The Edge - Feb 2010 (Issue 7)

eDItoR’s LetteR

FROM THE

EDITOR

THE URBAN IMPACT

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 Charbel Najem 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

As the global population has moved away from a rural past toward an urban future, there is call for concern and the need to minimise the economic, social and environmental impact that sprawling urban development can generate.

Startling results form numerous studies conducted by UNHABITAT reveal that in 2007-08 a major shift occurred – for the first time in history, more than half of the globe’s population became classified as urban dwellers. By the end of 2020, it is predicted that 60 percent of the world’s population will be living in urban areas.

The number of people living in towns and cities at the end of 2008 was estimated at 3.3 billion. This is expected to grow rapidly and hit five billion by 2030.This megatrend, combined with a rapidly ageing global population and overcrowded cities, will have a significant impact on the way we live.

In most nations, cities generate a majority of the economic activity, ultimately consume most of the natural resources, and produce most of the pollution and waste. Therefore, urban environmental issues, although often over looked, are essential to consider in local, national and global scenarios – neglect of these issues could compromise larger economic, social, and environmental goals in both developed and developing countries.

In Qatar specifically, the country’s population has experienced quantitative and qualitative changes during the past four decades and the affect of rising urbanisation has already taken a significant toll on both rural and urban landscapes, as well as on the country’s natural resources and most notably in regard to water.

While the country’s capital, Doha, embodies a diversity of economic drivers, offers employment opportunities, entertainment and other amenities, as well as advantages in the delivery of education, health, and other social services, the urban pursuits of the city also play a central role in degrading its physical environment and in altering social environments – a city in which 82 percent of the country’s population currently resides.

The country also faces serious issues in regard to transportation. Transportation demand and motor vehicle ownership is concentrated in Qatar’s urban areas, but the state’s demand for alternative public transportation platforms, in line with the current rate of energy consumption and the need to develop alternative energy sources for future transportation models, is growing at a rapid pace.

All of these factors are a primary cause of congestion and local air pollution, which are posing a growing threat to the economic productivity of the country and to its inhabitant’s health.

Further, inadequacies in public transportation in both urban and rural areas contributes to social inequities, for example, through limiting access to employment prospects and other opportunities for those who cannot afford, or do not have access to, vehicles.

However, the country’s leaders say that Qatar is seeking to address these challenges by adopting innovative approaches to urban planning and management that are inclusive and responsive to threats posed by environmental degradation and urbanisation.

Now, and going forward, power players in Qatar, will need to make the critical choices that will ensure not only equity, but also sustainability in the state. Individual cities, like Doha, should not be consider as part of the environmental and societal problems facing the world at large, but rather it should, and must be, part of the solution.

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.

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contents

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Contributors .6.

A brief introduction to the specialised team of contributors, who regularly lend their expertise and insight to TheEDGE.

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.

TheEDGE speaks with key professionals from in and around the region to uncover the latest news on the business front.

In the spotlight: China’s economy .21.

Leen Qablawi takes a look at the rising economic power that is China in the post-economic recession.

MARKET WATCH .26.

Milagros Rojas and Saadia Zahidi of the World Economic Forum discuss the importance of values and ethics in the global economy.

INSIDE EDGE .30.

Rajesh Mirchandani tests the waters of inflation as economic recovery in 2010 threatens its return with a vengeance.

SPECIAL COVER STORY: PLANNING FOR THE FUTURE .34.

Kelly Lewis takes on a special two-part cover story investigating the increasing impact that urbanisation has on the rural and urban environment.

ECONOMIC BAROMETER .42.

Karim Nakhle delves into the realms of the Middle East’s fastest growing business trend: corporate restructuring.

ON THE PULSE .46.

Edward Jameson sets his cautionary gaze on the GCC’s sovereign wealth funds and reports on anticipated change.

GREEN BUSINESS .50.

Sam Pickering steps into the role of the ‘Green Business’ reporter discussing issues related to the environment and sustainability in the Gulf region.

BUSINESS VIEWS – REAL ESTATE .54.

Edd Brookes tackles issues surrounding the Qatar Real Estate market and gives his predictions for 2010.

SPECIAL REPORT – OBG .58.

Daniel Moore explores the strength that Qatar’s Islamic finance sector has shown in the face of the global recession and the advantageous position at which it now stands.

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LEGAL INSIGHT .60.

Clyde and Co’s David Salt and Michael Earley provide insight into the world of insurance in Qatar.

BUSINESS KNOW-HOW .63.

Jane Ashford lends her expertise and gives you the inside knowledge on establishing a business presence in Qatar.

INDUSTRY FOCUS - HEALTH .66.

Reem Shaddad explores Qatar’s psyche and uncovers stagnant issues surrounding local mental health practice.

HOW-TO GUIDE .71.

Kevin Guy provides a set of guidelines to help you find the best financial adviser for your business.

TECH TOOLS .75.

TheEDGE looks at the latest gadgets hitting shelves this month.

LIFE & STYLE .77.

Tennis and travel is on the agenda this month.

EVENTS & CONFERENCES .81.

A round-up of key industry events taking place in February.

QATAR PROJECTS .82.

An update on key projects that are taking shape in Qatar.

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CONTRIBUTORS

Edward Jameson

Karim Nakhle

Senior business journalist Middle East North Africa region

Senior business strategist Doha, Qatar

Karim Nakhle, based in Doha, is a Edward Jameson is business strategist a seasoned business with more than eight journalist operating years experience in out of the GCC. financial advisory, Jameson’s editorial M&A, investor expertise extends to the relations, business construction, logistics development, strategic and environmental planning, corporate sectors. After communications earning an MA in and banking, having Journalism in the worked with HSBC, UK, Jameson traveled KPMG, International extensively throughout Bank of Qatar and Australasia, South National Bank of East Asia, the UK and, Kuwait, in Europe, the most recently, the Gulf Middle East and North region. Throughout Africa. He is a member Jameson’s career his of the Economist work has featured Intelligence Unit, and in numerous global a consultant with leading publications in Standards and Poor’s both print and online Society of Industry mediums.

Leaders. Nakhle has published various market reports, country economic and financial analysis, and thought leadership publications.

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Rajesh Mirchandani

JANE ASHFORD

General manager CEO Dun & Bradstreet Links South, Asia Middle East Doha, Qatar Dubai, UAE Jane Ashford is the Rajesh Mirchandani general manager of is a postgraduate from Links in Qatar and has Indian Institute of been since its inception Management Studies in 2006. During her (IIM-C) and is currently time with Links in responsible for the Qatar, Ashford and South Asia, Middle East has assisted in the and Africa (excluding formation of more South African than 50 limited bloc) operations of liability companies and Dun & Bradstreet. branch offices. Links, a Mirchandani led the Dubai based company, management team offers assistance to responsible for the foreign companies and buyout and creation individuals looking of Dun & Bradstreet to establish a legal South Asia Middle trading entity in both East Ltd. Mirchandani the UAE and Qatar has exceeded Dun & by assisting more Bradstreet corporate than 200 entities with objectives each year of company formation. 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.

Michael Earley

Senior associate Corporate and Commercial, Clyde & Co Doha, Qatar Michael Earley joined Clyde & Co in September 2008 and is based in the Doha office.

Earley is a corporate and commercial lawyer with more than five years’ experience advising clients throughout the Middle East. Earley has advised clients in relation to employment law, company formation and structuring, corporate finance, project finance, IT service agreements, and IPOs. Recently, he gained significant expertise working with the Qatar Financial Centre (“QFC”) and its regulators. Prior to joining Clyde & Co, Michael was an associate at another leading English law firm in its Muscat, Oman office.

CONTRIBUTORS

David Salt

Partner, Corporate and Commercial, Clyde & Co Doha, Qatar

LEEN QABLAWI

Lawyer London, United Kingdom

Leen Qablawi is a London-based David Salt re-joined lawyer specialising in Clyde & Co in March, international finance 2007, having previously law. Qablawi’s core been a partner with the work encompasses firm for 12 years. He is business restructuring based in the firm’s Doha and cross-border office. A corporate and insolvency. Qablawi commercial lawyer, holds a Bachelor of Salt has extensive Arts in Economics and experience advising International Relations on energy projects, as from McGill University. well as a broad range She is a regular of corporate finance contributor for various work. Salt has advised leading publications numerous international on geo-political and companies on ‘setting economic issues. 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 wellrespected figure within the business community and has considerable involvement in the Qatar British Business Forum and British Embassy activities.

SAM PICKERING Edd Brookes Managing director Bluu Green London, United Kingdom

Director – DTZ Middle Editorial manager – East Operations Oxford Business Group Doha, Qatar Doha, Qatar

Daniel Moore

Sam Pickering is managing Director of Bluu Green, a UK and Qatar based sustainability consultancy. Pickering has worked within the construction industry in Europe for a number of years and was most recently chairman of European Sustainability with Watts Group Plc, prior to starting Bluu green in 2009. Pickering is an expert on BREEAM and sustainable construction and has worked on many high profile projects within the UK. He recently attended the QSAS workshop at Barwa Knowledge and will become one of the first QSAS Accredited Green Professionals in early march 2010.

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.

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. Additionally, 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, and a Bachelor of Arts in French from Texas A&M University in the US.

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NEWS

NEWS IN BRIEF US BEEFS UP DEFENCES IN GULF REGION The United States (US) is increasing its military presence and installing new anti-missile systems in Gulf countries ahead of possible new sanctions against Iran, officials said last month.

Anti-missile systems are being installed in the United Arab Emirates (UAE), Qatar, Bahrain and in Kuwait.

Speaking on condition of anonymity, Washington officials said the moves were to reassure Gulf countries that they would be protected against possible military attacks from Iran.

The Obama administration is said to have increased the capability of land-based Patriot defensive missiles in the UAE, Qatar, Bahrain and Kuwait - countries with close military ties to the US. The US Navy is also said to be increasing the presence of ships capable of ‘knocking out’ hostile missiles in flight.

An unnamed official, involved in the strategic planning with Gulf states, told the Washington Post: “We’re developing a truly regional defensive capability, with missile systems, air defence and a hardening up of critical infrastructure.”

“All of these have progressed significantly over the past year.”

The officials stressed the measures were defensive in nature and not hostile, but designed to deter Iran from taking aggressive action in the region.

They also said the new approach was part of a broader adjustment in US missile defence that also includes Europe and Asia.

Details of the strategy have not yet been publicly announced because of diplomatic sensitivities in Gulf countries, which are worried about Iranian military capabilities and are also cautious about acknowledging US protection.

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GULF GAP IN DAVOS BELIES BOOMING SAUDI ARABIA ECONOMY The programme for this year’s World Economic Forum in Davos featured no speakers from Qatar, Dubai or Abu Dhabi in any of the conference’s 230 events – Saudis and four by Kuwaitis, Bloomberg reported, occupied five.

“I think the absence of the Middle East is quite conspicuous… it’s a pity that Gulf involvement is so low,” said Ibrahim Dabdoub, chief executive officer of the National Bank of Kuwait.

Seven weeks after Dubai almost defaulted on US$4.1 billion (QR14.9 billion) in debt, the region as a whole is set to prosper.

Oil prices, which account for 75 percent of the revenue of the six monarchies in the Gulf Cooperation Council (GCC), have more than doubled from their February 2009 low of US$34 (QR124) a barrel.

Saudi Arabia, Qatar and Abu Dhabi are spending US$600 billion (QR2.18 trillion) by the end of 2013 to build roads, railways and new cities while expanding energy and manufacturing.

CHINA AND GCC FINALISE FTA Hundreds of key officials and delegates from Gulf oil producers and China will converge in Bahrain next month to discuss, and move forward in finalising a free trade agreement (FTA) between the two sides.

The symposium in Manama (March 23 to 24) follows recurrent calls by Gulf officials to turn East after reaching a deadlock in their long-standing FTA negotiations with their main economic partner, the European Union.

The conference will be followed by another meeting between the six-nation Gulf Cooperation Councils (GCC) and India in Saudi Arabia.

GAC INKS F1 LOGISTICS DEAL Dubai-based logistics and shipping company GAC, has inked a partnership agreement with Formula One (F1) motor racing team, AT&T Williams to develop cost efficient logistics services for the team.

The deal marks GAC’s first collaboration with an F1 team.

Under the terms of the agreement, GAC will provide efficient logistics support in connection with the company’s F1 freight requirements and oversee the management of the equipment for a global programme that visits 19 different countries on five continents in nine months.

“We are excited to be able to partner with AT&T Williams in their logistics needs. With GAC’s global network, resources and track record in sports and automotive logistics, I am confident we will be well on track to support AT&T Williams in their bid to reduce overall operations costs,” said Bill Hill, GAC Group commercial vice president.

NEWS

QATAR EYES PDVSA REGAS DEAL Qatar may invest US$800 million (QR2.9 billion) in a joint regasification venture with Venezuelan state oil company PDVSA, Khalid bin Mohammed Al Attiyah, Qatar’s acting business and trade minister, told Reuters.

Attiyah said Qatar could take several months to decide if it would move ahead with the regasification project, depending on the outcome of ongoing negotiations with the Venezuelan government and PDVSA.

EU PARLIAMENTARIAN SET TO DEEPEN EU-GCC TIES A prominent Member of the European Parliament (MEP) has called for the European Union to give more attention to the relations with the Gulf and to deepen EU-GCC ties.

“In recent years maybe we have not drawn our attention as intensively to this region as we should have done,” Doctor Angelika Niebler, chairperson for the EPs delegation for relations with the Arab Peninsula, told the Kuwait news agency (KUNA) in an interview.

“We should really have a good and close relationship with this region. I will do everything in my responsibility as chairperson to build up and deepen relations between the Arabian Peninsula and the European Union (EU),” stressed the German MEP. Niebler described the Gulf region as a “very interesting region” and noted that the president of the EP, Jerzy Buzek, was also very eager in building up close relations with the Gulf region.

Niebler will be leading a visit of the Delegation to Kuwait, which holds the current GCC presidency, and Qatar at the end of March to boost relations.

ARAB NATIONS PUSH ON BROADCASTING CENSORSHIP In recent years, backers of he Middle East’s two major satellite giants, Arabsat and Nilesat, have advocated an independent broadcasting regulator in the style of United Kingdom’s (UK) Office of Communications (Ofcom) or the independent United States (US) agency, Federal Communications Commission (FCC).

An Arab League, 22-member Information Ministers, meeting was held in Cairo, Egypt last month to address the problem.

A recent US Congressional Report stated that Arabsat and Nilesat should be considered “terror organisations” and that the satellite operators “incite violence” because of the contentious channels they carry.

Last month Rapid TV News reported that “House law no.

2278, which was passed by the House on December 8, urges the US administration to revise the nature of their relationship and assistance to states that provide satellite service for channels which are considered to incite violence against the US.”

SHELL TO INVEST RECORD INVESTMENT IN 2010 Royal Dutch Shell recently announced its plans to invest a record amount of money on oil and gas exploration in 2010.

Peter Voser, chief executive of Europe’s second-largest oil company, said during the World Economic Forum’s annual meeting in Davos that the energy giant was eager to locate new reserves of hydrocarbons in the next 12 months, Bloomberg reported.

“We need to keep investing throughout the cycle,” Voser said.

The company previously announced that its 2010 spending could total US$28 billion (QR102 trillion). In an interview on Shell’s corporate website, Voser stated last month that the money it had earned from its venture in Qatar would be invested in projects around the world.

NEW BIOFUEL PARTNERSHIP Airbus and Boeing will cooperate on pushing the development and commercialisation of new sustainable biofuels, GreenAir reported.

Airbus is backing a sustainable biofuel project with Qatar Airways, Qatar Science and Technology Park and Qatar Petroleum, while Boeing has partnered with Abu Dhabi’s Masdar Institute of Science and Technology, Etihad Airways and Honeywell’s UOP to set up a sustainable energy research institution in Abu Dhabi and conduct an aviation biofuel demonstration project.

Rainer Ohler, Airbus’ senior vice president for Public Affairs and Communication, said the two rival aircraft manufacturers needed to work together on developing green strategies and aviation biofuels, which are key to meeting the industry’s climate change targets.

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NEWS IN QUOTES & NUMBERS

news in quotes

news in numbers

54

“Should we take more risk, be a creative force for growth, or should we focus on security?”

Deutsche Bank CEO Josef Ackermann told the closing panel at the World Economic Forum’s annual meeting in Davos that the worst of the financial and economic crisis had been managed “quite successfully”, but decisionmakers now had a tough choice to make.

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25

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“Get it wrong one way and we risk a new crisis; get it wrong the other way and we’ll take the steam out of the recovery and reduce the chances of creating new jobs.”

Peter Sands, the CEO of Britain’s Standard Chartered Bank, said during a panel session at the World Economic Forum’s annual meeting in Davos.

“Now the question is, who has the last say in the Middle East? Well, of course, the answer is clear to everyone.”

Iranian President Mahmoud Ahmadinejad said in a press conference in Tehran recently, reaffirming his belief that whoever controls the Middle East controls the world.

“According to the Qatar statistics for the year 2008, more than 17,000 Qatari employees do not hold a general secondary school certificate, a number that represents 25 percent of the total number of employees in Qatar.”

Doctor Aziza Al Saadi, manager at the Policy Analysis and Research Office, said in relation to Qatar’s need to balance its tertiary education with internationally recognised technical training and development standards.

“In the coming five to six years the total investment for Saudi Aramco will be around US$120 billon (QR437 billion)…funding investments for our other projects comes from joint ventures, loans and individual Saudi investors.”

Employment figures across the Gulf Cooperation Council (GCC) look poised for healthy growth in 2010, according to a corporate survey conducted by BAC Middle East.

The survey, including more than 250 individual companies, gathered responses from players in GCC-based companies operating in all the major sectors, ranging from blue chip multinationals to leading local firms and SMEs. The responses indicated that attitudes towards the business environment were positive overall, with 59 percent of respondents describing themselves as “fairly optimistic” about the year ahead, while 31 and five percent, respectively, described themselves as “optimistic” and “very optimistic”.

In regard to the outlook for employment, 54 percent of respondents expected their organisation to undertake some hiring this year, up from 37 percent in 2009, while 35 percent indicated they would “possibly” engage in recruitment in 2010. Only 11 percent of respondents ruled out any hiring in the next 12 months – a significant reduction from 27 percent last year.

Pic Of the month

Khalid Al Falih, Saudi Aramco company’s chief executive told Al Arabiya news channel.

“The transformation of media has not only undermined the imperial institutions of the mainstream media; it has undermined the imperial presidency.”

Ken Auletta, a New York media authority said in relation to the changing platform of news media in the United States.

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– Children work at a Commonwealth Games construction project in front of the Jawaharlal Nehru Stadium in New Delhi, India. Concerns surrounding the construction of the games’ (October 3 to 14) sporting and transport infrastructure has led to an investigation by the High Court of Delhi into alleged failure by the government to comply with the country’s labour laws (photo courtesy of Daniel Berehulak/Getty Images). –

on tHe eDGe

A BULL IN AN ICE RINk What do you get when athletes sporting full ice hockey protection, don their skates and descend, racing-abreast and fighting it out risking everything for the glory of victory, on a slalom course made from ice that is packed with spectacular rollers, belly slides, and a jump ramp over a Chevrolet silverado truck parked on the ice in the middle of the arena? you get red bull Crashed ice. kelly Lewis investigates.

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he sport, making its Qatar debut this month, was first cast into the spotlight in January 2001, in Stockholm and has since been dubbed the “sport for the new century”.

Hundreds of thousands of spectators have been captivated by the events, which have taken place in eight different countries. Even the International Olympic Committee had its eyes on the action – Ice Cross Downhill and Red Bull Crashed Ice. The race involves athletes hurtling down a 400-metre long and about five-metres wide (on average) ice-covered track, leaping over hurdles, jumps and ledges, navigating their way through hairpin turns at speeds of up to 70 kilometres per hour in a bid to reach the finish line.

The sport – which is a symbiosis of downhill skiing, ice hockey and boarder cross – has turned into a huge attraction because of the high-speed action, the managainst-man battles and the spectacular settings in Europe and North America with locations such as Moscow, Prague, Lausanne and Quebec.

While the races have been staged as individual events in the past, 2010 marked the beginning of the inaugural Red Bull Crashed Ice World Championship event.

The first race kicked off last month in the “Eastern Hemisphere” event in Munich’s Olympiapark, which

will be followed by the “Western Hemisphere” event in Quebec on March 20. After qualifying events around the globe, a total of 64 competitors from more than 15 countries will be selected for the two main events.

On February 12 (at Doha’s Gondolania Ice Arena in Villaggio Mall), Qatar plays host to the first Red Bull Crashed Ice event to be held in the Middle East – it also forms part of the qualifying round for Quebec the following month.

To construct the custom ‘Chevy Silverado ice ramp’ in the mid-section of the track, synthetic ice has been brought in from the United States and a special team has spent the last few weeks building and fine-tuning the world championship qualifying course in Doha. With the construction phase now completed, the icemakers are working around the clock to provide perfect racing conditions for the big show.

But this is not where the ‘extreme sports’ ride stops for Red Bull. Throughout 2010, Red Bull will be running a series of sporting events, including a beach soccer event (Red Bull Double Kick) on March 26 at the Intercontinental. On April 23, Red Bull will also host an “extreme and enduring” mountain bike competition in the north of Qatar called the Red Bull Fortress Challenge.

For more details visit: www.redbullcrashedice.com FEBRUARY 2010

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BUsIness InsIGHt – GLoBAL VoIce

VALUES: ELUSIVE REALITY Trust is the backbone of business, and ethics its limbs; these are both at stake today. People have little or no faith left in banks and financial institutions and in such a global scenario, it becomes difficult for business to flourish. Understanding and re-evaluating our way of doing business is an earnest need of these times. Therefore to reestablish faith and trust in the economic system, we need a moral and ethical revival.

By Sri Sri Ravi Shankar, the founder of the Art of Living and the International Association for Human Values – present in 152 countries.

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he system currently lacks proper checks and balances.

The goings-on in Bernard Madoff’s case in New York, the catastrophe with Lehman Brothers and other investment bankers, the burst of the dot-com bubble, the Enron debacle, the untruth perpetuated in the name of Satyam (which means Truth) – these are all cases in point, where an artificial hype was created by manipulating data and people were kept in the dark about what was really happening for a long time.

Greed, in the form of unchecked corruption that has crept even into the judicial system, has dimmed the hope of people. Human values have taken a back seat. Given this as the background, what could be the steps forward?

We have to ensure that honesty, integrity and compassion are encouraged and rewarded.

Along the same lines as a carbon credits system, there could be a points system for corporate social responsibility (CSR) too.

Often CSR is undertaken simply as a showpiece rather than a solution, but proactively promoting human values can bring them to the forefront in any transaction.

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Unfortunately, human beings usually follow ethical and moral values out of fear rather than because they are driven by their own conscience. Although fear of losing one’s reputation is an effective force for ensuring that people do the right thing, following ethical considerations because of one’s conscience has become a rarity.

The implementation of these human values in the corporate programme cannot be just a one-sided affair or just a project for businesses. It has to be developed holistically by including society’s four pillars: its economic establishments, its faith-based organisations, its political institutions and its social sector.

We need to foster a coordinated effort among these stakeholders. If any one of these pillars collapses, the others also become disabled.

Faith-based institutions can catalyse a huge transformation and engender much needed integrity in people.

Social entrepreneurship too needs to be encouraged to lessen the gap between the haves and the have-nots.

As long as people are hungry and do not have access to basic amenities, one cannot expect honesty and integrity.

The opportunity to grow should not

be curbed in any part of the globe and charity should be geared towards growth, rather than perpetuating dependency.

The word dominance has to be replaced with the word cooperation.

History has shown us that while some parts of the world prosper, others start to crumble. Therefore, while India was thriving, Europe was at a low; when Europe was on a high, Asia was down; when Europe and Asia were on the decline, the United States (US) was on the rise; and while the rest of the world is reeling, Brazil, India and China are flourishing.

This was the paradigm of the past, which seems to have continued into the present global scenario, where international borders are porous, and the inter-connectedness and interdependence of countries and regions is obvious.

On the health front, the United Nations has declared that depression will be the second biggest killer by 2020; this disease is already making its presence felt. An estimated 40 percent of schoolteachers in Europe are depressed. In Europe alone, US$113 billion (QR411 billion) is spent every year to tackle mental illness, mood disorders and in particular, depression and its effects.

BUsIness InsIGHt – GLoBAL VoIce

If one-third of the population is mentally depressed, a healthy economy or improved social system can hardly be developed.

Given the rising incidence of physical and mental illnesses and behavioural disorders in society, attempts to establish a robust economy will emulate putting makeup on a corpse.

This is where faith-based organisations and their activities can play a vital role. Over-ambitiousness often boomerangs as depression, which can be countered by self-referral or spiritual values.

When a country becomes stronger, it prefers dialogue to war. Armed conflict between strong nations is a thing of the past.

In the present scenario, guerrilla warfare, ethnic conflict within a nation and squeamish squabbles between small nations are widespread. If every nation is empowered to become stronger, perhaps we can put an end to these conflicts.

Terrorism is another big threat that has dearly cost the economy of every nation. The cause of terrorism is the lack of wisdom. We have done very little to globalise wisdom, to encourage multi-religious education and multicultural activity. Even if a small part of the population in a corner of the globe thinks that only they possess the truth, or only they can go to heaven, and they want to thrust their truth on the rest of humanity, the world cannot have peace.

The clashes of civilisations and religious ideologies have to be addressed; unless they are, peace cannot flourish and consequently neither can prosperity.

For example, in India, 200 odd districts – around one-third of the country – are clogged by Naxalite (Maoist) violence. No businessperson ventures there to start any industry or to trade. These are the poorest regions in the country and the lack of peace translates there into zero development.

Deep-rooted prejudices among communities have to be checked.

It is ironic that even in this progressive age, racial prejudice still exists. In many places, Yoga and other spiritual practices have

remained a taboo for a long time and certain countries have even banned the practice. Gandhian principles of truth and nonviolence are talked of as outdated, even in their place of origin.

Racial attacks happen; not only in uneducated parts of Africa or South-East Asia, but also in countries labelled as developed and advanced such as Australia. The hooliganism experienced in the suburbs of France,

or the conduct of people in Louisiana after Hurricane Katrina, clearly indicate we are sitting on a volcano of volatile human behaviour. This needs to be nipped in the bud, or, as is said in the East: “The seeds need to be roasted so that they don’t sprout.” This can be achieved through our education systems by introducing multi-religious and multi-cultural education beginning in primary education.

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BUsIness InsIGHt – GLoBAL VoIce

The principles of Maoism are not even followed in Russia; but the archaic books of Stalin, Lenin and Mao Tse Tung are being taught as gospel truth to innocent people in Nepal, India and other countries.

Many superstitious beliefs, along with the caste system, have chained India’s progress.

Similarly, there are obsolete practices of inequality between genders in Arab and African countries, which

have caused great angst to women.

Such out-dated practices call for reforms. An ability to work without prejudice of any sort and a readiness to look into the new paradigms are skill sets essential for the modern era.

The present generation seems to have acquired these skills by dropping the biased and conservative mindset of the past. It is time to kick-start enlightened imaginations.

The World Economic Forum’s Global Redesign Initiative is a great idea provided it includes people from every strand of the social fabric. It has to be a collaborative effort of honest politicians, businessmen with integrity, religious leaders with credibility, visionary educationalists, social workers with compassion and clarity and realistic environmentalists as well as people from the entertainment and sports industries.

To implement the action plan, so that it does not remain only on paper, it is essential to create catalysts and train ground-level workers.

This dream is possible to achieve when we rise above our limited mindset of ‘my country, my religion and my people’ to embrace the greater perspective of ‘my planet’.

This editorial was provided by the World Economic Forum as part of its report: Faith and the Global Agenda: Values for the Post-Crisis Economy.

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JANUARY 2010 FEBRUARY 2010

BUSINESS INSIGHT – INFORMATION TECHNOLOGY

AN OPEN SOURCE WITH AN OPEN MIND

Regardless of industry, organisations are always on the look out for the most convenient, professional and most cost-effective solutions possible. In the ever-evolving information technology industry, one name is synonymous with innovation and success within these descriptive bounds – Reem Shaddad spoke with Werner Knoblich, general manager of Red Hat Europe, Middle East and Africa (EMEA) to get the inside scoop on what gives Red Hat the competitive edge.

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15

BUSINESS INSIGHT – INFORMATION TECHNOLOGY

- Werner Knoblich, general manager of Red Hat Europe, Middle East and Africa (EMEA). -

Why is Red Hat becoming increasingly popular with the server and client consumers in the enterprise space within the EMEA? Red Hat is the adoption of Red Hat technology, an open source technology in general. Popularity is increasing out of multiple reasons; on one side, Red Hat offers a significantly better pricevalue proposition than proprietary solutions. The other important thing is it that it offers choice, which is not associated with any vendor lockin. It is 100 percent based on open standards because without adhering to such standards, you cannot develop something in an open source fashion for an open source community. This is especially important these days, when money is tight and as we all know, the economy is still not out of recession – or in some countries it isn’t, at least.

But coming to IT, everybody is still under big cost pressure, so our message of delivering a high value solution for very attractive prices, resonates. We actually want a significant amount of net new customers therefore we are now in the process of signing up with customers that were not customers before; not because they did not appreciate open source prior to the recession, but because there was not enough pressure for them to search for a high value alternative.

Do you feel the economic crisis has worked in your advantage to this effect?

Yes absolutely. Red Hat was first adopted in the mainstream market when the Internet bubble burst in 2001. So it started late in 2000, especially where big investment banks on Wall Street were concerned. They were the first ones adopting Red Hat Enterprise Linux 16

FEBRUARY 2010

[software provided by Red Hat] in their data centres. At that point, due to a crisis caused by a stock market crash and the Internet bubble bursting, they had to lay-off thousands of people.

These banks were sitting on very expensive IT infrastructure and had to do something, to make a real change. In effect, they were the first ones that took perceived risk and moved from UNIX [propriety system] to Linux.

They were successful in this change, but then these customers needed to have 10 to 30,000 servers running completely on Linux. Therefore, the crisis gave a further boost for the need to adopt open source technologies, especially for late adopters. Basically, you always have early subscribers, which then become mainstream and then the companies that were late to take up the technology push into the mainstream, which further encourages the more leisurely adopters.

How do you intend to encourage the take up of open source technology within the oil and gas sector in particular?

The oil and gas sector is a vertical industry where open source technology is already in use. There are highuse cases, especially in oil and gas, where you have big clusters for doing calculations, and particularly when they need to do their seismic graphs, to find out where the highest success would be to drill for oil. That is the most expensive scenario. Where these oil companies do very compute intensive simulations and where you require big cluster solutions, this is where Linux is the best technical solution to run such a big cluster. This is why companies like Shell, Total, Aramco, the big companies in the oil industry all have clusters running Red Hat Enterprise Linux.

Aramco is one of the largest clusters, definitely the largest here in the Middle East, completely running on Red Hat Linux as their operating system for their cluster solutions and doing all these massive calculations.

How is Red Hat proposing to expand its experience in the Islamic banking sector in Qatar?

Firstly, banking generically is alongside telecommunications as one of our two strongest verticals. They go head-to-head – our third strongest vertical is government. So really the financial sector, telecommunications sector and government are the three main important verticals for us, and

BUSINESS INSIGHT – INFORMATION TECHNOLOGY as I said before, our success actually started in the financial sector.

Therefore, it is definitely within banks; investment banks, retail banks and insurance companies, which are all big target bases for us. We have customers around the world in these sectors and clearly, being now in the new region, we for sure have targeted offerings, targeting the local banks as well.

Qatar recently hosted the first World Innovation Summit for Education (WISE). As Red Hat is involved with Vanderbilt University and the University of Stirling in Scotland, do you plan on venturing further into the education sector?

Good question. Education is key for us, especially in countries where often the knowledge is not yet spread, but is widely available in the market. We often try to work with universities where we have specific academic, university programmes; like Red Hat Academy.

This is a specific programme where the university can teach Red Hat courses as part of its regular curriculum. It can educate on how to equip new Linux administrators. Therefore when people leave university there is a course available for this particular field.

In effect, we will definitely work here with it and it is definitely a key point, not the key point for making money, but a way to seed the market.

What are the key facts that potential Qatar-based clients should know about Red Hat? The key to understanding our business model is to realise we are not selling a licence. The licence is zero, cost wise; we are selling added value, built around this free technology and we are providing this on a subscription basis, which means that the exit cost is very low.

We have a motivation to bring a lot of value to the customer in form of excellent quality software, great support, the best certifications, and delivering this on an ongoing basis. If we do not, the customer can very easily exit from the Red Hat Linux sphere and can keep using the technology. So the motivation for us to delivering outstanding service is much higher than for classical proprietary software companies and this is the one of the reasons, I believe that we are successful – customers understand this unique concept and we live by this as our motto.

- The application of open source technology is on the rise in Qatar’s banking and education sectors. -

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BUSINESS INSIGHT – INFORMATION SECURITY

PROTECT YOUR ASSETS

In the digital age where companies face the growing threat of cyber security attacks, the Qatar Financial Centre Authority (QFCA) has taken steps to ensure it stays ahead of the game. Kelly Lewis spoke with Padraic Berry, CIO of the QFCA to find out how the body has aligned itself with international security management practices.

T

o ensure that its standards were inline with international global information security practices, the QFCA embarked on an 18-month information security management system (ISMS) project, which resulted in the authority being awarded the International Organisation for Standardisation (ISO) 27001 certification. The certification covers the scope of IT operations in its two QFC towers located in West Bay, as well as the QFCA’s disaster recovery site.

As the first Qatari governmental body to be accredited with ISO 27001 certified, Berry said it reinforced the QFCA’s commitment to maintaining the highest international standards in its operations and activities.

“As the QFCA holds and processes information relating to its customers, it is crucial that we protect such information from any loss of confidentiality, integrity and availability (CIA),” Berry said.

“It should be pointed out that information exists in a variety of forms and is not limited to information stored on computers. Information is written, printed, stored on mobile phones and even spoken and thus the need to protect it.

“Most organisations have a number of information security controls to protect information. However, without a structured approach, the controls tend to be somewhat disorganised and disjointed – ISO 27001 provides such a structured approach.”

However, as the ISMS is a system that requires continuous improvement and as the cyber world grows more dangerous with new threats, new viruses and organised crime, the QFCA will need to constantly update its processes and procedures to minimize the risk of such threats.

As part of its damage control, Berry said the QFCA would have regular and independent audits.

“To maintain our company-wide compliance we have both internal and external auditing conducted.

We have people, who have been specifically trained in ISO 27001 auditing and so every two or three months we have our internal audits, and every six months we have an external audit completed by the British Standards Institution.”

In maintaining and ensuring that a company’s data is sufficiently protected, Berry said the most important factor was “management support”.

“Our management’s continuous involvement and support has ensured that we have the required resources to implement an ISMS.” “Additionally, everybody in the organisation was trained and now understands that securing and protecting information is the responsibility of every QFCA employee, and not only at the workplace, but also at home.”

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In tHe sPotLIGHt

CHINA:

THE ROAD AHEAD China is no stranger to the economic limelight. For years its impressive growth rates, frequent recordsmashing feats and unquenchable thirst for natural resources have been scoured over by experts and policy makers alike. China’s impressive industrial growth has effectively changed the rules of the game; China makes, the rest of the world buys.

Leen Qablawi investigates the rise of China’s economic power.

IN THE SPOTLIGHT

I

t holds trillions of dollars of United States (US) and European debt and has the moral ease that allows it to deal with any country willing to trade. Of course the fascination with China and the inclination to predict the rise and fall of the Asian dragon are nothing new. However, as the world slowly emerges from a staggering economic downturn and deals with the onslaught of problems ranging from pandemics to climate change, one is bound to wonder if this is China’s decade to finally lay to rest doubts about its ability to sustainably transform and emerge as the engine for global growth.

A NEW BEIJING?

The Beijing of today boastss a juggernaut economy. Even during the recession’s heyday, as the pioneers of the global economy failed to duck the blow, China’s share of world markets soared.

China has ousted Germany as the biggest exporter of manufactured goods and has surged past the US to become the world’s largest automobile market, selling more than 13.5 million vehicles last year with a comparative US figure of 10.4 million.

- China has managed not only to preserve its pace as a fast growing economy, but is careful to actively compete with front global runners such as the United States. -

The Chinese economy also revealed record monthly imports of crude oil and a healthy appetite for iron ore and copper. Its fourth quarter results exceeded the government’s own initial expectations, with a gross domestic product (GDP) growth rate of 8.7 percent in 2009 and a return to double digit growth of 10.7 percent year-onyear – the fastest for two years and a marked increased on the previous quarter’s 9.1 percent.

It is perhaps no surprise that World Bank estimates suggest that China – the world’s fifth largest economy four years ago – will shortly overtake Japan to claim the number two spot.

Yet China is not only growing fast,

it is also taking measures on multiple fronts to preserve its pace.

In the summer of 2008, China reinstituted a hard peg against the dollar.

As the US currency fell against the Euro and the Yen, China enjoyed an artificially low exchange rate, which gave it a cost advantage over its rivals and allowed it to reap the profits of an export-led growth. China has also managed to build a surplus of more than US$2 trillion (QR7.3 trillion), which it reinvested in US treasury bills and other foreign assets that have expanded its reach significantly beyond national borders.

Once the initial hit of the recession began to reverberate, China unveiled a colossal stimulus package of US$586 billion (QR 2.13 trillion) over two years, ordering Chinese banks to kick off with a parallel stimulus offensive in the form of a huge lending drive. The stimulus package was intended to boost domestic consumption to offset the effects of falling foreign demand.

A CONTRAPOSITION

- 2009 proved fruitful for the Chinese iron ore and copper industries, with record monthly imports noted alongside impressive crude oil figures. -

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FEBRUARY 2010

There are a multitude of experts and analysts, who focus on the gloom scenario and point out the case of Japan as the cautionary tale, therefore predicting future pitfalls for the Chinese transformation. Indeed, while government policies have facilitated the rise of the ostensible glory that is today’s Chinese economy, it may all prove costly, and in some ways, it already has.

On the domestic front, the government now fears the inflationary potential of its stimulus measures.

Thanks to frenzied bank lending and speculative capital flowing from abroad, China faces the potential consequences of destabilising asset bubbles, industrial overcapacity and waste from duplicative

IN THE SPOTLIGHT

investment projects. While easy cash may have helped drive a rapid rise in China’s stock and property markets, it is feared that too much money was put into unprofitable projects and bad loans, which will be exposed in a few years.

Yet China has not remained idle, and in recent weeks, Chinese officials acted on several fronts to address the issues. Interest rates have been raised, state-owned banks have been ordered to set aside a larger share of deposits as reserves against failed loans, and the Bank of China ordered its credit officials to freeze any new loans in an attempt to curb overheated, fast lending growth.

As for the global economy’s response, voices are far from muffled, although that should not come as a surprise.

Foreign hostility toward China’s economic strategy is growing.

Nobel laureate Paul Krugman, recently accused China’s policies as being “mercantilist” and its Yuan manipulation “predatory”, as it “drained much needed demand away from a depressed world economy”.

In fact, some are blaming China’s rise for the waning of democracy’s magnetic power. It is argued that China’s growth narrative spreads a message to other sovereigns that a dynamic economy does not need to come at the expense of an easing grip on political power.

Communist Vietnam appears to have taken heed, as it emulates China’s economic reforms, and Iran has not been subtle in its outreach to Chinese legal and economic experts either.

On an economic level, protectionist responses appear to have kicked in, with the Obama administration slapping on exceptional tariffs on imports of Chinese tires and antidumping duties on steel pipes.

India has filed a number of trade complaints against China and thanks to the removal of import taxes under the Association of Southeast Asian Nations (ASEAN), manufacturers in Southeast Asia are concerned that cheap Chinese goods may flood their markets making it more difficult for them to retain or increase local market shares.

From a business standpoint, multinationals are growing in their unhappiness with Chinese government policies. From ‘buy Chinese’ government procurement policies, to growing

restrictions on foreign investment, there is a budding list of obstacles to doing business in China.

Notwithstanding such concerns, China appears to be flexing its political muscle and its obstinacy at the Copenhagen climate talks is testament to this. Moreover, recent official pronouncements on the Chinese economy have had a triumphant tone; contrasting China’s relatively successful weathering of the global recession and the severe downturn that still afflicts Western economies such as the US. Perhaps the real question that should be raised is whether China’s economy has the ability

to keep growing at its current rate? And predictably, the general consensus is that there simply is not one.

ON SUSTAINABILITY

It is argued that concerns over high investment and low consumption are overdone. With an urban population of 47 percent, there could potentially be enormous productivity gains. On this basis, China would do well to build while it can.

Moreover, it should not be long before internal imbalances are corrected as its one-child policy means its population will begin to age, retirees will begin to run down savings and consumption will rise.

- The towering Bank of China in Hong Kong’s central business district symbolises the power exercised in controlling unprofitable loans and fast lending money. -

FEBRUARY 2010

23

IN THE SPOTLIGHT

Investment in public infrastructure represented 38 percent of China’s fiscal stimulus and went towards much needed investment on roads, railways and electricity grids. Such a downpour into the country’s infrastructure is bound to connect villages, facilitate urbanisation and create a stronger platform for its rising consumption.

As for parallel lines being drawn with Japan’s rise and fall, and predictions that China is heading for a prolonged Japanesestyle plummet, many argue that this ignores substantial differences between China today and Japan in the late 1980s.

Put simply, Japan was already a mature, developed economy, with a GDP per person close to that of the US. However, China is still a poor, developing country and has a GDP per person that is less than one-tenth of that possessed by the US or Japan.

It is true that Chinese share prices are nowhere near as volatile as Japan’s were in the late 1980s and that Chinese profits have rebounded faster than those elsewhere. Additionally, China’s property boom is largely being financed by its savings, not bank lending.

On the other hand, contrarians argue that it will become increasingly difficult for China to maintain its current growth and that policies will sooner or later precipitate a major confrontation with the US and Europe.

In fact, it has been noted that two Chinese bubbles are ready to pop, the first being the elaborate creation of naive optimism that the rise of such a huge authoritarian power could expediently slip into the existing world order, without major difficulty. The other, is said to be a bubble economy characterised by excessive lending, overinvestment and overvalued share and house prices.

In the absence of higher exports, it is argued that investment would be left as the economy’s main motor, which itself could result in a dangerous overcapacity. A reckless addition of under-utilised manufacturing capacities could burden banks with non-performing loans.

Also, many experts point to the domestic politics of China and caution that the wobbly and fragile situation should not be underestimated. The mix of fast rising asset prices, with wages that 24

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are hardly budging is pushing further the gap between property owners and property-poor proletariat.

Moreover, the government may not be able to indefinitely rely on economic advance to buy off demands for greater political freedom – the Chinese ‘blogosphere’, which is usually intensely nationalistic, has rallied to Google’s defence in its recent confrontation with the Chinese government.

Another point to consider is that China has the pressure of reducing its carbon emissions, and the increased

consumption of raw materials has fuelled criticism that it is failing to meet its environmental obligations.

Building a global-size economy is one thing, but sustaining it is a different ball game altogether. As the Chinese navigate toward a bigger role in an interconnected global sphere, the diplomatic and political headwinds the country is already running into will only continue to strengthen.

Some have suggested antidotes and alternative strategies for a healthier, and more sustainable economic growth.

One such example is a deployment of the government’s mountainous reserves at home to pay for longneglected social spending on health care, education, and pensions – which would work to both raise productivity and ease underlying unrest. Others have suggested the key is to break away from past expansionary policies and rebalance the economy in a way that reduces the country’s overreliance on exports and manufacturing, while increasing its focus on private domestic consumption. However, the route going forward remains to be seen.

TOO SOON TO CALL

- A vast amount of China’s exponential stimulus package has been spent on the country’s infrastructure and in particular its roads and highways. -

It is difficult to forecast where China will be in the not-so-distant future. After all, the past 30 years in which China’s sustained growth exceeded anything previously recorded, is somewhat of a feat of mind over matter. Not so long ago, China had a small footprint on the global economy and little influence outside its borders. Today the country is recognised as a remarkable force of economic power.

China has become one of the main pillars of the global economy and is on the fast track to greater economic glory in the years to come.

What remains unclear is whether Chinese leaders will be able to transform impressive economic clout into political clout within the international order. In effect, this will translate their successful drive to the top into sustainable ecofriendly growth that can bridge the income gap between the urban-rural divide and to enable the state to deal with impending social and political challenges.

However, for now, it might be too soon to call.

MARKET WATCH

Values for the Post-Crisis Economy As the current economic crisis has unfolded, there has been widespread condemnation of the excesses that led to the crisis and a near universal call for new values to underpin the global economic system.

In order to develop a deeper understanding of the nuances of public opinion on the topic of values — particularly the opinion of the next generation — the World Economic Forum, in collaboration with social networking platform Facebook, The Nielsen Company and Georgetown University, has carried out a unique new poll over Facebook.

Milagros Rojas and Saadia Zahidi of the World Economic Forum detail findings from the Global Public Opinion Poll on Values and Ethics.

T

he poll reached more than 130,000 respondents in France, Germany, India, Indonesia, Israel, Mexico, Saudi Arabia (Kingdom), South Africa (SA), Turkey and the United States (US). Both men and women aged 18 and above were interviewed; 42 percent of respondents were female and 58 percent were male.

The majority of participants – almost 80 percent – were under 30 years of age. The demographics evident in this Facebook survey do not correspond to actual census data and therefore are not representative of the total country.

However, the findings do provide a unique insight into the opinions of young people in these countries.

Statistics on income and education levels were not gathered for this research, although it is likely that income and education will vary across countries and may influence participants’ responses.

Questions were translated into local languages where relevant.

The survey was conducted in December 2009, using Facebook Research Polls, with one-question queries in a series of 10 sets of questions, that appear on an individual user’s Facebook

home page. The questions were posed across the 10 countries included in the poll. Within each country, people responded to a single question regarding values – that is, an individual user was able to answer only one question from the survey. The overall response rate out of those targeted was 1.64 percent, providing 130,000 complete responses.

Poll Insights

The questions in the poll were designed to provide insight into the personal values of the respondents, where they derive their values from and how they perceive

MARKet WAtcH

the role of these values in the global economic and governance systems.

Outlined below are the most salient findings from each question.

QUESTION 1: dO YOU BELIEvE ThAT UNIvERSAL vALUES EXIST?

• Yes • No • Not sure Only 54 percent of respondents believe that universal values exist and this belief is mixed across the countries evaluated, with Mexico (72 percent) leading the list of countries that believe in universal values, followed

by Germany (65 percent), India (64 percent), Indonesia (61 percent) and SA (58 percent).

Stronger resistance to this concept emerges in France (37 percent). Across the entire data set, the answers are consistent across men and women.

However, respondents are more likely to believe in universal values as they grow older, with the key exception of the US.

QUESTION 2: fROM WhERE dO YOU PRIMARILY dERIvE MOST Of YOUR PERSONAL vALUES? • • • •

Education / family Professional experience Religion / faith Popular culture Education and family lead as sources of personal and professional values globally, with 62 percent of all respondents listing these as their primary sources of values.

Mexico (86 percent), Germany (81 percent) and France (81 percent) rank highest on this source.

Across the respondent pool, women (68 percent) were more likely to choose education and family than men (57 percent). Religion and faith are most likely to drive values in the US, the Kingdom and SA. Across the respondent pool, religion and faith are also more important to older participants – only 18 percent of those aged 18 to 23 chose this as their primary source, whereas 30 percent of those over 30 chose this option.

Popular culture appears to play only a minor role as a driver of values, although Turkish respondents are more likely than

those of other countries to get values from popular culture (19 percent).

Professional experience is a significant driver of values for only 11 percent of all respondents, with the highest numbers in Indonesia, Israel and Turkey.

QUESTION 3: WhICh Of ThESE STAkEhOLdERS ShOULd BE MORE vALUES-dRIvEN TO fOSTER A BETTER WORLd?

• Small- and medium-sized local businesses • Large, global and multinational corporations • Domestic politics in your country • Institutions of global governance Most respondents believe that businesses (small and large) should be more values-driven; this pattern applies across age and gender.

In Germany, Mexico and SA, respondents place a stronger emphasis on the need for values in large, multinational companies, than in small- and mediumsized businesses, while in the US the need for greater values in business in general appears to be the strongest – more than 70 percent of the respondents in the US picked one of the business-related options over domestic politics or institutions of global governance.

In India and Indonesia, a great emphasis is placed on the need for more values in small- and medium-sized local businesses. Mexican respondents would prefer their domestic politics to apply a more values-driven approach – more than 37 percent of respondents chose this option. Across the entire set of results, respondents appear to see the least need for a more values-driven approach in institutions of global governance.

QUESTION 4: dO YOU ThINk ThESE STAkEhOLdERS CURRENTLY APPLY A vALUES-dRIvEN APPROACh IN ThEIR SECTORS?

• Small- and medium-sized local businesses • Large, global and multinational corporations • Domestic politics in your country • Institutions of global governance The purpose of Question 3 was to understand, which stakeholders people feel should be more values-driven.

FEBRUARY 2010

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MARKET WATCH

Question 4 seeks to understand public opinion on which stakeholders are perceived to currently apply a values-driven approach.

The highest confidence levels appear to be with small- to medium-sized local businesses, in particular in the US, France and SA. Across the respondents, 42 percent believe that small and medium-sized local business are more likely to apply such an approach; 25 percent chose large, multinational corporations; 18 percent chose domestic politics and 15 percent chose institutions of global governance.

Question 5: What is the value that you consider the most important in your private and professional life?

• The impact of actions on the well being of others • Preserving the environment • Respecting others’ rights, dignity and views • Honesty, integrity and transparency The values that are most important to both private and professional life, according to 51 percent of all respondents, were honesty, integrity and transparency. The emphasis on these values applies across all 10 countries.

The importance increases with age: 46 percent of those between 18 to 23 years old, 53 percent of those between 24 to 29 years old and 57 percent of all those above 30 chose these values as 28

FEBRUARY 2010

the most important in their private and professional lives.

The responses are consistent for both men and women. In the overall responses, respecting others’ rights, dignity and views follows next at (26 percent), the impact of actions on the well-being of others (17 percent) is third while preserving the environment was noted as being of minimal importance.

On a personal level only seven percent of respondents chose this the preservation of the environment as an effective value on one’s personal life.

Question 6: What is the value that you consider most important in the global political and economic system?

• The impact of actions on the well being of others • Preserving the environment • Respecting others’ rights, dignity, views • Honesty, integrity and transparency Again, honesty, integrity and transparency are considered central to the global political and economic system, across the 10 countries surveyed. Similar to the results in Question 5, this importance increases with age: 35 percent for respondents 18 to 23 years of age, 42 percent of respondents 24 to 29 years of age and 45 percent of respondents above 30 chose this option.

Preserving the environment was

of minimal importance on a personal level, however, it gains importance at the global political and economic level.

Question 7: Do you think people apply the same values in their private lives as in their professional lives?

• Yes • No • Not sure The vast majority of respondents, more than 60 percent in fact, believe that people do not apply the same values in their private and professional lives.

Few men (25 percent) or women (21 percent) believe that consistent values are applied across personal and professional arenas.

In Indonesia (36 percent) and Turkey (32 percent), a slightly higher number of respondents believe the similar values are applied in personal and professional lives, but this still remains a minority opinion in the countries in question.

Age does not greatly influence this perception.

Question 8: In your opinion, is the current global economic crisis also a crisis of ethics and values?

• Yes • No • Not sure The majority of respondents – more

MARKET WATCH

than two-thirds – believe the global economic crisis is also a crisis of ethics and values.

This number is significantly higher among older participants – 79 percent of respondents above 30 hold this opinion.

At the country level, Israel (55 percent) and Turkey (53 percent) show the lowest level of affirmative answers.

Question 9: In your opinion, are businesses primarily accountable to: • • • •

Their shareholders Their employees Their clients and customers All equally Of all respondents, 46 percent believe that businesses are primarily accountable to all stakeholders equally – their shareholders, employees and clients and customers.

All countries show a strong inclination towards business accountability to all stakeholders equally and this pattern is consistent across age groups.

However, this consistency is not quite present between genders as women are more likely to choose this option than men.

France (35 percent) and Germany (34 percent) are more inclined than other countries to say businesses are primarily accountable to their employees.

Israel (26 percent) and the Kingdom (22 percent) are more inclined to choose shareholders, compared with other countries. Clients and customers rank highest in Israel (24 percent).

is important to five percent of the respondents and environmental impact rates highest with only five percent of the respondents.

Environmental concerns rate slightly higher in Israel, the Kingdom and Turkey.

thE Conclusion:

Some important and unprecedented findings are revealed through this unique public opinion poll.

First, it has been established that the majority of people across the globe that took part in this survey believe the global economic crisis is related to ethics and values.

Belief in universal values is mixed across the countries evaluated.

Furthermore, most respondents do not believe that the same values are applied in private and professional life, providing insight on possible discrepancies between personal and corporate ethics and in effect, dealings and regulations.

Education and family are the prime sources of personal and professional values globally.

Religion and faith are more likely to drive values in the US, the Kingdom and SA than other countries. Turkey is more

likely than other countries to derive values from popular culture.

Honesty, integrity and transparency hold across countries as the most important values in private and professional life. While preserving the environment is considered of minimal importance on a personal level, it gains importance on the global political and economic sphere.

People believe that businesses should be more values-driven, and find that small to medium-sized businesses are currently more likely to apply this approach.

Finally, almost half of all respondents believe that businesses should be accountable to their shareholders, their employees and their clients and customers equally.

In the wake of the economic crisis, this survey reveals a perceived deficit of values in the economy and a need to fundamentally rethink the development of the morals, and ethical norms that underpin our global economic system.

This report was provided by the World Economic Forum from its report: Faith and the Global Agenda: Values for the Post-Crisis Economy.

For more information visit: www.weforum.org/faith

Question 10: Which of these criteria do you most consider when you are buying a product?

• Its environmental impact • Its impact on human well-being during production • The quality and price • The ethical values of the producer Quality and price of a product play a major role in purchasing across the globe, with 82 percent of all respondents choosing this as their most important criteria when buying a product.

The ethical values of the producer are of prime importance to only eight percent of respondents, impact on human well-being during production, FEBRUARY 2010

29

InsIDe eDGe

ECONOMIC RECOVERY AND THE SHADOW OF INFLATION

InsIDe eDGe

Following years of soaring prices, inflation rates across the Gulf region fell sharply in 2009 as the global financial crisis and the related economic downturn quenched the demand for oil and gas, real estate and transportation.

However, as the nascent economic recovery picks-up pace this year, the shadow of inflation threatens to return.

Rajesh Mirchandani, CEo of Dun and bradstreet south asia Middle East, reports.

E

xtensive monetary and fiscal stimulus measures aimed at restoring global economic growth combined with the recent resurgence in commodity prices could cause general inflation to head higher again – not least in the Gulf states if hydrocarbon prices continue rising.

So far, however, the Gulf Cooperation Council (GCC) region appears to have struck the right balance between stimulating growth and ensuring price stability.

As markets were gripped by sheer panic following the collapse of Lehman Brothers in September 2008, concerns of spiralling prices faded rapidly. In a shift of unprecedented speed, deflation emerged as one of the major risks facing the global economy in the face of dwindling demand for goods and services. Prices of various investible assets dropped to multi-year lows as economic sentiment collapsed and industrial activity sagged across the globe. Investors rushed-off and closed their positions in anticipation of long-term economic pain. Commodity prices plunged with the valuation of some hard metals halving within a matter of few months.

As economic growth came to a standstill, the Federal Reserve (FR) reverted to the obvious solution of loosening its monetary policy in order to pump liquidity into the financial system.

In what could be termed as one of the greatest government interferences in financial markets in the United States (US) since the Great Depression, the FR gradually slashed its discount rate to near zero levels.

Other monetary authorities across the world were soon to follow, looking to combat deflationary pressures caused by the rapid slowdown in global output.

Today, however, more than a year after some of the world’s major central banks including the FR, the European Central Bank (ECB) and the Bank of England jointly lowered their benchmark interest rates in a move of extraordinary scope, worries about inflation have once again gripped policymakers amid excess liquidity, rallying stock markets and soaring commodity prices.

Just as deflation fears drove benchmark interest rates sharply lower during 2008, renewed concerns of inflation might induce a quicker-than-expected turnaround in monetary policy in many parts of the world in 2010.

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InsIDe eDGe

For now, some of the largest global players do not been used as a hedge against inflation and a depreciating appear overly concerned about inflation. In the US, dollar. While many assets saw investors turning their back although the annual rate of increase in the consumer price against them at the peak of the crisis, gold never lost its index (CPI) turned positive for the first time in nine months shine. The current rally in the bullion, which has pushed last November, the FR has signalled that it is ready to keep the prices near US$1200 (QR4360) per ounce mark for the its key interest rate near zero for the foreseeable future in first time in history, reflects a weakened greenback, but also signals concerns about future inflation are on the rise. order to support its weak labour market.

After plummeting to US$35 (QR127) per barrel in The ECB appears to be somewhat further along in formulating its exit strategy than the FR, but it continues to February 2009, oil prices are now back at around US$80 regard underlying inflationary pressures as soft. Still, with (QR219) and many expect further rise in 2010. If oil interest rates at historical lows, there are mounting concerns prices are able to break the psychological barrier of US$100 among investors in both the US and Europe about potential (QR364) mark per barrel in the international markets then future inflation as a result of the highly accommodating most of the oil importing nations would be left with little choice other than to adjust the monetary stance on both sides retail gasoline prices. This will of the Atlantic. surely put pressure to most of In other parts of the world, the economies, which have central banks are looking to “According to the International committed large amounts adopt tighter policies in 2010. of money to stabilise their Some countries such as Monetary fund (IMf) economies and are currently Australia (a major supplier of commodity prices outlook running sizable budget deficits. national resources to a fastAccording to the International growing Asian economy) and for 2010, higher demand will Monetary Fund’s (IMF) Norway (the world’s sixth largest oil exporter in 2008) have generally be the main source of commodity prices outlook 2010, higher demand will already started raising interest the upward pressure, as global for generally be the main source of rates. In China, expectations are the upward pressure, as global building that Beijing could start activity is widely expected to activity is widely expected to tightening monetary policy in the expand at a faster pace.” expand at a faster pace. coming months after consumer The Gulf region has not prices rose in November - International Monetary Fund (IMF) been left untouched by the following an almost year-long impact of global financial bout of deflation. crisis. Lower oil and gas One of the main reasons revenues, declining real estate for the rising attention to inflation in these countries and elsewhere is the recent markets and a slowdown in global trade and investment resurgence in asset prices. The funds injected by central weighed heavily on the GCC economies.

However, the outlook for 2010 is optimistic. Thanks banks into the banking system helped financial institutions largely to a bounce-back in hydrocarbon related revenue and prop up their balance sheets and curtail widening losses.

As the credit crunch eased, investors’ appetite for equities aggressive fiscal and monetary policy support, the burgeoning returned, fuelling a stock market rally that began last March regional economic recovery is likely to gain traction as the year and has continued since. Renewed optimism about global progresses. Importantly, while many other countries across recovery prospects, improvements in the real economy and the world might need to reduce spending and raise taxes this year to address widening budget deficits, the Gulf states’ high liquidity helped commodities markets take off as well.

Metals that finished the year as the best-performing financial reserves will allow them to continue supporting the commodities are likely to continue their upsurge with economic recovery through spending and investment in areas improving demand conditions, especially in the key such as infrastructure, education and other public services.

Inflationary pressures in the Gulf region subsided in emerging nations. The price of certain base metals such as copper, lead and zinc more than doubled last year, driven 2009 when the six-year economic boom slowed down as a result of the global financial crisis. After peaking at particularly by strong demand from China.

Another hot commodity is gold. Historically, gold has around 11 percent in 2008, the average rate of inflation in

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InsIDe eDGe

the region eased to around two percent in 2009, according to the Institute for International Finance (IIF).

The dollar peg was cited as one of the major culprits for the imported inflation in the region. Since the crisis began unfolding, the dollar has risen against a basket of major currencies, which in turn helped in curtailing mounting inflationary concerns back then. However, the dollar outlook remains uncertain, with many analysts expecting renewed weakening in years to come.

As the global recovery progresses, price pressures in the Gulf region could start mounting again this year. Soaring

oil prices are bound to increase liquidity in the region.

In order to induce the economic growth, the governments across the six GCC nations are expected to continue their expansionary fiscal stance in the year 2010 as well. In line with expected recovery across the world, the consumer sentiments in the region are likely to improve, which will help drive the demand for goods and services.

All these factors combined are likely to push prices in the region up, although well below the average seen during the last couple of years. However, it will be too early for the regional central banks to take a hard look at their current accommodating monetary policies as the region recovers gradually in 2010.

In its latest World Economic Outlook, the IMF projects that GCC inflation rates for 2010 and 2011 to be in the three to four percent range, but forecast risks are mostly on the upside.

The expansionary fiscal and monetary policies adopted by governments across the world have helped avoid a complete meltdown of the global financial system, but might have sowed the seeds of higher future inflation.

At some point, central banks and other policy makers could have to face the dilemma as to whether to tighten their belts to curb inflation expectations or to wait for the economy to grab hold of a strong recovery.

Encouragingly, the Gulf region appears poised for a reasonable growth this year without a return to high inflation. However, given the extended stimulus measures currently in place globally, it would be unwise to dismiss the longer-term threat of inflation to the region’s stability and growth prospects.

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sPecIAL coVeR stoRY

PLANNING FOR THE

FUTURE Half of the world’s population resides within cities, and within two decades, nearly 60 percent of the global population will be urban dwellers, according to un-Habitat’s state of the World’s Cities2008/9: Harmonious Cities report. in this special two-part cover story, kelly Lewis explores the growing strain that population rise and urbanisation places on cities and the environment in the 21st century. the second section of this special cover story forms the first instalment, as part of a developing series of features that will be dedicated to urban planning in Qatar.

- Photo courtesy of Kelly Lewis and Qatar’s Urban Planning and Development Authority. -

sPecIAL coVeR stoRY

a

major shift occurred in 2007-08, when, for the first time in history, more than half of the globe’s population became classified as urban dwellers.

This population shift marked a clear move away from a rural past toward an urban future.

Urbanisation can be defined as the physical growth of urban areas from rural areas as a result of population immigration to an existing urban area.

In many ways urbanisation is a positive development, but it also creates sustainability challenges.

Urbanisation is a growing trend most apparent in Africa and Asia, where around 40 percent of the current population is classed as urban. By 2030 it is predicted that the urban population will double reaching 54 and 55 percent, respectively. Corresponding figures for Europe and North America are 80 and 87 percent, and for Latin America and the Caribbean, 85 percent.

In the broader context, this means the world’s total urban population is expected to increase from 3.3 billion (in 2008) to around 6.4 billion by 2050, or about 70 percent of the total world population.

In contrast, the world’s rural population is expected to peak at 3.5 billion in 2019 and then slowly decline, to 2.8 billion in 2050.

Experts also predict that increased urbanisation will drive the development of mega-cities with 10 million inhabitants or more. It is estimated that by 2025 there will be 27 megacities, 20 of these in the developing world.

“With more than half of the world’s population now living in urban areas, this is the urban century. harmonious urbanisation has never been more important.”

- Ban Ki-moon, secretary-general, United Nations

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SPECIAL COVER STORY

THE OPPORTUNITIES AND CHALLENGES ASSOCIATED WITH URBANISATION

Urbanisation is no longer a developing trend, but rather the way cities are now shaped in the 21st century. The concentration of people into urban areas is considered a positive development because cluster populations make the task of accommodating for public services and infrastructure easier.

Urbanisation and growth go together, and industry experts say no country has ever reached middle-income status without a significant population shift from rural to urban areas.

Urban environments, with close human interaction, also tend to spur innovation and economic development. In developing countries, urbanisation is considered necessary to sustain growth.

However, urbanisation represents many of the major environmental problems facing the world and urban areas tend to be environmentally, as well as socially, unsustainable.

As a city grows in size and population, urbanisation directly affects the economic, spatial, social and environmental aspects of a city, and that of its inhabitants. Therefore, the goal to strike the right balance of ‘urban harmony’ becomes of paramount importance.

With this in mind, it is clear that future urban planning must address the major factors shaping 21st century cities.

In relation to the Middle East, these include the following key areas: Environmental challenges of climate change, the excessive production of waste and growing demand on energy consumption and declining natural resources, the high dependence of cities on vehicles that use fossil fuel; the demographic challenges of rapid urbanisation, a large youth population and the increasing multicultural composition of cities; Additionally, urban planning must confront the economic challenges of uncertain future growth, the fundamental doubts about market-led approaches endangered by the global financial crisis, as well as increasing informality in urban activities; increasing socio-spatial challenges, especially social and spatial inequalities, urban sprawl, unplanned periurbanisation and the increasing spatial scale of cities; and lastly, the institutional challenges related to governance and the changing roles of local government.

While most of these urban challenges are globally shared, individual regions and countries have their own sets of characteristics determining their patterns of urban growth and specific urban development challenges.

- An artist impression of the transport options as part of the redevelopment plan for Al Rayyan Road. -

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- An artist impression of the redevelopment of Al Rayyan Road. -

URBAN GROWTH ACCELERATION AND POPULATION CONCENTRATION IN QATAR

In Qatar, available data shows the country’s population experienced quantitative and qualitative changes during the past four decades.

The rise of the oil and gas sector, as well as the emergence of industries and related services, has grossly accelerated the pace of development and has, therefore, forced the demographic development and transition in the state.

Qatar’s population has increased from 484,000 in 1986, 522,000 in 1997, 744,000 in 2004, 1,553,729 in 2008 and according to the latest figures (provided by Qatar Statistics Authority), the current population stands at 1,631,728.

The sudden spike in population between 2004 and 2008 directly affected the rate at which urban areas had to absorb the rising human inflow – particularly in greater Doha, where 82 percent of the total population of Qatar was concentrated by 2007.

“Future urban planning must address the major factors shaping 21st century cities.”

- Kelly Lewis The proportion of population living in the urban areas of the state rose from 65 percent in 1960, to 88 percent in 1986, and from 93 percent in 2004, to 100 percent in 2008.

Qatar’s disproportion in its geographical distribution of urban to rural population ratio considerably affected the state’s ability in attracting people to reside in regions other than that of Doha’s city hub. Ultimately the concentration of social, cultural and economic services in the major urban centres, led to the acceleration of urban growth and infrastructure demand that outstripped supply, particularly in Doha and its suburbs.

In a bid to combat the growing challenges associated with population distribution and urbanisation, Qatar established (in 2004) its Permanent Population Committee (PPC). Since that time the commission has been assigned with the task of designing a population policy to control urban growth and arrive at a balanced population distribution favourable to the requirements of development.

SPECIAL COVER STORY

Doctor Hassan Al Mohannadi, the PPC’s deputy chairman commented, during a United Nations Population and Development Session in 2008, that the fast pace of urbanisation and city bound migration had “led to a major population growth in big urban centres, to population imbalance in rural areas and to the emergence of many social, economic and ecological problems, which shall be addressed”.

He added that Qatar had witnessed high urbanisation rates, which were accompanied by population increase.

According to Mohannadi, the geographic distribution of population depends on the pull factors of various regions.

Commenting on this issue, he said the concentration of social, economic and cultural services in Doha had led to an increased rate of urban growth in the city.

Mohannadi also said: “The fast urban growth in Qatar is undoubtedly one of the fruits of comprehensive accelerated development in the country. This growth is also an indication of the economic and construction boom that Qatar has experienced”.

He pointed out that the growth reflects Qatar’s readiness to embrace other people and cultures, “thus, our urban centres became a melting pot for interaction and rapprochement among those people and their cultures”.

However, he also acknowledged that the polarising urban growth of Doha had deprived small cities and villages from requisites of growth, which also rendered future development plans more difficult.

- An artist impression of the redevelopment of Al Rayyan Road. -

Data analysed by UN-HABITAT shows there is a growing global trend to confront the challenge of increasing disparities between cultural and social stratification – an area of considerable concern for Qatar and the Middle East in general, particularly in light of the region’s growing reliance on both unskilled and skilled migrant labour. Currently, the Gulf Cooperation Council (GCC) is dependent on imported labour, with an estimated 13 million foreign workers residing in its six states and comprising about 37 percent of the population. In Qatar, expatriates outnumber nationals by almost seven to one.

UN-HABITAT’s data finds that spatial and social disparities within cities, and between cities and regions within the same country, are growing as some areas benefit more than others from public services, infrastructure and other investments. Evidence presented in a recent report also shows that when cities already have high levels of inequality,

- An artist impression of the new roads to be built as part of the redevelopment of Al Rayyan Road. -

spatial and social disparities are likely to become more, and not less, pronounced with economic growth.

High levels of urban inequality present a double jeopardy.

They have a dampening effect on economic growth, sustainable development and contribute to a less favourable environment for investment.

But just as importantly, it finds that urban inequality has a direct impact on all aspects of human development, including health, nutrition, gender equality and education.

According to UN-HABITAT, equitable distribution of public resources and balanced spatial and territorial development, particularly through investments in urban and inter-urban infrastructure and services, are among the most effective means for mitigating or reversing the negative consequences of urban inequality.

Today, numerous individual cities and countries are addressing these challenges and opportunities by adopting innovative approaches to urban planning and management that are inclusive and responsive to threats posed by environmental degradation and global warming.

National and local governments the world-over are making critical choices that promote equity and sustainability in cities. Such governments recognise that cities are not just part of the problem; they are, and must be, part of the solution.

There has also been a rise in the number of cities, which are implementing innovative institutional reforms to promote prosperity, while also minimising inequity and unsustainable use of energy.

Ultimately, the critical components required to build harmonious cities include a well informed and committed political leadership, combined with effective urban planning, governance and management that promote equity and sustainability.

- An artist impression of the redevelopment of Al Rayyan Road. -

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SPECIAL COVER STORY

To overcome these (afore mentioned) challenges, Qatar has devised plans to develop the urban framework for the state and is already underway pouring investment into modernising the infrastructure of all inner cities and villages.

To find out what this means for the country’s urban fabric, Kelly Lewis spoke directly with one of the most instrumental people helping to mould solid foundations for Qatar’s physical future, the director general of the Urban Planning and Development Authority in Qatar, Ali Abdulla Al Abdulla.

I

n order to tackle the sprawling demand for both infrastructure and major transport projects within Qatar, the Urban Planning and Development Authority (UPDA), in coordination with other parties, recently finalised its comprehensive and long-term plan for the state: the Master Plan for Qatar.

The document, which was published in January, sets out a guide for the development of Qatar over the next 25 years and is said to be one of the most important documents in the country’s history.

The master plan is a multi-disciplinary blueprint that requires a multilateral platform for cooperation and implementation across all sectors, and from all parties concerned if it is to be successfully achieved.

Under the banner of the national plan, some of the key areas that have been identified as needing address are: • Future development is to be timed to infrastructure and road capacity, • Adequate land, in suitable locations, is to be allocated for residential, commercial, industrial, and public services/facilities, • Cumulative impacts of recent development projects are to be evaluated to ensure negative impacts are mitigated to minimal level, • Guide physical development that responds to the social and economic needs of Qatar through to the year 2025, with five-year interval updates, to build a solid foundation for future generations,

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• Harmonise the various master plans currently in use, including Education City, The Pearl, Lusail Development, New Doha International Airport and Doha Port, so that integrated and effective solutions can be devised to help mitigate negative impacts of recent development proposals, and to help ensure continuity in planning, • Significantly improve the capability of the UPDA and related authorities to improve development objectives, policies, and regulations at all planning levels, • Foster better control, monitor, and also assess development projects The architecture of the master plan is multidimensional and covers all aspects of development including transportation, infrastructure (sewer, drainage, water and electricity), environmental protection, and land uses (residential, commercial, industrial and recreational). It also serves as an analytical tool in mapping current demographic statistics and economic issues, projecting growth scenarios, proposing solutions that mitigate negative impacts of traffic, assessing infrastructure capacity, public service needs, allocating land as needed to ensure there is adequate availability and to utilise it for both present and future needs of the residents of Qatar.

The framework for the master plan is broad and is broken down into various planning themes, which include regional structure and local area plans, detailed area plans, urban design and a countrywide transportation master plan.

Ali Abdulla Al Abdulla, director general of the UPDA, on the Master Plan for Qatar

“It’s a big job [designing the master plan] and it’s been a big challenge, especially when you consider that during the past four years we have seen the global economy experience a boom period and then run abruptly aground when the downturn hit.”

In order to meet all the future needs and demands of the state across all sectors, Abdulla says the UPDA has been “developing the master plan for a few years”. It’s now complete, but as it is a long-term vision he says the department will continue to assess and revise the plan every five years to ensure its success and feasibility.

“We are also getting involved with other major projects that are now coming online like the monorail and greater rail services, developing new infrastructures, new roads and major roads, so we are taking all aspects of the country’s needs into consideration,” Abdulla states.

“At the same time, we have, and are continuing to, conduct studies that will enable us to implement not only a model for ‘green buildings’, but for a green environment.”

Abdulla says these studies take into account the fact that Qatar is one of the largest carbon emitting countries – driven largely by the oil and gas industry – an issue which is of a sensitive nature and therefore is being given the necessary attention, by the country’s major industry players, in a bid to try and resolve such problems.

“Basically we [UPDA] are regulators, we are planners and

- Transportation corridors crossing at the airport in Doha. -

- Transportation corridors crossing at the Towers Intersection in the bay of Doha. -

we have created a long-term plan for Qatar. Within this plan we have considered what infrastructure currently exists and how it can be upgraded going forward.”

“We are also about establishing a set of procedures that will serve as a guide for future development and we are actively working on providing up-to-date, correct and readily available information.

“And as Qatar is bidding for the 2022 World Cup, we have also made infrastructure provisions for this within the our planning – we are really considering all the various requirements into our master plan.”

However, one of Qatar’s most pressing infrastructure issues that Abdulla widely acknowledges is the severe lack of public transportation.

“We are aware of the problems associated with the absence of public transport currently and we are really working hard to improve it,” he says.

“Adding to this, I’m positive that we will achieve our goal because from the beginning of this year, we’ve begun a five-year plan to upgrade and revamp many of Qatar’s major roads. We are taking into consideration the underground services that will be required as well as the various transportation models such as monorail, bus transit and more, so this is part of the agenda that we are actively working on.”

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SPECIAL COVER STORY

- A model type of some of the houses that will exist within parts of the DohaLand development. -

As part of the transport master plan, Abdulla says a variety of pedestrian areas will be implemented as well as the laying down of a bicycle path, which will “run throughout the city, outside the city walls and in to its neighbourhoods”.

“We are looking at various multi and mixed transport options and we are in negotiations with the different sectors.

For example, in regard to the bus transit system, we are working with Mowasalat. In fact very recently, we were talking about the possibility of a main bus rapid transit system with them and this is one of the studies that we are undertaking as part of the transport master plan,” he informs.

“We are really studying to identify our exact needs right now: should we go fully into one type of transport system, or should we implement a mix of transport models?

“What is important is for us to identify the distribution of Qatar’s population. We have to understand that the culture is different here than in Europe. If you go to Europe or you go the United States or Australia, people are used to adapting to a variety of different transport options.

“I recently had a meeting with someone, who asked me about the average amount of cars on Qatar’s roads. I said that Qatar’s vehicle to person ratio was very high and about three to four times higher on average.

“Last year we registered around 120,000 new vehicles in just one year. The year before it was 100,000 vehicles…you can imagine how many vehicles are on the street here and what this does to the environment.”

To try and counteract this, and establish a suitable transportation model that will be flexible enough to adapt to Qatar’s growing infrastructure demands, Abdulla says the UPDA is seriously taking such factors into consideration.

However, when you talk about developing a country and 40

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making it sustainable, one of the utmost issues for concern is the strain that population rise and industry development places on its natural resources – in the Middle East water is a scarce commodity, which is, and has for a long-time been, more valuable than that of oil and gas. So how will Qatar deal with the battle to improve its water usage and efficiency?

Due to the competing demands on scarce water resources from agriculture, industry, domestic use and so on, the management of water is a key issue. To address the problem of water scarcity, there is a need to prepare a holistic blueprint, which identifies the requirement of water at the town level for these sectors and for drinking water. For example, how much land needs to be irrigated, how much water is required for industry and for the generation of electricity? It is essential for both the current and future populations of Qatar that longterm plans, with short-term outcomes, are implemented.

“Water is a real area for concern and we have started developing ways to tackle this issue. When we talk about water usage in Qatar, of course we are not talking about underground water reserves…we rely on desalinated water,” says Abdulla.

“To my knowledge, we have enough water to feed around two, to two and half, million people at the current rate of project expansion from now until the year 2015.

“But it’s the utilisation of this water that’s the problem.

It’s not clean water, it’s the return of treated water that we are facing problems with – how are we going to treat and manage it?

Abdualla says there are other problems associated with treated water: “Some recycled water will also need to be treated in various forms and maybe it will be a case of storing treated water in underground wells to guard against the possibility of contaminating fresh water supplies.”

“Effective water usage is already a major part of the master plan project that we are working to improve,” he confirms.

“For example, we are looking at how domestic and commercial water consumption is being managed, we are looking at the different types of water use; mains water and treated water for irrigation. In regard to the Pearl Qatar development, the Lusail project and the New Airport, all these areas are under development for effective water usage and technology advancement.”

Abdulla says that there are already new areas of development in Qatar, which are utilising recycled and treated water effectively.

“Last year we [Qatar] registered around 120,000 new vehicles... the year before it was 100,000 vehicles...you can imagine how many vehicles are on the street and what that does to the environment.”

- Ali Abdulla Al Abdulla

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“For example, Hassad Food is newly established company with large land allocations for its projects – I remember just one of its land allocations was around of seven million square metres – the company is dedicated to agricultural development and investment and we are working with them to effectively treat water (to certain specifications) and provide it to them for reuse on pastoral areas,” he informs.

Going forward, Abdulla says the UPDA, in conjunction with other bodies, will actively play a larger role in regulating the way in which land is developed and zoned, while also monitoring new building material application and developing ‘green building’ legislation in the state.

“In regard to the use of building materials, for example, we are working in conjunction with the Ministry of Environment to implement building codes and regulations,” states Abdulla.

“We have already started our discussions about green building compliance. We have been working with local companies on a project-by-project basis and this initiative really commenced when one local company, in particular, approached us.

“We have really given that company a lot of support and because this is the direction that we want to take. As a result, there has been a sort of a sub-committee formed between the likes of Qatar Foundation, DohaLand, Energy City, Barwa and Qatari Diar. These are the largest Qatarbased developers and they all have agreed to actively make advances into supporting green building practices.

“Together we are working to achieve, and to set, appropriate building codes in Qatar. Until now, there has not really been an official institute or large body anywhere in the world that has been in a position to certify such practices on a holistic and cost effective level.

“We’re working on practices that will ensure compliance

- An artist impression of the redevelopment of Al Rayyan Road. -

across all sectors, but it takes time to develop and implement – you can’t do it overnight. “The initiative; we have it and we have already have started moving forward with it.”

So how long will it be before people can expect to see such regulation enforced and who will be responsible for auditing building compliance?

Ultimately, Abdulla says this will depend on all the teams that are actively involved in the project.

“In regard to when you can actually expect to see tangible differences put down…well I can’t give you a firm time line – it could be a year, it could be two, it could be three and this is because there are so many different elements to consider, especially for already existing buildings,” he states.

“The scope of this type of project is huge and in order for it to be successfully implemented it will take effort from both private and public sectors, but we also need to be mindful of the inflationary issues that could arise as a result.

“The most important thing that we all have to agree on as ministries, authorities and as individual departments is on the proper proposals for coding, which we will then have to manage to convert into effective regulation.”

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ECONOMIC BAROMETER

NEW DIMENSIONS OF THE CORPORATE WORLD The global financial crisis has led to a raft of corporate defaults, and in many markets, participants foresee a rise in corporate restructuring activity as the global economy continues to stabilise and banks resume lending activity.

Karim Nakhle investigates the opportunities and challenges associated with the Middle East’s fastest growing trend in 2010: corporate restructuring.

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ECONOMIC BAROMETER

T

he credit crunch drastically affected the lending capacity of banks across the globe and while some countries in the Middle East managed to forge ahead with projects throughout 2009 they did not go unscathed. Consequently, bankruptcy escalated throughout the region forcing corporate restructuring numbers to also spike.

Institutions with previous capabilities, spanning access to multiple lines of credit, are now struggling to meet their repayment obligations to creditors.

In effect, they are seeking advice on how to restructure their corporate debt, their organisation and they are on the hunt for refinancing services.

Reflecting its complex and diverse contexts of enactment, doing business in the Middle East is synonymous with big challenges.

Cultural and institutional complexities remain as prevalent as ever, but have been joined by more topical issues such as an absence of transparency, disclosure and trust. This is especially true in light of tarnished reputations – surrounding some sovereign, government, public corporation and large family owned conglomerates – following the last wave of Gulf Cooperation Council (GCC) liquidity decrease, which triggered a seismic reaction from banks and corporate lenders.

In addition, some companies are displaying unhealthy balance sheets that detail complex debt structures, which ultimately makes the challenge of restructuring more taxing.

Foreign investment and hedge funds are still eyeing the market for potential acquisitions despite the recent calamity and shake down – maybe even more so now than since barriers to entry are low.

However, since cash is becoming an increasingly scarce commodity in the region and as banks are drying up, and as local investors tighten their grips on their cash, foreign investments are being welcomed with new ferocity.

Yet prior to letting investors in, and in order not to be valued at an unfavourable figure, Middle East regional conglomerates and local businesses are looking to restructure their cash flow, business operations and future plans, with the aim of potentially becoming an acquisition target, or a suitable merger partner.

When I spoke to some leading practitioners about their experiences with restructuring in the region,

it became apparent that the most commonly presented issues were in regard to legal, regulatory and cultural complexities.

Debt refinancing and financial restructuring, in addition to arranging investor strategies and solutions to restructuring Islamic transactions, were among the most critical issues to be considered.

A number of practitioners were questioned over why they thought the recession had fuelled a boom in restructuring activity and how this would affect Middle East economies.

According to Mohamed Nader, director of financial advisory at Deloitte and Touch: “A thorough understanding of the various options that are best suited to companies in need of financial restructuring in the region.

Further, the ability to put a strong business case to reluctant lenders, under evolving legal and regulatory framework, is key to ensuring that corporations are able to restructure and refinance their debts, as well as enabling future growth and profitability.”

The ability of banks to lend continues to be affected by the financial crisis and the Middle East is no exception to that trend. Indeed, many businesses are struggling to meet repayments and are running the risk of defaulting on their loan obligations.

Others are worse-off still, teetering on the brink of bankruptcy.

Consequently, restructuring has become a priority for many Middle Eastern companies, although the process is more complicated than in other jurisdictions.

Firstly, restructuring is a relatively new phenomenon in this region and secondly, the presence of Islamic financing instruments means that restructurings tend to play out a little differently. As such, companies and creditors will need to be particularly vigilant when conducting restructuring efforts in the region.

“Until a few months ago, restructurings in the Middle East were more or less a rarity claims Simon Schmidt, a partner at Patton Boggs.

“This was due to a number of factors

including the region’s tendency to avoid public failure of businesses; the mistaken belief that the Middle East would not be impacted by the financial crisis and the fact that insolvency laws failed to keep pace with the economic development.”

“But out of necessity, activity has picked up in the past few months as government-related entities, of which much economic activity feeds, have begun to publicly consolidate subsidiaries and group companies. No major corporate failure has yet been publicised, although the Saad Group/ Al Ghosaibi issues may result in a more public resolve than is customary.

The general rule is that creative and piece-meal ways are being sought to keep businesses alive since the regulatory framework is either insufficient or untested. Inevitably, certain sectors are seeing more activity than others.”

Oliver Holder, managing director at Deloitte Corporate Finance Limited asserts: “Obviously, real estate and financial services have been hit particularly hard regionally.”

“A marked difference is that, up to now, international, rather than local, banks have tended to initiate restructuring processes. But, the difference is likely to become less pronounced as we go through the next 24 months,” he adds.

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econoMIc BARoMeteR “The global turmoil has also reanimated the long-standing debate as to how family-owned businesses ought to be restructured. Indeed, given the large number of such companies, this form of restructuring may mark a new trend in the coming few years, and is likely to contribute to a spike in the number of restructurings.”

Merger and acquisition-led restructurings are also on the rise, Andrew Lewis, a partner at Norton Rose, believes: “Significant consolidation activity is starting to occur in the struggling banking and real estate related sectors.”

“However consolidations are challenging, often requiring substantial injections of new capital to create a viable merged entity, and are progressing slowly. The long-awaited merger, featuring former leading Dubai mortgage lenders, Tamweel and Amlak, is a good example. The two companies have been in merger talks since November, but the collapse of the credit markets has shaken belief in their business models and the process has been on ice ever since.”

Jonathan Smith, director of financial advisory services at Inventure Middle East North Africa, says: “Consolidations and restructurings generally come complete with an abundance of challenges, which both borrowers and creditors have to face.”

“One of them is to be able to obtain reliable information regarding the extent of the financial difficulties.”

“With a high level of crossownership in the region, it can prove difficult to rapidly identify and address the different issues.

“Additionally, creditors’ rights and options in the region are often more limited than in other countries. While borrowers are struggling under heavy debt, thereby making the restructuring process longer and more complex, delaying a potential recovery.”

“Bankers lending to such troubled borrowers are often faced with a dilemma: enforcing liquidation – this can provide certainty of a short-term return, but can also involve a significant loss of principal – or giving the borrower more time, 44

FEBRUARY 2010

which adds yet more uncertainty to a risky recovery process.

“In tough liquidity conditions, such as today’s global credit crunch, credit professionals are required to quickly identify what is causing borrowers problems, and provide the most appropriate and cost effective financing solution,” Smith advises.

Some experts predict, given the challenges restructuring companies are likely to meet along the way, that going forward different steps should be taken in order to limit risks and produce a successful restructuring.

One of them is to be able to recognise the early warning signs in a bid to effectively implement a suitable restructuring strategy. Management teams should develop an ‘ideal restructuring’ blueprint that assesses the company’s debt capacity under worst-case operating conditions and establishes new, sustainable credit parameters that ensure future operating viability. Management is also advised to identify the core competencies and operations of the company, while developing a plan to dispose of non-core or non-profitible business units. This will imminently result in some merger and acquisition activity in the near future, but mainly on the level of small and medium businesses. Appointing advisers during that process may be useful in order to implement effective and long-term changes.

Most experts also agree that maintaining communication and transparency about the situation of the company is vital for a successful restructuring. This can help avoid unexpected action from creditors,

shareholders and investors, while persuading them of the viability of the restructuring plan.

It is essential for companies to keep all stakeholders and participants in the process as informed as possible.

Trust building through transparency and trying to fully comprehend the situation, by looking at issues through an objective lens, are also key to restructuring successes.

In most cases, it is in everyone’s interest to work in creating a new economically viable structure, so that the debtor stays in business and continues to use the assets to generate cash flow in order to repay loans.

The harbouring and maintenance of insured assets is a huge expense that can be avoided if the debtor stays in possession. Dialogue between the different parties involved should be expected to increase going forward, given its impact on business restructuring.

However, some professionals advise companies to begin this promising process by having a clear understanding of their current situation before entering into talks with banks, as to best position themselves for a potential recovery.

Now available for rental and exhibitions

ON THE PULSE

- Doha: The city skyline continues to grow on the back of the state’s riches. -

IN SEARCH OF

DOHA’S RICHES

As the world clambers from a recession that has changed the economic landscape forever, the cash flow direction from the Gulf Cooperation Council’s (GCC) sovereign wealth funds could also be set to change.

Edward Jameson reports on a modern day treasure chest, with the potential to grant, or withhold, enormous wealth.

ON THE PULSE

T

hroughout history, humankind has always been drawn to the promise of great wealth; to rooms laden with pots of gold, overflowing with coins and invaluable treasure.

From 1914, Howard Carter famously went to extraordinary lengths over the course of eight years on the greatest treasure hunt of all time – the search for Tutankhamun’s tomb – before achieving success. In the 21st century, nowhere is the promise of great wealth more accurately represented than in the sovereign wealth funds (SWF) of the GCC. SWFs are formed as the result of a state possessing such enormous liquidity and such little debt that it is impractical to preserve that wealth as money, and economically undesirable to simply spend and consume. The SWFs of the Gulf states have grown and been nurtured by the vast amounts of hydrocarbon dollars that have poured into the region from across the globe over the past 40 years.

At no point since its inception has Qatar’s SWF – managed by the Qatar Investment Authority (QIA) – been more imperative to the health of the nation than since the onset of the financial crisis. The fund’s role of safeguarding the national economy during times of global financial volatility – vital in Qatar as the country relies so heavily on its gas export industry – was put to the test by the most formidable global recession in recent history.

Yet in 2008, Qatar’s gross domestic product (GDP) grew by an astounding 16 percent, according to International Monetary Fund (IMF) figures. In 2009, the figure was 11 percent, deputy prime minister Abdullah bin Hamad Al Attiyah told reporters in Dubai on January 10.

By comparison, in the United States (US) – the world’s largest economy – GDP grew by just 0.45 percent in 2008, which included a violent 6.4 percent contraction in the fourth quarter, resulting from the collapse of Lehman Brothers, and contracted by around 2.7 percent in 2009.

to hold assets in the region of US$60 to 65 billion (QR218 to 237 billion) according to the SWF Institute.

The fund is run by chief executive and chairman Sheikh Hamad bin Jassem Jabr Al Thani. Its mission? To “serve the government and the people of Qatar by strengthening the Qatari economy through investments in to different asset classes and geographies, thereby diversifying the economy and its financial resources”.

Since inception, the fund has invested huge amounts in Western

business, property, and stock.

Although the role of the Gulf’s SWFs, including the QIA, is not about to change in the wake of the crisis, many believe that the means of achieving the goal may have to be revisited.

Importantly, the fund states that it “monitors and manages its investments according to the returns generated”.

No room for sentiment there – the QIA aims to be a profit machine. And in the post Western-centred recession economy, the West may be forced to search elsewhere for its tomb of Tutankhamun.

DOHA’S TREASURE

The QIA was formed in 2005 in order to manage the burgeoning income from the country’s natural gas exports.

Although the fund is not obliged to publish its financial details due to the lack of a public listing, it is estimated

- The spectacular Burj Khalifa opening symbolised Dubai’s sprint towards economic diversification. -

FEBRUARY 2010

47

ON THE PULSE Foreign Holdings is unclear, but what is clear is that the eagerness of Gulf funds to invest in Western assets may have been tempered somewhat by the past two years.

“By continuing to channel resources to spend on the more supportive aspects of economic growth and development,” King Abdullah continued, “we enhance the attractiveness of our national economy for investment.”

The flow of cash from the Middle East to the West may not have merely been realigned to a more measured and considered angle by the Gulf’s SWFs. Those who manage the funds may be seeking to reverse it altogether.

WESTERN RESOLVE

- UK prime minister Gordon Brown meets with former Dubai International Financial Centre director general Omar bin Suleiman in 2008. -

DOMESTIC EXPENSE

Dubai, January 4, 2010: Fireworks spew from all sides of the seeminglyimpossibly high 828 metre (m) Burj Khalifa as the tower is officially inaugurated. If any GCC city has pushed the boundaries of developmental progress over the past decade, Dubai is it. Burj Khalifa – home to the rich; hotel to the fortunate; and office block to the just plain lucky – stands as a symbol of a city-state hurtling towards the goal of economic diversification.

The Gulf states, Qatar most definitely included, are currently engaged in a multi-trillion dollar attempt to diversify their individual economies into growth sectors beyond the energy spectrum.

These are necessary programmes of mass-development that come with a hefty price tag.

In Doha, entire towns are attempting to spring from the desert sands; in Abu Dhabi, a cultural capital, with the potential to make the great cities of Europe envious, is quietly sprouting from an island 48

FEBRUARY 2010

bordering the city centre; and in Saudi Arabia, entire economic and industrial capitals are being constructed at an unimaginable cost.

On January 12, Saudi Arabia announced its 2010 budget. It was the largest in its history. The kingdom has pledged SR540 billion (QR524 billion) for public spending.

“Preparing the budget has taken into account the needs of our national economy,” Saudi Arabian monarch King Abdullah said.

“We were keen to have the budget as a continuation of boosting the sustainable development of our country, despite the international economic conditions, which had led to lower oil prices and the quantities exported.”

Despite that, the Saudi Arabian SWF, known as SAMA Foreign Holdings, is valued at SR431 billion (QR418 billion), the kingdom has made clear its intention to concentrate on domestic investment in 2010.

How much of its multi-billion dollar budget will originate from SAMA

“The GCC, with its 40 million inhabitants, is no longer ready to export its oil, gas and the revenues from its exports,” says financial writer Gérard Al Fil. “The SWFs in the GCC are keeping their cards closer to their chests than ever.

Independence is high on the agenda of GCC countries, which may trigger a retreat from investments abroad.

“Will roles reverse?” Al Fil asks.

“Will Western states increasingly invest in the Middle East in order to secure mandates for their firms and therefore jobs at home?”

In the months before the true depths of the financial crisis became clear, bellwether Western firms were looking to invest in the Middle East.

The Trump Corporation, surely no finer barometer of global real estate opportunity, had announced its intention to construct the gleaming 270m Trump International Hotel and Tower Dubai, in partnership with Dubai’s own Nakheel.

Indeed, the celebratory corks had already been popped and the stars had already walked the red carpet at the building’s launch party in New York City.

Today, the machines that were lining up to build the tower have departed the scene, leaving another empty hole in Dubai.

Yet when the cash was flowing in from all sides, the Trump Corporation had all but rolled into the region, signalling a shift in the balance of economic opportunity – at least within the real estate sector – from West to mid-East.

And the global economy will boom again. Perhaps not with the unbridled vitality of 2007, thanks to the slow and

ON THE PULSE painful reining in of the financial services sector through enforced nationalisation and the tightening of regulation, but global, and Western, wealth will return to growth.

In the meantime, the SWFs of the Gulf are looking out for their own, and, due to the price tag of economic diversification, this may be the case for some time. This will not only shore up the internal finances of the Gulf states, but will, as King Abdullah professed, ease the return of global capital to the region. If any firm is likely to return, if only to avoid accusations of failure, the Trump Corporation is surely it.

“Asia is a growth market for us,” he said.

“We are really serious about finding the right opportunity there.”

Al Sayed added that the fund would not turn its back on Europe or the US, but said: “Latin America and other emerging markets are also on our agenda”.

The SWF to foreign reserve exchange ratio is a measure of how much a government has invested relative to currency reserve.

A high figure suggests an aggressive attitude to seeking higher returns. As the QIA itself stated, it “monitors and manages its investments according to the returns generated”.

According to the SWF Institute,

the QIA holds a ratio of 8.6 percent; this compares to 1.1 percent in Saudi Arabia, 0.8 percent in Libya, but 13.9 percent in the UAE. However, the coming years may tell a different story, which may also result in a difficult pill for the West to swallow.

With the need for unfathomable domestic investment across the Gulf, and the emerging markets to the East painting a more attractive picture than the established ones to the West, many nations may be forced to look beyond the SWFs of the Gulf if they are to follow in Howard Carter’s footsteps, and find their modern-day Tutankhamun’s tomb.

EASTERN PROMISE

“In 2008, both the UK and the US strongly criticised Gulf SWFs for having a lack of transparency; for not turning up to the World Economic Forum; for being completely opaque; for being mysterious, and worrying,” explains Middle East economist and author Doctor Christopher Davidson.

“Yet as soon as the recession hits, the UK and the US go cap-in-hand to the SWFs.” Davidson refers to a series of visits paid by UK Prime Minister Gordon Brown to the Gulf states in November 2008. Brown visited Qatar, Saudi Arabia and the UAE on a four-day whistle-stop tour seeking investment, help on oil prices and funds for the IMF. The SWFs were moderate to the idea at such a time of global uncertainty; they are unlikely to have warmed to it since with their own domestic programmes to attend to; and, looking ahead, there may be more attractive options on the table.

A little over 6000 miles east of Doha lies a very serious potential growth market for the QIA, should it decide to turn away from the relatively stagnant investment environment in the West.

That place is China, where GDP grew by 9.6 percent in 2008 and an estimated 8.4 percent in 2009. A result that proves the world’s most populous country maintained the bullish growth pattern it recorded over the past decade through 2008 and 2009, despite the state of the global economy.

Only two months ago, the first signs of increased interest in the Far East were shown by the QIA. Ahmad Al Sayed, CEO of the QIA’s direct investment arm Qatar Holding, revealed that the firm will shortly be opening an office in China to boost activity across the country.

- New York, 2008: Melania Trump (left), Donald Trump and Heidi Klum at the launch of Trump’s Middle East venture. -

FEBRUARY 2010

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GREEN BUSINESS

PARADOX OF SUSTAINABILITY

Can Qatar’s construction industry defy the paradox of sustainable building in the desert? Many believe that building in the desert, while being sustainable is a paradox. At the current rate of growth and utilising existing methods of construction, this is the case.

However, sustainable solutions are filtering into the built environment and with the recent launch of the Qatar Sustainability Assessment System (QSAS), Qatar is taking a leading role in the Gulf’s move towards a more sustainable future.

Sam Pickering, the managing director of Bluu Green, a UK and Qatar based Sustainability consultancy, investigates.

GREEN BUSINESS

BUILDING IN THE DESERT

I

n recent decades the Gulf’s traditional building techniques, using palm frond, mud brick and stone, have been superseded by Western influences. Vast glass high-rise towers now loom over the old buildings of Qatar’s past and with their introduction has come prosperity and foreign investment.

Designed on a ‘biggest is best’ principle, these buildings are extremely energy and water intensive and come at a huge cost to the environment. The overall affect of the country’s high-rise landscape has been to elevate Qatar to the position of the world’s largest producer of carbon emissions per capita in the world, according to United Nations Statistics Division.

The natural landscape of the Gulf makes it particularly difficult to allow the growth of sustainable construction. As the economy expands and Western office working regimes remain commonplace, the requirement to tame the harsh climate that affects the region for eight months of the year remains. Coupled with plentiful resources of gas and oil, cheap energy makes glazed, high-rise buildings with intensive environmental management systems a natural solution to combat the heat. Utilising the abundant resources may well be a natural choice for the architects, engineers and urban planners, but the reality is such design features within the cityscapes cannot continue.

The statistics relating to the emissions of the built environment make for uneasy reading, with 46 percent of the world’s energy consumed by the construction and subsequent operation of the buildings we live and work in, according to International Energy Agency Energy Statistics (2004).

Indeed, in the 10-years between 1990 and 2000, the water consumed by the population of Qatar doubled as per information presented in Doctor Waleed Al Zubari’s Water Resources Management Challenges in the GGC countries.

This has led to the prediction that aquifers will run dry within two to five years, leaving Qatar with no freshwater (Analysis and Strategy Plan: Water for sustainable Agriculture in Qatar).

It is no wonder that sustainability in construction has grown in importance throughout the world and is establishing itself as a key driver for construction projects. Unfortunately reducing the environmental impacts of our buildings is not a ‘one fit, suits all’ solution.

The varying climates, topography, economies and cultures of the world provide additional complexities when striving to ensure that the principles of sustainability are achieved. In addition, when tackling the issues and subsequent solutions to our inefficient buildings, changes to our way of working, living and general day-to-day lives must be analysed and amended to really achieve true sustainability.

The Gulf region poses some of the most complex and sensitive issues related to the achievement of a sustainably built environment.

The first hurdle to cross when searching for a solution to a sustainably built environment is the significant resistance and apathy to change. Coming to terms with the fact that our current working and living practices are not sustainable is indeed one of the biggest challenges facing the world. Once this resistance and the cost of our ways are understood, the solutions are attainable.

There is a popular misconception surrounding sustainability requirements as a series of complex alternatives to common building practices. This could not be further from the truth.

Instead, we can learn from our forefathers, who took a common sense approach to design and the building materials used. By comparing large glazed high-rise towers, that have - Sam Pickering, managing director of Bluu Green. little protection from the heat gains associated with the

FEBRUARY 2010

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GREEN BUSINESS

summer months, the principals of early architecture hold an and are proving to become a cost effective way to harness advantage of natural defences to heat gain. Modern shading the huge solar resource with realistic pay back periods and techniques such as brise-soleil systems and reduced glazing shorter life cycle costing results. should be considered in the design of future projects to Sustainability cannot be solely associated with the mitigate the issue of heat gain and solar glare, but also return reduction in energy consumption. A holistic approach must to a more traditional design ethos. be taken to construction projects from the concept, planning Throughout history, the presence of the extreme sun had and design stages, to the construction process, through to the to be taken into account for the design and construction of actual operation of the building.

Qatari buildings. Now this consideration can work to the benefit of those “Modern shading techniques such as brise-soleil systems seeking a more sustainable and reducing glazing should be in the design of future future through the use of solar energy. projects to mitigate the issue of heat gain and solar glare, The technologies are rapidly advancing and but also return to a more traditional design ethos.” current investment is - Sam Pickering planned for future solar farms producing energy for the grid. As has been To date, the concept of sustainability is well documented, shown in Europe, and particularly in Spain and Germany, solar power plants produce an excess of 50 megawatt and but has not been effectively implemented into the urban work on an efficiency of nearly 50 percent – a figure that planning strategy for the Gulf region. There is however, a change of momentum, which has added impetus and continues to improve.

It is in plentiful supply and can be harnessed for electrical direction with the introduction at the end of 2009, of the production through photovoltaic cells and with solar thermal Qatar Sustainability Assessment System (QSAS).

QSAS has taken three-years to develop and was born technologies. These systems can be integrated into the fabric, roofs or cladding of a building providing a double benefit of from research developed by Barwa and Qatari Diar. The energy production, while reducing the materials used within assessment system has taken the principles of Leadership the construction. These technologies are developing quickly in Energy and Environmental Design (LEED), the BRE Environmental Assessment Method (BREEAM) and other sustainability assessment methods from around the world and adapted these to suit the unique requirements of Qatar. The result is a robust, performance based and Qatar specific assessment.

QSAS scores construction projects for schools, commercial or residential at the logical stages of a project.

These include the design, construction and actual operation of the individual or group of buildings.

Each stage is assessed, verified and awarded a rating between one and three, with associated stars and certificates at each rating. The system incorporates the core areas of sustainability – urban connectivity, site, indoor environment, water, energy, materials, cultural and economic value, management and operation. Each section is given a weighting to illustrate its importance within the sustainability sphere. Energy and water consumption are given the highest weighting, highlighting their importance in Qatar’s unique environment.

In addition, and unique to QSAS, the system scores the actual design of the building as to how it complements the culture and heritage of Qatar. This is an interesting development and although many remain sceptical to this subjective score, the principle is sound and should be encouraged.

Sustainability assessment methods are not the absolute solution for reducing the environmental 52

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GREEN BUSINESS

impact of the built environment. However, they do provide a roadmap for design teams, contractors and the end user to understand what considerations could and should be included.

In addition, and in line with the principle of sustainability, QSAS has the aim of encouraging the development of businesses associated with the sustainability industry, which can benefit the economy. These include waste recycling, the local manufacture of sustainable construction materials, renewable technology manufacturing and research, to name but a few. It will also provide companies the recognition for their efforts to consider the environmental impact of their construction projects.

As has been proven in other country specific scoring systems, QSAS is likely to become a compulsory rating system for all new construction projects, which can only work towards a more sustainable construction environment.

Concentrating on a sustainable future is not simply a cosmetic alternative to the current system, but is completely necessary when considering the state of fresh water reserves.

Indeed, Qatar’s national security could be threatened if fresh water aquifers run out as has been predicted.

QSAS puts emphasis on ensuring the use of low flow sanitary fittings and waste recycling whether through rainwater harvesting or grey/black water recycling.

This is the first step but there also needs to be a review of systems within existing systems. The excesses of the past must be remedied in order that the one resource essential to human survival is not needlessly wasted, putting excessive pressure on the desalinisation plants that produce the majority of the water consumed.

As the economy and population grows, it is necessary to continue to build in the desert. Rather than view continued growth and sustainability as a paradox, we need to understand that they are an essential partnership.

There needs to be a revolution in the way constructors consider their impact on the natural environment. It will not be an easy road to tread and there will be frustrations.

A pragmatic, common sense and commercially minded approach to sustainability will ensure that there is a reduction in green house gases, while our construction needs, both commercial and residential, are still met.

It is essential that the government leads the way and QSAS is indeed a powerful tool for its disposal within planning and energy efficiency legislation.

QSAS is here to stay, are you ready?

For more information contact Sam Pickering at sam. pickering@bluugreen.com, or visit www.bluugreen.com FEBRUARY 2010

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BUSINESS VIEW – REAL ESTATE

es k edd broo QATAR’S REAL ESTATE MYTHS Having written (out of my depth might I add) about the concept of ‘time’ in last October’s edition of TheEDGE; imagine my surprise when the managing editor came knocking in search of my February editorial with the words, “it is deadline time” falling from her lips... Well readers, you will be relieved to know that in 2010, I have decided to tackle matters that are of familiar territory to me – the Qatar Real Estate market.

Edd Brookes reports.

- Photo courtesy of Fadi El Benni. -

BUSINESS VIEW – REAL ESTATE

A

mong the plethora of diverse topics I intend to cover in 2010, for this month, I have decided to give my views on the ‘many myths’ of the Qatar Real Estate Market.

While I believe that for many of us engaged in commercial activates, both regionally and globally, 2009 was a year that most of us would prefer to forget. Additionally, I believe that many lessons have be learnt commercially speaking – and we forget them at our peril.

During my school years, I recall an economics professor using his favourite expression: “ignorance is bliss”. He was of course referring to those students, who had come out of exams thinking they had performed wonderfully, while those with the most ability always seemed quietly concerned.

I will not reveal the camp that I fell into, but I will say that ignorance is indeed bliss and memories are indeed short – no shorter than in perceived ‘good times’.

With that said, I am keen to dispel the three most regular comments I hear when the state of the local property market is being discussed. Allow me to begin:

The Market has crashed:

This must be one of the most overstated topics of conversation that I hear.

We are advised an endless amount of times and from various sources that rents are continuing to crash, and the investment market is over. How many times are those same articles unable to actually name their source? Unnamed sources [without any reference to a particular firm] really are not worth the paper they are written on – it provides no idea of the mysterious source’s profession and how exposed to market facing transactions they may be.

Here are some simple facts: • During 2004 and the first quarter of 2008, both rental and

capital values in Doha increased by more than 165 percent, mainly on simple demand and supply dynamics. Prime office space, which in 2005 totalled just over 375,000 square meters (sqm) – today Doha has just over 1.4 million sqm.

• Until 2007, vacancy rates were running around 95 percent, with purely natural wastage accounting for the unoccupied space.

• Office rates jumped from QR85 per (p) sqm per month (m) to a high of QR340 p/sqm p/m. If you remember looking for office space during those years, there was literally no choice. Similarly, there was no rental variance. An office, be it in West Bay, C Ring Road or near the Airport, was pretty much evenly priced. The only other option at the time was to take a villa with commercial use consent. I understand that no more of these commercial consents will in fact be issued, which in turn will have a positive effect on demanded space.

• Similarly, with residential accommodation, a twobedroom apartment in the Al Saad area was priced almost identically to that of a two-bedroom apartment in West Bay. Whereas a four-bedroom villa was priced as a four-bedroom villa, irrespective of its location and most times its condition.

As more stock has come onto the market, choice has improved. However, those heady rental increases were unsustainable and were becoming increasingly unaffordable.

A key moment was the introduction of the Government Rental Committee, which froze the amount that government occupiers could pay for office accommodation. At QR150 p/sqm p/m, surely it would only be a matter of time before other occupiers took lead from this measure and started asking themselves that if government institutions were only prepared to pay a certain amount, then why should they not take the same view?

The increase in both residential and commercial stock has certainly given choice, but more importantly there is now a differential between prime and secondary stock, combined with various locations in and around the city. That is simply a function of a maturing property market.

However this is no crash, but a simple readjustment off the back of demand pushing rental increases. Prime rents have not plummeted in the past 12 months, but now there are clear price differentials between the various property types reflecting location, quality and the quality of building management.

There are too many vacant commercial buildings:

The first matter to consider is just because a building looks finished and the lights are on, it does not mean that it has the full sign-off from the civil defence – department to allow occupiers to commence fitting out the space.

It is true that potential occupiers are nervous about preleasing buildings, either off the plan or during early construction phases. This is simply because so many developers have given unrealistic or undeliverable completion dates to occupiers in the past, and whether you are trying to organise the relocation of a 10-person office or a 500-person office, any delay becomes critical. It becomes irrelevant if the contractor has to pay penalty clauses because the interruption to the business is far more damaging, and the effects are far longer lasting.

That said, lets us consider commercial office demand and supply in the coming five years. Starting with the fundamentals, firstly let us consider the population growth over this period. The graph below shows anticipated growth (seven percent as well as the affect of growth at three percent per annum and 10 percent per annum): FEBRUARY 2010

55

BUSINESS VIEW – REAL ESTATE Population Forecast (2004 – 2015)

months. This has led to a softening of prime commercial rents to QR250 p/sqm p/m in Doha’s Diplomatic District.

This also indicates that the situation will last into the third quarter of 2010, which could lead to a further reduction in prime rental levels.

Thereafter, subject to future population growth, which is the differentiating factor between demand scenarios one and two, the market should have a relatively constant demand/supply balance. Judging on past experiences, annual population increases of seven percent are likely.

Doha has far toO many malls:

Source: DTZ Research.

- Population growth shows strong correlation with GDP and a larger workforce in due course. -

Qatar’s population is expected to keep growing and there is a strong correlation between gross domestic product (GDP) and population growth.

The population forecast in the graph above considers three scenarios. Scenario one predicts the population in Qatar will increase at an annual rate of three percent, with the population reaching 1.96 million by 2015.

Scenario two predicts the population in Qatar will increase at a rate of seven percent per annum, reaching 2.7 million by 2015.

The third scenario forecasts that the population will grow at an annual rate of 10 percent reaching 3.1 million by 2015.

In the mid- to long-term, we consider a population growth rate of three percent – 10 percent is a realistic expectation for Qatar. The majority of this growth will be driven by an inward migration of an expatriate workforce.

Now let us consider that 50 percent of every person earning more than QR10,000 p/m works in an office. Here there are two further variances – private companies tend to work on an average of eight sqm per employee, whereas government ministries tend to average 20 sqm per employee. Add to that the expected supply and we are able to build up a clear forecast, based on those assumptions. The result is set out below:

I am sure a large proportion of readers would already disagree, however on the basis that typical European markets work on an average of one sqm of retail space per head of the population, Qatar is vastly under-shopped.

I agree that the right types of shops need to exist in Qatar for the various socio-economic groups of residents. However, Dubai actually has two sqm for every head of population – Qatar currently has 0.4 sqm per resident.

Doha’s current non-high street, retail stock stands at approximately 500,000 sqm of gross lettable area (GLA), which is spread across eight main developments.

The market is dominated by the City Centre and Villaggio shopping malls, which together account for almost 65 percent of the total retail mall offerings in the city, as shown in the previous graph. Villaggio is the most recent and major entrant to the retail market, and has been trading since June 2006. In addition to the above, there is ‘high street’ retail found in locations such as Salwa Road, Al Hawar Street and souq areas.

Unfortunately, this is difficult to quantify and typically houses local retailers that serve the local residential community.

Forecast Office Demand vERSUS Supply (2009 – 2015)

Source: DTZ Research.

- The City Centre and Villagio shopping malls are the two dominating retail malls in the country. -

Doha Retail Supply by Shopping Mall

There is potentially 1,690,000 sqm of retail stock in the development pipeline in Qatar. If all planned retail schemes in Doha are delivered to market, then the available retail stock will increase by approximately 238 percent by 2015.

Source: DTZ Research.

- An oversupply situation has resulted in the softening of prime commercial rents in Doha’s Diplomatic District. -

The graph above highlights the current oversupply situation, which the market has been witnessing in the past nine to 12 56

FEBRUARY 2010

Future Retail Supply

The table highlights major retail mall developments in the current pipeline by location, size and expected completion date.

It is expected that 138,000 sqm of additional retail stock is expected to come online in Doha this year, with the bulk of

BUSINESS VIEW – REAL ESTATE

planned development scheduled to be delivered from 2011.

What is clear is that Qatar’s future growth is based on important fundamentals such as population growth and affordability (with steady but marked diversification away from the reliance of oil and gas).

While only the domestic market has been considered above, the next few years will be crucial in terms of cementing Qatar as a short stay cultural and conference destination, with the hub of Qatar Airways providing a growing ready market of eager customers.

Only the next five years will prove if my predictions actually transpire – I certainly see no reason why they would not. As Qatar’s regional importance and global significance continues unabated, more and more companies, potential residents and investors will be eyeing the gulf state with increasing interest.

That is not just good news for the country, but for all of us who are proud to call Qatar home.

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SPECIAL REPORT – islamic finance

Qatar:

Islamic Finance Consolidating

- Daniel Moore, OBG, Qatar. -

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JANUARY 2010

Thanks to a combination of steady management and timely state assistance, Qatar’s islamic finance (QIF) sector has shaken off the worst of the global economic crisis and is now well positioned to take full advantage of the predicted surge in growth this year.

Daniel Moore, editorial manager Oxford Business Group Qatar, reports.

special report – islamic finance

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long with the rest of the country’s financial sector, the Shari’a-compliant component of QIF sector should also continue to benefit from the government’s continued economic stimulus pogramme throughout 2010. This will combine direct pump priming efforts with fiscal support for the banking services industry.

Through its massive cash injection into the local economy, by way of US$66 billion (QR240 billion) in infrastructure projects, the government is helping to bolster activity in the construction and property sectors, both of which are central to many banks’ portfolios.

These efforts to maintain activity are important for Qatar’s Islamic lenders, and for the wider banking industry, both of which have strong exposure to the property market, through loans or investments. Though analysts expect Qatar’s real estate market will have a slow year, with some predictions that rental rates could ease 15 percent by the middle of 2010, before staging a recovery in the second half of the year.

Quite apart from the ramped-up spending programme, the government has also moved to shore up the banking sector having committed to buying real estate valued at some US$4 billion (QR14.6 billion) as well as US$1.8 billion (QR6.6 billion) worth of other investments.

At the end of December 2009, the national sovereign wealth fund the Qatar Investment Authority (QIA), paid US$263 million (QR957.7 million) for a five percent stake in the Qatar Islamic Bank (QIB) to help lift the lender’s capital levels and assist it in increasing loan activity in the coming year.

The move took QIA’s holding in the bank to 10 percent, with the fund also buying a five percent stake in the Qatar Islamic Investment Bank on December 31, paying US$127 million (QR462.4 million) for 6.3 million shares.

Though injections of state funding may give the impression of weakness in the banking sector, this is not the case in Qatar. This is especially true with government support helping to facilitate further expansion, rather than shoring up past losses.

Another positive for Qatar’s Islamic finance sector is its apparent low level of exposure to the debt problems of Dubai World or any of its affiliates.

A report issued by Dubai-based investment bank and financial manager, Shuaa Capital, at the end of December, said that Qatar appeared to be less affected than other countries in the Gulf Cooperation Council (GCC) bloc by Dubai’s debt dilemmas. This was borne through a statement issued by QIB stating that its exposure to a Dubai World Islamic bond maturing in 2017 was limited to US$14.8 million (QR53.9 million).

One of the newer players in the market has hit the ground running this year – Barwa Bank, a fully owned subsidiary of Barwa Real Estate Company, announced that it was expanding through the acquisition of Qatari-based investment shareholding company, The First Investor (TFI).

Sales were given the green light by the Qatar Central Bank on January 17. According to a spokesman for the bank, the acquisition of TFI was a major step in the creation of a “universal Islamic banking group”.

While Qatar is well served for most Islamic finance instruments, one vehicle has so far remained in second

gear, with Islamic insurance, or ‘takaful’, only holding a 20 percent share of the total risk coverage market.

However, this too seems set to change, with QIB now looking to an expansion into the ‘takaful’ sector – the lender holding talks with insurance giant Generali Worldwide and regional insurance broker Beema, to form a joint venture.

According to QIB’s chairman, Sheikh Jassim bin Hamad bin Jassim bin Jabr Al Thani, the bank’s aim is to become a leading player on the international ‘takaful’ stage, utilising QIB’s extensive regional and global network.

“Our plans are to launch the ‘takaful’ products in GCC countries first, giving priority to our local and regional markets, and then place a particular focus on geographic areas that are relevant to ‘takaful’,” he said in late December when announcing the plan.

Underpinned by state stimulus and anticipating strong growth, Qatar’s Islamic finance sector appears to have the required momentum behind it, along with the capital to make the most of the coming year, thus strengthening its position in its home market, while looking further afield for opportunities.

- Islamic banking is moving to the forefront of the industry with GCC and international governments noting necessity and potential. -

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LEGAL INSIGHT

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Q e m wo ance s tate) A y d n n t S i r i n v e i pa tions d re nsur ro ov nomy (S a i m a c p m g r v o o e n Q t a a e c w i h t r o n t a La Any Da r Fina r the c ws in of ther ocal ope f Ec of leva fQ • surance the re nistry o inistry a ntly the l State o lations a o l t e f r a r i y e M b in cu rning M Q ). the regu two out censed rly the w the ay ciate suranc ises ove aws of s and re (QFC the o i r e o g e l , s p n n ) m ny m ck s e o n T t l r n m e , a i b l a e e B e n o o p e f u e c e h c r – t h m w C er y( s sto ,M uss ket of ess. T d the ancial es bet ficant ther i bod Comm Trade ance co joint n mar half i c n o r r d i disc a n n n i a o d u n F e g s s e y i F a n g a ar th fer re s of bu ctor ess n. ri in ener tely Qat he dif e nce a and gulatio rance usin Qata e form B he oxima insura rgy s een s d T u e n e t A s h r io e n b la r e • take t dict egu an i e ant app ’s entir e ene e has ranc anc juris ghtly r signific ablish r insu two e h r c t t u n nly a s t a o s li est r offe at the o sur ent in rity of nd t s i n o o i t y t r o k l. , o Be ng jec for Cur maj urance sub looki Qatar rief loo e usefu and imal. st the s e t b n s b n m a i i o a e h o t in d th re ge cts, ve t any the ively m ds sug structu basis such omp d produ ay pro c e t a ( n r a h e l f t m r t n t te a re s on or i men rela diction as ket mar energy btained require than s i r u j , non been o tutory rather tion a ta nce), l ALT s s i has a DS se. ce leg I ra a s u V i h s c A in D it ur suran car nary p n as o i o t i t e r d disc regar In

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LEGAL INSIGHT

company and its capital must be wholly owned by Qatari nationals (this article was subsequently amended in 2008, to remove the requirement that the capital be owned only by Qataris), • An insurance agent must be a Qatari national of good standing or a wholly Qatari owned entity, • Assets and properties within Qatar may only be insured by a Qatar national insurer, • Only insurance ‘agents’ are recognised by the law.

Additionally, the Insurance Law originally had provisions to enable foreign insurers to establish in the State through the registration of a branch.

However, in 1971, the Insurance Law was amended to prohibit the issuance of new licenses to foreign insurance companies, which effectively barred any new foreign insurers from being licensed in Qatar.

In addition to the (above mentioned) amendment, the Foreign Investment Law (promulgated by Law No (13) of 2000) generally provides that foreign investors may only conduct business in the State pursuant to specific circumstances and by means of approval from the Council of Ministers, which is required for foreign investment in the banking and insurance sectors.

As a consequence, historically there has been only a handful of insurance companies registered through the Ministry of Business and Trade (MBT).

In 2008, Law No (23) Allowing Gulf Cooperative Council (GCC) Citizens to Practice New Economic Activities in the State of Qatar, was promulgated introducing the possibility for GCC citizens to practice ‘insurance services’ in the State.

Although the law appears to have relaxed the 1971 prohibition on the licensing of additional foreign insurers, GCC citizens are still expected to comply with other existing provisions of law including the Foreign Investment Law, which may otherwise limit their ability to establish insurance companies.

The Qatar Financial Centre

The QFC was established pursuant to Qatar Law No 7 of 2005 as amended (QFC Law).

The QFC Law authorised the creation of several entities including Qatar Financial Centre Authority (QFCA), a Companies Registration Office (CRO), the Qatar Financial Centre Regulatory Authority (QFCRA), an Appeals Body and a Civil and Commercial Court.

The QFC Law also provides for the following, in respect of entities established within the QFC: 1) An exemption from the licensing requirements of the State including MBT, the Qatar Central Bank, the Qatar Commercial Registry, the Qatar Chamber of Commerce and Industry and the Municipality of Doha,

2) A statutory guarantee against nationalisation or expropriation, 3) An entitlement allowing entities that are set up within the QFC to be 100 percent foreign owned, 4) The ability to repatriate profits and realise investments, and the freedom to recruit and employ staff pursuant to the QFC regulations, 5) An exemption from taxation except for those taxes set out in accordance with the regulations (such regulations are expected to come into force this year).

The QFC has considerable administrative independence from the State, and generally State laws do not apply to QFC licensed entities.

However, certain laws addressing matters of public order, such as Law No 11 of 2004 (Penal Code) and Law No 28 of 2002 (Anti-Money Laundering Law), will continue to apply to entities in the QFC. This general legislative exemption enables QFC incorporated entities to conduct insurance and insurance intermediary business in and from the QFC, free from the constraints of the Insurance Law and the Foreign Investment Law – in particular the national ownership requirements.

- The insurance market is on the irse in Qatar, but do you know the rules of the game? -

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LEGAL INSIGHT

to offer products to retail customers will need to consider carefully how its products will integrate with the current retail insurance regulatory regime.

Regulation of insurance companies and insurance intermediaries

Prior to the division of the Ministry of Economy and Commerce into two separate ministries, it had been considering implementing draft regulations.

Although the Insurance Law originally made reference to regulations that would have provided a framework pursuant to which the insurance sector in the State would be regulated, no such regulations have been issued to date.

Consequently, the MBT currently supervises commercial companies to which it has issued licenses, but there are no insurance sector specific conduct of business regulations that apply to insurance companies operating in the State.

Rather, in the absence of a centralised insurance regulator within the State, the insurance sector has traditionally been lightly regulated through the application of the provisions of various other laws, including the Civil Code.

Insurance activities conducted, in and from the QFC, are categorised as ‘regulated activities’ and accordingly are regulated by the QFCRA, which has issued several rule books providing a comprehensive regulatory framework for insurance operations in and from the QFC. These rule books provide guidelines for some areas of concern related to risk management, operations, fitness and propriety, market conduct, and others.

In addition to conducting activities in the QFC, entities established within the QFC are able to conduct activities in the State, with the QFCRA acting as an independent regulator of financial services in and from the QFC. One particular area of intense regulation relates to QFCRA 62

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authorised firms’ interaction with retail customers. For the purposes of the QFCRA rules, a ‘retail customer’ is defined as a customer, who is not a commercial customer or other equivalent entity. The Conduct of Business Rule Book (COND) governs the interaction between QFCRA authorised insurance and insurance intermediaryV entities and their customers. In regard to retail customers, the nature of the interaction between the QFC and the State is such that appropriately authorised QFC entities are able to provide insurance services to retail customers in the State, in accordance with the QFC regulations.

The QFCRA has also informed us that insurance intermediaries will be permitted to offer to retail customers in the QFC and the State, the products of unregulated insurers. However, the QFCRA’s desire to adequately protect individuals, who enter into contracts with insurers and insurance intermediaries, has resulted in retail insurers being subject to the most regulatory scrutiny in the QFC. Considering that retail insurers are expected to have highly stringent processes underpinning how they deal with their customers, further supported by a strong compliance function, an insurer intending

Conclusion

Prior to the global downturn, discussions were taking place in regard to creating a single financial regulatory body, which would encompass the Qatar Central Bank, the Doha Securities Market and the QFCRA, therefore regulating entities both in the QFC and in the State. However, there have been no public indications that further discussions regarding such an entity have taken place this year. Although the 2008 law relating to GCC citizens may assist in the expansion of the State insurance market, the majority of foreign insurers and insurance intermediaries wanting to establish in Qatar will likely be incorporated under the auspices of the QFC.

Note that this article is of a general nature only and is not legal advice and, therefore, should not be relied upon as such. Clyde and Co accepts no responsibility for any reliance on this article. Also, all laws in Qatar (outside of the QFC) are published in Arabic and Clyde and Co accepts no responsibility for any errors or omissions in translations upon which this article is based.

For more information regarding legal issues, contact Michael Earley or David Salt at: michael.earley@clydeco.com.qa or david.salt@clydeco.com.qa

BUSINESS KNOW-HOW

Doing Business

in Qatar

Jane Ashford, the general manager of Links in Qatar, discusses some of the issues that can arise when establishing a business presence in Qatar.

BUSINESS KNOW-HOW

- Jane Ashford, general manager of Links, Qatar. -

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here are a few ways in which foreign entities – individuals or companies that are not nationals of the State of Qatar – can seek to establish a business presence in the country.

Foreign investors are welcomed in Qatar and various incentives are available to attract foreign capital. These include tax breaks and exemptions from customs duty.

Foreign business investors may invest in all parts of the national economy excluding commercial agencies and real estate agencies. Approval from the Council of Ministers is required for foreign investment in banking or insurance.

To invest in the economy a local partner is generally required.

The local Qatari partner must hold 51 percent ownership.

The Ministry of Business and Trade (MBT) may permit foreign investors to own more than 49 percent of a company in specified sectors, namely agriculture, industry, health, IT, education, tourism, the development of natural resources and energy or mining. Choosing the most appropriate business medium is key.

Establishing a company

A ‘company’ is the normal vehicle where an on-going business is being set up. Various exemptions are available to attract foreign capital, however, in almost all cases a Qatari partner will be required.

Branch office A foreign company, which is performing a specific contract in Qatar, may set up a branch office if the project, “facilitates the performance of a public service or utility”, but this must be authorised by the MBT. There is no legal requirement for a Qatari partner, but the branch is only entitled to perform the specific contract for which it is registered. The branch will also be fully taxable unless it is granted a special exemption.

Commercial Agency The foreign company does not establish a presence in Qatar, instead an agent must be appointed to market goods and services within Qatar.

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Representative Trade Office The trade office can be used to promote a foreign company in Qatar and introduce its products to Qatari companies as a non-trading ‘shop-window’.

Limited Liability Company (LLC) A minimum capital of QR200,000 is required to establish an LLC with at least 51 percent Qatari ownership, unless an exemption has been obtained. The parties’ profit shares do not necessarily have to reflect their shareholdings.

Ten percent of each year’s net profits must be kept within a company until the reserve stands at 50 percent of the share capital.

LLC’s may not raise capital by public subscription and may not issue freely transferable shares or bonds.

Transfer of shares is allowed only after they have first been offered to the other shareholders by way of pre-emption, unless the other shareholders have agreed to waive their rights. The companies may not carry out banking or insurance business, or provide investment advice or investment services to third parties.

Process Flow for the Formation of a LLC

STEP 1: THE Commercial Registration – Incorporation In order to incorporate a company and obtain a commercial registration the following are requested: • Memorandum and Articles of Association in Arabic • Notarised, authenticated and consolidated copies of the foreign company’s Certificate of Incorporation and Memorandum and Articles of Association • Preparation of side agreements (Management and Technical Services Agreement) • Preparation of Shareholders Agreement • Power of Attorney (POA) The following steps should be taken in order to register a company in Qatar: 1) The locally appointed lawyers will submit the Articles of Association to the MBT (www.mec.gov.qa) to obtain approval for the company name.

BUSINESS KNOW-HOW SECTION

- When establishing a business in Qatar it is essential that you know all the loop holes from the onset. -

2) If approved, the MBT will then issue a letter to the bank authorising it to open a temporary account in the name of the company under incorporation.

3) The MBT letter should then be taken by the shareholders to the bank to deposit the share capital. Either the shareholders or their representatives, or the general manager nominated in the ‘company’s articles’ (if any) will need to be present at the bank.

4) The bank letter will then be taken to the MBT with the articles. The articles will then be approved by the MBT. 5) The MBT will issue the Commercial Registration.

6) The Qatar Chamber of Commerce Membership Certificate is obtained and will be followed by the issuing of the commercial registration.

Once the company has been incorporated and the Commercial Registration issued, the share capital can be released to the company’s directors, or the general manager for the purposes of running the company.

Please note, the general manager of the new company should become a Qatari resident and must be sponsored by the company.

The foreign shareholder will need a representative in Qatar, as authorised by a POA, in order to carry out the company incorporation steps: Signing the Articles of Association, opening the bank account and signing the POA to the general manager. The general manager designated normally carries out this role.

STEP 2: Municipality Licence and Signage Licence The following are required in order to obtain your Municipality Licence and Signage Licence: • Municipality Licence: Application forms are to be completed in Arabic and

signed by the manager of the company.

The lease for the premises, translated into Arabic, from which the company will operate, will be required. The company’s Certificate of Incorporation, and Articles of Association, may also be required.

It is important that the information on the company’s trading activities is correct and it is advisable, when selecting the activity that a full detailed description of the exact activity is given.

• Signage licence: A photograph of the premises where the Municipality Licence is held is required, accompanied by artwork of the company’s proposed signage – the design specification of which must be approved by the Ministry of Municipal Affairs and Agriculture, and must include an Arabic and English translation.

STEP 3: Computer Card – Immigration Department Identity Card To obtain the Computer Card, which is required before one can sign on visa related matters, the following are required: • Commercial Registration • Municipality Licence Once a person obtains their Computer Card they will need to provide the municipality with copies of job contracts and a list of employees they wish to employ – this list must also detail the gender, profession and nationality for all potential employees.

The municipality will then agree to the ‘employee list’.

Note, it is sometimes difficult to obtain permission for certain nationalities to be employed.

The general manager’s (GM) resident permit will be completed two to four weeks after obtaining the ‘employee list’.

Once the GM has obtained their permit, they can be added to the computer card so that these visa issues can be addressed.

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INDUSTRY FOCUS – MENTAL HEALTH

INSIDE QATAR’S PSYCHE

INDUSTRY FOCUS – MENTAL HEALTH

Healthcare continues to be one of the highest priorities for Qatar, emphasised by its position as an industry leader within the region. Through its strategic developments in recent years and most notably since the inception of the primary health body, Hamad Medical Corporation (HMC), Qatar has gained the reputation as a regional health leader.

However, certain medical practices are viewed as contradictory to cultural and traditional norms. Reem Shaddad discovers the qualms behind trusting in psychiatric care, both on a local and international scale.

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stablished in 1979, HMC is responsible for the the major reason for the success of this goal. Yet in the same management of four specialised hospitals and its enthused manner Qatar handles all its national advancements, clinical counterparts. These include Hamad General since the WHO reports published in 2001, much has changed Hospital, Rumailah Hospital and the Women’s and in favour of the medical scope in the country. The most recent noteworthy health initiative offered by the state is known the Psychiatric hospitals, respectively.

Opening its doors in 1982 after changing locations from as Qatar Health 2009, held in December last year for the Rumailah to its current address at Al Rayyan Road, Hamad duration of five days.

General Hospital (HGH) has experienced both an increase in The event – the first of its kind to be held in Qatar and patient numbers as well as its facilities. arguably one of the largest health events in the region – is a Among the services offered at HGH, the facility has a high medical congress and exhibition drawing together a number capacity for inpatient care, a sizable outpatient department, of participating countries and professionals to share, learn with the provision of speciality clinics and a wide array of and dynamically create solutions into the improvement of departments including accident and emergency, pathology the medical field. Encompassing a series of 13 medical tracks and radiology. Its span of offerings proves the availability and covering departments, and issues from the vast array of of necessary therapeutic services, ensuring that HMC as a medical services available throughout HMC, Qatar Health whole remains abreast of international medical standards 2009 successfully provoked case in point queries to Qatar. and further local schemes.

More than 100 companies In 2005, Qatar founded were present to offer their “The majority of respondents expertise on the latest in the National Health Authority (NHA), which instantaneously healthcare technology, including [to a recent study] could not became one of the several equipment, products, services name a single mental illness government panels responsible and even informative offerings that they had heard of...the for executing the ongoing sets from medical schools and of national health goals. The universities, both local and majority also considered most prominent of these goals global. Delegates participating mental retardation to be a remains the ‘Health for All’ in the congress consisted of slogan, as pledged by the state. a variety of professional and mental illness – this is a Deemed as having already semi-professional healthcare huge misconception.” achieved this particular health staff, physicians, nurses and goal, as outlined in a number of paramedics from each of the - Doctor Suhaila Ghuloum reports published by the Eastern medical tracks.

Mediterranean Regional Offices The 13 tracks included (EMRO) of the World Health Organisation (WHO), Qatar trauma and disaster, paediatrics, surgery, internal medicine, is in a place of envy for other EMRO countries. This belief dental, radiology and psychiatry, respectively, each hosted stems from the national supplement of free health care to all a series of lectures and workshops drawing critical global residents of Qatar, whether national or expatriate, as per the expertise into the local arena.

WHO 2001 Country Profile reports.

For Doha’s Psychiatric Hospital, this public exposure Unfortunately, the same reports also noted an absence of to the varieties of mental health issues spelled a potential any formal health strategy – at that point in time – due to the bridging in the knowledge of, and attitudes toward, mental conviction of responsible officials, concerning the success of health practice and patients.

With speakers from a host of internationally renowned the ‘Health for All’ concept.

The WHO attributes this to the country’s sturdy economic institutions, such as Tufts Medical Centre in Boston and situation, which continues to be internationally regarded as the Institute of Mental Health, Robert Gifford Hospital in FEBRUARY 2010

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Quebec City, this particular set of sessions was informative beyond expectations. Lecture topics included research into the paradigms of psychiatry and the differences between certain philosophies and practical strategy, the integration of mental health care into the primary health care system and most notably, the attitudes, values and beliefs of professionals, and the general public, toward mental illness in the Arab world.

Day one of the psychiatric presentations included elements of the aforementioned issues particularly during Doctor Suhaila Ghuloum’s talk surrounding a cross sectional survey conducted to reveal the knowledge of mental illness and mental health practices in Qatar. Not only is Ghuloum a practising consultant psychiatrist, but she is also the chair of the psychiatry department at Qatar’s Psychiatric Hospital.

In addition, Ghuloum is an assistant professor at Weill Cornell Medical College in Qatar and is the focal point of negotiation and cooperation between Qatar and the WHO’s EMRO and the Gulf Cooperation Council’s (GCC) Mental Health Council. In a private interview with Ghuloum, sentiments surrounding the lack of formal health strategies were echoed concerning the absence of a mental health act.

Annual GCC Mental Health Council meetings have voiced these concerns and are currently in the process of formulating a mental health act that will be flexible enough to mould the ethnic variations comprised in GCC countries.

The council meetings also provide grounds for the exchange of experiences, clinical, practical and research support, and the study of mental health legislature in different countries to aide their own goal. This goal also includes the principal issues of securing the rights of individuals, with mental health issues, particularly where modern psychiatric techniques are not trusted.

According to Ghuloum, the future for psychiatry is looking up in the region. She believes the council is close to achieving its goal of setting solid regulatory rules for mental health practice through all-encompassing Mental Health Council.

Ghuloum also emphasises the time consumption problems the council faces in running legislative ideas through the governing Supreme Council of Health, approvals from the Ministry of Interior and the Ministry of Social Affairs.

Aside from this, there have been obstacles in the form of professionals not understanding the need for a regulatory mental health act, which paints an untrusting image between colleagues within the same field of practice.

Additionally, Ghuloum expresses apprehension regarding the GCC Mental Health Council. She highlighted the just treatment of mentally ill patients as an area of particular concern, chiefly in legally binding situations, which, among others, includes punishment versus treatment of a mental health patients post committing a crime and the standardisation of treatment of said patients.

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When questioned about recent statistics concerning the rise of mental disorder cases within Qatar, Ghuloum quickly drew attention to the discrepancies and “scandal” that can be associated with mental health figures, rather than the compassion and understanding that is also demonstrated by professionals in the psychiatric field.

“I don’t think there is a rising number of mental health disorder cases,” she said.

“The population has increased, so the rise in the number of mentally ill patients is justly proportionate to that.”

Ghuloum does not condemn the exposure that mental health has received, but rather she believes this exposure has helped spread awareness through the Qatari community and within the HMC itself: “This has brought awareness to the fact that we cannot continue with things the way they were 10 years ago. We need to improve and certainly HMC has taken many steps in the right direction, improving on its psychiatric services.”

However, the question remains: What is the dominant view on mental health illnesses and practice in Qatar?

During Qatar Health 2009, Ghuloum’s talk revolved around this topic of debate. An epidemiological research, undertaken through support from the Qatar Foundation (QF) National Priorities Research Programme (NPRP) and conducted by Ghuloum and a cooperative team, examines the prevalence of mental illness in Qatar and its population.

Through distribution of questionnaires, the team was able to pose queries to the general public on their knowledge of mental illness, its causes, cultural beliefs and guidelines moulding their ultimate concepts of mental health and personal attitudes towards those suffering specific illnesses. Ghuloum revealed the results were very much a mixed bag of favourable and negative responses.

In questioning the public’s willingness to seek professional psychiatric help, the research revealed an impressive number of positive responses where an average of 70 to 75 percent of interviewees volunteered that they would actively do so.

In contrast, a significant number of respondents said they would opt to seek out alternate medicine (faith healers) instead of, or in conjunction with a professional psychiatrist.

Ghuloum says the problem lies within those seeking purely traditional means of treatment as opposed to compromising with seeking both a qualified psychiatrist and a traditional healer. The other considerable concern she highlighted, was the uncomforting belief by many respondents that regardless of the criteria of mental disorder, patients cannot maintain a position of employment.

Similar concerns were echoed in results that demonstrated the majority of respondents would not feel comfortable continuing friendships with individuals, who had been diagnosed with mental disorders, or working in the same environment with somebody who had a mental illness. These feelings were true for all sorts of patients, even those affected by mood disorders such 70

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as anxiety and depression – individuals that can be medicated and function coherently in any setting.

Reasons behind these sentiments were not noted as part of the research, but Ghuloum points to lack of knowledge surrounding the varieties of mental disorders as a potential influencer.

“The majority of respondents couldn’t name a single mental illness that they had heard of…the majority considered mental retardation to be a mental illness – a huge misconception,” she states.

These are the key issues that Ghuloum is calling to be publicly addressed in a bid to foster a better understanding of mental health throughout the state, and hence, to encourage empathy and awareness towards those suffering from such illnesses. Ghuloum was also quick to note the role that the media also plays in this misinterpretation of mental health disorders. Ghuloum’s theory is supported by countless examples across all media platforms, where individuals diagnosed with mental disorders are often presented in a negative light. Inevitably, misleading portrayals can have significant repercussions on both society as a whole and sufferers of mental illness – particularly in the instance of people, who have had no prior exposure to, or knowledge of, mental health issues.

Irrespectively, Ghuloum remains largely optimistic about the future of psychiatry in the region, particularly in light of what some regional events and professionals are doing in regard to highlighting critical issues.

According to Ghuloum, a number of independent schools have approached the Psychiatry Hospital about attending open information days in a bid to better educate young minds on the services available to them. Community care, day care centres, crisis intervention, a bio-psycho-social approach to medication and a better understanding on the benefits of psychotherapy, are the key areas that Ghuloum says need better awareness.

As acting chairperson for the department of psychiatry in Qatar, Ghuloum’s ultimate vision remains central to the integration of mental health care with general medical services to help reduce the stigma of mental illness.

In closing, Ghuloum says Qatar appears to be living up to its name as a regional leader in healthcare advancement: “Things are improving. We are still not where we would ideally like to be, but then again, this stigma related to mental illness is not an exclusively local problem, rather a global one.”

“We want to be better than that, we want to be a step ahead.”

HoW-to GUIDe

HoW-to GUIDe

HOW TO CHOOSE A FINANCIAL ADVISER IN QATAR in this special How-to guide, kevin Guy of Guardian Wealth Management Qatar spells-out the abCs of how to find the right financial adviser for you and your business.

When you are in a foreign jurisdiction it can be difficult to decide how to choose an adviser. Expatriates can sometimes feel vulnerable if they do not have much local knowledge, but when that advice has financial implications for you or your business, making a good decision is all the more important. independent financial advisers offer advice on short and long-term investment decisions. accordingly, you need to ensure that the person advising you is competent, accountable and honest. in Qatar, the Qatar Financial Centre regulatory authority (QFCra) is charged with regulating independent financial advisers.

Established in 2005, QFCra is an independent body, comprising a board of members that carry with them a wealth of knowledge in international finance. While QFCra remains a 72

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relatively new organisation, it benefits from the expertise that its members bring to the table. a brief glance at the QFCra’s website will reveal that it is similar in remit and function to the united Kingdom’s (uK) Financial services authority (Fsa). thanks to Qatar’s rich oil and gas-lead economy and high gross domestic product (GDp), people may associate the emirate with luxury, lucrative business deals and a low tax regime. Meanwhile, the presence of a robust financial regulator may not spring immediately to mind.

However, the state is interested in having a firmly regulated financial services sector – simply because this inspires confidence, which in turn attracts more foreign investment – as regulation of financial advisers is designed to keep investors and business people safe.

HoW-to GUIDe

WHY IS IT IMPORTANT TO USE A REGULATED FINANCIAL ADVISER IN QATAR? unfortunately, there are a number of unregulated firms operating in Qatar and in the Middle East in general. the perils associated with using unregulated advisors ultimately depend on the particular advisor you choose. if a rogue adviser gives you poor advice, you could lose out financially from their negligence and be without redress from the QFCra. a worse scenario is that of the dishonest broker, who might actively steal from clients. there is currently a problem with disorganised, unregulated advisers throughout the region that set-up shop without having the appropriate work permits in place. it can be a significant interruption to your business and investment activities if your adviser is suddenly shut down or disappears.

QfCRA COvERS ThE fOLLOWING ISSUES: • Quality of Advice it can be easy to be bowled over by an enthusiastic financial adviser that promises you the earth with a particular product.

However, as well as giving positive projections, independent financial advisors (iFas) must give advice, which is realistic and correctly reflects the risks involved. the pension miss-selling scandal of the 1990s in the uK is a case in point here, where financial advisers overinflated the projected performance of certain products.

in fact, in addition to knowing about the products they are selling and presenting them in an honest and realistic manner, an adviser should know about you too. Each customer has distinct requirements, different expectations and a unique risk profile. the QFCra has strict rules on the quality of advice that its advisers give, and insist that they take these issues into account.

• Client care QFCra regulated firms have strict standards for customer care. these standards are in place to ensure that the clarity and content of communications that people receive from such firms – including query response time – are closely monitored.

• Safeguarding your money if your financial adviser accepts money, the way in which they deal with it will be regulated. this is a comfort because otherwise you cannot be sure that they are dealing with the funds in the appropriate manner.

• Complaints management there is nothing more frustrating from a customer’s point of view than not having a complaint investigated and taken seriously.

Even in the best-managed businesses customers complain, but it is how a complaint is dealt with that can determine whether someone will become an ex-client or a repeat customer. a sound complaints procedure should be transparent and easy to follow, so that the complainant feels they are heard and that their grievance has been acknowledged.

Firms that are regulated by QFCra must have a clearly defined grievance policy, information about which should be made available to investors when they first sign-up. Where possible, a complaint should always be resolved by the firm subject to it. However, many times this is not possible, so the complaint must be referred to the QFCra, which has its own Customer Dispute resolution scheme. the QFCra investigate complaints and, where appropriate, takes action including the imposition of penalties and sanctions. hOW CAN YOU ChECk If YOUR AdvISER IS REGULATEd IN QATAR? regulated advisers make known their accreditation and openly display such information on their business cards, website and company literature. after all, if they are playing by the rules, they have nothing to fear. if you cannot see any evidence that an adviser is regulated by QFCra, ask them if they are. no respectable adviser will be offended by such a query. in fact, if they are at all uncomfortable in answering, it should serve as a warning sign that there may be a problem.

QFCra keeps a register of the firms that are authorised, so people can simply write to QFCra and ask for verification of a firm’s status. this can also be done online by entering a firms name at: http://www.qfcra.com/advsearch/af.php FEBRUARY JANUARY 2010

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WHAT FURTHER QUESTIONS SHOULD YOU ASk A QFCRA REGULATED FINANCIAL ADVISER? once you have established that your chosen adviser is regulated, ask the following questions: • ARE THEY AN INdEPENdENT fIRM? this question is important because the answer will determine whether the firm is acting in the best interests of the financial institutions it represents, or for you, the client. a tied adviser has a limited number of options: they can only recommend products from their related advisers. on the other hand, a truly independent firm with access to the whole of the market can seek out the best deal for you.

• DO THEY CHARGE FEES OR TAKE A COMMISSION? some advisers charge fees by an hourly rate. others are paid a commission by the banks and insurance policies, whose products they sell. Whichever kind of arrangement you choose, make sure that you understand the basis on which you will be charged, and how much, if anything, you need to pay.

• DOES THE FIRM HAVE LOCAL OR INTERNATIONAL REACh? Consider what you want out of an independent financial adviser in the next few years.

For example, if your job or business dictates that you will move from country to country on a regular basis, an adviser with international reach and understanding could be best.

• CAN YOU ESTABLISH A RAPPORT WITH THIS PERSON? When you seek advice from a firm of financial advisers, you will need to tell them everything about your finances. regulated advisers will be under an obligation to keep such information confidential. so on a human level, ask yourself if the adviser is the kind of person you want to share your information with.

• DOES THE ADVISER SPEAK PLAIN ENGLISH? there is no point getting financial advice if it is couched in technical jargon that you cannot understand. advice about financial matters can be complex. you are paying good money for this advice, so you should be able to understand it.

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Guardian Wealth Management Qatar llC is the first, and only, uK Fsa, fully independent advisory firm to be authorised by the QFCra. For more information regarding Guardian Wealth Management Qatar, contact leighton Jones at leighton.jones@gwm-intl. com or visit www.gwm-intl.com

TECH TOOLS

February spells an awakening from post-holiday blues and the search for the best office performers on the market. This month, TheEDGE picks some of the must have ‘tech essentials’.

SILENCE OF THE OFFICE WORKERS It is inevitable – the office is a noisy place to be no matter what industry you work in. Phones are constantly ringing, the creative types are playing their music and even that incessant ‘you have got mail’ tone can eventually rub the most patient of us the wrong way.

There is no need to worry though as Nokia has come through with a solution for all your noise qualms.

The Nokia Bluetooth Stereo Headset BH-90 with active noise cancellation was released last year, but has only recently hit shelves in the region recently.

Combining both music and calls with minimum effort and maximum convenience, the BH-90, installed with Wolfson Microelectronics technology allows for pure sound whether while tapping away to tunes while working, or call reception made easy with integrated call control.

The headset has been designed to the extreme in simplistic lines and materials, without compromising functionality. Details in smooth stainless steel ensure a quality look, adorning soft ear pads providing maximum comfort for hours of easy usage. A multifunction key is all that is needed to interchange between uses, with another switch for activation of noise cancellation in between.

Compatibility is also a treat where the BH-90 works with any wireless bluetooth supported device and with wired connection to all Nokia devices.

At a price of EUR285 (QR1509), this is a sound investment (pun unintended) for any office with the need for a little peace. www.nokia.com

RAVING RAVENS In regular ‘Tech Tool’ style, we have yet again taken the best performer from the list of the usual suspects to provide you with an extraordinary achiever.

The AirLink Raven. It comes from the X Series of Rugged Intelligent Modems from Canadian wireless manufacturing giant Sierra Wireless is what the business world has set its sights on this month.

Embedded with a robust ARM9 processor and ALEOS intelligence technology for optimum performance on today’s high- speed data networks. This adds maximum usage capabilities for any dynamic office space with the need for top of the range performance, a high-speed interface and 3G-optimised architecture make the Raven X the ideal choice. Key benefits to the integration of the Raven X into your office network include session persistence for 24-hour operation in unmanned environments, an advanced processor, a serial and ethernet supporting interface, a safe design for potentially hazardous environments and remote management and integration.

The best piece of news though is that if the Raven X impresses you – which it will – there is a host of other AirLink Mobile and M2M systems to choose from for total synergy between all wireless products at the office. This Raven may be small and discrete but let its performance do the talking and we are positive you will have established a relationship for life. www.sierrawireless.com FEBRUARY 2010

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WHAT IS SMARTER THAN A TOUCHSMART? After releasing its much awaited Touchsmart all-in-one last summer, HP has made its way back into the centre of the PC playing field with all eyes focused on what it will have to offer next.

The HP Touchsmart IQ816 is the next generation touch computer, combining a 25.5-inch diagonal, high definition widescreen, with powerful energy efficient Intel CoreTM2 Duo28 processor in the single, sleek and integrated design shown.

The proficiency does not stop there, with quick and easy touch access a simple tap away from any program, a one-plug power system, aesthetically designed wireless keyboard, colour HP Ambient Light for colour lighting and night time vision for those extra hours at the office. All this plus a promise from HP as a slow green-evolving company, committed to reducing its manufacturing environmental impact as well as that of its customers, partners and suppliers means you can ensure the best for your organisation and remain in clear conscience.

The IQ800 series PCs have already earned their Energy Star and EPEAT silver qualifications, plus providing up to 45 percent energy savings in comparison with any other PC without power management. Now, that is smart. www.hp.com

EXCELLENCE HAS A NEW NAME The new ST550 dual light crystal display (LCD) digital camera from Samsung is the latest, sleekest and best bargain of its kind to hit the photography market as of yet - and it will be a hard one to beat. Outsourcing photographers for events and purchasing even entry-level professional cameras can be a taxing move on any office budget, therefore Samsung have come up with a middle grounds compromise to keep everyone happy. With one LCD display on the front and another on the back of the ST550, Samsung now gives consumers the ability to actually step out from behind the camera and put themselves in the picture – a perfect tool for media types zooming around from press conference to the next without the need for hiring a professional photographer.

The 1152K resolution affords the ST550 four-times more clarity than traditional cameras and is also integrated with haptic vibration feedback for ease of use. All this plus a 12.2 mega-pixel CCD and 27 milimetre wide-angle SchneiderKreuznach lens with an impressive 4.6 times optical zoom. Aimed at exactly the field that requires it, the ST series is equipped with top of the range innovations such as the incredible Samsung Smart Gesture User Interface (UI) with built-in gravity sensor. Simply turn the camera on, tap the front LCD panel, camera sets into self- portrait mode with smile detection. All you have to do is smile and your picture is automatically taken without the need to press the shutter...it is genius. www.samsung.com

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LIFE & STYLE – LIFESTYLE TOOLS

This month TheEDGE takes a look at the most sought after products to hit the market helping you make the most of your time abroad, while staying in touch with home.

I L L E V A TR

E L Y T S ’ V L ‘ NG

For the businessperson on the go, or the year-round worker taking a well-deserved holiday, and as the chill slowly transforms back to the warming rays of spring sunshine, Louis Vuitton is our first ‘Lifestyle Tools’ destination for this month.

Before you pack-up and leave on that jet plane (or commercial liner, we do not judge) some in-depth research is in order. There is no better way to do this than by using the 2010 edition of the luxurious LV City Guide, which cover more than 31 European destinations.

Offering nine soft-back guides in a slick box set, and offering an extensive list of the best -hidden treasures in a number of cities, the LV City Guide will ensure any European escapade is well spent. Spanning numerous locations in France, The Netherlands, Austria, Spain, Greece and many more, the guide encompasses more than 7000 addresses, 2000 listings and enticing illustrations. At an easy price of QR510, available locally from the LV store at Villagio Mall, this purchase will prove a delight to even the most seasoned traveller. We bid you bon voyage. www.louisvuitton.com

R

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U O Y LE

E V O RL

The latest generation of wireless book reader is here to whisk you back into the age-old pastime of reading, maybe not in the conventional manner, but definitely in a more convenient one.

The new Kindle Wireless Reading Device from multimedia giant Amazon took the world by storm over the festive season and for good reason. With a lightweight, slim and modern aesthetic appeal and at a third of an inch in width (literally as thin as any magazine carried around without a second thought) the Kindle is indeed a gadget to be celebrated.

Simply allow the Kindle to switch on, immediately connecting to the 3G wireless network and you are set to download books right away, no fees and no plans required.

Thousands of books, magazines, journal and newspaper titles are available for download in 60 seconds or less – no PC required. Battery life is also impressive with several days guaranteed usage before need of recharge. For all you traditionalists out there the latest generation Kindle even allows you to view material in real paper format boasting 16 shades of grey for clear text and even crisper images. We want one, now. www.amazon.com DECEMBER February JANUARY 2009 2010

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We know what you must be thinking and with all due respect, we have to say...this time you are wrong. The new Chocolate BL40, from LG’s swankiest mobile phone line, is not just another phone.

The BL40 is the phone everyone is coveting, including all you business types that are tired of lugging around sizable business planner phones for lack of choice. Normally associated with convenience and reliability, The Black Label Series was created with high-end luxury on the agenda, and this is exactly what LG achieved.

Representing a premium line of stylish handsets, the latest offering, the Chocolate BL40, boasts all the smoothness and enticement of pure, unadulterated chocolate enjoyment.

A four-inch high definition (HD) screen captivates real life as well as any standalone camera/camcorder, supporting lively renditions of images only usually possible through liquid crystal dispvlay (LCD) technology. A tempered glass finishing allows this superb viewing without compromising any of the conventional excellence of LCD technology, and also prevents normally inevitable scratches.

Other standout features include a Dual Screen UI capability, complete web display, one touch copy and paste, and gesture shortcut tools.

Indeed, chocolate has just gotten a whole lot sweeter. www.newchocolate.lgmobile.com

E V I L

L L E W

For the average traveller, powered luggage may seem a bit much; after all, you are only dragging the case to the check-in desk, right? Your frequent traveller on the other hand might strongly disagree with that statement.

In the busy world of the jet-setting businessperson, the smallest inconvenience can have the power to upset one’s entire schedule. In effect, world-renowned luggage makers, Live Luggage, have come up with an added luxury for the perfect travel companion. Boasting soft casing and a removable rucksack the 2012 Sports Bag is the ideal weekend trip/getaway bag.

The multifunctional design provides various uses for different compartments, zipping together and apart for complete flexibility that a regular suitcase does not offer.

Additional features include an anti-gravity handle, placing 85 percent of the weight over the wheels of the sports bag and a unique Live Locator ID to help locate your suitcase in the event of loss. Bag dimensions are 800 by 500 by 480 millimetres and a volume of 130 litres, for maximum storage capabilities.

There is also a variation of colours to mix and match from, including black, white and yellow. The ‘fait de complete’ has to be the flat motor technology available as a bonus feature and built into the wheels of the bag to assist when going up gradient and kerbs. Force sensors and tilt switches have been integrated into the motor with a standard charger included. This is travel at its best. www.liveluggage.com 78

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LIFE & STYLE – SPORT

G N I K T A E M U Q C A R A While still revelling in the thrill and excitement of the last month’s Qatar ExxonMobil Open, Reem Shaddad grabs a Wilson and prepares to serve; a dose of one of the world’s most loved sports that is; tennis.

Rounding-up another successful round of competition, professional tennis in Qatar once again leaves a taste of the international love for one of the most widely followed and practiced sports worldwide. The world’s sixth ranking tennis player, Russia’s Nikolay Davydenko, took home the Qatar ExxonMobil Open cup last month beating crowd favourite and the number two ranking player, Spain’s Rafael Nadal, to the title he held the previous year.

Yet, the true purpose of the ExxonMobil Open was not to pronounce a single winner, but to celebrate a love for the sport harboured in the heart of Qatar for over two decades now.

Since its beginning in 1984, the Qatar Tennis Federation (QTF) has embraced the apparent love of tennis in Qatar, shedding light on internationally distinguishable players the world over. The competitions held on a local scale were not the only initiative pursued by the QTF, on the contrary, the federation has done everything possible since its establishment to give aspiring young players the opportunity for globally and regionally renowned instructors to train and prepare them for a possible professional journey in tennis. This was implemented through the introduction of tennis classes to the masses through facilitation via major sports clubs within Qatar. By 1987, this meant that QTF had infiltrated clubs like Al Arabi, Al Saad and Al Ahli with training opportunities for hobby and professional uses, simultaneously.

This strategic move spelled the reaping of public interest in tennis, aiding cooperation in the emergence of league and cup competitions within the Qatari scope. And, therefore, contributing to the development of tennis, players and facilities available.

With an incessant focus on the sport, four years later another breakthrough for tennis in Qatar saw the introduction of the Khalifa International Tennis Complex in Doha.

The event had been long awaited, and the opening ceremony was no let down as H H Sheikh Hamad bin Khalifa Al Thani inaugurated the complex paving the way for the future of tennis in Qatar and the region at large.

In 1993, the first Association of Tennis Professionals (ATP) Qatar Open, was held in Doha, at the Khalifa Tennis Complex.

Since the inaugural cup, tournaments have boasted a host of stellar names in the sport, with the likes of Ismail Al Shafi, Boris Becker, Pete Sampras, Andre Agassi, Goran Ivanisevic, not excluding the current world leaders such as aforementioned youngster, 23-year-old Rafael Nadal and world ranking number one, Swiss sensation, Roger Federer.

- Russian tennis champion Evgeny Korolev.

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- Rafael Nadal gesturing during his ATP tennis match against Potito Starace.

Annually, these tennis greats, and numerous colleagues, have graced the hard courts of Khalifa Stadium with their skills, pure unadulterated expertise and panache to the extreme pleasure of tennis thirsty fans in Qatar.

The country is also responsible for hosting the first ever ladies championship held in the Middle East in 2001 with the Women’s Tennis Association (WTA) tour.

Among the standout names that have participated in the WTA tour in Qatar are Martina Hingis, Steffi Graff, Amelie Maresmo and more recently, the incredible Williams sisters. The move into women’s professional tennis also created a significant increase in media coverage for the sport, encouraging the upgrade of the Qatar Total Open for women to the new Tier II, with an increase in prize money to a total of US$600, 000 (QR2.18 million). Combined, these professional tours have fuelled the need for developing local tennis seasons and the initiation of new tournaments. This has been executed through various tournaments now held in

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an array of private clubs and even corporate competitions for motivational purposes.

In effect, tennis has indeed taken off in a manner incomparable to other racquet sports, or any other sport in Qatar for that matter.

All ages alike are welcomed as members of the QTF and are encouraged to delve into this much-loved activity and profession, with reassurance on the quality of support and motivation that will be afforded to them.

Information on the different venues, trainers and availabilities can be obtained through the QTF or simply by contacting any of the sports clubs mentioned and inquiring about tennis classes/ court hire.

One thing is for sure- the future of tennis in Qatar continues to look even brighter now than it did over 25-years ago.

Contact Qatar Tennis Federation on: +974 324 4485 or email: info@qatartennis.org

eVents & conFeRences

MIddLE EAST ELECTRICITY 9–11 February, Dubai international Convention and Exhibition Centre, uaE The Middle East Electricity 2010 will feature more than 1000 local and international exhibitors, displaying products, the latest technologies and innovations from the energy field. The event marks a great opportunity for managers from within the field to meet up with potential buyers, to pronounce their presence in the energy market and launch new products or technologies in the sector amidst the most ideal setting. Contractors, retailers, utilities companies, consultants and surveyors alike are all encouraged to attend.

BLUEXPO NORTh AfRICA 16–17 February, EXpo XXi belgrade international Expo Centre, Casablanca, Morocco This event provides an ideal platform for professionals in building and construction industries to network with government decision makers and country delegates the world over. Exhibitors to the event will include plant and equipments specialists for brick, concrete, concrete products and dry mix mortar. Equipment and tools for processing stone, ceramic and concrete will also be on display. A key event for all players involved with the construction industry to attend.

METAL ANd STEEL EXhIBITION 2010 18–20 February, Cairo international Conference Centre, Egypt The event is renowned as the largest trade show in the region for the metalworking, metal manufacturing and steel fabrication industries. Leading names in the metal and steel industries will come together for an international platform on suppliers of raw materials, semi-finished products, complete goods, surface treatments as well as producers of machines, equipment and accessories for production, subsequent processing and refinement of metal and steel commodities.

GULfOOd 21–24 February, Dubai international Convention and Exhibition Centre, uaE Arguably, the Middle East’s leading food, hotel and equipment trade exhibition, Gulfood is an event that has consistently provided a high standard in regional marketing capabilities and providing a meeting point for manufacturers, buyers and end users alike within the food, food processing machinery and agriculture industries. The exhibition is organised by the Public Health Department of Dubai Municipality and will host an impressive list of internationally recognised speakers from the Codex Alimentarius Commission , as well as several others from Australia, New Zealand, the USA and the Gulf region, respectively.

MEdITERRANEAN PETROLEUM CONfERENCE ANd EXhIBITION 23–24 February, Dat al Emad Hall, tripoli, libya The Mediterranean Petroleum Conference and Exhibition is an international forum, drawing experts and scientists globally to discover, and share ideas regarding critical issues in the petroleum industry. Lectures and displays on the improvement of oil recovery, oil field technology, effective environmental impact assessments, economic aspects within the oil and gas industry and natural gas technology. Technical and plenary sessions will also feature various aspects of petroleum technology from oil companies, and research centres worldwide.

FEBRUARY JANUARY 2010

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QATAR PROJECTS UPDATE

BARWA AND ALAQARIA PROPOSED MERGER Barwa Real Estate Company and Qatar Real Estate Investment Company (Alaqaria) recently announced the initial terms of their proposed merger.

The merger will make the enlarged Barwa group the ninth largest company on the Qatar Exchange, with a market capitalisation of QR11.1billion. The merger is backed by the Qatar government and Qatari Diar Real Estate Investment Company, which currently hold 44 percent and 27 percent of the share capital of Barwa and Alaqaria, respectively. Qatari Diar also confirmed its intention to approve the proposed merger and maintain a minimum of 45 percent equity stake in the Barwa group through a contribution of assets.

The proposed merger spells Alaqaria’s move into becoming a subsidiary of Barwa, but will only come into effect after the final sign-off from relevant regulatory bodies and boards of directors at Barwa. Once Alaqaria and Barwa acquire share capital from one 82

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another, and following Barwa’s share acquisition, it is foreseen that Alaqaria will be delisted from the Qatar Exchange.

Under the proposal, each Alaqaria share will be exchanged for 1.1 shares in Barwa, which based on the closing share prices on January 7, values the Alaqaria shares at QR36.3 per share and implies a 30.6 percent premium.

The proposed merger will highlight Barwa’s position as the leading regional real estate company by bringing together the two highly compatible businesses. Regardless of compatibility, the companies boast non-competing portfolios with focus on different sectors of the real estate market; Barwa focusing on retail, office, hospitality and residential real estate and Alaqaria on industrial housing. Further, there is limited geographical overlap within Qatar with Barwa focusing on the capital, Doha, whereas Alaqaria’s portfolio covers a larger geographical scope, spread around Doha, its suburbs and Qatar’s industrial cities.

CONSTRUCTION & TENDERS

EXTENSIVE ROAD PROJECT BUDGET REVEALED Qatar’s Public Works Authority (ASHGHAL) revealed the state’s road construction budget during the Qatar Projects conference last month.

According to Jamal Shareeda Al Kaabi, acting manager of the Design Department for the Roads and Drainage at the Public Works Authority, Qatar’s road projects budget for the next five years is set at US$20 billion (QR72.8 billion). One of the key projects announced by Kaabi during the conference, included the new F Ring Road, which will potentially be provide a between link Khamis Al Obaidli and the New Doha International Airport (NDIA). Beyond Khamis Al Obaidli, the road is proposed to extend into Doha’s Industrial Area – this stretch will become known as Al Muntazah Highway and will resemble the current design of Salwa Road. The new highway development will provide strips of road for lining with shops and commercial opportunities for retailers and wholesalers alike.

Kaabi also said that tenders for the first part of the project would be called within the first half of February, whereas the second instalment of the project (the Al Muntazah Highway) will be put out for tendered in 2011.

Kaabi also highlighted the obstacles faced by ASHGHAL in the initial design stages of not only the Khamis Al Obaidli and NDIA road, but also other projects in the works at the authority, as a result of the changing design schemes for the proposed rail network.

Another significant project currently under design and set for implementation this year, with a five-year predicted finishing period, is the second and third phase of the North Road. The road a 100-kilometre (km) stretch of highway, which includes 22 bridges and will eventually provide a connection to the planned Qatar-Bahrain Causeway.

QATAR-BAHRAIN CAUSEWAY PROJECT FINAL PROPOSAL STAGES Designs of the Qatar-Bahrain Causeway are said to be in the final stages of completion, which means the first stage of construction could still begin within the first quarter of the year.

The initial design of the causeway, consisting of two lanes running in each direction, is 40 kilometres (km) long and incorporates an emergency lane. These plans were set for the initiation of foundation construction last year, but planners faced a new challenge. A rail platform, one of five of its kind worldwide, was proposed late in 2009 to provide twin tracks for freight and high-speed passenger trains.

The designs are said to have finally been integrated into the initial plan, placing the international collaborating consortium of companies in preparation mode. These include France’s Vinci Construction Grand Projects, Germany’s Hochtief, Greece’s Consolidated Contractors International Company, Belgium’s Dredging International and Qatari Diar Real Estate Investment.

Construction is set for completion in late 2014.

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construction & tenders SECTION

Racks and Shelving System

CCTV Equipment Maintenance

FEED Services-23

Description: Need for supply, design and installation of racks and shelving system for a petroleum company.

Closing Date: February 22 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. ST10100300 Bid Bond: QR18,000 Tender documents can be obtained from: Contracts Department – Operations Division, Qatar Petroleum, Royal Plaza, G Wing, fourth floor, room G13.

Description: Call for the maintenance of closed-circuit television (CCTV) equipment on call-off basis for said petroleum company.

Closing Date: February 21 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. GT10100700 Bid Bond: QR150,000 Tender documents can be obtained from: Contracts Department Operations Division, Royal Plaza, G Wing, fourth floor, room G13.

Description: Need for the provision of front-end engineering and design (FEED) services for the new light gas oil (LGO) tank with storage capacity of 44,900 cubic metres at a refinery.

Closing Date: February 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. LT10101200 Bid Bond: QR 65,000 Tender documents can be obtained from: Contracts Department – Engineering Division, B Ring Road, mezzanine floor, room AM03.

Decoration Works Description: Need for design services for cultural village building.

Closing Date: February 8 Client: Cultural Village Corporation Phone: (+974) 4378 190/ 4378 143 Website: http://www.ctc.gov.qa Tender No. 147/2009-2010 Bid Bond: QR150,000 Tender documents can be obtained from: Central Tenders Committee, Muntazah, Rawabi Street.

QATAR TENDERS

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Major Overhaul of Potable Water Tanks at Halul

Expansion of Qatar Auction Yard

Refurbishment of No.449 Mosque Al Khor

Description: Call for major overhaul of potable water tanks T-5029, T-5048 and T-5049. Scope of work includes isolation of tank, sweep blasting tank internal and externals.

Closing date: March 7 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. GT09115800 Bid Bond: N/A Tender documents can be obtained from: Contracts Department, Operations Division, Qatar Petroleum, Royal Plaza, G Wing, fourth floor, room G13.

Description: Scope of work includes yet is not limited to the expansion of Qatar Auction yard.

Closing Date: February 8 Client: Ministry of Municipality and Urban Planning Phone: (+974) 4378 190/ 4378 143 Website: http://www.ctc.gov.qa Tender No. 144/2009-2010 Bid Bond: N/A Tender documents can be obtained from: Central Tenders Committee, Muntazah, Rawabi Street.

Description: Call for renovation and refurbishment of No.44 9 mosque in Al Khor.

Closing Date: February 8 Client: Ministry of Islamic Affairs Phone: (+974) 4378 190/ 4378 143 Website: http://www.ctc.gov.qa Tender No. 148/2009-2010 Bid Bond: QR240,000 Tender documents can be obtained from: Central Tenders Committee, Muntazah, Rawabi Street.

Protective Coating, Insulation, Vinyl Wrapping and Scaffolding Services

Additional Helipad and Muster Construction Project

Description: Call for the provision of coating, insulation, vinyl ester wrapping and scafflding services on an all-off basis for said petroleum company.

Closing Date: February 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. GT10100400 Bid Bond: QR2 million Tender documents can be obtained from: Contacts Department, Corporate Division, Qatar Petroleum, Royal Plaza, G Wing, fourth floor, room G13.

Description: Call for the construction of additional helipad and muster for said petroleum company.

Closing Date: February 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. LT10101100 Bid Bond: QR50,000 Tender documents can be obtained from: Contracts Department, Corporate Division, Royal Plaza, G Wing, fourth floor, room G13.

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construction & tenders SECTION

Hydraulic Release and Lift Rafts Maintenance

Water Injection Flow Lines Maintenance Works

Gas Lift Valves Refurbishment

Description: Call for the release of hydraulic and maintenance services and certification of life rafts for a petroleum company on an off-call basis.

Closing Date: February 28 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. LT10101300 Bid Bond: QR50,000 Tender documents can be obtained from: Contracts Department – Engineering Division, B Ring Road, mezzanine floor, room AM03.

Description: Call for maintenance of powered water injection flow-lines on call-off basis for a petroleum company.

Closing date: March 7 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. GT10100300 Bid Bond: QR1 million Tender documents can be obtained from: Contracts Department, Corporate Division, Qatar Petroleum, Royal Plaza, G Wing, fourth floor, room G13.

Description: Call for refurbishment of gas lift valves for a petroleum company.

Closing date: February 21 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. LT10100700 Bid Bond: QR60,000 Tender documents can be obtained from: Contracts Department, Operations Division, Qatar Petroleum, Royal Plaza, G Wing, fourth floor, room G13.

QATAR TENDERS

FEBRUARY JANUARY 2010

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FEBRUARY 2010