriers due to increased capacity following the arrival of more planes in the region. “In terms of financial performance, we believe in 2010 that Middle Eastern airlines will still lose money,” Majdi Sabri, IATA’s regional vice president, says. “This is not because of the climate, but actually because of declining yields due to increased capacity and fierce competition.” DECEMBER 2009
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AVIATION INDUSTRY
On a more positive note, Sabri expects double-digit growth for Middle East passenger traffic, adding local airlines will finish the year with a 10.6 percent increase from 2008, rising to 11.3 percent in 2010. The future is far less rosy for carriers outside this region, according to IATA. Figures show that in 2008 global air travel increased just 0.2 percent compared to 11 percent in this region. In contrast, worldwide traffic between January and August this year dropped six percent. During the same period, passenger numbers in the Middle East have risen 8.4 percent. According to Sabri, location, modern airports and unrivalled service have ensured local airlines are in much better shape than carriers from other regions. “Airlines in the Middle East operate from top notch airports, which are used for transit traffic between Europe, Asia Pacific and Australia,” he explains. “The airlines have developed their services to world-class standards and expanded aggressively in and outside the region. They have also created connectivity, which has brought a lot of traffic from other places through the region.” Maintaining a steady course amid the downturn has been tough for local carriers. But they at least have the advantage of enduring similar slumps in the aftermath of September 11, the SARS outbreak and Asian Tsunamis – unlike flydubai. The Dubai-based budget airline began operations at the height of the economic downturn in June 2008, prompting some industry analysts to question the timing. But CEO Ghaith Al Ghaith insists the 42
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financial crisis had no impact on flydubai’s introduction. “Starting the airline with a long-term, viable plan was a strategic decision, so we could have launched in good or tough times,” he says on the sidelines of flydubai’s US$160 million (QR583 million) financing for two aircraft announcement at Dubai Airshow. “Doing it at a so-called tough time is actually better in some ways because you have to be more focused on delivering results,” he says. Al Ghaith adds operating five Boeing 737-800s to eight destinations, including Syria, Doha and Azerbaijan, is testament to flydubai’s rapid development. The airline is expected to launch nine new routes and receive seven more of the 54 B737s, ordered for US$4 billion (QR14.5 billion) at the 2008 Farnborough Airshow, in 2010. “As far as we’re concerned, we are doing a fine job,” he says confidently, before sidestepping questions about the airline’s passenger loads and financial performance. “We are doing very well, but it’s difficult to give numbers right now,” he states vaguely. Aggressive expansion among established carriers may have slowed to more measured growth during the past 12 months, but it certainly has not ground to a complete standstill. Having ordered hundreds of aircraft in recent years, local airlines continue to receive new planes from manufacturers, Airbus and Boeing. They are also adding new routes and increasing frequencies on existing services, despite the adverse economic conditions. Emirates expects to receive 17 new
planes during the current financial year, while its route network continues to grow; the carrier has recently launched services to Durban, South Africa and Luanda. It is also preparing to introduce a new daily service to Sydney, having increased frequencies on other existing routes such as Bangkok, Kuala Lumpur, Brisbane, Melbourne and Rome. Meanwhile, Emirates’ rival Etihad has taken delivery of 11 Airbus planes this year and is awaiting A350s and A380s from the French manufacturer. The airline made its expansion plans clear last year when it ordered 205 planes, including Boeing 787s, at the Farnborough Airshow. Coinciding with fleet expansion, Etihad has this year launched operations to Cape Town, Chicago, Kozhikode, Chennai and Minsk. It has also introduced services to Moscow, Almaty and Melbourne. Despite making no major announcements at this year’s Dubai Airshow, local airlines have nevertheless continued to expand. Whether it is the right strategy remains to be seen, but AT Kearney’s McKnight has doubts. “The expansion plans of the larger Middle Eastern airlines are optimistic and they may at some point in time experience drawbacks,” he warns. “Local airlines have added significant capacity and new routes. These actions, by necessity, generate new traffic, but the issue is whether they are profitable.” Still, even with industry analysts claiming the economic downturn would decimate global aviation, local airlines have refused to completely abandon their respective expansion policies. And another doomsayer is hardly going to make them change course now.
ECONOMIC BAROMETER
AVOID THE FOOL’S GAME Remember that good old phrase, a penny for your thoughts? This idiom is often used to ask someone what they are thinking. When we, as Middle Eastbased economists, say ‘good old’ we are referring to the good old days of 2005-07 and the first half of 2008 – a period when the global and local economy was thriving. Karim Nakhle explores the heads and tails of a penny in today’s market.
ECONOMIC BAROMETER
D
uring the boom years, the air of optimism was thick and forward thinking rife. It was also a time when people would pay for your thoughts. But as the months rolled on, the climate changed apace – a chilly state of unease was sent sweeping throughout the global business landscape and it became a chill that no one could shelter from.
Now, as people scramble to save rather than spend their pennies, many would prefer that economists keep thoughts to themselves as to ensure their pennies remain safe in their pockets. To assess the regional expectations and forecast for 2010, I enlisted the expertise of, and research conducted by, financial advisory and business management consultancy group, Inventure (Middle East and North Africa division). As part of our investigation, we gave 20 pennies away for the thoughts of 20 financial advisers working in the Gulf Cooperation Council (GCC). We put them in a similar context to the current global economic climate and asked them for their predictions on the future. Six out of 20 advisers pondered the same questions: Why were we affected, how will we recover and when will we get back on track? Two professionals contemplated thoughts of a different nature: How could the president of the United States, Barack Obama, win a Nobel Peace Prize without making any real effort? (a question, better left to be tackled in another article). Meanwhile, two optimistic economists debated whether to expect a ‘V-shaped’ recovery, with a rapid return to growth, or a ‘U-shaped’ recovery, with feeble and below trend results in the coming years following periods of rapid growth. According to Ahmad Alliek, head of Asset Management at Equity Capital: “The global economy is showing signs of recovery and the worst is nearly over.”
“The rapidity of the recovery will strongly depend on consumer spending, investment, government spending, and net exports, which in terms affects the gross domestic product (GDP). “We have witnessed progressive signs of government spending; investment spending is still low, but there have been some improvements in the total number of exports. However, due to the hibernation of a large number of consumers, growth is currently at a standstill, but we should soon witness a level of organic growth that will take the form of a U-shaped recovery.” John Ashton, investment banker at DXB Capital, raised discussion about the expectations of robust growth throughout 2010. “We have been researching numerous sectors here in the Middle East and we draw the conclusion that any decline witnessed in the GDP of economies throughout the MENA region will be limited. Therefore, we anticipate a V-shaped recovery next year.” Unsurprisingly, the remaining 10 advisers had the courage to speculate on our greatest fear: the second dip and whether one will occur in 2010? Although the global economy appears to be recovering faster than anticipated, rumours of a second dip have been mentioned in financial houses across the world. Several factors are fuelling the tongues of those who fear a second slump: • Although employment figures have improved quarter-on-quarter since the beginning of this year, phenomenally high unemployment figures continue to cast a cloud of vulnerability over the job market. • As a result of the prolonged instability in the labour market, commercial debt continues to climb and is forcing organisations to restructure their financial and human resources capacity. This paralyses any hopes of a rapid ‘back on track’ approach, which will aid in further weakening the global economy. • An overinflated and oversupplied real estate market is still set to endure more hardship across many countries next year. Architectural marvel and inspirational landmarks rather than smart urban planning has led to a clear disproportion in supply and demand, as well as an unhealthy drain on construction materials.
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ECONOMIC BAROMETER WHAT DOES DOUBLE-DIP RECESSION MEAN?
A double-dip recession is when GDP growth retracts after experiencing positive growth over one or two quarters. A double-dip recession refers to a recession followed by a short-lived recovery, which is then followed by another recession. Investopedia describes the causes for a double-dip recession as being varied and often includes a slowdown in demand for goods and services due to layoffs, and spending cutbacks from the previous downturn. It states that a double-dip is the worst-case scenario. Making recovery even more difficult, Investopedia says, is the fear that the economy will move back into a deeper and longer recession. In the poll undertaken by financial executives, these striking observations and predictions came to light: Sixty percent of financial professionals expect economic recovery to reach the shores of the Gulf region by the end of the second quarter next year. This is in line with the rebound of oil and gas demand, and the growth of both oil and non-oil GDP, which is predicted to reach 4.4 percent and 3.9 percent, respectively, on average across the MENA region. Additionally, some showed concerns about credit problems facing large family businesses in the GCC. Adding his voice to this topic, Raju Limbachiya, a long-serving corporate financial adviser with KPMG Qatar, says: “GCC familyowned businesses operate in a unique way, with each rising to an individual set of management challenges…and that’s in a normal business environment. “Nowadays, the challenges have deepened with the current global recession adding a new layer of complexity to those issues.” According to advisers at Inventure, the issues and challenges that family-owned businesses will affront are going to imminently push companies towards restructuring and re-forecasting on a frequent basis – leading to further employment cuts over the next four months. Eight out of 20 financial professionals surveyed expect the economy to endure another downturn throughout the next two quarters. With economic uncertainty remaining flagrant until the end of the first quarter of 2010, and high expectations floating around a 46
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dangerous W-shaped recovery (whereby the stock market rises initially, as already witnessed in the GCC markets, then dips back down to the bottom again), such an economic trend would greatly affect investors, policymakers and the economy at large. The vast majority of advisers agreed that to avoid the risk of a second dip, extensive financial stimulus measures, restructuring plans and interventions (currently being undertaken by various governments) are vital and must continue to be intensified and not prematurely withdrawn. Irrespective of what shape the recession will take, U, V or W, it is essential that businesses make the most of market conditions. The key is to ensure that businesses are working on survival, while also planning and implementing for long-term sustainable growth. One thing we have learnt from this recession is that greed, short-term thinking and a lack of prudence have taken a huge toll on economies around the world. Global markets will pay for this recession for years to come with wavering interest rates, higher taxes, fluctuating exchange rates and slowed growth. Regulation failed to provide sufficient monitoring of financial institutions at a micro level, effectively focusing on target capital requirements, leverage ratios and off-balance sheet activity. Bank governance, which was previously inadequate, particularly with respect to board structure, has to be revised in addition to imposing disclosure and transparencies in various sectors to infiltrate future problems. The man credited with predicting the financial crisis – Nouriel Roubini, a professor at the New York University’s Stern School of Business – has also warned of the growing threat of a second slump.
According to Roubini: “If governments raise taxes and cut spending too quickly in an attempt to rein-in deficits, they could undermine the recovery and tip the economy back into recession and deflation. But if they maintain large deficits, international bond markets will push-up borrowing rates, leading to stagflation – low growth combined with accelerating inflation.” For the past 18 months, the International Monetary Fund (IMF) has revised its world economic outlook every few weeks, with each new forecast less favourable. But for the first time in a seemingly long time, the IMF issued a recent forecast, which sheds more positive light and points to a recovery path. Masood Ahmed, IMF director for the Middle East and Central Asia Department, welcomed the idea of a LUV-shaped global economic recovery, where developing countries will outpace industrialised economies. He said Western Europe stands to witness a L-shaped recovery, characterised by a protracted period of flat-to-low growth; North America will experience a U-shaped turnaround and a V-shaped recovery will rapidly pave the way for the development of BRICS countries (Brazil, Russia, India, China and South Africa) and the next 10 major emerging economies. However, cautiously holding on to a few of our pennies might not be such a bad idea. After all, we have been fooled once by greed, over-exposure and optimistic speculations. But if we have learnt nothing and entertain a fool’s mindset, where one believes that the global economy is ‘lock, stock and barrel’ back on track, then shame on us.
ON THE PULSE
The eye of the storm
- Barack Obama cancelled the United States missile defence programme in September, opening the door for renewed communication with Russia. -
Last month, Edward Jameson looked at the complex relationship between Qatar, the United States and Iran, in the context of the Gulf’s nuclear dream. To follow up, gas-rich Russia and the Israeli question are added to the mix, which sheds light on Doha’s global position. It’s hard to please all of the people all of the time – but if anyone can, Qatar can.
ON THE PULSE
T
he Middle East is a land of astounding contrasts. Of skyscrapers shooting from the desert sands, symbolising the transformation within a few generations of once dusty outposts into gleaming, post-modern cities. But the Middle East is also home to a people living in a land at the geographical confluence of east and west, occasionally scarred by modern conflict. Where the claim to much of the world’s natural resources has become both a blessing – and a curse. It is, in short, a complicated land; shaped by a constantly shifting kaleidoscope of power games and global ambition, a shift that has perhaps accelerated since the ascension of Barack Obama to the US presidency, and the renewed vigour with which Washington has sought to open the channels of communication with Iran and, to the North, Russia. The situation was highlighted by Obama’s controversial awarding of the Nobel Peace Prize in October. Last month, this column explored the necessity of Qatar’s continued good relations with Iran, despite the risk of Western consternation. In early November, Iran came under increasing pressure from the international community to respond to proposals that it sent uranium abroad for enrichment – the very scheme being undertaken by the UAE, which has received praise from the US for its peaceful nuclear programme, which was called a “model” for the region. But Iran has missed deadlines to respond to the International Atomic Energy Agency, and, on November 4, the head of the UN nuclear watchdog Mohamed ElBaradei said the draft deal offered in October was a “fleeting opportunity” to avoid confrontation. All of which magnifies the words of Gulf Research Centre security and terrorism expert Nicole Stracke, which rounded off this column last month: “Qatar could hope to potentially play a mediation role in the future between the US and Iran, and the GCC and Iran.”
- This NASA satellite image of Qatar shows smoke rising from the giant Dukhan oil field 80 kilometres west of Doha (NASA/Ian West) -
Yet the role of mediator brings with it its own challenges, particularly in a region where relations develop as though constantly teetering on a knife edge; at an accelerated pace by necessity, yet with all the due diligence that they demand.
The Russian question
In September, Barack Obama announced the cancellation of the US missile defence shield, which under his predecessor George Bush was to be constructed in Poland, with a radar station in the Czech Republic. The pledge had the intended effect of defrosting relations with Russia somewhat. In return, Russian president Dmitry Medvedev became the first Russian leader in recent memory to openly use the word “sanctions” with respect to Iran. Russia is an important part of the jig-saw for Qatar in regard to its longterm domestic economic diversification plans; Qatar, Russia and Iran combined control over 60 percent of the world’s natural gas supply. The three hydrocarbon economies have furthered the work of the Gas Exporting Countries Forum (GECF), an 11-member confederation that controls three-quarters of the world’s natural gas reserves. DECEMBER 2009
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ON THE PULSE
- “The United States has lost…credibility in the Middle East since 2003 with the invasion of Iraq,” says Nicole Stracke. -
A dismantling of the barriers between Russia and the US can be positive for Qatar, with its hydrocarbon links to Russia and its foreign policy links to the US. Acting as mediator is one thing; being at the centre of mutually beneficial international relations - with no necessity to mediate at all - is better still. Had Qatar been forced to choose between the two, the answer is not as straightforward as it would have been pre-2003: “The US has lost acceptance and credibility in the Middle East since 2003 with the beginning of the invasion of Iraq, and because of its conduct since,” Stracke from the Gulf Research Centre says. The effect on tri-lateral relations between Qatar, Iran and Russia will be interesting, and perhaps force another shift in the Middle East regional kaleidoscope. New Russian cordiality with the US will have the inevitable effect of icing over relations with Iran. Russia is currently contracted to supply 50
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S-300 missiles – its most advanced anti-aircraft weapon – to Iran, though reports have surfaced, quoting Israeli president Shimon Perez, stating that the deal was being reconsidered by Moscow This, by extension, brings Qatar into the picture by virtue of its work within the GECF. Should the US and Russia decide to advance their early cooperative measures against Iran, Qatari relations with Iran may lose prominence against those with the US. Thus, the continued broadening of Qatar’s policy of hedging its international bets will become all the more vital. An Obama-led US will maintain more long-term prominence in terms of trade and commerce, more so than Bush’s US. Yet in a complicated world, it still pays to hedge. “The logical conclusion is that the GCC states cannot afford to place their bets solely on the US, but that they need to diversify their international relationships,” says Gulf Research Centre international studies director Dr Christian Koch.
“That is why we see more efforts from the region to develop their ties to Europe as well as Asia. What we are witnessing is the growing internationalisation of the Gulf.”
The Israeli question
In recent years, reports of Qatar’s support for Palestinian organisation Hamas have been rife. In 2007, the Hudson Institute Center for Middle East Studies director Meyrav Wurmser named Qatar alongside others as Hamas sympathisers. She said Iran was Hamas’ main backer, eclipsing “Sunni Arab patron states including Saudi Arabia, Qatar and Kuwait”. Yet Qatar stands alone within the GCC as a nation that recognises, and indeed engages in trade with, Israel. Stracke adopts a diplomatic tone when discussing the issue: “I would differentiate between support and mediating,” she says. “Qatar has the same strategic goals as the US, and tactical steps such
ON THE PULSE as mediation with Hamas support US interests in the long term.” Qatar’s ascension to a position of global political importance has been nurtured by its broad, calculated approach to international relationship building. Last month in this column, Christian Koch told how US hegemonic powers had been eroded somewhat in the Middle East by the conflicts in Iraq and Afghanistan. Today, Stracke says the resurgence of such influence may rest on two primary factors: Firstly, the outcome of the Iran situation; and secondly – the Arab/ Palestinain-Israeli conflict: “The test will be to what extent will the current US government be able to make progress in trying to resolve the Iran issue, and, how effective will the US be in dealing with Israel, primarily the settlement issue?” Stracke says. “The Arab World and the Gulf in particular will look and measure the US on Iran and Israel first.”
historically aggressive foreign policy. So are we seeing an arc of change – moral, political, or economic – in the Midddle East? Change towards further independence from the West? The indicators may suggest so. And if so, just how will this alter Qatar’s role as friend and mediator? It will be some time until any of this becomes clear, if ever. The constantly shifting kaleidoscope holds clarity at arms length. And so the best that Qatar can hope to do is maintain its international relations across the board, with Iran, the US, Israel or Russia, while maintaining and progressing its domestic policy of economic diversification. The former can, and will, continue to drive the
latter within the framework of the global energy sector and Qatar’s fortunate and well-managed position within that framework. The map of international relations across the Middle East has for many years been a shifting kaleidoscope of power games and global ambition; reactive to the most progressive acts of compassion, or self-serving acts of interventionism; shaped by a battle-scared past, yet aiming for a self-determined future. The world is a complicated place, with Qatar positioned dead centre – geographically and politically. Its role as mediator, for the time being, remains solid. They do say, after all, that when the wind blows a gale, the calmest place to be is at the eye of the storm.
A fistful of euros?
In the middle of the sun-scorched Qatari desert, 80 kilometres (km) west of Doha, work continues at the super-giant Dukhan oil field. The reserves at Dukhan cover a huge area of 2000km2. Last year Dukhan produced an estimated 300,000 barrels of oil per day, which, gauged against OPEC’s much-stated target price of US$75 (QR273) per barrel, equates to an annual turnover of US$8.2 billion (QR29.9 billion) – approximately 9.6 percent of Qatari GDP. The US dollar may not be the currency of choice for trading oil in the not-toodistant future, however. The story – broken by veteran Middle East reporter Robert Fisk in the UK’s Independent newspaper – said that some Gulf States alongside China, Russia, Japan and France were planning to move towards “a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the GCC” for future oil dealings. The report states that secret meetings had already been held, which the US had been aware of, and that “the current deadline for the currency transition is 2018”. This suggested a further move away from US hegemonic rule, but one borne out of a necessary reaction to weaknesses within the US economy exposed by the global financial crisis, as opposed to a reaction to a flawed,
- The United States dollar may not be the permanent currency of choose for oil traders. -
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SPECIAL REPORT – TRANSPORT
QATAR’S TRANSPORT
TAKEOFF
- Daniel Moore, OBG, Qatar. -
Qatar’s multibillion-dollar programme to expand the country’s transport infrastructure is gathering pace with a firm opening date set for Doha’s new airport recently announced. Tenders calling for the first stage of a rail link and plans to revamp the public bus service have also been disclosed. Apart from the conventional reasons for building new transport infrastructure, such as meeting the needs of a rapidly expanding economy and boosting tourism, Qatar has other goals in its sights. Editorial manager for Oxford Business Group Qatar, Daniel Moore, discusses Qatar’s growing transport ambitions.
SPECIAL REPORT – TRANSPORT The country is looking to improve its overall transport grid as part of its campaign to host the Olympic games. Having not been successful in bidding for the 2016 games, Qatar has put itself forward for the 2020 competition. It has also kicked off a campaign to stage the 2022 World Cup, the second-largest event on the global sporting calendar. While providing the necessary stadiums and facilities to host the games are of paramount importance when the International Olympic Committee and FIFA make their decisions, the ability to move fans, officials and competitors in and out of the host country and then between hotels and venues is also crucial. Qatar has been working to build up an impressive portfolio of hosted sporting events, including the 2006 Asian Games and the recent friendly football match between Brazil and England. Of course, events such as the World Cup or the Olympics draw far more spectators and competitors than a single match or a regional sports meet. Nevertheless, the Qatari Olympic Committee used the success of past events, and the vast expansion of the country’s transport network in its pitch for the 2016 games. The jewel in the crown of the transportation programme is the US$14 billion (QR51 billion) New Doha International Airport (NDIA), which is scheduled to start operating in mid-2011. The first two stages of the project, which will be completed concurrently, will see the airport have an annual passenger-handling capacity of 24 million, a figure set to double as subsequent stages are finished. The airport is also set to serve as a major airfreight hub, with capacity to handle 1.4 million tonnes of cargo annually. This compares to the 466,600 tonnes handled at the existing Doha airport in 2008. It is not just air travel that has been the subject of massive investments. In late October, Qatari officials unveiled plans
to radically reduce the county’s dependence on cars for domestic transport, releasing details of a proposed system that will combine rail and an advanced public bus service. The rail component of the plan includes a 180 kilometre (km) long link connecting Doha with Bahraini capital Manama The line will cross the yet-to-be-built 40km causeway between the two countries, with another line running from NDIA to the Saudi border. There will also be 325km of dedicated freight lines and four metro lines stretching 292km, which will be served by 172 trains stopping at 69 stations. One step in this process has already been taken, with five consortiums submitting bids in early November for a tender to construct a railway station at NDIA. State transport firm Mowasalat is carrying out another part of the project. The company is conducting a feasibility study into implementing a bus rapid transit (BRT) system, which would see a series of centralised bus stations built, special bus lanes on main traffic routes and a major increase in bus numbers and more frequent services. The BRT system would be integrated with the metro and long-distance rail grids, creating a land-based transport network that operates at local, national and international levels. Again, there is a sporting link, with plans for both the BRT and the metro to be completed and ready to serve all major stadiums should Doha win rights to stage either the 2020 Olympics or the 2022 World Cup. Whatever the outcome of Qatar’s bids for the world’s two premier sporting events, it will have an international-class transport network, costing some US$21 billion (QR76.5 billion) according to some estimates. Though seemingly high, this investment should equip Qatari’s economy to compete in the top flight with other leading nations.
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BUSINESS VIEW - REAL ESTATE
edd brookes
d oha
m etr
o
It is often hard to find real drawbacks from living in the safe and friendly city of Doha, but one of them has to be the traffic, caused by too many vehicles and poor driving. The issue was highlighted recently when a local newspaper revealed that an astonishing 10,000 new cars are registered each month in the city. Edd Brookes investigates.
BUSINESS VIEW - REAL ESTATE
A
solution to the traffic congestion could be around the corner, or underground to be more accurate. Earlier this year, Qatari Diar signed a memorandum of understanding (MOU) with German rail experts, Deutsche Bahn International, to draft plans for the long awaited Doha integrated railway and metro system. The railways project comprises the following: • The east coast rail link, a passenger and freight railway linking Ras Laffan and Mesaieed via Doha. • A high-speed link between New Doha International Airport, Doha City Centre, and Kingdom of Bahrain via the planned causeway bridge. • A freight rail link based on the Gulf Cooperation Council (GCC) rail and Doha expressway studies. • The Doha Metro Network based on the Qatar Transport Master Plan. • Light rail/people mover networks, such as Lusail, Education City and West Bay. Things have moved on since the MOU was signed. In November, New Doha International Airport Steering Committee closed the tender on a contract to construct the first station at the new airport. It is hard to imagine taking a high-speed rail link to Bahrain for a spot of lunch, or transferring from the overland network to the metro system at the Doha Convention Centre. From a real estate point of view, I am interested in what impact the public transport system will have on rental and capital values. Luckily, our close neighbour, Dubai, recently opened its overland metro system, which may give us an idea of what to expect. Much has been written in the media about the challenges of persuading car drivers in the United Arab Emirates to take up public transport, although the actual impact of the metro on Dubai’s real estate market has received less scrutiny.
- Qatari Diar and Deutsche Bahn International have signed a memorandum of understanding to draft plans for the Doha integrated railway and metro system. -
The Dubai Metro, the world’s longest driverless automated railway system, is being constructed in several phases. Two of the phases being developed, the red and green lines, are part of a 320 kilometre network, which the Dubai Roads and Transport Authority (RTA) aims to complete by 2020. As the first transport project of its kind in the Middle East, RTA representatives have visited various global cities, including Paris, London and Singapore, to speak to experts and see how they constructed, operated and maintained their best-in-class service metro systems. It is widely understood that the increased accessibility has a positive impact on real estate and land values. There are three concepts at the core of the land rent theory, which help explain why rents around a city centre or transport hub vary. Rent – A surplus (profit) resulting from some benefit such as accessibility. The rent is highest for retail because this asset class is closely related to accessibility. Rent gradient – This represents a decline in rent-based distance from a city centre. This gradient is related to how distance influences an asset’s rent. The distance has an important impact on the rent gradient because with no difference all locations would be equal. Bid rent curve function – This describes prices that the tenant or owner would be willing to pay at varying locations. The land use with the highest bid rent at one point is theoretically the land use that will occupy this location. In practice, this is often distorted by planning policies to control dominance of uses within economic cycles. There are numerous studies on how rail transit impacts the urban real estate market. Most conclude that urban rail transit systems have a positive effect on land and property values for both commercial and residential uses. Drawing comparisons with the Dubai case where appropriate, the main insights from these studies are: Magnitude of uplift – The value uplift depends on how far the property is from the transit hub and other transport options. The higher the usage rates of the metro, the higher the value uplifts. There may, however, be some loss of value immediately around stations, particularly for residential areas, due to environmental facts such as noise levels, increased traffic and visual intrusion. Location factors – In terms of catchment areas, evidence suggests that impact on land values and property prices reaches 400 metres from the station for commercial properties, and up to 800 metres for residential properties. Those distances may be reduced by up to 65 percent bearing in mind the Middle East climate. However, the introduction of air-conditioned walkways would of course increase this. Prices in the central business district are likely to increase less than locations on the fringe of a city, where current accessibility is poor. Different communities experience property value benefits differently. Value is imparted where the local population values the additional access provided by the metro regardless of average income in the district. In some instances, this has translated into high-income areas achieving minimal value uplift, as the car is still the preferred mode of transport. Land use/zoning implications – In general, residential uplifts occur in locations that are more accessible to regional employment, retail and cultural activities. Commercial properties benefit because they have an increased access DECEMBER 2009
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BUSINESS VIEW - REAL ESTATE to a larger labour market, which reduces costs and creates agglomeration benefits. The impact is likely to be larger for commercial and retail use than for residential because they are most closely related to accessibility. There is limited evidence of property uplifts for industrial land uses. This is due to several reasons, including the tendency for industrial uses to be located on the outskirts of cities, where public transport is scarce. In such areas, you will also find relatively unrestrictive car parking and comparatively low employment densities.
to increase the potential uplift in property values around stations such as focusing on clusters, increased accessibility, high-speed services, joint ventures with local developers, development incentives and enhanced zoning. There will be opportunities to improve the levels of accessibility around stations by building covered walkways (an initiative the RTA is already implementing). Private investors could make large gains by targeting smaller and older properties along metro corridors where a greater uplift in values is achievable. It is too early to tell at this stage what the full impact of the new metro in Dubai will have on land and property values around the stations. There was a limited effect on land prices when the Dubai Metro was announced, as the concept of mass public was not familiar or proven in the Emirate. This, coupled with the downturn in the property cycle, has prevented the ‘preopening’ impacts from being particularly significant. The ‘opening affect’ is yet to be quantified and has been diluted by the fact that only 10 of the stations on the red line opened on 9 September, 2009. In other cities the opening affect was substantial. One consideration that will impact on any rental rise is the Real Estate Regulatory Agency (RERA), which currently does not include metro stations in its rental price index. The rental levels will, therefore, still have to remain within the range defined - The Dubai Metro, the world’s longest driverless automated railway system, began operations in September – it is too premature yet to say what effect it has had on real estate prices. by RERA. However, new properties to the market will Investment and development opportunities – It is difficult obtain full benefit as RERA does not cover first letting. to isolate the ‘metro effect’ because property markets are The image the Metro portrays of Dubai should not not heterogeneous localised factors. The greatest uplift be underestimated. It represents the first and only urban tends to be in compact cities with dominant centres (Doha transport system in the GCC and this will have a positive take note). impact in attracting inward investment and globally Cities with a lack of public transport culture may be mobile occupiers. impacted less due to a lack of perceived value in accessibility What will be interesting is how the pattern of land use in improvements. The business cycle, and more specifically the Dubai will change and develop in clusters around the metro property cycle, is key. If infrastructure investment coincides hubs. For example, land behind Dubai’s biggest highway with a downturn, a potential positive impact could be Sheikh Zayed Road, but still within walking distance of the temporarily mitigated by the depressing effect on rents and metro, is likely to become more desirable to develop. If this capital values of the downturn. Availability of suitable sites happens as expected, Dubai’s built form will move positively and especially the availability of development potential at, or towards becoming a more mature and sustainable entity. close to, transit stations is an important factor. As highlighted In time, we will have a better understanding of how the above, the co-ordination of land use and transport policy metro has affected rent and sale prices in Dubai. But there is is an important factor in bringing forward development in little doubt that the Emirate will benefit from having a mass conjunction with urban rail schemes. transport system; as will Doha when the city implements its Governments can undertake a number of strategies own rail and metro network. 56
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LEGAL INSIGHT
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s te a tria a p x o is gy nes an e tar, wh heir o l t a i no law defi ring Q orkers, tions m e r t Te he new ual en l, i.e. w r defini an T the vid iona eing indi ari nat ists. O ent, b isa, an y r n t u a to Qa t; V mp, cum ’s o ot a es and el Do asspor ter; Sta it); n C , n ili ex av s p and igham r fam de Tr ntrant’ on to e (and e i n fo d u y e s H , l o r s y i c t i l l s p n n a a s i m i e u u C r m o f pe vid ch erm indi idual’s of su g the p tar. er o and Em rcial gr or. n a e v t i n c ons r i r Q d n p e n e e a S n b i , i d p h m ce, evi s of ide on o the Residen l to res finition e pers ging ging e branc nd com a h a e w t n d e d rin i is n du a a tr m n . verv the a indivi re two idence le for b m may e , r t e o t l a a a C t b n s r n e a si a is ter to re Sa ncial po in Qa r d es ide erring The sor of R respon r. This brings h o i n o v i v o c r a m r, f y t t s t n p e a o n i a r i o t x Da r Fina r the h e Q a n w en to Sp er law gy ns. Aft le then to Qat e) A istered ate into triate, childre s also a n o t o f l o a i o a i t e in in Q sio reg xpatri n exp ndant riat rtic te nce ciat migra term s provi , the a triates pprop ntry, side xpatria a o e e lude a depe e h s a t R t n y a u i e s f m g c o f p i r i n o ti a co alty be of inolo the f ex lso i nd/o sor ilies igra the ay , uss c erm ntry o eir fam from ’s pen ful a ouse a e Spon ranting ich m ccasion mm 2009 t I s i h d e g h r o sp new ) of law exit help ary d th r. T he for visa, w each atar, o as a No.(4 n Febru ion t eir (an in and new felt it red to Qata nsible n d h Q t o i n r e a x r d e th ce e he fe e av lat po do ue on ata aw iden ally t here w ave re additi t res or her isa iss s to le newabl ly 12 . L s issue w legis atari s w e r a n u a e h n L Q his e exit v te need t is re , usual d fi s. W we he n ce, i w, b nd ch w l a ha time whi 009. T xisting tion a is an vision riate l practi new la sing atri sa t e 2 igra ns. Th s pro approp cedura f the to day. such the exp exit vi riod of 26, eral m m pro isio ns o day ulti- a pe or sev tion o i hat th g t w prov regula exit, rent rovisio e from gest t ed wi a a m d for d r n e i l u n a c e i e sug onfirm s on ang he p issu repe perta ome n out the y enter, istry to t may ch efore, s ec s cie r n e e r law duced w sets ates ma he min the g this e, the ould b tari a i f o T intr law no expatr atar. tion o the W Qa s sh Q a d h c tice opriate is. one r whic side in appli ior an the c a r r s r e p e e app e ba und and r for the of Inte tion ar nts. e the by-cas k a r y r e m t r l o t t s b i r s i w ini and ALT epa min ons case resp is the Mes of ad bour D xplain aw’s ID S V A e a l i D law agenc and L s to e new k n n h mai igratio cle see e of t i m Imm his art text so n T o c into put
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months. A Sponsor of Exit is any person or registered entity that has agreed to be obligated on behalf of an expatriate, so they are a guarantor while an expatriate is outside of Qatar. Such obligation ceases when the expatriate returns to Qatar. The law defines an expatriate’s exit from Qatar as his or her Departure. This can be by mutual agreement, but may be by force, defined as Banishment. Where an expatriate has illegally entered Qatar, an Order for Exit may be issued.
entry into Qatar
In terms of entry visas there are three main types, although government agencies and quasi-government entities sometimes refer to them differently. • On-Arrival Visa: an on-arrival or tourist visa can be issued to nationals of some 32 jurisdictions, including the United Kingdom, the United States, Australia and various European countries at their point of entry into Qatar. Visas are issued on the spot and are valid for one month. No prior permission for Qatar entry is required. Subject to the discretion of the Immigration Department, Visas may be extended for a further month before expatriates must physically leave Qatar. On-arrival visas do not give an individual the right to reside or work in Qatar. On re-entering Qatar, a new onarrival visa will be issued. Where a hotel facilitates the entry of an expatriate into Qatar, notification of the residence of the same must be given to the Ministry of Interior. If the hotel becomes aware that any such expatriate has left the premises for a period of 48-hours, without providing any notice or reason, it must report the same to the Ministry of Interior. In addition, any person providing lodging to an expatriate must inform the Ministry of Interior within 24-hours of that expatriate’s arrival. • Business Visa: A business visa must be applied for prior to an expatriate’s entry into Qatar. Only Qatari individuals and registered Qatari entities with specific permission may apply for business visas.
- Qatar issued a new immigration law in February of this year. -
Business visas are also valid for one month, extendable by discretion and do not give an expatriate the right to work in Qatar. An expatriate only has the ability to represent him or herself and/ or their business in Qatar. • Work visa or permit is the document, which permits an expatriate to enter Qatar and work. It is also the first step in the process for the sponsor of an expatriate to apply for residence, the approval of which is evidenced by the issuance of a resident’s visa or permit. Where an expatriate enters Qatar on an on-arrival or business visa and wishes to work, they must attend the appropriate Qatari authorities within seven days to start the work permit and/ or resident’s permit process. Visas may not be granted to an expatriate where he or she has previously been sponsored unless more than two years have elapsed, or his or her last Sponsor of Residence provides a letter of no objection. Where an expatriate has had their employment terminated for gross misconduct, as defined in the Labour Law, and where the expatriate either has not challenged the basis of the termination or has lost any claim brought in a Qatari Court, he or she will not, subject to the issuance of a specific ministerial decision, be granted a visa for four years. Where an expatriate is banished, subject to the issuance of a specific ministerial decision, he or she may never return to Qatar.
residenCe
During the period of time in which the expatriate resides in Qatar he or she will have a Sponsor for Residence, who will be legally responsible for the expatriate and their exit from Qatar The sponsor, however, will not be financially liable for them unless they have specifically assumed such liability by giving a guarantee, for example. Where there is a guarantee in place, the guarantor will not be called upon to settle any outstanding amounts until such time as the expatriate has settled as much as he or she is able. His or her Sponsor of Residence may only employ an expatriate unless the Labour Department approves a sixmonth secondment. Such secondments will normally only be approved where the subject matter of the work to be undertaken is, or both entities have a shareholder, in common. Typical examples might involve a lawyer being seconded to a client to undertake legal work or an employee being reassigned to a sister company. In some cases, the Labour Department will approve an expatriate working for an individual or entity other than his or her Sponsor of Residence if such work is undertaken outside normal work hours.
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LEGAL INSIGHT
Subject to the discretion of the Immigration Department, an expatriate, whether male or female, may become the Sponsor of Residence for their spouse and any dependent children. Various documents will need to be submitted to support such an application, including bank statements showing the remittance of the expatriate’s salary and notarised, legalised and authenticated education certificates. Babies born to expatriates in the state should be registered in Qatar within 60 days of their birth. Babies born outside Qatar to expatriates may enter Qatar and be registered provided they are less than two-years-old. An expatriate may transfer his or her sponsor three times. Where an expatriate wishes to transfer his or her sponsorship, in addition to providing a letter of no objection from his or her current Sponsor of Residence, he or she must also support the application with a police report and a resident’s visa or permit that has been valid for more than 12 months. Where a current Sponsor of Residence refuses to provide a letter of no objection, the Minister for Employment may approve a transfer in certain circumstances. For example, this could happen if the employee has been abused or there is a public interest element to the transfer. There are various instances wherev an expatriate may enter and reside in Qatar without a sponsor, including on receiving approval under the Foreign Investment Law to incorporate a 100 percent foreign-owned company or an international branch and owners of registerable rights in real estate. In these cases, the expatriate must provide appropriate documentation, and be reputable and medically fit. Such 60
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rights to enter and reside are granted for a period of five years, which can be renewed. Where the basis for such approval changes or the expatriate breaches the terms of the same, his or her rights shall cease and they will need to leave Qatar within 90 days. The new law states that all expatriates should be able to retain and have possession of their travel documents at all times when inside Qatar. Of course this may not be appropriate for various reasons, such as the expatriate’s accommodation where there are high levels of theft, for example.
Exit from Qatar
When an expatriate ceases to be employed they must, if they do not or cannot transfer their sponsorship, leave Qatar within 90 days. The expatriate’s employer should cancel Resident’s permits within 30 days of termination. If an expatriate is sponsoring his or her family, their family sponsorship will also be cancelled. In practice, the Immigration Department will not cancel an expatriate’s resident’s permit until such time that the expatriate has cancelled their family sponsorship, which will allow the expatriate time to
settle any outstanding family matters such as schooling. Where an expatriate leaves Qatar and does not return for a period of six months, their resident’s permit will automatically expire. Spouses and dependent children do not require exit visas. Where an exit visa is not issued for whatever reason, the Labour Department may assist in obtaining one provided the expatriate does not have any outstanding judgements against them. The department may also help if advertisements are placed in two local papers mentioning the expatriate’s proposed exit.
Penalties
The penalties for breaching the new law are stepped and severe. The penalty for failure to provide a travel document can be as high as QR10,000, while illegal entry into Qatar can result in imprisonment or banishment. There is no stay of execution.
Note: all Qatari Laws (save for those issued by, for example, the Qatar Financial Centre (QFC)) to regulate its own business are issued in Arabic and there are no official translations. Therefore, for the purposes of drafting this article, we have used our own translation and interpreted the same in the context of Qatari regulation and current market practice.
- When an expatriate’s employment contract ceases they must either transfer their sponsorship or leave Qatar within 90 days. -
INDUSTRY FOCUS – EDUCATION
Educators and policy makers around the globe face a formidable task in developing truly sustainable and holistic educational systems. Key to educational advancement is the implementation of innovative measures and cutting-edge technologies that foster learning initiatives for the global classroom. However, it is also access to funding and quality rather than quantity of education that will drive forward a knowledge-based society. Reem Shaddad investigates how Qatar is faring with its ‘knowledgehub’ ambition.
INDUSTRY FOCUS – EDUCATION This was conceptualised through the division of WISE into three subthemes, which incorporated issues concerning goal–innovation, pluralism and sustainability.
“Sustainability in education relies on a curiosity for knowledge that is both willed and never satisfied.” - Professor Georges Haddad, director for the Division of Higher Education, UNESCO. Professor Sheikha Abdulla Al Misnad, president of Qatar University, spoke on the second day of the event about sustainability. During her speech, Misnad was firm in emphasising the ongoing work by QF to improve educational standards in Qatar. In addition, she acknowledged regional countries that face impediment against national educational advancement as a result of internal conflict, poverty and the marginalisation of minorities. Discussion during the summit revolved around issues that affect Qatar as a budding educational-provider, and around arming the nation with the ideas and notions to continue its work with others. By focusing on national development and identifying Qatar’s issues and achievements, Misnad envisions that Qatar can channel its innovations to the rest of the world.
“Our priority is our people, but we also have an obligation towards the rest of the world.” - The message displayed on this South African primary school student’s clothing represents what educators across the globe are striving for. -
Q
atar has a vision to be recognised as a knowledgebased society. Driving this ambition is H H Sheikha Mozah bint Nasser Al Missned, who has devoted much time to spearheading educational initiatives within the state. Since 1995, Sheikha Mozah has served as the chairperson for Qatar Foundation (QF) and its innovative Education City campus. She is also vice chair of the Supreme Educational Council (SEC) and president of the Supreme Council for Family Affairs (SCFA) in Qatar. The fundamental goal of these ventures is the pursuit for a technologically driven society that benefits from sustainable and innovative approaches to major educational obstacles facing Qatar and the world at large. The argument lies in whether these aspirations have their place in the current levels of development in Qatar, or whether the educational sector is attempting a feat that seems larger than life within the context of this thriving peninsula. The first World Innovation Summit for Education (WISE) was held in Doha last month – an initiative supported by Sheikha Mozah through QF. The three-day summit boasted an attendance of more than 1000 educators, academics, innovators and policymakers. The aim was to create an arena for discussion and exchange of ideas between the key delegates. Doing so would hopefully help establish concrete resolutions to the biggest educational challenges. 62
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- Professor Sheikha Abdulla Al Misnad, president, Qatar University. Qatar education statistics, from the United Nations Educational Scientific and Cultural Organisation (UNESCO) archives and the World Economic Forum’s Global Gender Gap Report 2009. • Average primary school enrolment in 2007 – 95 percent males/females. • Secondary school enrolment 2007 – 100 percent in females. • Completion of full-course of primary education – 124 percent. • Total government educational spend in 2007 – 19.6 percent. • Literacy in adults and youth 2007 – 93.1 percent and 99.1, respectfully. • Ranked first in literacy out of 134 countries 2009. • Ranked first in enrolment in tertiary education 2009. During the inaugural plenary session, Sheikha Mozah set the tone for the conference with her opening speech. She emphasised the need for educators and their respectful organisations to uphold the value of innovation in education among peers and students alike. Guest of honour Irina Bokova, director-general of UNESCO, echoed these sentiments when,
INDUSTRY FOCUS – EDUCATION quoting a UNESCO statistic, she highlighted that globally five million children are not enrolled in an education system due to accessibility, social or equality restrictions. Adults are not unscathed in this digital world either. UNESCO reveals that globally, more than eight million adults are unable to read or write. The reality of this, as urged by Bokova, is the need for innovative education measures that reach and foster an adequate level of education for all. Bokova concluded by discussing UNESCO’s 2015 ‘education for all’ ultimatum and appealed to governments world-over to address spending on education as an investment not a cost.
“Investing in education is like investing in life.” - Irina Bokova, director-general, UNESCO
- Students at Australia’s University of New South Wales, rally for improvement in international student rights. -
Globalisation has seen the reformation of many educational policies, surpassing all measures of change year-on-year. WISE credits the ongoing digital revolution for the most severe trials presented by globalisation. Such matters were addressed in a thought-provoking manner through critical dissection of the issue and proposition of suitable solutions. The hopes of substantiating enduring educational patterns, in anticipation of future challenges, included the inevitable preparation for graduates around the globe moving into the workforce. Other essential issues, concerning accessibility of and equality within education to address the withstanding problems with minorities, were not void of questions. Poverty and conflict resolutions, in the favour of education, formed part of the discussions concerning minority discrimination. Doctor Filiz Polat, associate professor for Inclusive and Special Education and honorary director for the Centre for Advancement in Special Education (CASE) at the University of Hong Kong, offered a fresh perspective on how minorities should be viewed. During her talk on special needs education, Polat emphasised the need to consider minorities and disabled persons. Whether due to sex, race or religion, minorities are largely disabled in terms of life opportunities, according to Polat.
PLURALISM AND SUSTAINABILITY
The subthemes of pluralism and sustainability are inevitably interdependent in a variety of manners, including capability of survival in an educational context – this was the general consensus among speakers. One of the six winners of the WISE Awards 2009 was the Colombian-based Fundacion Escuela Nueva Volvamos a la Gente, or New School Model, a pluralism initiative in Bogota. Founded in 1975, this model was created in response to the multifaceted problems with multi-grade environments in primary and secondary education. When considering the variation in education levels present in any one classroom, multi-grade environments make the transmission of knowledge a difficult process. In effect, Escuela Nueva has succeeded in creating a studentfocused and grass roots learning environment that enables children to dictate and become an inherent part of the curriculum. This fosters a collaborative approach to education where students, parents and community members work together to educate each other about both academic and non-academic life. Mark Rahlves, chief financial officer and head of development for Escuela Nueva, says these personalised adjustments to the curriculum have forced a higher percentage of conviction, enrolment and graduation among children and their families. Sugata Mitra, professor for Educational Technology at the School of Education, Communication and Language Sciences, Newcastle University, United Kingdom, echoed these sentiments in describing his world-renowned pluralistic project, Hole in the Wall. From placing a computer within a hole cut out of a kiosk wall and leaving it unsupervised for several weeks on end, Mitra was able to witness patterns of self-education among children from some of Mumbai’s most dire slums. The point of this exercise was to prove there are costeffective ways in which to educate children, even in the seemingly most hopeless of cases. The original concept of the Hole in the Wall platform was built on to create the now, Self-Organised Learning Experiments (SOLE’s) programme. The learning concepts have been introduced in various underprivileged and underequipped locales across the UK. By providing one laptop per four children, 11 and 12-yearold students were able to answer exam questions from the International General Certificate of Secondary Education curriculum in impressive time; the overall outcome is selftaught children through an initiative that could easily find its way into the educational system within Qatar.
- Primary school children in Montevideo carry their own laptops as part of the One Laptop per Child initiative. -
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INDUSTRY FOCUS – EDUCATION A breakout session focusing on the need for higher education for a sustainable world highlighted propositions of inclusivity within societies, even at tertiary levels. Doctor Bonaventure Mve-Ondo, vice rector of partnerships at the Agence Universitaire de la Francophonie (AUF), said that four factors affecting higher education within the hopes for an increasingly inclusive society are demographics, economics, culture and industrial elements. Within the demographic concerns is the population explosion the world has seen during the past decade, developing countries capabilities and increasing numbers of older adults in tertiary education. Within industrial fears are the nuclear and technological developments of the 21st century. Mve-Ondo, who believes cultural trepidations are the most concerning, pushed for societal solidarity in multilingual nations that have seen increased threats arguably through the surge of globalisation. The question remains, how can pluralistic values be implemented in different societies, in Qatar in particular, and sustained for the sake of future generations to come?
The state of Qatar is fortunate to have the leadership and economic stability to enable positive ventures into education. Professor Lizbeth Goodman, founder and director of SMARTlab Digital Media Institute, also supported the platforms of pluralism and sustainability within technological innovation for education. The ‘My Tobii’ eye-gaze system created by SMARTlab enables people, who suffer from muscle crippling diseases, such as cerebral palsy, to express themselves through technology. By simply directing their eyes to certain musical notes or words on the ‘My Tobii’ computer screen, expression of emotions, thoughts and the facilitation of education are possible. Goodman believes the biggest problem within the use of technology in education is sharing. “Getting the world to share what already exists…breaking down the boundaries between companies and different sectors and actually collaborating is key for development.” Goodman said.
“Half of the 6000 languages spoken worldwide will disappear by the end of the 21st century.” - Doctor Claudie Hegnere, president, Cite des Sciences et de L’Industrie, former Minister Delegate in charge of Research and New Technologies of France.
- Tertiary education students march against the rising costs of education – an increasing and global problem that hampers equality within education. -
“Education is not the filling of a bucket, but the lighting of a fire’ – William Butler Yeats.” - Stephen Cole, senior presenter, Al Jazeera English, former presenter Clock Online, BBC.
- Bernard Lama, former French footballer is one of the many leading sporting personalities that actively supports global education initiatives for all. -
INNOVATION
Mike Gibbons, chief executive of the Richard Rose Federation in the UK, has a reputation for excellence in education. Gibbons believes the biggest misconception surrounding innovation is its misapplication as a means to bridge gaps in the educational system. Additionally, he believes too much focus has been placed on the content and processes within education rather than on outcomes. By losing sight of the outcomes, Gibbons says the education system has also lost sight of its ultimate goal: Educating the people in question to the best of their abilities. 64
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The vision is collaboration with big gaming companies through integration of technologies such as the eye-gaze system into core systems of Sony’s PlayStation or Microsoft’s Xbox. This enables provision of these 14,000-pound methodologies to those in need of special education for the cost of the Xbox or PlayStation alone. Qatar is in a sound position to undertake such costeffective and cooperative educational methods due to the stable investment environment, and can do so by encouraging key companies to bring innovation to the local landscape. In a separate interview with Werner Knoblich, general manager of Red Hat for Europe, the Middle East and Africa region (EMEA), he applauded the growth of Qatar’s education system and volunteered his perspective on integrating open source technologies into learning facilities. Doing this, he claims, will give students the chance to contribute to their own learning. By allowing students and educators alike the chance to adjust, volunteer and commit to open source systems within their respective schools, the same concept of sustainability and pluralism can be introduced. The implementation of innovative applications in education will deliver a change in favour of the greater good in education, locally and world-over.
how-to SECTION guide
SEPTEMBER 2009
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HoW-to Guide
PROTECTING YOUR BUSINESS FROM DISASTER AND EMERGENCY You do not usually hear about the local businesses that go under because of terrorism and earthquakes, but it is not uncommon for companies to fail after such catastrophes. Businesses located in disaster-prone areas are at a higher risk for certain natural disasters. Such companies should carry more coverage and carry specialised insurance to address those risks, but all businesses are vulnerable to accidents and emergencies. The best way to deal with uncertainty is to carry enough insurance and to be prepared. In addition to carrying business interruption insurance, an extremely important component of an effective risk management plan is being prepared to respond quickly to an emergency or a disaster. Being prepared does not mean having a few gallons of water tucked away in the back of the office, nor does response mean returning to your office to inspect the damage after a disaster. It means having a plan in place that ensures you can continue to conduct business immediately after a disaster or emergency strikes. Take steps to develop plans for recovery in the event of a business disruption or a complete interruption. First, carefully assess your critical business functions. Consider which parts of your business can sustain a prolonged interruption. If you can afford to put all functions on hold and potentially lose customers, you may be able to survive a mild emergency. But many businesses cannot — a mild or severe disruption in normal business may have disastrous effects on the future of the company. The following questions will help you develop a comprehensive recovery plan. • What provisions have been made for protecting the physical safety of your employees? • Do you have a crisis management team? • Where will you set up a command centre if your offices are not available? • Who will perform damage assessment and who is qualified to declare a state of disaster for the company? • What provisions have been made for resuming computer operations? • Have you identified and prioritised critical applications? • Does each job function in your company have a primary and secondary person assigned to perform its critical duties? • Are copies of vital records and legal documents stored safely offsite? • Where are the most recent employee telephone lists stored? How about key vendors and critical customers? How quickly can you contact these people? • Have you defined an alternative recovery site? How large a facility will you need? 66
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PREPARING AN OFFICE EVACUATION PLAN It is easy to dismiss the need for an office evacuation plan until a disaster actually strikes, but then it can be too late. And it is not just large-scale disasters like floods, earthquakes and terrorist attacks that require preparedness. When was the last time your office staff practiced a basic fire drill, or discussed what to do should a fire break out in your building? Fortunately, it takes relatively little time and money to draw up a basic, potentially life-saving evacuation plan. Start by expecting the worst, and take the following steps to fully prepare your office for an emergency: • Recognise potential disasters and prepare for them • Prepare basic evacuation plans • Assign responsibilities • Gather needed resources • Train staff with periodic drills
identify potential disasters
Successfully carrying out an emergency evacuation requires teamwork and flexibility, in addition to a well constructed plan. This goal is more easily reached when all members of the team provide input in the development of a plan that works. Survey employees to find out about their priorities in emergency situations and what disasters concern them.
prepare basiC evaCUation plans
Evacuation plans are essential regardless of the size of your company. For a small company in a modest-sized building, emergency evacuation might be as easy as heading out the back door. But if you are in a larger office building, you should turn to your building management for evacuation directions. Your building manager will be able to tell you what routes to take in case of a fire, and which to take in case of an earthquake, terrorism, or other threat. Before a disaster occurs make the following preparations: • Designate an evacuation route. • Identify a location to meet after the evacuation. • Post the evacuation plan (including floor plan with locations of fire extinguishers). • Periodically inspect fire and extinguishing equipment. • Hold periodic evacuation drills. • Assemble an off-site necessities kit.
assign responsibilities
Assigning responsibilities for key roles during a disaster evacuation will ensure that your evacuation plan runs smoothly when stress levels are high. Key responsibilities common to most disasters will include: • Evacuation coordinator — This person handles the checklist to ensure that all-important steps are being taken. • Head checker — Ensures that all office members are accounted for. If possible, a head count should be done before employees exit the building, and again after everyone has convened at the designated off-site meeting point. • Emergency first aid practitioner — Be certain to have several office members on staff who are skilled in first aid, as they will need to tend to any wounded until a licensed medic
can arrive. If you do not currently have anyone on staff with these skills, send some volunteers to a training program. • Alert manager — This person calls 999 to alert emergency services when a disaster has occurred, closes office fire doors, and turns off the gas lines if an earthquake has struck.
gatHer needed resoUrCes
If you are planning for a fire, you will need fire extinguishers, flashlights, and fire blankets. Earthquakes require earthquake kits that include fresh food and water. And all disasters call out the need for a well-stocked first aid kit. Imagine doing everything you can to prepare for a disaster and when it eventually arrives the fire extinguishers no longer work, batteries are dead, structural changes to your building mean the evacuation route has changed, important medications have not been updated, and so on. Things change. Whatever disasters you are preparing for, make sure your supplies are on hand, well stocked and up-to-date by checking them at least once every six months.
praCtise, praCtise, praCtise
Training staff with periodic drills is key to a successful evacuation. Through repetition, employees are better prepared to find their way out of a smoke-filled room, and those with responsibilities are more likely to remember what they have to do. Practise and review your office’s evacuation plan for all the potential disasters you have identified at least once every two months.
offiCe evaCUation evalUation forM
Date: __________ Time: __________ Were employees evacuated promptly, safely, and without undue panic? Was the pre-planned evacuation route used? Did the staff meet at the designated off-site location? Was the evacuation route adequate? Was the plan effective? Was the fire department alerted (in simulation)? Were the office doors closed?
vital reCords need proteCtion
Of course, preparing for a disaster at the office does not only mean protecting the welfare of your company’s most important asset, its employees; it means protecting vital information as well. Therefore, identify records essential to your business operations and store copies offsite. Implementing a records management programme, including a computer data backup system, will help ensure that when a disaster strikes, all information will not be lost. Part of this programme should entail developing a policy for creating an alternate or emergency location from which you can perform the critical functions of your business should you be unable to access your business facility. Ensure that all members of your staff understand these policies, including their individual responsibilities, before a disaster occurs. DECEMBER 2009
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TIPS ON TRAINING STAFF SAFETY OFFICERS Well-trained safety officers make dealing with office disasters easier and safer. Your safety officers can help you organise and implement your disaster evacuation plan and ensure that when a disaster strikes, your employees will know where to go and what to do. Training safety officers is a way for businesses to formalise the safety process by selecting a group of employees, who are responsibility for office safety. Each member should be given responsibility for a specific task. If the office is large, break this person’s area of responsibility into one specific area of the office. Following are some tips for appointing safety officers: • Choose an able leader. Select a responsible, organised person, who pays keen attention to detail to oversee and coordinate the safety squad. Everything must be considered in advanced to ensure an evacuation plan will work smoothly when it comes time to implement it. • Decide the safety officer’s areas of responsibility. What do the safety officers deal with besides natural disasters? What about medical situations, fire prevention, and general office safety? • Designate member responsibilities. Know who is in charge of what and make sure every position has a backup person to fill in if needed. • Hold practice sessions. Draw up plans and implement practice sessions for the office evacuation and shelter-in-place plans. Delegate responsibilities for who will handle what. • Disseminate safety information companywide. Use e-mail, handouts, posters, and newsletters to communicate safety issues to the rest of the office. Promote preparedness throughout the company.
fire safety
Fire is the most common disaster that strikes businesses. Here are some of the ways to protect your office: • Have your office inspected by a fire safety inspector on a regular basis. • Install smoke alarms and fire extinguishers, and check them regularly.
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• Draw up and practise your fire evacuation plan. • Post-emergency numbers in prominent areas. • Remove fire hazards from the office, such as electrical outlets with too many plugs, damaged power cords, blocked or locked fire exits, or improperly stored combustible materials.
MediCal eMergenCies
Medical emergencies in the office come in many forms, depending on your employees and the nature of your business. Your safety officers can be prepare to handle medical emergencies by: • Becoming certified in CPR. • Understanding how to use each element in your office’s first aid kit. • Being aware of specific employees’ special medical conditions as well as where their medication is kept. • Having access to employee emergency contact information.
tecH tools
James McCarthy picks the best gadgets to hit the market this month.
AUDIO VISION There are two accessories that are an absolute must if you live in Doha: A pair of good, designer shades and a Bluetooth headset for your constantly ringing mobile phone. If only there was some way to combine the two. Fortunately for us, the experts at American- firm, TriSpecs, have done this, crafting a gadget that is functional and fashionable. Like something out of a James Bond movie, TriSpecs blend designer sunglasses, stereo headphones, and Bluetooth headset functionality, connecting you with your mobile phone and music player in the coolest, most portable way possible. The sunglasses’ arms carry controls that allow users to switch between voice communication and stereo audio. High-quality stereo music is streamed wirelessly and if a call is received while listening to music, the song is paused so the wearer can hear the preset ring tone. The incoming call can be answered or ignored and the song is then resumed without missing a beat. Retractable ear buds mean that the TriSpecs enable discreet music enjoyment and stereo phone calls, while also providing an easy power-up solution – pull one out and the device is on and ready to go. www.trispecs.com
STAY ‘EN’ THE LOOP Sanyo is launching its mobile phone device the ‘eneloop stick booster,’ in Japan this month, with worldwide distribution to follow soon. It is a stick-type power source that can be carried easily to charge your mobile, iPod and other portable devices while on the go. Using a USB connection, the enloop stick booster provides a steady charge to devices that require high current, such as the iPhone, by regulating the charge current sent to the device. The ‘handy power source’ has a slide switch to turn the charge output on and off. With a diameter of less than two centimetres, and weighing just 76 grams with batteries installed, the slim and lightweight design makes it perfect for business and leisure travel, or when stuck in traffic along Qatar’s Salwa Road. Sanyo claims that the new ‘eneloop’ batteries can be recharged up to 1500 times and are easily replaceable. www.sanyo.com
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TECH TOOLS
We propose a Toast Your palm personal digital assistant (PDA) uses secure digital (SD) memory, your camera extreme digital (XD) memory and your phone Sony Memory Stick; it is hardly synchronisation at its best. Flash memory comes in many shapes and sizes, and different platforms are supported across a plethora of devices. This is why, hanging out off the back of your computer, you have a jungle of USB connectors or a multi-card reader that never quite works with the varying formats you use. But this could all change now that Dutch company, Boynq, has released a flash card reader that goes beyond the norm. The Toastit is the first seven-in-one-memory card reader that looks like a miniature toaster. After pawing lovingly at the sleek retro toaster design, with its shiny finish, you will realise it is a very cool desktop tool. The unit uses USB 2.0, promising a data transfer rate of around 480 megabytes per second (Mbps). As far as formats go, you can burn data from every single type of memory stick or card. With its range of options, and capacity to store various data files, the toast provides more value for money that other flash drivers. www.boynq.com
Best paq your iPaq In the halcyon days when business people carried both PDAs and mobile phones, the iPaq (pocket PC) was among the pantheon of essential technology tools, vying for market share with Palm’s Tungsten series and Sony’s Clio. The new age of ‘smart phones’ has all but made these pocket-processing products obsolete. But rather than consign the brand to history, HP has shifted the iPaq platform to take on the Blackberries and Nokia N95s, with its new iPaq Data Messenger. Now a 3G phone, the iPaq offers a large 2.8 inch touch screen display, slide-out alphanumeric keyboard and GPS system, as well as full email and Internet support. Loaded with Windows Mobile 6.1 Professional Edition, the device features a 528-megahertz (MHz) Qualcomm processor and supports both Tri-band Universal Mobile Telecommunications System (UMTS) and Quad-band global system for mobile communications (GSM). The 3.6Mbps high-speed downlink packet access (HSDPA) wireless connectivity, Bluetooth V2.0 and 802.11b/g wireless local area network (WLAN) support ensures data connections are fast, secure and stable. If a picture says a thousand words, then the 3.1 megapixel iPaq, with autofocus five-times digital zoom and integrated light emitting diode (LED) flash is more than up to the task. Packed with applications like Google Maps, Opera web browser, Streaming Media Player and WorldMate global positioning software (GPS), this iPaq is well worth packing in your pocket. www.hp.com
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LIFE & STYLE TECH- SPORT TOOLS
D N I W E M I LS O S A T S E G OUR Y N I This month, TheEDGE winds the spinnaker, hoists the mainsail and takes to the high seas of the Persian Gulf.
Picture it: Instead of staring blankly at that spreadsheet you should have finished an hour ago, you could be sitting proud at the prow of a sail boat, skimming over the waves of the crystalline Persian Gulf. The wind blows through your hair while the cooling spray of ocean brine flecks your face. This need not be just another office daydream. The Qatari are natural seafarers, relying on the power of the pearl to sustain their economy long before black gold became the currency of choice. With the fantastic weather, beautiful coastline and top-class facilities, it is well worth ‘going native’ and immersing yourself in what could arguably be described as one of the major national pastimes. So why not cruise around the Corniche to the Doha Sailing Club on Ras Abu Aboud Street, nestled between the Marriott and Oasis Hotel, at the weekend? The club, founded in 1959, is authorised by the government and affiliations held with the International Sailing Federation (ISAF). It is also governed by the RYA (a UK-based body for all forms of sailing), as well as the Optimist Class, Laser Class and 470 Class International Associations. Membership is a multi-national affair, with a host of services available in addition to boat hire and the promise of friendly racing. The clubhouse offers a member’s lounge, library and coffee bar, as well as beach facilities and a full social programme throughout the year, even during the off-season between July and August. In February 2010, the club, in conjunction with Qatar Sailing Association, plays host to the 18th Qatar International Regatta, better known as Sail the Gulf. The regatta runs from February
16 to 20 and registration closes on January 1. If you fancy some ‘cut and thrust’ in the sparkling seas of West Bay, then entry to the regatta, which races the aforementioned optimist, laser and 470 class dinghies, costs QR364. If a holiday pedalo ride in Europe is the closest you have come to sailing, some guidance to find your sea legs might be required. It is certainly recommended for anyone considering participating in a dogfight on the deep blue with more experienced sailors. Entering the Regatta Sailing Academy is one way to stretch your sea legs. Based in the Sailing Centre at the Intercontinental Hotel near West Bay Lagoon, the academy is run by Mike and Christine Lawton and offers professional sailing instruction by RYA British-qualified staff. The academy caters for all ages and competence levels. So, whether you are a leering landlubber, who only gets wet in the bathtub or an intermediate to advanced sailor looking to improve your existing skills and learn new disciplines, help is at hand. Prices vary, but a 10-hour, privately tutored course will cost just QR2000. Regatta does not just limit its courses to dinghies, either. The sailing school also provides yacht and catamaran courses, as well as additional essential skills such as coastal navigation. Once you are accomplished in steering your dinghy alongside the white horses of Qatar’s azure coast, you can take up a membership at the Doha Sailing Club for QR1200 (QR600 for membership and a QR600 deposit in case of any damage to the boats) a year. For quality time with the brood, you can pay a little extra to gain family membership. NOVEMBER DECEMBER 2009
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OPTIMIST CLASS An Optimist Class boat is a small, singlehanded sailing dinghy intended for use by children up to age 15. Nowadays, a majority of boats are constructed from fibrereinforced plastic, although classic wooden boats are still built. LASER CLASS The International Laser Class sailboat, also called Laser Standard and the Laser One, is probably the most popular small, singlehanded sailing dinghy. The craft may be sailed by either one or two people, though the former is more common. This form of sailing owes much of its popularity to simplicity, with the robust boat easy to rig and sail. 470 CLASS The 470 is a double-handed, monohull dinghy, which name refers to boat’s length in centimetres. It is a popular class of dinghy among individuals and sailing schools, offering a good introduction to high-performance boats without being excessively difficult to handle. However, it is not designed for beginners and most sailors get substantial experience in a more stable and less demanding dinghy before sailing a 470. The 470 have been an Olympic-class sailing boat since the 1976 games.
Regatta Sailing Academy PO Box 18104 Tel: +974 550 7846 www.regattasailingacademy.com Qatar Sailing and Rowing Federation PO Box 23515 Tel: +974 4420 305 Email: qatarsailing@yahoo.com Email: info@qatarsailing.org
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LIFE & STYLE - LIFESTYLE TOOLS
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hange C A
Time, as they say, is changing. Ralph Lauren was best known for many things in its day, from polo shirts to pristine suits. It is fair to say the company has sewn itself into the fashionable society’s fabric. One domain where the esteemed institution has previously dared not tread is timepieces. But in collaboration with Richemont, one of the world’s best-known, Swiss-born luxury goods companies, Ralph Lauren has officially set its hands on the horological scene. Using the finest materials, like 18-carat white or rose gold and platinum with diamond embellishments, the label does not do anything by halves. Each piece from the Stirrup, Slim Classique and Sporting collections taps into the classically aesthetic image that Ralph Lauren has pushed for years. Our personal favourite is the Slim Classique, quite simply because its sleekness is modern yet timeless. Each is 42 millimetres (mm) diameter, with 5.35 mm-thick face glints and the detailed workmanship of handmade guilloché intricacy, causing a completely mesmerising optical effect. Delicate and simple, it is the small touches that set the Slim Classique apart, as each tick of every tock is festooned with a black diamond encrusted crown and an original guillochage bezel. Completing the look in textured night is the black alligator band, which pulls everything together in a classic Ralph Lauren way. www.ralphlauren.com
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Life & style - LIFESTYLE TOOLS
Samso
T H G -M I
There are few elements in life that perfectly merge when fused together, like hydrogen and oxygen. However, there are others that do not so readily make sense, like the merger between motor sports and luggage. Of course, if the partnership between McLaren and Samsonite has proven one thing, it is that these two worlds are perfect for each other. Inspired by the Vodafone McLaren Mercedes Formula One (F1) team, the fall/winter Samsonite Black Label suitcase line is sure to make for a smoother voyage. Not only is the new case as sleek and cool as the cars it emulates, it also contains in its own chassis much of the same levels of endurance that differentiates an F1 car from a Ford pickup. The two wheels have their own suspension system, which helps when traipsing across uneven ground. The durability and handling have been hand-tested by the McLaren team themselves; if you have ever seen them handle the tarmac during a test drive, you know what this entails. Let us just say, they do not go gentle. For a speedier getaway this holiday season, look no further than Samsonite. www.samsonite.com
eVents/conFerences
Med-it tUnis 9 – 10 December, Parc des Expositions et Centre de Commerce International, Tunis, Tunisia This annual event encompasses a range of business meetings regarding Information Technology. Key attendees to the event will include international professionals and decision-makers working within the IT sector. This year, particular focus will be placed on the data processing and software sector and the ever-expanding telecoms and Internet operator sectors. The exhibition will span other African cities next year, including Algeria and Casablanca in May and November respectively.
Qatar HealtH 2009 12 – 16 December, Doha Exhibition Centre, Doha, Qatar Set to be the largest and most influential medical congress and exhibition ever held in Qatar, Qatar Health 2009 is a must for all professionals working in the healthcare sector. Exhibitors will include international names in healthcare technology, services and the latest innovations from medical equipment manufacturers. Each day of the event will feature different activities, the first being the exhibition itself and the second encompassing the congress.
global CertifiCate in Meetings and bUsiness events ii 13 – 17 December, Ritz-Carlton, Doha, Qatar Meeting professionals International (MPI) is hosting its second round of training sessions for professional working as project managers in the business conferences and events industry throughout the region. The globally recognised certificate programme focuses on the execution and application of meeting and event core logistics in project management, destination and venue management, meeting and business event logistics, project budget, contract evaluation and negotiation. These certificates are critical for the expanding events organisations in the GCC.
Cairo investMent forUM 14 – 15 December, Semiramis Intercontinental Hotel, Cairo, Egypt The fourth edition of the investment forum marks a critical calendar date for financial bodies throughout the region. The forum will focus on the Arab world in the wake of economic crisis. Additionally, it will highlight the need for investment in small and medium-sized enterprises, making it ideal for regional and international banking, investment and business leaders.
kUwait international petroleUM ConferenCe and exHibition 14 – 16 December, Kuwait Hilton Resort, Kuwait City, Kuwait The third Kuwait International Petroleum Conference and Exhibition (KIPCE) will attract top officials and key industry icons from in and around the region. During the three-day event delegates will discuss and learn about various topics in a multi-discipline technical programme. Run in conjunction with the exhibition, the conference is aimed at disseminating the most recent and updated technological advancements, and is therefore considered a must attend event in Kuwait.
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eVents/conFerences
skyline libya 14 – 16 December, Tripoli International Fair, Tripoli, Libya This key exhibition is the first of its kind for international architecture and real estate. The event aims to introduce modern construction methods and techniques into the industry in Libya and help international developers with the exchange of revolutionary ideas within the broader industry. Architects, designers, real estate managers and government authorities are encouraged to attend the event. Coverage will span residential and commercial architecture and real estate concerns.
CoMMtel 14 – 18 December, Jeddah Centre for Forums and Events, Jeddah, Saudi Arabia A key event for both commercial and residential business consumers of information technology, CommTel will offer hardware and software solutions from the leading suppliers regionally and globally. The event will present a bevy of the cutting-edge technologies as well as the latest products being offered in the market. New to the event this year is the introduction of mobile phone technology.
arab international e-toUrisM and e-Marketing ConferenCe 14 – 18 December, El-Gouna, Red Sea, Egypt This is an initiative aimed at spreading awareness and giving support to the fields of e-tourism and e-marketing. The event will be divided into a range of seminars, workshops, a scientific workshop and a travel and tourism awards ceremony. Attendees expected, as per the first conference last year, are key decision makers and operators in the tourism industry. They include tourism ministers, leaders of international tourism ministers and hotel management, tourism website owners and adding its support to the event will be a team from Google.
Citexpo – afriCities 16 – 20 December, Marrakesh Palais des Congres, Marrakesh, Morocco Every three years, the CITEXPO exhibition takes place alongside the Africities Summit and involves the unique meeting of the African local governments and the international community. During the five-day event, CITEXPO will receive a footfall of around 5000 delivering practical solutions to the needs of both the private and public sectors. Acting as a showcase of products, services, investment, expertise and best practices, CITEXPO provides a platform to build relationships with African political and international business leaders for organisations and companies from various vertical sectors.
egyCoat 18 – 21 December, Cairo International Fairground, Cairo, Egypt The second edition of the Egyptian coatings and chemicals exhibition will draw together professionals from a host of Arab and European nations. Representatives of state bodies, head decision makers and key delegates are expected to attend. The latest innovations in building materials and supplies, including paints, varnishes, packaging materials and tools and equipment, will appeal to engineers, architects and furniture manufacturers.
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DECEMBER 2009
CONSTRUCTION & TENDERS
QATAR PROJECTS UPDATE JOINT QATARI-FRENCH PETROCHEMICAL VENTURE Qatofin, the joint venture between Qatar Petrochemical Company (QAPCO) and French petroleum group Total, inaugurated a US$1.2 billion (QR4.3 billion) polyethylene plant at Messayid south of Doha late last month. Energy minister Abdullah bin Hamad Al Attiyah told reporters during a press briefing that the new facility had an annual production capacity of 450,000 tonnes of polyethylene and 422,000 tonnes of ethylene. Qatofin, created in 2002, is 63 percent owned by Qapco (Qatar Petrochemical Company), while Total controls 36 percent and Qatar Petroleum one percent. Al Attiyah said the flagship venture was part of the state’s continued achievements within the petrochemicals industry. Qatar harbours an average of 25 trillion cubic metres of natural gas reserves – the world’s third largest reserve.
ARCHITECTURAL ENVIRONMENT PACT SIGNED An agreement of cooperation to collaborate on the design, planning and overall quality of the architectural environment of Qatar was signed by Qatar University (QU) and Dohaland last month. Under the terms of the agreement, Dohaland is to establish a faculty chair professor in the field of architecture at the university’s College of Engineering under the banner ‘Dohaland chair in Architecture’. The position will run for a two-year period during which time the appointed will develop a research programme in the fields of architecture and urban design. This will be done in a bid to construct a cohesive urban cityscape for the capital. The chair will offer a platform for discussions on traditional architecture in the region, its context and elements, and put it in a modern perspective. The objective is to aid in the development of a sustainable architectural language that reflects the local needs and aspirations of Qatar, while helping to advance the dialogue around the wider issues of sustainable and culturally relevant development regionally and globally. The chair faculty will also provide technical consultation, representing QU in Dohaland, with regard to planning, spatial regeneration and design for sustainable communities. Qatar PHASEs OUT OVERHEAD POWER LINES All overhead power cables across Qatar are set to be phased out by Qatar General Electricity and water Corporation (Kahramaa). Work is already underway to replace overhead power lines with underground cables – several residential areas around the Doha are in transition. The bulk of the work so far has been carried out in Gharaffa, with underground cables now replacing the previous 132-kilowatt overhead power lines. Officials said many similar projects were in development where high-tension power lines, linking several industrial and residential areas, were being replaced with the underground cables. DECEMBER 2009
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CONSTRUCTION & TENDERS
MANPOWER SUPPLY-215 Description: Need for two storekeepers and four material handlers for the off-call basis of a petroleum company. Closing Date: December 20 Client: Qatar Petroleum (QP) Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http://www.qp.com.qa Tender No. LT09111000 Bid Bond: QR20,000 Tender documents can be obtained from: Contracts Department – Operations Division, Qatar Petroleum, Royal Plaza, G Wing, 4th floor, room G13.
HEALTHCARE CENTRE CONSTRUCTION PROJECT-4 Description: Construction, completion and maintenance of primary healthcare centre for a public works authority. Closing Date: January 12 Client: Public Works Authority – ASHGHAL Qatar Phone: (+974) 495 0000 Fax: (+974) 495 0999 Email: info@ashghal.com Website: http://www.ashghal.com Tender No. PWA/GTC/050/09-10 Bid Bond: QR1.2 million Tender documents can be obtained from: Contracts and Engineering Business Affairs Section, General Tenders Committee, Public Works Authority (Ashghal).
QATAR TENDERS
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DECEMBER 2009
INDUSTRIAL EQUIPMENT MAINTENANCE Description: The execution of regular maintenance of waste skips, cargo skips, cylinder racks, lifting tackles, steel pallets and offshore cargo containers on a call-to basis for the petroleum company in question. Closing Date: December 13 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http://www.qp.com.qa Tender No. LT09110400 Bid Bond: QR60,000 Tender documents can be obtained from: Contracts Department, Qatar Petroleum, Royal Plaza, G Wing, 4th floor, room G11.
construction & tenders
EXHIBITION STANDS PROJECT-2
PHOTOGRAPHY SERVICES
AIR-CONDITIONING UNITS-3
Description: Engineering, procurement, installation and construction (EPIC) of exhibition stands for Qatar Petroleum’s career fair. Closing date: December 14 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http://www.qp.com.qa Tender No. ST09105600 Bid Bond: QR25,000 Tender documents can be obtained from: Contracts Department, Qatar Petroleum, Royal Plaza, G Wing, 4th floor, room G11.
Description: Providing photography services to a petroleum company on a call-to basis. Closing Date: December 20 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http:// www.qp.com.qa Tender No. LT09110800 Bid Bond: QR50,000 Tender documents can be obtained from: Contracts Department/ Corporate Division, Royal Plaza, G Wing, 4th floor, room G11.
Description: Need for supplying and installation of central package airconditioning units and associated equipment at different buildings for a petroleum company. Closing Date: December 13 Client: Qatar Petroleum (QP) Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http://www.qp.com.qa Tender No. LT09110900 Bid Bond: QR50,000 Tender documents can be obtained from: Contracts Department – Operations Division, Qatar Petroleum, Royal Plaza, G Wing, 4th floor, room G13.
AL KARANA SEWAGE LAGOON MAINTENANCE PROJECT Description: Maintenance of existing Al Karana sewage lagoon, sized two by two kilometres for a public works authority. Closing Date: December 7 Client: Pubic Works Authority – ASHGHAL (Qatar) Phone: (+974) 495 0000 Fax: (+974) 495 0999 Email: info@ashgal.com Website: http:// www.ashgal.com Tender No. PWA/STC/036/09-10 Bid Bond: QR12,000 Tender documents can be obtained from: Contracts Affairs Department, Pubic Works Authority.
QATAR TENDERS
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SUBSCRIPTION
SUBSCRIPTION FORM 2009 TheEDGE is Qatar’s new monthly business magazine. TheEDGE incorporates a mix of industry news and analysis, in depth features, special interviews with key business decision makers, economic insight and market activity reports, and tips for how you can improve your day-to-day business operations. TheEDGE will not be available on the news stands, but will be delivered straight to the door of the targeted business community. To ensure you keep up-to-date, with what is happening in Qatar’s business landscape, fill in the subscription form (below) to receive TheEDGE on a monthly basis. Subscription is FREE (in Qatar). Forms are to be addressed to the Subscriptions Department at: TheEDGE Subscriptions Department Firefly Communications 11th Floor, Jaidah Tower PO Box 11596 Doha, Qatar
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DECEMBER 2009