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ECONOMY Economic Overview Briefing Interview: Dr Ibrahim Al Ibrahim Secretary-General, General Secretariat for Development Planning (GSDP) and Economic Advisor to HH The Emir Sheikh Hamad bin Khalifa Al Thani Investment in Qatar Up 120% Interview: Khaled Al Hajri General Manager Qatar Chamber of Commerce & Industry Inflation rate in Qatar seen easing to 8 Percent Qatar’s imports up 35 Percent EIU Survey finds best business climate in Qatar Highlight: UAE and Qatar top pay rise

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ENERGY Qatar, the Center of the Energy Industry Qatar Fuel Additives Company overview (QAFAC) Qatar Fertilizer Company overview (QAFCO) Qatar Vinyl Company overview (QVC) Qatar Petrochemicals overview (QAPCO) Gulf Petrochemicals and Chemical Associatio overview Qatofin overview Overview on Energy City Qatar (ECQ) Qatar’s Commitment to the Environment Gulf Petrochemicals Industry has to make most of slump Petrochemicals in Qatar Qatar’s energy sector remains bullish as demand stays stable Interview: Dr Mohammed Al Mulla, General Manager QAPCO Qatar and its rapid growth as the world’s largest supplier of the planet’s cleanest fossil fuel, liquefied natural gas (LNG).

Qatar’s energy sector still forging ahead despite global slump Natural gas overview GTL overview North Field overview Interview: Adel Al Buainain General Manager Dolphin Energy, Qatar Qatalum: The world’s largest aluminum smelter

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FINANCE Finance overview QINVEST, Qatar’s largest investment bank QFC: Changing How Qatar sees finance Qatar’s financial Institutions, business as usual Firms make beeline to open offices at QFC “Who is in the QFC”: Axa Insurance Blom Bank, A QFC licensed firm The strength of CITI Bank in Qatar Interview: Khawar Qureshi, Head of Chambers, McNair Chambers

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ISLAMIC FINANCE An overview of Islamic finance Islamic finance becomes a force to reckon with in global banking Interview: Salah Jaidah, CEO, Qatar Islamic Bank Islamic finance is here to stay as sector booms worldwide

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CONSTRUCTION AND REAL ESTATE Overview of Qatar’s construction sector Construction to see recovery from middle of next year Outlook positive for Middle East Steel Iron Wolf Ambitious projects attract investor attention

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INTRODUCTION General Information and History of Qatar Melody of a Muezzin The ruling family; The Vision of the Al Thani Family History of Industry in Qatar

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Qatar property market facts and Figures, incentives Highlight of Qatar’s major projects Leading international firms spotting opportunities in Qatar Qatar’s newly open property market focuses on quality Bilfinger Berger: Qatar’s leading international firm Interview: Ghanim Bin Saad Al Saad Barwa Real Estate Company: Qatar’s premier organization making strides The global economic turbulence URBAN PLANNING AND INFRASTRUCTURE Interview: Ahmed Ali Mohd. Al-Mohannadi, Chairman, Custom and Ports General Authority Interview: Ali Al Mawlawi, General Manager Public Works Authority, ASHGHAL Boom Construction Qatar Trading and Contracting Working to help build Qatar’s infrastructure development, Traffic Tech Al Mana Design on building Qatar Promer Qatar on working in Qatar Gulf Engineering and Consultancy QATAR FOUNDATION ‘EXCELLENCE IN HEALTH AND EDUCATION’ Special feature on Qatar Foundation and its endless possibilities Interview: Rashid Al Naimi, Vice President Administration, Qatar Foundation Burns & McDonnell, leading the way in Qatar leave as is, that is the exact title of the company Langdon Wilson Davis Langdon: Construction Qatari-German Company for Medical Devices: Health Office of Metropolitan Architecture Interview: Gordon Jack, Resident Director Middle East and India, Atkins Legorreta+Legorreta TOURISM Tourism overview W Hotel feature Business and Leisure Qatar branding itself as a destination of culture with the Qatar Islamic Museum City Center Doha Special Feature on African companies making headway in the continent, Nigeria's HiTV SPORTS TOURISM OVERVIEW Sports in Qatar Interview: Nasser Al Attiyah, Qatar champion rally driver Qatar Motor and Motorcycle Federation: Another growing sports sector Aspire to Inspire Qatar Marine Sports Federation: Emerging marine sports in Qatar Prestige Rental Feature

Editor in Chief : Michelle Ndidi Country Editor: Oni Aningo Contributing Writers: Michelle Ndidi, Shaun Younai Analysts: Layla Olsen, Robin Carrero, Brooke Bennett, Kene Chukwu Wallstreet Investment Guide 200 E. Randolph Street 69th Floor - AON Center Chicago, IL 60601 Tel: (773) 929 3649 Fax: (312) 240-0686 e-mail: wallstreetig@gmail.com

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INTRODUCTION

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INTRODUCTION

QATAR Statistics Location: Middle East, peninsula bordering the Persian Gulf and Saudi Arabia Capital: Doha Area-comparative: slightly smaller than Connecticut GDP (purchasing power parity) $85.35 billion (2008 est.)

Exports-commodities: Liquified natural gas (LNG), petroleum products, fertilizers, steel GDP-composition by sector: agriculture: 0.1%, industry: 79.4%, services: 20.5% (2008 estimates) Industries: Crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement, commercial ship repair Imports-partners: US 14.2%, Italy 11.5%, Japan 9.5%, France 8.4%, UAE 5.5%, Saudi Arabia 4.6% (2008)

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Qatar, Melody of a Muezzin On any given morning at sunrise you will hear the melody of a Muezzin’s call to prayer as it echoes through Qatar against the morning sky. People are waking up to make their way to one of the thousands of mosques in the country to perform the daily dawn prayer. The once sleepy little town of Doha awakes to begin another busy day.

An ever expanding city of 1.5 million inhabitants, this ultra cosmopolitan Gulf capital has numerous international universities, hospitals, sports facilities, tourist attractions and a thoroughly modern business district at the center of it all.

Qatar is an Arab emirate in Southwest Asia, occupying the small peninsula on the northeasterly coast of the larger Arabian Peninsula. It is bordered by Saudi Arabia to the south; otherwise the Arabian Gulf surrounds the state. The

last decade, Qatar has shown that when an oil state learns how to use its wealth to capitalize on its natural exoticism, it is grasping the keys to long-term prosperity, if not, indeed, to paradise. The country has used its phenomenal wealth from gas and oil to turn its sandy peninsula into a city-state that offers serious education along with the usual creature comforts.

It may be argued that a country like Qatar, with its small population and bountiful oil wealth, can afford to undertake huge, daring and costly ventures. The counterargument, however, is that the same country, with the same demographic and economic base, under a previous aging leadership did nothing of the sort. Likewise, countries with populations several times larger and a fraction of Qatar’s wealth have managed to be as daring in moving forward with a radical reform agenda.

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INTRODUCTION

THE VISION; THE RULING AL THANI FAMILY THE AL THANI PRESENCE IN THE QATARI PENINSULA DATES FROM THE 18TH CENTURY. THE FAMILY IS NAMED AFTER SHEIKH THANI BIN MOHAMED, THE FATHER OF SHEIKH MOHAMED BIN THANI, WHO WAS THE FIRST TO RULE THE PENINSULA IN THE MIDDLE OF THE 19TH CENTURY. H.H. Sheikh Hamad bin Khalifa Al Thani began his accession in 1995, prior to this; he also held the post of Defence Minister, a title he still retains as Emir.

Since the accession of H.H. Sheikh Hamad bin Khalifa Al Thani, the country has made enormous strides forward in opening up its business and investment opportunities, in furthering the development of its hydrocarbon resources and in the expansion of foreign relations.

This is largely due to the influence of the Emir and to the implementation of policies that originated at the very highest level. Sheikh Hamad is enormously popular with his people; he is known as a great family man and takes a deep interest in the education and cultural development of citizens. H.H. Sheik Hamad bin Khalifa Al Thani is not only young, Western-educated and leading the region in political democratization, but also overseeing a revolutionary social transformation of society.

H.H. Sheikh Hamad bin Khalifa Al Thani earned much notoriety by allowing Qatar to host Al Jazeera satellite-television network in 1996. Al Jazeera is the single most important factor in opening up and expanding public space in the Arab world.

Its free wheeling debates, talk shows and daring news coverage have energized Arab intelligentsia and empowered ordinary Arab citizens, who can call in and express themselves freely. Many other radio and TV stations followed suit.

Meanwhile, H.H. Sheika Mozahbin Nasser Al Missnad, the Emir’s wife, has demolished the traditional stereotype of a veiled, submissive Arab woman, pushing hard for gender equality and broader modernization.

The ruling couple’s projects include the Doha Debates, modeled on the Oxford Union and moderated by a BBC host, in which leading experts debate public issues before a live college audience. The Doha Debates promise to be no less revolutionary than Al Jazeera; both are doing so much to liberate Arab minds that they infuriate their tyrannical neighbors.

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INTRODUCTION

The History of Industry in Qatar The whole world knows Qatar is wealthy and its gas reserves comprise about the third of the entire world’s petroleum supply. However, Qatar also has a rich and interesting history.

Today Qatar is synonymous with oil and gas. Although Doha is a sophisticated and glamorous city in its own right, which hosted major world class events such as the 2006 Asian Games, numerous squash and tennis tournaments, international concerts, economic and religious forums as well as fashion shows, it is usually mentioned in the same sentence, with words like gas, petrol, oil and petroleum.

Petroleum was discovered in Qatar in the 1930s and economic profits from this source of energy started to come in around the 60s and 70s.

For decades and centuries before oil and gas Qatar existed and thrived in other ways. Like all civilizations and lands around the Arabian Gulf, the inhabitants made do with what they had, benefiting from the bounties of the sea and desert.

The tribes that settled in the coastal areas engaged in trading, pearl fishing and trades such as metal work and carpentry, the Bedouins, who settled inside the desert plains reared camels and sheep.

The Climate The long summer which is typically June to September is characterized by intense heat and alternating dryness and humidity, with temperatures exceeding 55°C. Temperatures are moderate from November through May, although in winter temperatures may fall to 17°C, which is relatively cool for the latitude. Rainfall is negligible, averaging 100 millimeters per year, usually during the winter months, and falling in brief spills filling the small ravines and the usually dry wadis. Sudden, violent dust storms occasionally descend on the peninsula.

The scarcity of rainfall and the limited underground water, most of which has such a high mineral content that it is unsuitable for drinking or irrigation, restricted the population and the extent of agricultural and industrial development the country could support until desalination projects began.

Although water continues to be provided from underground sources, most is obtained by desalination of seawater.

The People Qataris are known for their hospitality and warmth. Males receive their male guests at home in a majlis (which literally means sitting area). Traditionally, according to the Bedouin custom, they were seated on large cushions on the floor.

Nowadays sofas and chairs have replaced it. Women have a separate area in the house to meet their friends.

In local tradition a group of related families form a clan that is a part of a larger tribe, and tribes are large extended families.

Each tribe has distinct customs and different dialects of the local language. Still the ties within tribes and families remain very strong, Qataris hold family values very dear to their hearts.

As a tradition Qataris usually marry within the tribe and it is a matter of family and business. Earlier all marriages were arranged, but now the trend has changed.

Previously girls were married very young, now emphasis is placed on education and statistics show that there are considerably more female than male students attending Qatar’s many universities.

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ECONOMY

The Economy Oil and gas rich, Qatar’s per capita income makes it one of the world’s wealthiest nations. Aware that hydrocarbons are a finite resource, the country’s Emir, H. H. Sheikh Hamad bin Khalifa Al Thani has spent the last decade laying the foundations for the post-oil era through ambitious program based on education, health care, and housing Qatar has experienced rapid economic growth over the last several years off the back of high oil prices. In 2008, the country posted its eighth consecutive budget surplus.

Economic policy is focused on developing Qatar’s nonassociated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues.

Oil and gas have made Qatar the second highest per-capita income country. Proven oil reserves of 15 billion barrels should enable continued output at current levels for 37 years.

Qatar’s proved reserves of natural gas are nearly 26 trillion cubic meters, about 14% of the world total and third largest in the world. The drop in oil prices in late 2008, and the global financial crisis will reduce Qatar’s budget surplus and may slow the pace of investment and development projects in 2009 (CIA worldfactbook 2009).

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ECONOMY

THE ECONOMY

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ccording to the CIA World Fact Book Qatar has experienced rapid economic growth over the last several years on the back of high oil prices. In 2008 the country posted its eighth consecutive budget surplus.

Economic policy is focused on developing Qatar’s nonassociated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues. and aligning them with the QNV. GSDP has produced a QNV document, which has been launched. The growing complexity and emerging stresses require greater clarity about ambitions and will need a new approach. Qatar must think ahead if it is to successfully navigate its way in a fast changing, uncertain and turbulent world. In order for the vision to be successful, it needs everyone’s commitment and involvement: shared vision-shared success.

Oil and gas have made Qatar the second highest percapita income country. Proven oil reserves of 15 billion barrels should enable continued output at current levels for 37 years. Qatar’s proved reserves of natural gas are nearly 26 trillion cubic meters, about 14% of the world total and third largest in the world. The drop in oil prices in late 2008 and the global financial crisis will reduce Qatar’s budget surplus and may slow the pace of investment and development projects in 2009.

Oil and gas rich, Qatar’s per capita income makes it one of the world’s wealthiest nations. Aware that hydrocarbons are a finite resource, the country’s Emir Sheikh Hamad bin Khalifa Al-Thani has spent the last decade laying the foundations for the post-oil era through ambitious program based on education, health care, and housing.

INTERVIEW: Dr Ibrahim Ibrahim Secretary-General, General Secretariat for Development Planning (GSDP)

What are the main tasks and responsibilities now and in the future for the GSDP and how does it correlate with Qatar’s overall vision?

GSDP is responsible for Qatar’s National Vision. It is mandated by the Emiri Decision set comprehensive vision and strategic plans for the State of Qatar. In this process GSDP’s role is facilitating the Qatar National Vision (QNV) process. GSDP will also assist other governmental ministries and agencies in developing their strategies

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Looking at 2008 and 2009, what major milestones have been achieved under your leadership of the GSDP? The Qatar National Vision process is definitely a major achieved feat, we have also congruently built on a knowledgebased economy initiative. In terms of organizational changes, we have acquired new directors and are putting together a new organizational model/strategy, as well the initiative of capacity building (QMPN).

What role is the GSDP playing in Qatar’s National Vision to develop into a knowledge-based economy?

A knowledge based economy is an important part of the Qatari National Vision. International and local experts have met several times within the year, to develop plans for Qatar’s knowledge-based economy initiative. The GSDP and Qatar Foundation together, are now developing this initiative further together. We are deciding on specific actions for turning the vision of a knowledge economy into actual results. Qatar has a good start in becoming a competitive Knowledge Based Economy. Qatar has a small country advantage, the political will to diversify its economy and many international examples to learn from.

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ECONOMY

ECONOMY

INVESTMENT IN QATAR Up $120Billion

A What major challenges do you foresee for Qatar while trying to reach its goals? And of course, how will the GSDP handle these challenges?

The major challenges for Qatar are listed in the Qatar National Vision. They are: - Modernization versus tradition - The needs of this generation versus the needs of future generations - Uncontrolled labor force expansion versus purposeful labor force composition - Rapid change versus considered transformation - Environmental protection versus environmental degradation GSDP is a knowledge resource for other ministries and agencies and it can help in identifying options and frame choices, our role is to build Qatari capabilities and we are aiming to a be a portal to global knowledge.

How are the current oil prices, inflation and enormous growth of countries in the region going to affect Qatar?

Qatar needs to catch up with advanced countries. Significant public and private spending will be needed to achieve our ambitions and this is creating some stresses, including inflation. We are looking at a number of ways of reining in inflation and of cushioning its impact on the people of Qatar.

Like other countries in the GCC, Qatar has taken keen steps to cap rental prices and has subsidized the price of some key commodities. We believe this will help in the short-term. Over a long-term period, we are looking for growth and liquidity in the economy. The medium-term prospects for Qatar are extremely good. Gas production is set for fast expansion and

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we are working hard to diversify the economic base. The non-hydrocarbon economy is also growing quickly.

Why should foreign investors come to Qatar and why should they do so now?

Of course, private investors will only come to Qatar if they believe it will be profitable. But profitability is critically affected by the business climate a country can offer. Qatar has many attractions. Investors can move their capital freely in and out of Qatar, the Riyal is freely convertible and profits can be freely repatriated. Qatar has high quality logistics and infrastructure, matching the best in our region and soon the best in the world.

Our administrative and regulatory procedures are streamlined and are getting better, and there is a growing pool of talent from which to draw workers, and an advantageous tax regime.

Qatar also ranks well on governance and has zero tolerance for corruption. Whether business is intended to serve the Qatari market, or markets in the region and beyond, Qatar offers immense opportunities and a platform for growth.

t the Middle East Economic Digest’s (MEED) Major NonEnergy Project Opportunities in Qatar Conference (March 26-27, 2009), it was announced that US$120billion investment would be injected into Qatar’s nonenergy sector. While Qatar’s GDP has doubled in the past five years, signs of Qatar’s booming economy will be seen across all sectors. According to Angus Hindley, MEED’s conference chairman, “Construction is likely to peak this year, as the backlog of projects now enters the construction phase. Meanwhile, more than $10billion of public funds are being pumped into roads, sewerage and the new airport, in a four-year infrastructure upgrade aimed at addressing the needs of a rapidly expanding economy”.

Waab City gave a progress report on the 1.2 million square meter mixed use development, as well as detailing the project’s masterplan. Management of the Qatar Tourism Authority

"At the same time, the private sector is investing billions of dollars in new residential, commercial, and hotel space to cater to the influx of companies, professionals, and visitors”.

During the course of the conference, major players in Qatar’s economy such as Qatar’s Public Works Authority, ASHGHAL gave reports on its numerous projects as well as announcing new contracts. The ASHGHAL presentation also covered roads and highways, drainage and sewerage, hospitals and healthcare, and education facilities. Mohamed Farghaly, the minister’s advisor to the Ministry of Economy and Commerce utilized the MEED conference to announce a major new initiative to develop a free zone project in Qatar.

detailed the development of the much-needed hotel room stock to meet Qatar’s rising number of tourists. This is in addition to the 20% expansion in Qatar’s residential stock-a challenge that had seen rents spiral until the government imposed a 10% ceiling on rent increases. Much of the tourism boom can be attributed to Qatar Airways’ expansion to become one of the world’s fastest growing airlines, as well as initiatives such as The Pearl Qatar-with a project update that was detailed by its development director, Nick Bashkiroff.

The conference also focused on construction and real estate, including sessions on AL Waab City, Qatar Tourism and the Qatar Foundation…All major current projects and initiatives happening in Qatar. Sheikha Hanadi Al Thani, CEO of Al

Dr. Saif Al Hajri, vice chairman of Qatar Foundation explained the private sector involvement in Education City as the government brings the world’s leading academic institutions to Doha.

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ECONOMY

INTERVIEW: Dr. Khaled Al Hajri General manager Qatar Chamber Of Commerce And Industry (QCCI)

Can you enumerate on the responsibilities of QCC&I? We are actively involved in organizing commercial, industrial and agricultural interests. We represent the private sector which is a main partner in Qatar’s economic development. Another important aspect of this organization is to enhance and develop economical and productive activities for the benefit of the state as a whole.

Looking at 2008 and 2009, what major milestones have been achieved under your leadership?

Qatar is witnessing tremendous growth in the construction, trade, tourism, industrial and infrastructure sectors. Qatar’s planners were showcasing many giant projects to attract international investors. Qatar aims to attract tourism visitors to 1.4 million by 2012, in order to put Qatar on the map as a major tourist destination. In line with this, Qatar is building the $9 billion New Doha International Airport, one of the most ambitious projects to date. In the energy sector, Qatar has major plans to develop the country as a world leader in the LNG sector.

In the next five years, Qatar is investing $130 billion to develop efficient infrastructure and projects. Our job is to make sure that the local business community is also a part of this immense and exciting growth period. We are constantly working with our local business members and informing them on how to utilize and harness Qatar’s seemingly endless opportunities.

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What major challenges do you foresee and how are you willing to overcome them?

Because of this major growth period and because of the development of projects happening all at once, the major problem will be the scarcity in raw material, major dependence on the foreign labor which will affect the population structure, as well as the small size of the local market. This will in turn call for adopting policies for export oriented industries and to direct investments to industries where Qatar has a comparative advantage. From our perspective, we fully support government’s diversification strategies by promoting investments opportunities and attracting foreign investors, particularly with investors with modern technologies and information know-how.

What are some of the investment incentives Qatar offers to potential foreign businesses and investors?

Qatar has adopted an open economy strategy where the vision for economic growth is achieved by balanced economic growth.

Some of Qatar’s incentives include: -100% ownership of projects in some fields such as agriculture, industry, tourism, healthcare, and education.

-Availability of fully serviced industrial areas -Low energy cost.

-Easy regulations for the employment of foreign labor.

-Project equipment, tools and raw materials are exempt from custom duties.

-Five years tax exemption on foreign partner profits extendable for a similar period.

ECONOMY

ECONOMY

INFLATION rate in Qatar

Qatar imports up 35 percent

seen easing to eight%

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atar’s inflation is expected to ease to about eight percent in 2009-2010 in view of the steadily falling global commodity prices. The strengthening of the US dollar and the completion of Qatar’s new property projects are among other contributing factors to the drop in inflation. The Gulf Cooperation Council Credit Survey 2009, released by Standard & Poor, forecast Qatar’s fiscal and external performances to remain strong, although 2009 should see lower surpluses than in previous years owing to declining energy prices. The survey projected a healthy general government surplus of about 2.3% of GDP in fiscal year 20092010 (ending March 2010). With very low debt and large estimated assets in the various government funds, the state is expected to record a net asset position of about 54% of GDP in fiscal year 2009-2010. (The Peninsula Qatar, 2009).

Earlier in May, the Qatar Statistics Authority (QSA) said that a new consumer price index showed that prices fell more than nine percent in the first quarter compared with the fourth quarter, as housing costs slumped 16% and food prices eased. On the external side, the credit survey said, export revenues would drop sharply in 2009, and the current account surplus is expected to narrow to about 12% of GDP in 2009, down from an estimated 42% in 2008, before recovering about 32% of GDP in 2010. External liquidity will remain abundant, also boosted by large investment inflows, the report mentioned.

Despite rapid population growth, Qatar’s GDP per capita, estimated at US$80,300 is among the world’s highest, an impressive increase from US$27,000 in 2001.

The real economy is expected to continue booming at above a ten percent US growth rate annually over 2009-2011, compared with an estimated 17.6% in 2008, despite the deceleration in non-oil GDP growth. The survey, which showcases a wide analytical coverage in the region, said the recent turbulence in the global capital market had affected the Gulf significantly.

“Although the regional bond and loan markets came to a virtual standstill in the second half of 2008, successful rated sovereign bond issuance from Qatar

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and Abu Dhabi provided a glimmer of hope in 2009”, the report said.

Sovereign Wealth Funds (SWV’s) across the region, particularly in Qatar, Abu Dhabi, and Kuwait have seen significantly negative returns on their sizeable foreign asset holdings over the past 18 months. However, triggered by increased LNG production, the revenues in Qatar will continue to rise strongly and the survey expects that future surpluses will significantly strengthen the net asset position of the government in years to come.

Q

atar’s imports jumped 34% to QR80.1 billion in 2007 with Asian and European countries together accounting for about 68% of the trade, according to the Qatar Statistics Authority (QSA).

However, the US continued to be the single-largest contributor to Qatar’s imports.

The Qatari Riyal is pegged to the US dollar.

Asian countries’ share amounted to QR27.06 billion or 33.8% of Qatar’s imports, while the European Union accounted for QR27.03 billion or 33.7% according to the QSA’s annual foreign trade statistical report (imports).

Among the Asian countries, Japanese imports constituted 10% of Qatar’s imports; South Korea (6.1%); China (5.8%); India (2.8%); Turkey (2.1%); Singapore (1.5%); Malaysia (1.4%); Thailand (1.3%) and Indonesia (1%), while other countries had less than 1%. In the case of the European Union, Qatar’s imports from Italy constituted 10.3% of the total, followed by Germany (7.8%), United Kingdom (4.7%), France (3.6%), Netherlands (1.6%), Spain (1.1%) and Belgium (1%), while others make far less than 1% share.

Among the Arab countries, from where Qatar imported 15.6% of its total, the GCC region contributed 14.2% and other Arab countries had 1.4% share.

Among the GCC countries, imports from the UAE constituted 7%, Saudi Arabia (4.9%), Oman (0.9%), Bahrain (0.8%) and Kuwait (0.5%).

The Qatari imports from other Arab countries included Lebanon and Egypt (0.5% each) and Syria and Jordan (0.2% each).

Qatar’s imports from North America constituted 11.9%, of which the US’s share was 11.4%, thus making it the single-largest contributor. Qatar’s imports from the US were valued at QR9.12 billion.

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ECONOMY

EIU Survey finds best business climate in Qatar ENERGY A

ccording to the Economist Intelligence Unit (EIU), Qatar is ranked first in the Middle East and North Africa (MENA) region in terms of having a constructive business environment. The recent survey released by the EIU also showed that a few MENA countries were expected to experience an outright recession.

In most of these, this will stem purely from lower oil production, as growth is sustained in the non-oil sector of the economy on the back of strong public investment growth.

While economic stability scores one, the GCC had fallen for the forecast

period in line with lower oil price outlook, with the exception of Qatar, where high rates of growth will continue as a result of increased production of liquefied natural gas.

Middle Eastern governments will remain broadly committed to reforms aimed at enhancing the role of the private sector as part of a strategy of economic diversification.Opportunities for the private sector in the GCC will be adversely affected by the constraints on financing, which is likely to result in an increase in the role of the State in development projects, after a period in which the private sector’s role has expanded considerably.

The EIU business environment rankings model seeks to measure the attractiveness of a country’s business environment and its key components. The model uses quantitative date, business surveys and expert assessments to measure the attractiveness of countries’ business environments. The framework has been designed to reflect the main criteria used by companies to formulate their global business strategies and investment location decisions.

The overall scores (on a 1-10 scale) and rankings are based on scores for 91 indicators, grouped into ten categories of the business environment.

HIGHLIGHT UAE and Qatar top pay rise

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ccording to the survey, Gulf Compensation Trends 2009, private sector salaries in the Gulf region increased an average of 11.4 percent. The survey further disclosed that the UAE and Qatar, topped the list of pay rises with increases of 13.6percent and 12.7percent respectively. Oman ranked top place at 12.1 percent.

A notable exception is Bahrain, where the average salary increase of 10.5 percent was marginally higher than the 9 percent inflation rate forecast for the country this year. Bahrain came fourth at 10.5 percent. Kuwait and Saudi Arabia once again came at the bottom, with average rises of 10.1 percent and 9.8 percent respectively, though still high by historical standards.

It is worth mentioning that all six markets experienced a decrease in pay levels respective to last year. The majority of these numbers are still below the forecast rates of inflation for 2009.

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ENERGY

ENERGY

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Qatar, The Center of the Energy Industry From nomadic herding, fishing to pearl diving to oil production. Qatar’s economy had traveled a long way on an ever- adapting and fascinating road.

Today, Qatar’s economic path is opening up to a number if ever increasing diverse and lucrative industries. Qatar’s energy sector has grown and changed tremendously since the discovery of oil and is now on the world map as the leader in petrochemical industry.

Qatar has earned a name in the world market as one of the future energy superpowers. Qatar Petroleum (QP) and its subsidiaries have played a pioneering role in the petrochemical industries in the country.

Liquefied Natural Gas In 2006, Qatar surpassed Indonesia to become the largest natural gas exporter in the world.

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In 1997, Qatar began exporting LNG when it sent small amounts (5.7 Bcf, or about 120,000 metric tons) of LNG to Spain. In 2005, Qatar exported 987 Bcf (20.1 million metric tons, or MMt) of LNG, or 14.5 percent of all globally traded LNG. Of this amount, 316 Bcf (6.5 MMt) went to Japan, 293 Bcf (6.0 MMt) to South Korea, 213 Bcf (4.4 MMt) to India, 161 Bcf (3.3 MMt) to Spain, and 3 Bcf (less than 0.1 MMt) to the United States.

he utilization of oil and natural gas along with a group of affiliated and complementary industries constitutes the backbone of the Qatari economy. The government has pursued a policy of full control, ownership and wise utilisation of the country’s hydrocarbon resources in the service of national aspirations.

The government has sponsored development plans and studies relating to the best use of oil revenues aiming at the establishment of economically viable projects and a solid oil-related industrial base. The country is pumping enormous sums of money in the exploration and production of natural gas. Nearly US $100 billion should be invested by the end of this decade. Of which US$15 billion will be invested in LNG expansion schemes, US$60 billion for the North Field Development project and a further US$15 billion for LNG tankers.

Qatar’s economy was in a downturn in the mid 1990s. The Organisation of Petroleum Exporting Countries’ quotas on crude oil production, the lower price for oil, and the generally unpromising outlook on international markets reduced oil earnings. In turn, the Qatari Government’s spending plans had to be cut to match lower income. The resulting local business climate caused many firms to lay off expatriate staff. With the economy recovering in the late 1990s expatriate populations, particularly from Arab countries and South Asia, grew again.

Oil fields of Qatar are projected to be almost entirely depleted by 2023.

However, large natural gas reserves have been located off Qatar’s northeast coast.

Qatar’s proved reserves of gas are the second largest in the world, exceeding 7 trillion cubic metres and Qatar has the largest single gas field in the world. The economy was boosted in 1991 by the completion of the US$1.5billion Phase I of the North Field gas development.

In 1996, the Qatar gas project began exporting liquefied natural gas (LNG) to Japan. Qatar has permitted substantial foreign investment in the development of its gas fields during the last decade and became the world’s top liquefied natural gas (LNG) exporter in 2007 with a capacity of more than 31 million metric tons per annum. By 2010, Qatar will account for one-third of the world’s LNG supply.

Further phases of North Field gas development costing billions of dollars are in various stages of planning and development, and agreements have been concluded in 2000 and 2001 with U.A.E., Bahrain, and Kuwait to expand gas via pipelines to these markets. Qatar exports gas to Korea, India, and China via ships (LNG), and plans are currently underway to supply European and US markets.

Qatar’s heavy industrial projects, in Messaieed and Ras Laffan, include a refinery with a 50,000 b/d capacity, a fertilizer plant for urea and ammonia, a steel plant, and a petrochemical plant.

All these industries use gas for fuel. Most are joint ventures between European and Japanese firms and the state-owned

Qatar Petroleum (QP). The U.S. is the major equipment supplier for Qatar’s oil and gas industry, and U.S. companies play a major role in the North Field gas development and related energy and water infrastructure development.

GULF PETROCHEMICALS INDUSTRY HAS TO MAKE MOST OF SLUMP The Middle East has long been a contender in the global petrochemicals market, with plentiful supplies of feedstock and high revenues from its oil and gas reserves, yet while giant companies have been formed in other parts of the world in recent years, through acquisitions backed by high levels of debt, little has happened in the Middle East. Only Saudi Arabia’s Saudi Basic Industries Corporation (SABIC) has stepped forward by buying the US’ GE Plastics for US $11.6 billion in 2007.

Other regional firms have focused on developing local infrastructure rather than building up positions as global players, and most deals with international companies were through joint ventures.

But the economic downturn is changing the dynamics of the industry. Some of the giant companies formed during boom times have been struggling under the pressure of debt, with the Netherlands’ LyondellBassell filing for bankruptcy protection from its subsidiaries. Others are likely to follow as demand for their products continue to crash.

The Middle East is better equipped than most to cope with the downturn and emerge stronger in the coming years.

In that time, it is more than likely that both large and small companies will have to sell parts, if not the whole, of their businesses at nothing like their peak value. Should they wish to, the Gulf’s state run companies will soon be able to pick up global assets at attractive prices. Even if they continue to avoid large international acquisitions, Middle East companies retain their advantage of cheap feedstock, meaning they can continue to beat their competitions’ prices. It seems the Middle East’s long term approach is beginning to pay off and the coming year may well prove to be when the region’s petrochemicals industry fulfills its potential.

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ENERGY

ENERGY

QVC Qatar Vinyl Company was established in 1997 and is located in Mesaieed Industrial City approximately 40 km South of Doha.

The Location of the plant is advantageous in terms of land, infrastructure, general utilities, safety, security and telecommunication. The plant has access to port infrastructure with sufficient capacity to accommodate vessels up to 55,000 tonnes for the import of salt and export of caustic soda, EDC and VCM. The facilities were constructed by a consortium of Krupp Uhde GmBH and Technip Italy on a lump sum turnkey basis. Project completion was achieved approximately 30 months after signing of the EPC Contract, with start of the facilities taking place during the second quarter of 2001. The initial workforce numbered around 180 employees.

industries exist in the United States and Western Europe, the largest growth capacity is in the Middle East and Asia.

With its manufacturing capabilities evolving and ever expanding, Qatar is constantly adopting improvements in technology and state-of-the art facilities. Petroleum manufactured material other than oil account for a large percentage of the economy and this sector is a strong force behind the diversification of different sources of the national income.

Petrochemicals in Qatar Petrochemicals play a large part in the diversification of Qatar’s energy. In fact, they are crucial in any energy industry today. Derived from petroleum and used as ingredients in the manufacturing of a variety of plastics and other products, such as synthetic rubber, petrochemicals became popular in World War II when efficient and cost effective products were in high demand. Since the 1940s petrochemicals have surrounded us in our everyday lives, from the toothbrush that you use first thing in the morning, the television that you watch during the day and the cup of water that you drink, among other uses.

Although the largest petrochemical

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Qafac Qatar Fuel Additives Company, popularly known as QAFAC, is an outcome of Qatar’s far-sighted strategic plan to diversify its petrochemical base and expand its downstream industries. The Company aims to optimize the utilization of the country’s vast hydrocarbon resources through producing and exporting Methanol and MTBE. Established in 1991, QAFAC is a joint venture between Industries Qatar, OPIC Middle East Corporation, International Octane Limited and LCY Investments Corp.

The Company commenced operations in 1999. The QAFAC plant is designed to produce 832,500 TPA of Methanol and

610,000 TPA of MTBE. The Methanol plant design is based on ICI technology whereas MTBE design is based on UOP technology. The site is an ‘L’ shaped block with maximum dimension of 1100 m long x 714 m, wide occupying 65.5 hectares.

Qafco The Qatar Fertiliser Company (QAFCO) was founded in 1969 as a joint venture between the Qatari government, Norsk Hydro Norway, Davy Power and Hambros Bank, to produce ammonia and urea. The company is now owned

by Industries Qatar (75%) and Yara International (25%).

QAFCO inaugurated its first plant in 1973 with a design daily capacity of 900 tons of ammonia and 1000 tons of urea.

The QAFCO complex in Mesaieed City comprises four completely integrated trains; each train is made up of two units, one for production of ammonia and the other for urea, besides a urea formaldehyde unit.

QAFCO’s total annual production capacity currently stands at 2.0 MMT of ammonia and 2.8 MMT of urea, making QAFCO the world’s largest single site producer of urea.

Qapco Qatar was the first Gulf state to build its own petrochemical industry. The Qatar Petrochemical Company (QAPCO) was established in 1974 as a joint venture between Qatar Petroleum (84percent) and CdF (Chimie de France) and began production of ethylene, low density polyethylene, and sulfur in 1981. In August 1990, Qatar Petroleum’s interest in QAPCO was reduced to 80percent, with the remaining 20percent split equally between Enimont (Italy), and Elf Aquitaine (France) through its Atochem subsidiary. The importance of reliable gas supplies was demonstrated in the early years of QAPCO, which were marred by shortages of ethane feedstock arising from fluctuations of associated gas production along with movements of oil prices. QAPCO’s facilities consist of an ethylene plant producing 525,000 metric tons per annum (MTPA), two low density polyethylene (LDPE) plants with 360,000 MTPA and a sulphur plant with 70,000 MTPA. Shareholders are now Industries Qatar (80percent) and Total Petrochemicals (20percent)

Gulf Petrochemicals and Chemical Association (GPCA) QAPCO was a founding member of

the Gulf Petrochemicals and Chemical Association (GPCA). The formation of this trade association is an important initiative which provides Gulf producers a unified regional voice in advocating issues of importance for our region and industry.

The GPCA also provides a vehicle for reaching out to other regional trade associations around the world in creating a network capable of global advocacy strategies for the industry while having the capability for implementation through strong regional trade associations. Through conferences, the GPCA raises the awareness and significance of the Gulf as a major player in the global petrochemical industry.

Qatofin Qatofin was created as an outcome of the vision of its shareholders to further utilize the experience of

visionary professionals to develop the range of polyethylene products in Qatar. Qatofin is a testament to the long term partnerships forged in Qatar’s petrochemical sector to enhance and utilize Qatar’s natural hydrocarbon resources.

The concept of Qatofin was initially conceived in early 2000, it became a reality in 2005 when a joint venture was signed between Qatar Petrochemical Company(63percent) Total Petrochemical France (36percent) and Qatar Petroleum (1percent).

Production will begin during the third quarter of 2009 at Mesaieed Industrial City and is estimated to produce 450,000 metric tons per annum of high quality linear low density polyethylene (LLDPE). The LLDPE produced by Qatofin will be marketed under the ‘LOTRENE’ brand name worldwide using its shareholders strong marketing network.

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ENERGY

ENERGY

QATAR’S ENERGY SECTOR REMAINS BULLISH AS DEMAND STAYS STABLE

Energy City (ECQ) Launched by Gulf Energy, ECQ aims to attract the industry leaders in oil and gas production, international and national oil companies, support services, infrastructure and downstream activities, shipping and trading, market and resource data and intellectual property.

Basic infrastructure work at the multibillion dollar Energy City Qatar, the Gulf region’s first oil and gas industry hub, will be completed by the end of 2009. Most of the 54 developers are preparing to begin construction at their sites this year, some 52 projects are being set up at Energy City Qatar (ECQ) in 92 plots. Project completion is aimed by 2011.

70percent of the infrastructure work has already been completed at the Energy City Qatar sites, part of the major new city development at Lusail, which in addition to major business and entertainment districts, will be home to some 200,000 people.

Energy City has the full support of the Qatari government and they aim to lead the way in ‘hydrocarbon above ground’ resource development. Work on similar projects in India and Libya are also expected to begin this year. The project in India near Mumbai is being set up at a cost of US$10billion. The Libyan project will exceed US$6billion.

Qatar’s Commitment to the Environment The energy industry depends heavily on the utilization of hydrocarbons for feedstock and fuel and the country cannot afford to ignore current debates surrounding global warming.

The ruling family of Qatar has championed the cause of environmental conservation in Qatar. Plans for the country include high detailed schemes for expanding Qatar and its industries without destroying the natural environment.

Qatar has a unique ecology. On the edge of the desert and the ocean, Qatar is surrounded with dense forests of mangroves growing in shallow water. While the mangrove branches provide a nesting place for migratory birds, the roots act as a hatchery for many fish species of the Gulf. Also by holding the soil in place, mangroves provide resistance to further desertification. They are therefore, a vital aspect of Qatar’s ecology.

“We need to care for our natural environment for it was entrusted to us by God to use with responsibility and respect for the benefit of human kind. If we nurture our environment, it will nurture us.” Her Highness Sheikha Mozah bin Nasser Al Missned

A

mid the global economic downturn, Qatar’s energy sector continues to be bullish as demand remains stable for liquefied natural gas and petrochemical products, according to local paper, the Gulf Times. Recently, Qatar’s flagship energy company Qatar Petroleum said it aims to generate QR560 billion in total revenue through 2012 as new projects start coming onstream. LNG is set to account for more than a quarter of Qatar Petroleum’s sales in the periods Q1 and Q2 Unlike oil contracts, Qatar’s LNG business is mostly made up of longterm sale and purchase agreements (SPA) with buyers in Japan, South Korea, India, North America, and Europe, among other countries.

Qatar is currently the world’s largest producer of LNG at over 30mn tonnes annually. And with one of the new LNG trains becoming fully operational in 2009, the production capacity will be close to 39mn tonnes a year.

This figure will almost double to 77mn tonnes annually in less than two years with Qatargas set to bring several production facilities online at Ras Laffan. Qatar’s robust economy recently got an endorsement from Samba Financial Group, which said the country would see the fastest GDP growth in the Gulf region in 2009 at 9.5percent.

However, that is still down from growth of more than 12percent in 2007 and 2008. “Qatar is less exposed than other Gulf oil exporters to changes in oil prices as its increasing LNG exports are based on a variety of long-term contract prices,” Samba said. Qatar Petroleum recently said it aims to spend about QR275 billion on capital and operating expenditure through 2012. Spending so far this year has been less than forecast

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because high project costs led to the delay of some developments. But that may change next year with material prices coming down across the globe in view of the economic slowdown.

Sales in the first nine months of this year were almost twice the amount forecast for all of 2008 after oil sold for about three times the assumed price. Sales this year were targeted at QR74.2billion under a QP plan, based on oil selling at US$35 a barrel.

Instead, QP sold crude at an average US$111.6 a barrel during the first nine months of the year, generating revenue of QR141billion.

There was some good news from Qatar’s offshore drilling and exploration programme this year. The US$6 billion Field Development Plan at Qatar’s largest oilfield, Al Shaheen is more than halfway through with over 80 wells out of 160 wells being drilled and facilities construction gaining rapid pace. The goal is to boost oil production capacity at Al Shaheen Field in Block 5 to over 500,000 bpd.

Maersk Oil Qatar operates Al Shaheen oil field under a long-term exploration and production sharing (EPSA) in co-operation with Qatar Petroleum (QP). Additional exploration activities have been undertaken at the North Field by Germany’s Wintershall in association with Qatar Petroleum. In late November, 2008 they signed an exploration and production sharing agreement (EPSA) to explore and discover oil and gas in the Block 4 North offshore acreage. The Block 4 North (Khuff) offshore acreage covers an area of 544sq km and is located northwest of the North Field and Al Shaheen oilfield. The 25 year agreement starts with a 30 month exploration phase. The country’s fertiliser major Qafco is fast emerging as the world’s largest single site producer of urea. Qafco’s annual

urea output will scale up to 4.3mn tons with the start up of Qafco5 in January 2011. Qafco5 will ramp up the company’s ammonia output to 1.7mn tonnes per year. Qafco5 is the latest expansion at the company, which was set up in 1969 as a joint venture between the Government of Qatar and a number of foreign investors.

Qatar Petrochemical Company (Qapco) is on track to achieve an annual ethylene production capacity of 1.32mn tonnes by next year.

According to Qapco statements, the petrochemical major’s low-density polyethylene capacity will go up to 650,000 tonnes by 2011. Currently, Qapco produces 720,000 tonnes of ethylene and 400,000 tonnes of low-density polyethylene a year. But Qatar Steel had to drop prices by about a fourth last month in line with international trends. The new retail price for steel (10mm–40mm) will range from QR2,400-QR2,460 a tonne depending on the size, the company said. A Qatar Steel official said demand was declining and the fall would be in the range 30percent in 2009 due to global financial problems and falling oil prices.

“Most of the mills in the region have to consider cutting production. It will be a very challenging year,” he said.

The country’s gas and product ships owner Nakilat has already added many huge tankers to its fleet. The company readies for busy year in 2009 as Nakilat will receive some 27 large LNG carriers next year to ferry Qatari gas worldwide. They include both Q-Max and Q-Flex category vessels. South Korea’s three major shipbuilders, Hyundai, Samsung and Daewoo, have taken up the mammoth Qatari order worth US$16 billion to construct 54 ships which will be delivered over the next three to four years.

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ENERGY

ENERGY (63%), Total Petrochemicals France (36%), and Qatar Petroleum (1%) for the construction of a low linear density polyethylene (LLDPE) facility of 450 KTA (expandable to 600 KTA) in Masseid. The feedstock ethylene for LLDPE would be supplied from an ethane cracker of the capacity of 1.3 million TPA I the Ras Laffan Industrial City. The ethane cracker will be one of the largest in the world. It is owned by Ras Laffan Lefins Company, a joint venture between QATOFIN (45.7%), Q-CHEM-II (53.3%), and Qatar Petroleum (1%).

What is the vision behind QATOFIN? The QATOFIN project has been designed with a view to optimize the utilization of ethane feedstock that will be made available in Qatar, as a result of further development of the country’s gas resources, combining interests of the existing petrochemical investors in Qatar to create one of the world’s largest ethane cracker and maximizing economies of scale, and developing industrial synergies with other petrochemical ventures at MIC.

INTERVIEW

Dr. Mohammed Yousef Al- Mulla General Manager, QAPCO Can you give us a brief history of Qapco, how it started and where it is now?

Qatar Petrochemical Company Ltd. (QAPCO) is one of the leading producers of ethylene and low-density polyethylene (LDPE) in the Middle East region. LPDE is being marketed under the “LOTRENE” brand name. QAPCO was established in 1974 as a joint venture to utilize the associated and non associated Ethane gas from petroleum production in line with the industrialization plan of the State of Qatar. QAPCO commenced commercial production in 1981 and soon became well established in the global market for its commitment to quality and reliability.

What is the vision behind QAPCO? Our vision here is to keep up our competitive position as a leading and reliable producer and supplier of ethylene and LPE, and to provide stable returns to our shareholders, generate additional employment opportunities for Qatari people and to contribute more towards the economic development and growth of the State of Qatar.

Which of the many projects within QAPCO are you most proud of?

We are proud of all our expansion projects as long as they meet our expectations in terms of maximizing production capacity, diversification of products and thus raising the revenues. Our recently implemented project was the ethylene expansion (2) which has successsfuly increased the ethylene design production capacity up to 720 mtpa. We however produced over 800 KT of ethylene from the same plant thereby achieving 110% capacity utilization.

For its continuing growth, QAPCO has undertaken to implement other expansion projects that we are proud of, one of which is QATOFIN, a joint venture between QAPCO

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What has been your most significant accomplishments in the last 12 months?

Amid the current financial crisis, and despite the severe challenges to market the products in the last quarter of the fiscal year wherein there was virtually no demand, QAPCO was able to sell most of the quantities of ethylene and LDPE at a reasonably good price while leaving a very marginal stock at the close of 2008. We are proud to mention that our net profits for 2008 reached an all time high with a figure of approximately QR 2.8 billion, while QAPCO’s sales reached the QR 3.7 billion mark. Our safety records indicate excellent statistics with No Man Days lost, one of the best safety records in he history of QAPCO. Needless to say, in recognition of QAPCO Management efforts, QAPCO has achieved recertification of the three ISO systems (ISO 9001, EMS 14001 & OHSAS 18001) as a result of comprehensive audits conducted by BSI (Certifying Body) in July and August of 2008.

What is QAPCO doing to proactively open up the market to local and foreign investment in Qatar?

Well, locally, we always encourage any potential investments.

Investment can be possible in areas such as downstream industries and end-user products such as plastics in all its various applications. All direct foreign investments are however taken by QAPCO’s parent company Qatar Petroleum. As foreign investors, they can also find in Qatar economic stability and suitable industrial infrastructure to start business. They can also get the low cost ethylene or ethane, as feedstock for their industry, rather than depending on crude oil and Naptha, which is more costly.

How do you stay abreast of your industry?

QAPCO is committed to providing high quality products and best services for its customers. We are always on the look out for new developments in the industry in terms of technological changes, capacity expansions, customer requirements etc. It is important to us that we remain cost effective and competitive at the same time without compromising on the quality of product and service.

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ENERGY

ENERGY

Qatar and its rapid growth as the world’s largest supplier of the planet’s cleanest fossil fuel, liquefied natural gas (LNG).

M

eeting global demand for its energy resource is the reason why Qatar’s economy is expanding faster than anywhere else in the Gulf: the population of just 1.4 million is increasing due to employment opportunities. Luxury residential projects such as the UDC Pearl are emerging in the capital, Doha, along with the hotels, restaurants and designer stores that serve high-income expatriates and locals. The state-owned Qatar Airways is adding routes to countries such as Australia and India while other airlines are axing routes. The government is able to continue to invest billions of dollars in developing commercial, civic and cultural institutions, such as the New Doha International Airport, universities and the Museum of Islamic Art. It’ is ironic that 35 years ago, when Qatar discovered a vast off-shore natural gas reserve called North Field, most were disappointed it wasn’t oil, a commodity that is currently witnessing frequent price fluctuations. It wasn’t considered viable to transport gas over long distances to markets such as Japan and the US, but Qatar’s investment in technology for gas processing and transportation around the world has since made gas among the most coveted energy resources of this age.

LNG is a liquid form of the gas we use in our homes and industry. When the gas is cooled in plants to minus 160C, it becomes a liquid that’s reduced in volume by 600 percent, that is one barrel instead of 600. This comes in very useful when customers live thousands of kilometers away and pipelines are impractical, as it enables large quantities of LNG to be shipped to export markets in Asia, America and Europe.

Qatargas and RasGas are among the pioneers at the forefront of making this process possible, having invested billions of

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dollars in the chain that delivers gas from off-shore wellheads to the pipelines that bring it to our homes.

LNG supply has involved building terminals to turn the gas into liquid. Partnerships are then forged for parallel terminals in the importing countries to store LNG and then turn it back into useable gas, an example of this is the South Hook terminal at Milford Haven in the UK. Then there’s the shipping, while RasGas ships about half of Qatar’s gas, Qatargas has recently built 50 of 2 types of new next-generation LNG ships. The Q-Flex and Q-Max vessels are specially strengthened giant tankers that are 60 percent larger than the current fleet, while being greener and able to travel longer distances to the US and European markets.

Having invested heavily in this infrastructure, Qatargas and Rasgas are poised to benefit from the fact that natural gas is about twice as clean to burn as oil, and global demand is expected to increase by 50 percent over the next 25 years.

Qatar plans to double LNG output to 77m tons a year in 2010 and will earn more than the US$153 billion in gas sales over the next three years, according to the International Monetary Fund.

Another significant benefit resulting from all this investment is that the gas is sold on 25-year contracts which, although renegotiable, aren’t subject to the same price volatility as oil, helping to insulate Qatar from the worst of the global downturn. Qatargas chairman and chief executive officer, Faisal M Al Suwaidi, says: “We aim to be the world’s premier LNG company, known for its people, innovation, operating excellence and corporate citizenship.” A goal that is currently reaching fruition.

Qatar’s Energy Sector still forging ahead despite Global slump

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he fastest growing economy in the world, Qatar has invested over US$25 billion in its energy sector to end 2007 with the emirate’s energy base dependent mostly on natural gas. Domestic energy consumption in 2007 is to average about 15.3m t/y of oil equivalent, up from 13m t/ yoe in 1993. A major part of the investment is generated from foreign firms, with ExxonMobil in the lead. By 2015 to 2017, non-oil ventures involving foreign partners will provide about 40-50% of Qatar’s annual budget.

Qatar’s energy base is small. Oil consumption is averaging about 50,000 b/d, up from 10.500 b/d in 1985, with gasoline accounting for nearly 50percent. Natural gas accounts for more than 85percent of its energy and industrial consumption, excluding gas being exported by pipeline and in LNG forms, up from zero in the 1960s. This share is set to grow as the industrial sector expands and North Field gas development projects are completed. In a country where gasoline is cheaper in the state than water, oil accounts for less than 15percent of total energy consumption.

Like other countries in the Middle East, Qatar has definitely felt the effects of the global slump, but its effects have been lessened due to Qatar’s exports of LNG, Liquiefied Natural Gas, which unlike oil is sold on long term contracts at fixed prices. In Qatar where oil and gas revenue still accounts for

about 90% of export revenue, the government is really focused on diversifying the economy, but it must be quite difficult in a country where the North Field resides; the world’s largest nonassociated natural gas field with 902 trn cu feet (tcf) of natural gas reserves equal to 14percent of the world’s total gas.

Qatar is set to become a major force to reckon with in the energy sector partly due to the prevalence of LNG as a safer cleaner energy source in a world where countries are bent on exploring cleaner alternatives. And Qatar is right in the midst of things; third only to Russia and Iran, Qatar’s reserves are estimated to be sufficient for over 200n years according to a 2008 report by QNB, the States National Bank.

While other countries are evaluating their investments in oil and gas, Qatar’s planned investments are still underway.

By 2012, the state is expected to increase its LNG capacity from approximately 21 mtpa to 77 mtpa, while Qatargas and Rasgas, are building six new LNG trains together with their international partners.

Qatar is also investing heavily on Gas-to-liquids (GTL) technology where natural gas is turned into lubricants, liquid fuels, and other products. These projects are being undertaken by the Pearl GTL, a joint venture partnership with Qatar Petroleum (QP) and Shell as well as the Oryx GTL, a JV with South African Sasol and Qatar Petroleum.

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ENERGY

ENERGY

In February 2007, ExxonMobil cancelled its planned 154,000-bbl/d Palm GTL project, which would have been the largest GTL facility in the world if completed.

Natural Gas Overview According to the Oil and Gas Journal, Qatar’s proven natural gas reserves stood at 910.5 trillion cubic feet (Tcf) as of January 2007, about 15 percent of total world reserves and the thirdlargest in the world behind Russia and Iran. Most of Qatar’s natural gas is located in the massive offshore North Field, which holds more than 900 Tcf of proven natural gas reserves and is the world’s largest non-associated natural gas field.

The North Field is a geological extension of Iran’s South Pars field, which holds an additional 280 Tcf of recoverable natural gas reserves. Qatar’s natural gas production has grown significantly during the last decade. In 2005, preliminary data shows that Qatar produced 1,536 billion cubic feet (Bcf) of natural gas, or more than three times the 1995 output of 477 Bcf. Preliminary data puts Qatar’s natural gas consumption at 579 Bcf.

Exports By 2005, Qatar had exported 987 Bcf of natural gas, all of which was liquefied natural gas (LNG), surpassing Indonesia to become the leading world LNG supplier. And more is yet to come, as Qatar is already strengthening its ties with its neighbors, with the export of natural gas via pipeline, as part of the Dolphin Project between the emirate of Abu Dhabi, Oman, and Qatar.

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GTL Overview Gas-to-liquids technology uses a refining process to turn natural gas into liquid fuels such as low-sulfur diesel and naphtha, among other products. GTL projects have received significant attention in Qatar over the last several years, and Qatar’s government had originally set a target of developing 400,000 bbl/d of GTL capacity by 2012.

However, project cancellations and delays since the North Field reserve assessment has substantially lowered this target. In February 2007, ExxonMobil announced that it had cancelled its planned Palm GTL project due to rising costs.

The Palm project was originally slated to produce 154,000 bbl/d of liquids for export, although estimated costs spiralled from $7 billion to $15 billion according to industry estimates.

The company will instead develop the Barzan Gas Project in the North Field, which is scheduled to supply 1.5 Bcf/d of natural gas to Qatar’s domestic market beginning in 2012, when the Barzan field comes online.

By 2012, Qatar is likely to have 177,000 bbl/d of GTL capacity at two facilities: the Oryx GTL plant and the Pearl GTL project.

Oryx GTL is a joint-venture between Qatar Petroleum (51 percent) and Sasol-Chevron GTL (49 percent), and has the capacity to produce 34,000 bbl/d of liquid fuels. The plant was formally commissioned in June 2006, but technical problems prevented the consortium from loading the first export cargo until April 2007. The Oryx project uses about 330 MMcf/d of natural gas feedstock from the Al Khaleej field. Depending on the outcome of the North Field reservoir study, Oryx GTL may choose to expand production capacity of the plant in the future. In February 2007, the same week

that ExxonMobil decided to cancel its GTL plans, Shell held a groundbreaking ceremony for its Pearl GTL Project. The Pearl plant is 51 percent-owned by Qatar Petroleum, though Shell will act as the operator of the project with a 49 percent stake. The facility is expected to use 1.6 Bcf/d of natural gas feedstock to produce 140,000 bbl/d of GTL products as well as 120,000 bbl/d of associated condensate and LPG. The Pearl GTL project will be developed in phases, with 70,000 bbl/d of GTL product capacity expected by 2010 and a second phase expected in 2011. Like the Palm project, Shell’s Pearl GTL initiative has experienced significant cost escalation.

Originally estimated at $4 billion, industry sources believe the Pearl facility will now cost between $12 and $18 billion.

The Pearl project will be the first integrated GTL operation in the world, meaning it will have upstream natural gas production integrated with the onshore conversion plant.

Sector Organization As in the oil sector, Qatar Petroleum plays a dominant role in Qatar’s natural gas sector. Qatar Petroleum is a leading upstream producer of natural gas and also plays an important role in downstream projects. Most of the new natural gas developments in Qatar tend to be large-scale projects linked to LNG exports or the promotion of downstream industries that utilize natural gas as feedstock. Therefore, foreign company involvement has favored IOCs with the technology and experience in integrated mega-projects, including ExxonMobil, Shell, and Total.

Qatar’s LNG sector is dominated by Qatar LNG Company (Qatargas) and Ras Laffan LNG Company (RasGas). RasGas is 70 percent-owned by Qatar Petroleum and 30 percentowned by ExxonMobil, while the Qatargas consortium includes Qatar Petroleum, Total, ExxonMobil, Mitsui, Marubeni, ConocoPhillips, and Shell. In each case, the exact equity structure varies from project to project. The LNG companies handle all upstream to downstream natural gas transportation themselves, while the Qatar Gas Transport Company (known as “Nakilat”, which means carriers in Arabic) is responsible for shipping Qatari LNG.

North Field Overview The bulk of Qatar’s expected future increases in natural gas production will come from projects related to the massive North Field. In 2005, Qatari government officials became worried that the North Field’s natural gas reserves were being developed too quickly, which could reduce pressure in the field’s reservoirs and possibly damage its long-term production potential. In early 2005, the government placed a moratorium on additional natural gas development projects at the North Field pending the results of a study of the field’s reservoirs. This assessment is not expected to be completed until after 2009, which means that no new projects are likely to be signed in Qatar before 2010. However, this freeze did not affect projects that were approved or underway before the moratorium, which are expected to add significantly to Qatar’s natural gas supply in the next five years.

In November 2005, ExxonMobil started production at the Al Khaleej block in the North Field at a rate of 750 million cubic feet per day (MMcf/d). In July 2006, the company announced a $3 billion plan to expand this output to 1.6 Bcf/d by 2009, which will be used to fuel power plants and industrial customers in Ras Laffan, the RasGas LNG project, and as feedstock at the Oryx Gas-to-Liquids (GTL) Project.

ExxonMobil is the largest foreign investor in development projects at Qatar’s North Field. Aside from Al Khaleej, the company is also involved in increasing natural gas supplies for the RasGas and Qatargas LNG projects, each of which will rely on significant increases in output from the North Field over the next several years.

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ENERGY

ENERGY

Dolphin Energy’s operations span from the UAE across Qatar. You have been successful in the energy project created in Qatar. What major partners did you work with to achieve this feat?

Q & A: DOLPHIN ENERGY Dolphin Project Qatar is part of the Dolphin Project, which aims to connect the natural gas networks of Oman, the United Arab Emirates (UAE), and Qatar with the first crossborder natural gas pipeline in the Gulf Arab region.

The project is being developed by Dolphin Energy, a consortium owned by Mubadala Development Company on behalf of the Abu Dhabi government (51 percent), Total (24.5 percent), and Occidental Petroleum (24.5 percent). A company spokesperson announced in early March 2007 that it had began testing its natural gas receiving and distribution facilities in the UAE, and that it expected to begin full commercial operations in June 2007. The pipeline currently sends 400 MMcf/d of natural gas supplies from Qatar to the UAE and Oman, and Dolphin Energy expects this volume to reach 2 Bcf/d by the end of 2007. The company is also in discussions with the Qatari government to expand the sendout capacity of the pipeline to 3.2 Bcf/d, depending on the availability of additional natural gas supplies from the North Field.

Dolphin Energy’s success, and strength, is based on the successive partnerships that it has created in developing the company from the very beginning. The foundation of the company’s achievement lies in close collaboration between the Government of Abu Dhabi, the leading oil and gas producing emirate in the UAE, and the Government of Qatar.

They jointly researched and set up the project in 1999 – at a time when hardly anyone could envisage the need for the UAE to import gas from overseas! They together drew up the guidelines for the project: gas production offshore Qatar – gas processing onshore – transport by pipeline to the UAE. They also agreed to the terms for supply of gas to the UAE market at a highly competitive intra-governmental price, while agreeing suitable to responsibilities and benefits for both parties. This was a unique sovereign agreement – one that has been highly successful, as well as standing the test of time.

INTERVIEW: Adel Al Buainain

General Manager, Dolphin, Qatar

The next partner to become involved was the Sultanate of Oman. The Sultanate offered to assist Dolphin’s plans to supply a new power and desalination plant in the northern UAE with gas – three years before Dolphin could meet the demand itself. The resulting agreements between Abu Dhabi and Oman confirmed this arrangement, as well as providing for Oman to receive some 10 percent of Dolphin’s natural gas production for a period of 25 years from 2008. The other key partnership is between the three owning companies of Dolphin Energy – Mubadala Development Company of Abu Dhabi (which is 100 percent owned by the Abu Dhabi Government), Total of France and Occidental Petroleum of the USA. The mixture of national influence and funding with international expertise and experience has been remarkable and has shown excellent results to date.

Which of the many achievements of Dolphin Energy are you most proud of?

The first source of pride lies in the vision behind the actual concept of the project itself. In 1999 the Dolphin Gas Project was greeted with astonishment: why did Abu Dhabi want, or need, to pay to import gas into the fourth largest gas producing nation in the world?

But what the leadership here realized – many years before some of the cleverest people in the energy business itself – was that the UAE would relatively soon face a shortage of natural gas for its power and desalination plants, given the rising need for power from an expanding population. At one time it was hoped that Dolphin would meet the majority of the UAE’s power needs – even today Dolphin gas is supplying some 30 percent of the nation’s essential requirements, a very substantial figure.

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The second source of pride is that the entire Dolphin Gas Project was completed within a nine year span from concept to full production, with fullest attention to environmental protection at sea and on land, and with over 122 million manhours completed without a lost time accident. The company is now profitable, is meeting its targets and above all is being of solid service to the southern Gulf’s growing industrial and residential needs.

On October 29, 2007, at the 6th Qatar Gas Conference and Exhibition in Abu Dhabi, HH The Emir of Qatar emphasized the importance of UAE ties and Dolphin Energy’s growing gas exports to Abu Dhabi, where he stressed the value in strengthening existing and future good relations with Qatar and the UAE. Can you elaborate more on your relationship with The State of Qatar?

It is important to note that, at every step of the value chain, there are benefits for all involved.

The project is seen as a “win-win’ opportunity for all three parties: Qatar receives substantial revenues from Dolphin’s purchase of its gas, as well as from its share of world spot market sales of the valuable by-products that are separated from the raw gas at the processing stage. The entire construction of the project has however been funded by Abu Dhabi. Abu Dhabi receives substantial quantities of natural gas to support its planned new industries and residential communities, at a highly competitive inter-governmental rate. Finally Oman receives gas for 25 years which is being used to benefit the Sultanate’s own energy industries. So the relationship we have forged has been mutually benefitting to everyone involved, thus the importance to maintain and strengthen those ties.

How do you hope to achieve Dolphin Energy’s longterm goals?

The one long-term goal that is not yet fulfilled is to maintain stable, secure gas supplies to our customers over the full 25 years of each of our Gas Sales Agreements.

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Can you share with us the current situation with Dolphin Energy and your plans for future growth?

Dolphin Energy is now in full production (average daily gas transmission to the UAE and Oman being 2 billion standard cubic feet of gas per day) as well as producing substantial quantities of LPGs, condensate and sulfur in Qatar for sale in regional and world markets.

With regard to future growth, the company plans to expand its pipeline throughput to 3.2 billion scf/day in the future: a potential increase in gas flow of 60 percent. However, to achieve this, Dolphin will need to negotiate a further agreement with the Government of Qatar, as it is gas from Qatar that is the end product. The management remains hopeful that this can be achieved in due course.

companies, aimed at helping to combine local knowledge, contacts, and influence with global expertise, especially as building projects become bigger and more complex.

Qatar is hoping that international interest will focus on its burgeoning industrial sector, where foreign companies can avidly participate. To back up its plan, Qatar is planning to spend over $70 billion by 2013 in order to boost economic diversity. The State is keen on attracting private investment through its joint-venture structure, with appealing perks such as energy. Some of the State’s incentives include low-cost natural gas, electricity and rents. There are no taxes on the import of raw or unfinished materials, machinery and spare parts; corporate profits for a set period of 10 years and income for expatriate employees, or on export duties.

Our readers are considering Qatar as their investment destination, whether it be for development projects, joint venture partnerships, etc. What can they expect from working with Dolphin Energy?

What type of quality and service?

Within Qatar, Dolphin plays its role as a supplier of condensate (an average 100,000 barrels a day) plus substantial quantities of propane and butane to buyers around the world through the spot market – all exported from Ras Laffan. The company also exports sulfur, and supplies all its ethane gas to QP. Dolphin’s role in Qatar is therefore limited to that of a supplier of gas by-products: nevertheless, we follow the highest professional standards in meeting our various customers’ requirements.

As a leading UAE company that has been integral in currently promoting Qatar through comprehensive developments and infrastructure growth, how important is the international image of Qatar for you and your company?

It is extremely important. Nothing that Dolphin does would be possible without the whole-hearted cooperation of the Qatar Government, the authorities and Qatar Petroleum.

We believe that Qatar has a distinguished image and reputation as one of the leading gas suppliers in the world, and as a leading oil exporter. Dolphin is proud to have its giant gas processing plant located here at Ras Laffan, and the company aims to contribute to Qatar’s growing reputation in every possible way.

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atar essentially is establishing itself as a top player in the world’s construction and industrial market, with several major urban development and industrial projects along the way. It seems the world is paying attention as global investors are showing more interest in long-term investments in Qatar, while political and economic stability are encouraging foreign participation and an increased contribution by the local community. With this in mind, an increasing amount of local companies are beginning to search for additional joint venture opportunities with international

The industrial sector is predominantly situated in Ras Laffan Industrial City, in the northern part of Qatar, and Massaieed Industrial City, south of Doha.

In order to attract investment in these parts, the government has invested heavily on infrastructure needs, some of which include a steady power supply, telecommunications services, housing, schools, and accommodation. In its drive to really begin its diversification process, Qatar has signed some significant joint venture deals, one of which includes the Qatalum Project, the 50-50 joint venture with Qatar Petroleum and Norwegian aluminum and renewable energy company, Hydro.

Qatar Petroleum and Hydro signed a Heads of Agreement in December 2004, after which the joint venture was established in March 2006. The final approval for the plant construction was given on July 11th, 2007, and construction activities commenced shortly thereafter. Situated at Masaieed Industrial City, the 5.6 billion Qatalum Project will be the worlds’ largest ever built primary aluminum plant, with a capacity of 585,000 tons in the first phase of construction, and an installed capacity of 1350 MW to insure a stable power supply. Qatalum is currently under construction, with the first metal production slated for finalization in late 2009, and full production commissioned in 2010. Thousands of people will contribute during Qatalum’s construction phase. At its peak, Qatalum will employ more than 18,000 workers, and will provide approximately 1,100 permanent jobs in its operation phase.

According to Truls Gautesen, CEO Qatalum, this venture was strategically formed based on strong fundamentals to draw from the support and know-how of Qatar Petroleum (QP) and Norsk Hydro.

QP is able to provide a combination of long-term energy resources, an industrial infrastructure and a location that is suitable for a project such as Qatalum, whilst Hydro, as a leading integrated, global aluminum company and a technology and R&D leader with 100 years experience in the industry, is able to bring in its expertise, global brand name, and leading market positioning to the project.

What constituted the idea behind creating Qatalum in Qatar?

Firstly, the expected global demand of aluminum will increase by 4 - 5%, and so there is room for more capacity. The applications of aluminum have also increased over time to everyday use.

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Qatalum will be producing the material that will give us more fuelefficient cars, more energy-efficient buildings and other products that we use daily that can also be recycled and transformed into new products.

Being in Qatar provides us with access to energy resources, which are very important in the aluminum industry. Aluminum smelting is an energy-intensive process, with energy costs being one of the most important competitive issues for smelter location.

Our partnership with Qatar definitely alleviates that cost. Our geographical location in Qatar also provides a closer link to the European and Asian markets, whilst the joint resources of QP and Hydro definitely offer a strong platform to build the largest and most modern aluminum plant in the world thus far.

How are you tackling the environmental issues that a project of this magnitude will face?

The Qatalum Project will be subject to the laws of the State of Qatar, as well as the various international and regional

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protocols and agreements which Qatar is part of, including both Hydro’s and QP’s stringent corporate requirements.

The Project is currently carrying out an Environmental Impact Assessment in accordance with the standards of the Supreme Council for the Environment & Natural Resources (SCENR) to ensure compliance with international standards, so we are fully aware of the environmental impact and are working towards ensuring the safest standards possible, both on-site and during long term operations.

What is the long-term goal of Qatalum?

Qatalum is really another example of how Qatar is diversifying its resources to other sectors. This Project was created with the idea of harnessing Qatar’s natural resources and utilizing them to create another commodity and industry. It is a long term investment where the combined capabilities of all the partners involved will be to create and develop another major source of income for the State of Qatar.

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FINANCE OVERVIEW

eading Qatari banks have recorded strong results over the past two quarters and figureheads within the sector are quietly confident that profitability will be maintained, or increased, in the year ahead.

The banks of Qatar, well supported by financial measures taken by the government, seem set to run in tandem with the dynamic local economy, producing continued strong growth and new opportunities. Given that Qatar’s gross domestic product per capita is expected to reach US$63,387 by the end of 2009, making it one of the wealthiest nations in the world, and that the country’s construction boom has not been derailed by the global financial crisis, banks are generally bullish about their prospects. But just as some of the large international banks are pulling back due to problems in their home markets, a number of well-capitalized local banks are being established.

How major financing needs surrounding Qatar’s huge hydrocarbon projects and an estimated US$100 billion in construction projects in the pipeline will be met is of keen interest. Given that big global banks, such as Royal Bank of Scotland and Citi Bank are withdrawing from the market and domestic balance sheets are too small to support the very large projects, there is a definite squeeze on funding. But that does not mean that there are not considerable opportunities available at a variety of levels in a market where 40percent of the budget is being ploughed into infrastructure. Two new Islamic investment banks, QINVEST and Qatar First Investment Bank, were set up recently with paid-up capital of US$500 million and US$430 million, respectively, and they are confident there are big opportunities in the market.

Growing profits The banking sector, which comprises 17 banks, including 7 foreign banks, had a profitable year in 2008 with aggregate profits of Qatari banks up 23percent to QR10billion (US$2.7billion), the highest profit growth in the region. The three largest banks , Qatar National Bank (QNB), Commercial Bank of Qatar (CBQ) and Doha Bank, also made progress in

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expanding their Islamic services. Islamic banking, on retail and wholesale levels, is a high growth sector, and the fourth largest bank, Qatar Islamic Bank (QIB), announced plans in April for a US$1billion fund to tap regional appetite for Islamic products.

Conservative provisioning Despite the global credit crisis and significant Q4 losses in 2008 of QR6billion, due to more conservative provisioning, 2008 was a good year and Qatari banks are expected to maintain profitability in 2009. This has been assured by the range of measures taken by the government to shore up banks’ liquidity and provide comfort; these include buying stakes in listed banks through a capital increase and purchasing the banks’ local equity investment portfolios. The banking sector, however, continues to be dominated by QNB, which accounts for 44percent of domestic bank assets and in 2008 provided a staggering 45.7percent increase in net profits to reach QR3.65billion, four times the level of profits in 2004 and the third most profitable bank in the Gulf region. QNB, which has a large international network covering 23 countries as well as a 15.2 percent market share of domestic Islamic bank assets, is one the highest rated banks in the region. It also had a strong capital adequacy ratio of 13.9percent at year-end 2008 and a low non-performing loans ratio of 0.7 percent.

The year ahead For 2009, Ali Shareef Al-Emadi, Group CEO Qatar National Bank (QNB), is cautiously positive: “We still think we are not out of the woods. It will not be the end of 2009 until we have a clearer view. It is premature to say we are past the worst.” QNB’s focus this year will be on domestic operations with no major international expansion in sight. Mr Al-Emadi believes that QNB’s Islamic franchise is a fantastic story, with profits up 21percent in Q1;QNB’s overall profits rose by a solid 10.2percent in Q1 2009 to US$278million. Last year, QNB acquired 24percent of the United Arab Emiratesbased Commercial International bank and 50percent of Tunisian-Qatari Bank as well as expanding its ATM network significantly to 150, but the key development was the opening of QNB’s investment banking arm, QNB Capital, in

November 2008.

Amid the financial turbulence of recent months, QNB Capital, along with HSBC, was able to pull off an extraordinary deal, the QR3.3billion Vodafone initial public offering (IPO) at the end of April. “Getting this IPO away is a huge success,” says Ray Maurer, Managing Director of QNB Capital.

Grahame Maher, CEO of Vodafone Qatar, echoes this sentiment: “The result is amazing. In any other country in the world this would not be possible. Qatar has demonstrated again that it is the leading global economy with this very strong and successful result.” This IPO was the largest in the world this year and a positive sign for Qatar’s financial development. Commercial Bank of Qatar (CBQ), the largest private sector bank which has a 17.7percent market share of assets, also recorded strong results, with record net profits up 22.4percent in 2008 to QR1.7billion, and the trend continued in Q1 2009 with net profits up by a staggering 40percent QR610million. CBQ benefited from the unsolicited 5percent capital injection from the Qatar Investment Authority in January and the sale of its entire equity investment portfolio in March for QR938million. CBQ’s capital adequacy ratio was 15.5percent at the end of March, leading executive general manager Nicholas Coleman to state that the bank is off to a good start in 2009, with cautious optimism about the future.

Healthy performance Doha Bank, which has 11.3 percent market share of assets, also delivered a healthy performance in 2008 and in Q1 2009, with annual profits up by 2.2percent to QR947million and quarterly profits up by 20percent to QR330million. Doha Bank Chief Executive, R Seetharaman, is particularly impressed by the growth of Doha Islamic, the bank’s Islamic arm, which is growing by 30percent year on year and accounts for 15percent of the group. Although aware of the local banks’ limited balance sheets, Doha Bank recorded a strong return on equity in 2008 of 25.8percent and healthy capital adequacy of 13.5percent. Qatar Islamic Bank, which has a 9.7percent market share, performed well in 2008, with a 30.8percent increase in profits to QR1.64billion but in Q1 this year it suffered a 23percent decline as profits

fell to QR350million. Nevertheless, Crédit Agricole Cheuvreux, a European equity broker, named QIB as a top investment choice and expects 28percent profit growth this year. QIB may issue short-term sukuks (Islamic

bonds) from September onwards to meet short-term liquidity needs.

Good opportunities Meanwhile, two new Islamic investment banks, QINVEST and Qatar First Investment Bank (QFIB), both perceive good opportunities for their well-capitalized institutions that do not have any legacy problems. QINVEST’s management recognizes the potential to build a world-class platform and create a regional champion stretching across the Middle East, Africa and South Asia.

Using a traditional merchant banking model, QINVEST considers his two key businesses to be investment and advisory with the ability and capital to co-invest and provide brokerage services. Like QINVEST, Mike de Graffenried, the chief executive of QFIB, plans to use his fresh capital to develop the deals that he believes are there in abundance in this market. QFIB, launched in March at Doha’s Museum of Islamic Art, considers itself to be the only fully independent local investment bank. With some global banks in retreat and the economy undiminished by the global crisis, local Qatari banks are well positioned to take full advantage of ample opportunities available.

Rethinking the single regulator In 2007, the Qatar government announced its intention to create a single, unified financial regulator for the country. By integrating the regulatory and supervisory functions of the Qatar Central Bank (QCB), the Qatar Financial Markets Authority (QFMA) and the Qatar Financial Centre Regulatory Authority (QFCRA) the government anticipated significant benefits from

the move. Qatar’s minister of finance, HE Yousef Hussain Kamal, says that a single regulator will bring “greater transparency and predictability, a simplified institutional landscape, greater efficiency through the pooling of scarce regulatory staff, and the ability to take a comprehensive view of financial institutions”.

But the global financial crisis and its impact on regulatory models, such as the UK financial services industry, has given Qatar authorities serious pause for thought. During the past two years, the new Qatar regulatory body was being modelled on the UK’s Financial Services Authority (FSA) of which the chairman of the QFCRA, Philip Thorpe, was once a managing director.

In considering the consequences of the crisis and in looking at the UK’s current tripartite debate, Mr Thorpe explains: “It would be negligent of us to follow the structure of the UK’s FSA without examining the impact of the crisis on the UK model and its tripartite arrangement: it now appears there are things found wanting. We want to learn from this and incorporate it in our new model”. Although Mr Thorpe does not rule out the single regulator approach and is adamant that there is no change in the government’s commitment to consolidated regulation and to international standards, he is keen to pursue the demands for “smarter regulations and smarter laws” and find the model that works best.

So what does this all mean for regulation and financial services in Qatar? The precrisis strategy of developing a single regulator, and a level playing field, has been put on hold until the real needs of the country are better assessed. Does the central bank need more power?

Who will regulate domestic insurance?

How will the QFC relate to the central bank in a transparent way? These are issues yet to be formalized by the government. Although the QFC had seemed to be playing the dominant role in the new regulatory structure, the global crisis has engendered new thinking that could cause regulatory relationships to be reversed or changed.

In a new global financial environment the role of regulation will be key, Qatar is giving itself more time to decide its regulatory strategy.

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QINVEST, Qatar’s largest investment bank, was licensed by the Qatar Financial Centre Authority in April 2007 and is regulated by the Qatar Financial Centre Regulatory Authority. The Bank has authorized and paid-up capital of US$1 billion and US$500 million, respectively.

The dedicated Origination team is involved in the sourcing of transactions across QINVEST’s entire product suite.

It is responsible for issuer client coverage, sourcing both investment and also financing and advisory business across the geography in which QINVEST operates.

Led by Chairman H.E. Sheikh Jassim Bin Hamad Bin Jassim Bin Jabr Al Thani. QINVEST has created a world class investment banking capability operating under Sharia compliant structures, with the highest standards of governance and transparency.

QINVEST’s Placement and Distribution business is dedicated to connecting investors with high value investment opportunities across its broad product range to match their investment profile in terms of risk appetite, asset class preference and time horizons. Placement and Distribution works with a range of investor clients including sovereign wealth funds, insurance companies, pension funds, corporate, asset managers, family offices and high net worth individuals. This broad range of expertise is delivered by a talented team of investment bankers who bring a valuable mix of both international experience and regional knowledge, enabling QINVEST to pursue opportunities across its chosen markets of Middle East, Turkey, South & South East Asia, and Africa. Beyond this geographic focus, the firm also pursues opportunistic transactions more globally where it identifies high value propositions for clients.

The platform offers a broad range of expertise that enables QINVEST to seamlessly deliver high value services to clients, covering investment, financing and advisory needs.

The firm’s Principal Investment business pursues opportunities across all asset classes including direct private equity investment, listed equity / equity linked investments, including pre IPO opportunities, PIPEs, and equity private placements, as well as selected credit financing opportunities. The business has the objective of building a 3rd party Investment Management business which involves syndicated deal specific transactions and also creating investment funds which may be asset class / sector specific. QINVEST has a strong desire to partner through co investment arrangements with clients where appropriate.

Financing and Advisory services are delivered through QINVEST’s financing experienced team which offers expertise in leveraged finance, capital markets, real estate financing, asset and liability management, debt restructuring, as well as corporate finance and M&A advisory capabilities.

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Strong standards of governance and control are central to QINVEST culture. The firm has in place a robust governance structure, including Compliance and Risk functions at Executive Committee level, as well as a Sharia Supervisory Board, reflecting the highest standards of independence, oversight, accountability and transparency.

The QINVEST shareholder structure includes Qatar Islamic Bank and Gulf Finance House, as well as prominent individuals from Qatar and the region.

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Qatar Financial Center: Changing how Qatar sees finance The Qatar Financial Centre (QFC) has been created to support Qatar’s ambitious strategy to attract international finance companies to support its investment and development programme. The QFC allows international finance companies to take advantage of the business opportunities presented by Qatar’s rapid economic development, which has been led by the oil and gas sector, and particularly the growth in demand for liquid natural gas.

Through the government’s careful investment management of over US$130 billion over the next few years, supported by a sound investment strategy, Qatar offers international finance companies numerous business opportunities for provision of financial services.

International financial services firms are encouraged to set up in the QFC to meet the needs in the Qatari market for corporate finance, venture capital, project finance, private equity, wealth management, insurance and re-insurance, investment banking and Islamic banking, investment strategy, investment management and other financial services, which will only continue to increase given the current rate of economic development.

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To ensure that international finance companies operate in an environment governed by stringent standards, the Qatar Financial Centre Regulatory Authority (QFCRA) independently authorizes and supervises firms and individuals. The practices of the QFCRA are modeled on those used at major centres for international finance, such as London.

Through the QFC, Qatar is actively encouraging financial services companies to enter the market not only because of its financial and business needs, but also to raise standards in investment strategy, investment management and other financial services disciplines.

ABOUT THE QFC: Qatar Financial Centre (QFC) is a financial and business centre established by the government of Qatar in 2005 to attract international financial services and multinational corporations to grow and develop the market for financial services in the region. QFC provides access to over US$140 billion of investment in Qatar over the next 5 years as well as to over US$1 trillion planned investment across the GCC. QFC consists of a commercial arm, the QFC Authority (QFCA) and an independent financial regulator, the QFC Regulatory Authority (QFCRA). It also has an independent judiciary which comprises a civil and commercial court and a regulatory tribunal. QFC aims to help all QFC licensed firms generate new and sustainable revenue streams. It provides

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access to local and regional investment opportunities.

Business can be transacted inside or outside Qatar, in local or foreign currency. Uniquely, this allows businesses to operate both locally and internationally. Furthermore, QFC allows 100percent ownership by foreign companies, and all profits can be remitted outside of Qatar. Firms licensed by the QFC can locate anywhere in Doha, and pay local market rents. As of September 1st 2008 there were 27 approved sites.

The QFC Authority is responsible for the organization’s commercial strategy and for developing relationships with the global financial community and other key institutions both within and outside Qatar. One of the most important roles of QFCA is to approve and issue licences to individuals, businesses and other entities that wish to incorporate or establish themselves in Qatar with the Center.

The QFC Regulatory Authority is an independent statutory body and authorises and supervises businesses that conduct financial services activities in or from the QFC. It has powers to authorize, supervise and, where necessary, discipline regulated firms and individuals.

The business environment created by the QFC enables firms to quickly establish a physical presence in Qatar and the region. With the ability to engage in both onshore and offshore business, firms licensed by the QFC have the chance to participate directly in one of the most economically dynamic regions of the world.

QATAR’S FINANCIAL INSTITUTIONS; BUSINESS AS USUAL

PRUDENT POLICIES OF ISLAMIC BANKING HAVE PROTECTED QATAR’S BANKING SYSTEM FROM GLOBAL TURMOIL

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ustained economic growth over the last five years, low exposure to US markets, and high liquidity levels point to business as usual within Qatar’s banking sector despite the international financial turmoil. Qatar’s banking sector has grown by an astounding 35percent a year over the same period, and indicators suggest continued double digit expansion for the next decade. Over the last five years, Qatar’s banking sector has enjoyed rapid growth.

Qatar’s financial system is further protected from the global credit crunch thanks to Islamic banking. The international financial crisis began over a year ago, yet Islamic banks have remained largely unaffected by the sub-prime mortgage crisis. As a result, many non-Muslims, spooked by turmoil in Western banking are turning to Islamic banking, seeing it as a safe haven because of its inherent business and moral ethics.

Islamic banking does not deal in debt trading, and have distanced itself from the market speculation characteristic of European and American banks. Principally, Islamic banks are custodians and cannot transfer public deposits to other

banks without the permission of the depositors. Interbank liquidity on transfer on debt finance basis is not permitted in Islam, which counters liquidity-related problems in the market. In line with being proactive, Qatar’s government launched a US$5.3 billion plan to buy bank shares in order to shore up confidence in their banks, sending stocks across the region soaring. Middle Eastern policy makers have joined Europe and the United States to fight the financial crisis, and more moves by the cash-rich states to fortify capital defences are likely.

Qatar Central Bank (QCB) deputy governor Sheikh Fahd Bin Faisal Al-Thani assured the populace at local banks had no assets with any of the banks or companies that have been declared bankrupt in the US and Europe.

The pattern in Qatar for the last five years have been for banks to enhance their franchises by expanding retail and Islamic banking , and greater geographical diversity.

Furthermore, benefits from the government in the form of allowances and grants allow Qatari nationals to maintain higher levels of disposable income, creating a niche client base for retail and private banking, which suggests that the sector will have little trouble riding out the financial storm in the coming months, until normal service is resumed in the United States and Europe.

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"Who is in the QFC":

AXA INSURANCE

Firms make beeline to open offices at QFC A

s many as sixteen new firms have established offices in Qatar Financial Centre (QFC) since the financial crisis assumed huge proportions and there has been 30 per cent increase in the number of enquiries by interested companies keen to have presence in the financial centre, according to the senior QFC officials. Six companies have registered their offices with QFC since the onset of 2009. Twenty-eight firms that are registered with the QFC are also registered with the Dubai International Financial Centre (DIFC), senior officials at the QFC told Emirates Business.

“In terms of numbers, QFC is benefitting from the restructuring of businesses in the region. There has been a 30 percent rise in enquiries this year. The number is growing and we expect this number to grow in the coming days,” said Steve Martin, Director of Marketing and Corporate Communications at QFC. There are 106 firms registered with QFC as of now. The list of firms that went ahead and registered with the centre after the crisis cascaded across the world in September last year includes HSBC Insurance Brokers Limited, McKinsey and Company, The Bank of Tokyo, Bloomberg and most recently Nomura Holdings, the top Japanese brokerage house.

Martin declined to outline the number of firms that have closed shop in other regional financial centres and have moved to the QFC; but said that he has noticed firms preferring Qatar as a safer center for financial trade for the past nine months. Another senior official at the QFC mentioned that the crisis in many ways may prove beneficial to QFC, as firms identify the QFC as safer place for investments. Qatar, now the country with the highest per-capita in the world, is vying with financial zones in Dubai and Bahrain to attract regional and global finance companies in its effort to diversify its economy.

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The QFC, with four years of operations, is one of the several initiatives that the government took to diversify the gasrich emirate’s economy.

Apart from Qatar institutions, the QFC also provides a conduit for financial services providers to access about US $1 trillion (Dh3.67trn) of investment across the GCC as a whole over the next decade. (Emirates Business)

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nsurance companies first began operations in Qatar in the early 1960s, but it was a relatively moderate growth until 2005 when the resurgence occurred with the creation of the Qatar Financial Center with its new West Bay tower offices. And in came the attraction of international companies operating under the QFC laws, thereby creating a boom in the financial services industry with the insurance sector witnessing over 60percent annual growth.

The insurance sector in Qatar has grown to become a vibrant industry due to increased investments in energy related services and products, as well as increased energy projects, currently underway. The further participation by Qatar’s government has also aided this sector to become a viable source of business, not to mention the increasing interest in Sharia compliant products. All these changes have all accounted for the increasing interest in the insurance sector and businesses that provide them, both local and international.

One of the big players aggressively gaining market share in Qatar is AXA Insurance, the largest international insurer in the Middle East with more than 250,000 customers, and over 580 employees in 12 offices region wide. In order to be a part of Qatar’s dynamic and growing market, AXA Insurance became a QFC licensed insurer in 2007. AXA offers business solutions to serve the Qatari market in health care, Marine, Office, Motor Fleet, Casualty & Liability, and Property insurance services.

Highlighting its aim to become the preferred insurance company in Qatar and the region, AXA Insurance recently won the 2008 Middle East Award for “Best Choice Award, Best Insurance provider”.

Insurable assets in Qatar are currently on the rise, yet there is still a major gap to fill in Qatar’s insurance penetration market, thus the doubled efforts by the Qatar Financial Center (QFC) and its Regulatory Authority (QFRA) to attract more quality and top name insurers in Qatar’s finance and insurance sectors.

Due to this market gap in the insurance sector, insurers such as AXA Insurance are working on really affecting the market more on a service and product offering level. It is time to raise the bar within the insurance sector.

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The Strength of CITIBANK in Qatar

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n September, 2008, Citibank Qatar arranged a seven year US$850million syndicated financial facility for one of Qatar’s leading diversified groups, Al Faisal Holding Company.

Citibank was the sole book runner for the transaction. First of all, who even knew Citibank was here in Qatar, yet alone conducting such high profile business transactions….. well don’t let their ambiguity fool you. Citibank has been comfortably cushioned on the 9th floor of the QFC (Qatar Financial Center) towers in the emerging West Bay in Doha, Qatar for close to two years.

Well let’s face it, we all know Citibank as one of the world’s leading financial institutions, but what we are interested in is Citibank in the Middle East and in Qatar.

BLOM BANK “QFC LICENSED FIRM”

BLOM BANK QATAR, LLC NOW AT THE QFC IN QATAR

Inspite of entry from regional and international organizations looking to participate in Qatar’s vibrant economy, Qatar’s existing banks are confident about the future. The banking sector is rapidly expanding as the economy and population expands. The government is busy developing a single regulator for Qatar’s finance sector, which in the long run this will create stability, trust, and credibility for Qatar’s financial industry. Local banks are beginning to take advantage of the liberalization of GCC financial sectors in order to expand into the region by aggressively using their abundant resources to build an international and regional presence. Qatar’s financial sector is emerging! The business community argues that there is definitely more room for growth in product offering and services in areas, such as the internet banking and ATM use Qatar is still below the average. This literally means that banks in Qatar and emerging financial institutions need to leverage themselves to be more innovative in order to maintain or increase market share.

The market really calls for a much more comprehensive and service oriented approach.

Established in 1951 with over 12 locations worldwide and total assets of US$17.8 billion at the end of 2008, Blom Bank is definitely a major force to reckon with and has remained at the forefront of the Lebanese Banking system, gaining numerous awards, some of which include the “Best Bank in Lebanon Award” from Global Finance in 2008, “Best Foreign Exchange”, “Best Customer Internet”, “Highest National Rating at Aa1.Ib” from Moody’s, just to mention a few. According to Blom Bank, all this success was garnered “within an operating framework that maintained high levels of liquidity and strong asset quality to better manage risk and ensure clients’ “Peace of Mind”. The philosophy behind our success is a “two pronged strategy of geographical expansion and service diversification so as to evolve the bank to a regional, universal bank”.

This idea of innovation is where Qatar Financial Center comes to play as the financial organization that is charged with attracting international financial and service institutions into the country, thereby raising the bar on the financial and service oriented market. To this date, The QFC has managed to attract over 70 institutions into the market with its new set of rules, its incentives, and its claim to transparency and credibility.

52 - Qatar - Wallstreet Investment Guide

In order to gain entry into Qatar’s emerging finance sector as a Corporate Category 1 Bank, Blom Bank Qatar, LLC was granted a QFC license on April 7th, 2008. In compliance with the Qatar Financial Regulatory Authority (QFRA) requirements, Blom Bank, Qatar LLC paid in capital USD $10 million. Blom Bank Qatar will conduct the following activities: Deposit taking, Dealing in Investments ( as agent ), Arranging deals in Investments, Managing Investments, Advising on Investments, Providing credit facilities , Arranging credit facilities, Arranging the Provision of Custody services”.

Citibank is widely known as a global financial services company with approximately 200 million customer accounts with business in more than 100 countries, with a broad range of services, some of which include consumer banking and credit, corporate and investment banking, and wealth management, among others. Citibank has been operating in the Middle East for more than 50 years, so it was no surprise when Citibank opened an office, albeit quietly, in Doha.

Citibank has operations in Qatar, the UAE, Egypt, Kuwait, Jordan, Bahrain, Lebanon, Algeria, Tunisia, and Morocco, with over 3000 employees and 30 branches invested in the Middle East region. According to industry surveys, this corporate giant is ranked as the premier choice for foreign exchange products, portfolio products, corporate finance, and investment management, among other services. Being a corporate giant that has withstood the test of time, it is no surprise that Citibank has extensive financial backing and unlimited access to an unrivalled pool of creative and professional people who are able to work cohesively in the most challenging projects worldwide.

WSIG Speaks to Farhan Mahmood, CEO, Citibank, Qatar…… Can you share with us the current situation with Citibank, Qatar and what are your plans for future growth here, inspite of dismal financial times?

Citibank Qatar has been in the Qatar market for about 2 years. We are QFC licensed which is definitely an advantage as it gives us access to the local market and an even playing field to access the local business market. We have been extensively working and penetrating the local market where we recently arranged a major financial facility for Al Faisal Holdings, one of Qatar’s largest conglomerate groups.

We have also worked with other clients such as National Petroleum Services, Commercial Bank, Qatar Investment Authority, Qatar Gas, Ras Gas, among others in the Qatari market. Inspite of these times, I think there is still a vibrant

market here in Qatar, it simply a matter of working harder and being more creative and more innovative. This is a lead time to really focus on building trust and personal relations with past, present and future clients. Enhancing product value and creating solutions for each client and each project.

Can you tell us more about your recent business transaction with one of Qatar’s leading conglomerate giants, Al Faisal Holdings?

The Al Faisal deal was a complex transaction that took about six months to complete. And we are very proud of its success as it shows our tenacity, expertise, and experience in these types of business transactions. It consisted of a multi currency (USD, DHS, and QR) facility that is the largest debt issue for Al Faisal Holding in size and scope. It also consisted of conventional and Islamic tranches. Other lenders involved in the project include Al Khaliji Bank, Commercial Bank of Qatar, Qatar Islamic Bank (QIB), Arab Bank, Qatar International Islamic Bank, Doha Bank, Badr AlIslami, United Bank Limited (UBL), and Masraf Al Rayan.

It seems you have extensively tapped into the local market with other financial institutions here in Qatar. How important is it for Citibank for create and develop relations with your peers in the finance sector?

It is very integral to work closely with our counterparts in the local market. This way you are able to really harness and utilize your resources in order to really serve the client according to their needs. Our success lies in our local partnerships as well as our international partnerships. It is all about serving the client to the best of our ability and therefore we have to make sure that we are able to provide all available services and products to maintain and serve our clientele.

Can you tell us what activities Citibank is currently involved in here in Qatar?

Corporate Social Responsibility is an initiative that is very important to our organization and our way of doing business.

We launched an IT training program in collaboration with The Qatar Orphan Foundation (Dhreima), for Qatari orphans. This enables these students to have a lifelong vocational and entrepreneurial training in the emerging IT sector here in this region to prepare them for current and future employment requirements. It also creates a long lasting and sustainable development not only economically but also socially as well. We are very proud to be associated with this program and we hope to build an enduring and lasting relationship with Dhreima.

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FINANCE

FINANCE to distinguish between clients as commodities, and clients as human entities. We emphasise the inter-personal relationship so when a client comes to a barrister directly, they come to that barrister and not to an amorphous entity which prides itself on having huge offices and hundreds of staff – very few legal matters require more than a handful of legal professionals to be working on them at any one time.

McNair Chambers brings to Qatar a combined 200 years of legal experience. How do you anticipate translating that worldwide expertise to oil and gas sectors?

Every member of McNair Chambers has extensive experience in advising and representing clients on oil and gas matters.

We have just concluded what was going to be a very complex arbitration between two Sovereign States concerning a longterm crude oil supply agreement, and very recently, we advised and represented the State Oil Corporation of one of the largest economies in the world on a matter concerning the acquisition of a multi-billion pound Oil Company. That is not uncommon for us. Bringing that expertise to Qatar will bring added value and specialists skills to a market within which the oil and gas sectors form such a vital part of the economy. In addition to our specific oil and gas expertise, all of us have acted for the oil majors and state-owned corporations throughout the world. We have acted on oil concession and supply agreements, on matters concerning LNG supply, on issues concerning construction and on downstream-upstream matters.

INTERVIEW: Khawar Qureshi, Head of Chambers McNair Chambers

What was the impetus for establishing the first ever barristers’ chambers outside the UK and what makes Qatar the right place to do it?

The strong tradition of excellence and expertise which is our foundation has a natural place in the dynamic and forwardlooking global center that is Qatar.

The decision to open a barristers chambers outside England and Wales for the first time in 800 years was an easy one for us to make. The strong traditions that are reflected in the English legal profession are recognized the world throughout. Those of us who are members of McNair Chambers have one strong uniting feature; a very clear commitment to provide access to the very best services and expertise for Qatari entities, and no less so for international clients.

We are used to dealing with international clients visiting us in London and then flying out to visit them all over the world. I have personally been involved in matters concerning more than 80 jurisdictions, often of a complex commercial nature in the oil and gas sectors, foreign investment infrastructure projects and large commercial contract matters. We have had strong links with Qatar and the region for decades. One of our members, Professor William Ballantyne, was the only non-Qatari advocate to have ever appeared before the Qatari courts, and he did that more than 40 years ago. Many of our other members of chambers have worked for Qatari entities and Qatari state entities. I have been doing advisory and representational work since the beginning of my career for Qatari entities and state entities. More recently, I have been travelling to Qatar and the region with increasing frequency, being involved in an advisory role as well as a representational role on large-scale commercial matters.

Through the planning of its authorities, Qatar has embarked

54 - Qatar - Wall Street Investment Guide

on a process of staggeringly dynamic change that would have seemed to be unduly ambitious in most places, but is increasingly being realized. You only have to look out and see large construction works in progress or go and visit the Qatar Science and Technology Park, which is one of the most impressive buildings I have ever seen. The vision is one that is founded on a strong desire to make Qatar’s development a reality, and our part, as providers of expert advice and assistance, is to ensure that access is available to that advice and assistance as effectively as possible for international clients. We have seen the development in Qatar of strong institutional frameworks, strong infrastructure and a very clear commitment on the part of the authorities to provide welcomed support to professional service providers such as ourselves. So whilst setting up a chambers in March of 2008 outside England and Wales was unprecedented, it was a step taken in the context of long-standing links with very strong support within Qatar and the region.

What kind of legal tradition can a barristers’ chambers apply to Qatar?

We are conscious of the fact that lawyers have an increasing global tendency to create larger and larger law firms. Barristers operate differently. We are seen to be the legal experts, and barristers operate through offices in groups called “chambers” where the barristers come together under the roof of the chambers to provide access to their individual and collective expertise. So we offer a tradition of independence and integrity, where our duty is first and foremost to ensure that our client has access to the very best in terms of legal advice and assistance. We at McNair Chambers are also extremely conscious of the need to be sensitive both culturally and otherwise to the concerns of clients.

Common and increasing concerns on the part of global clients include a lack of sensitivity, both cultural and otherwise. There is an inability on the part of some international service providers

What should potential investors be aware of when considering putting their money into Qatar?

There is huge potential for foreign investment in Qatar and not only in the context of infrastructure products. At the moment we are seeing some turbulence in the market attributable to the global slow-down but this will pass. The considerations affecting foreign investment in Qatar are no different from foreign investment issues anywhere in the world, and a foreign investor needs to be aware of the applicable regulatory regime.

They should also be aware of what protection, if any, is available to their investment. The most important form of investment protection available to a foreign investor is providing or routing foreign investment through an investment treaty scheme. Many home states for potential investors have entered into what are called “bilateral investment treaties” (BIT). For the past two or three years, the most prolific signatory to bilateral investment treaties has been China, which is making investments all over the world. Since 1959 bilateral investment treaties have been providing foreign investors with a legal entitlement that the state within which they invest maintains a “level playing field”, and BITs seek to provide protection against expropriation and unfair inequitable treatment. Qatar itself has entered into numerous bilateral investment treaties. In the event of a dispute, the foreign investor can seek recourse from an International Arbitral Tribunal. McNair Chambers members have acted in some of the biggest BITs claims ever brought, including the Dabhol LNG Power Plant case which was worth more than USD$6 billion and more than 15 different legal claims.

A foreign investor should also be aware of the dispute resolution mechanisms that are incorporated into a contract. Many entities in Qatar are required by Qatar law to include a dispute resolution provision that insists upon the contract being governed by Qatari law and the dispute, if any, to be determined by the

Qatari courts. One of the reasons why international parties prefer arbitration to domestic courts is perceived neutrality, in addition to a perception that arbitration is cheaper and faster than domestic courts.

Nevertheless, it is important to note that Qatar’s authorities have been very forward thinking in trying to ensure that potential investors wishing entry into Qatar and to invest, and bring added value, are provided with incentives such as the creation of free zones. The Qatar Science and Technology Park is going to be established as a tax-free zone. There are many other methods by which Qatari authorities have sought to facilitate the entry of foreign investors. The Qatar Financial Centre has streamlined the process of entry into Qatar and provided assistance on issues such as facilitation of doing business. Overall, the climate is increasingly geared towards accommodating foreign investors and businesses.

Can you mention some projects or certain areas where you can see McNair Chambers having a role in Qatar?

In addition to advise and advocacy expertise on the wide range of issues arising from International Commercial Activity, we continue to be involved in advisory and representational work in the transportation side of the oil and gas sector, as well as the construction and supply side. A lot of the work we are involved in is subject to confidentiality considerations but we have worked on each and every aspect of the oil and gas sector.

We understand that part of your contribution to Qatar is providing educational opportunities to local law students…

Absolutely. In McNair Chambers, in addition to the fact that all of the members have the highest level of expertise in international and commercial law matters, every single one of the members has contributed to the academic world. Each of us has taught and studied at Oxford or Cambridge and we believe very strongly that we have a responsibility to ensure that whatever knowledge we gain, we provide an opportunity for the next generation to share that knowledge with us and take it forward.

In March 2008, we started an internship initiative with Qatar University College of Law. We offered one internship to an undergraduate student to spend time in our Qatar office. The student also spent time with us in London and Oxford for an international business law course paid for by us. The students’ response was so positive that we ended up choosing two students and offering two summer internships. Internships can often be simply about photocopying and making cups of tea and coffee, but in our case we made sure that the students read our files, tried to understand the cases and actually did presentations of the cases. We believe this experience has really opened their eyes to what international legal practice is about. We’re also going to be taking on young Qataris as more than interns. We have already offered and secured a pupillage, (the equivalent of training) for a Qatari graduate who will be joining us very soon.

We believe that this will actually be the first time that somebody will have undertaken a pupillage with a barristers’ chambers outside of England and Wales. We cannot think of a more fitting way to ensure that McNair Chambers lives up to its community responsibilities than by training the future generations of Qatari lawyers to work with ourselves in dealing with the legal challenges and opportunities that lie ahead.

Wallstreet Investment Guide

- Qatar - 55

ENERGY

ISLAMIC FINANCE

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ISLAMIC FINANCE

An overview of the Islamic finance industry

58 - Qatar - Wallstreet Investment Guide

ISLAMIC FINANCE

I

slamic banking is a system consistent with Islamic Sharia principles and guided by Islamic economics. In particular, Islam prohibits the collection and payment of interest.

Generally, it also prohibits trading in financial risk (seen as a form of gambling). The basic principle of Islamic banking is the sharing of profit and prohibition of “Ribaâ€? (Interest or Usury). The tenet of Islamic Banking provides that: sÂŹ !NYÂŹ PREDETERMINEDÂŹ PAYMENTÂŹ OVERÂŹ ANDÂŹ ABOVEÂŹ THEÂŹ ACTUALÂŹ amount of principal is prohibited. sÂŹ4HEÂŹLENDERÂŹMUSTÂŹSHAREÂŹINÂŹTHEÂŹPROlTSÂŹORÂŹLOSSESÂŹARISINGÂŹOUTÂŹOFÂŹ the enterprise for which the money was lent. sÂŹ-AKINGÂŹMONEYÂŹFROMÂŹMONEYÂŹISÂŹNOTÂŹ)SLAMICALLYÂŹACCEPTABLE sÂŹ)NVESTMENTSÂŹINÂŹSPECULATIVEÂŹTRANSACTIONSÂŹAREÂŹALSOÂŹPROHIBITED ÂŹ (uncertainty, risk or speculation) sÂŹ)NVESTMENTSÂŹSHOULDÂŹONLYÂŹSUPPORTÂŹPRACTICESÂŹORÂŹPRODUCTSÂŹTHATÂŹ are not forbidden.

Islamic finance is presently a global phenomenon and spreads across more than 75 countries. Islamic finance is presently estimated to be a trillion dollar industry. There are a growing number of international financial centers that offer Islamic financial products and services such as London and Singapore. Global banks are also setting up special hubs to structure Islamic finance products. The GCC region has shown impressive growth in Islamic finance including Qatar, where the government is a strong supporter of Islamic finance and its regulators. Qatar Central Bank (QCB) and Qatar Financial Center (QFC) have played an important role in the

growth and development of the Islamic finance industry. The State of Qatar has also been one of the first Islamic countries to issue an international Sukuk in 2003.

Future prospects of the Islamic finance industry are highly promising. A 1.6 billion strong Muslim population in the world will continue to fuel the demand of Islamic financial services and prodcuts. The strong oil revenues have generated excess liquidity in the GCC and these countries are seeking Sharia compliant investment avenues. These trends are expected to persist and the Islamic finance industry is set to grow to US$4 trillion over the next five years (Qatar Islamic Bank).

With an estimated average annual growth between 15 to 20 percent, Islamic finance is emerging as an alternative financing option that coexists alongside conventional financial industry. The industry has embraced a wide range of institutions and products, including Islamic commercial banks, investment banks, wealth & asset management companies and insurance companies. Products include various Islamic commercial banking solutions, Takaful (Islamic insurance) products, mutual funds and unit trusts, bonds and Sharia compliant stocks. It has been over three decades since Islamic banks first appeared as active players and today, Islamic banking and finance has become a force to reckon with.

It is important to mention the remarkable progress made

by the Sukuk market (that is the Islamic bond market). The size of the Sukuk market is approximately US$100 billion. In 2007, the International Monetary Fund (IMF) estimated the volume of Sukuk to reach US$150 billion in the next three years. Massive financing requirements for infrastructure developments and other private sector developments will continue to feature as major Sukuk demand drivers.

Islamic asset and wealth management markets have also shown significant growth, following the development of diverse and innovative structures of Islamic investment funds and Islamic hedge funds. There are now more than 250 Sharia compliant mutual funds with an estimated US$ 300 billion in assets under management. Other achievements include the creation of benchmark indices such as the Dow Jones Islamic market Index, covering more than US$ 10 trillion market capitalization in over 40 countries and the listing of Islamic financial instruments on international exchanges. These developments have enhanced the depth of Islamic financial markets as an attractive asset class for investment.

Noteworthy amongst these is the establishment of the IFSB, which formulates the international regulatory and prudential standards for Islamic finance to ensure best practices, soundness and stability to the Islamic financial system.

The 125 members of the IFSB include 33 regulatory and supervisory authorities as well as International Monetary Wallstreet Investment Guide

- Qatar - 59

ISLAMIC FINANCE Fund, World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank, and 87 market players and professional firms from 22 countries including QIB. The IFSB complements the AAOIFI which was established earlier in 1991, to set the accounting standards, to ensure that the true and fair values are reflected in every financial transaction and to ensure greater accountability of financial institutions.

These developments have been reinforced by greater liberalization to increase the international dimension of Islamic finance. With increased international participation in Islamic financial markets, it has prompted increased cross-border Islamic financial flows. In addition, Islamic financial institutions that had previously operated only in their own domestic jurisdictions have begun to venture abroad to tap new growth opportunities in other regions.

This new international dimension of Islamic finance has further enhanced international inter-linkages in this more globalized environment.

This size of Islamic financial industry is still quite small as a proportion of the total world’s financial assets. To take the industry to the next level, intensive efforts are required by all stakeholders. Going forward, the sustainability of Islamic Finance would rest in how the international community builds on the momentum achieved so far. This would require:

ISLAMIC FINANCE s¬ 0OOL¬ OF¬ TALENT¬ AND¬ PROFESSIONAL¬ SKILLS¬ IN¬ PROMOTING¬ GREATERlinkages within the domestic Islamic financial system and integration with the international financial system. Talents are an important pre-requisite for the national and global development of the Islamic financial system. They are important assets that will drive innovation in the Islamic financial business and sustain its competitive strength. s¬)NTENSIVE¬EFFORTS¬TO¬ENHANCE¬THE¬LEGAL¬AND¬REGULATORY¬FRAMEWORKof Islamic finance consistent with the international practices. s¬ 2ESULT¬ ORIENTED¬ EFFORTS¬ TO¬ CONFORM¬ AND¬ ALIGN¬ THE¬ PRODUCTSand services according to Shariah principles to attract Muslim around the globe to turn to this alternative financial system, while attracting others to products and innovative risk mitigation that Islamic banking offers. s¬ 0RACTICAL¬ COOPERATION¬ AMONG¬ THE¬ REGULATORS¬ AROUND¬ THEglobe to augment the process of globalization and financial integration, while recognizing the great potentials of the Islamic finance industry. s¬4AKING¬AGGRESSIVE¬STEPS¬TO¬DEVELOP¬AND¬IMPLEMENT¬THE¬EVOLVINGIslamic financial regulatory and supervisory standards, while launching consumer protection frameworks. s¬ ¬ 0ROMOTING¬ MORE¬ lNANCIAL¬ DIVERSIlCATION¬ BY¬ ENCOURAGINGfinancial innovation and Islamic capital market development.

Islamic f inance becomes a force to reckon with in global banking I

slamic finance has contributed to the flourish in the Gulf, weathering the recent financial crisis better than many traditional commercial forms of finance. Globally, at least US$500 billion in assets is managed in accordance with Sharia, or Islamic law, with the sector growing at more than 10 percent annually. The Islamic banking capitals are Kuala Lampur, Dubai, Manama, Doha, London and Singapore. The world’s largest Islamic bank is the Riyadh-based Al-Rajhi Bank, which held assets worth US $44 billion at the end of 2008. Islamic finance applies “Morabaha” which is defined as a contract whereby an Islamic bank or financial institution purchases the goods or equipment required by a customer and resells them to the customer at a predetermined profit. This type of interest used in Islamic finance is deemed compliant with Sharia law.

turbulence, which has caused a widespread reassessment of risk in both developing and emerging economies.

The global financial turbulence appears to have had a limited impact on the Islamic finance industry, which has been in an expansionary phase in recent years according to reports published in Economist and Financial times in 2008. This rapid growth has been fuelled not only by growing demand for Sharia compliant products from Muslim financers but also by investors around the world, rendering the expansion of Islamic finance a global phenomenon. In fact, there is currently over US$800 billion worth of deposits and investments lodged in Islamic banks, mutual funds, insurance schemes (known as Takaful), and Islamic branches of conventional banks.

Islamic finance and Sharia-compliant banks differ from Besides its wide geographical scope, the expansion of Islamic traditional commercial banks in terms of the banking system, finance has also been taking place across the whole spectrum the approach to finance used, the issue of defining interest, of financial activities, ranging from retail banking to insurance known as ‘Morabaha’ in Islamic finance. Nasser Al-Masri, and capital market investments. Perhaps the most striking, a financial expert explained that if one took out a loan of KD 10,000 to be • To tal assets $94billio n Size of Ban ki ng Se ct or • Assets of Islamic segment $24billio n repaid over a five year period at an • Nominal GDP (2008) $74billio n interest rate of 8 percent, the interest Ban ki ng assets percent (%) to Qatar GDP • Bank ing assets to GDP (2007) 127% would be KD 4,000.

Growth of Qatar Ban

ki ng Assets

• Bank ing assets grew at 36% over last • Faster than GDP growth

Five years

In Islamic banks it might be more; • Share capital of listed Banks on DSM $ 5billio n both traditional commercial banks and Market C apitalization Ban ki ng Se ct or • Cu rr ent Market capitalization $17billio n banks using Islamic finance impose • EPS 40% additional interest payments on clients Cu rr ent Indicators of Qatar Ban 8 (T imes) ki ng Se ct or • P/E • P/BV 3.5 (T imes) in case of early settlement of debt.

Al Masri went on to say that with Sharia-compliant finance, the customer who places a deposit however, has been the growth of Sukuk, the most popular form in an Islamic bank is not allowed to know in advance the of securitized credit finance within Islamic finance. Sukuk interest he will receive on this deposit, which is left to the commoditize capital gains from bilateral risk sharing between borrowers and lenders in Sharia-compliant finance contracts in bank to decide. marketable securities without interest rate charges. In spirit, Why is Islamic banking booming?

Islamic finance seeks to promote social justice by banning There is a global trend towards favoring Islamic finance, exploitative practices. In reality, this boils down to a set of with Islamic baks focusing on deposits since, under Sharia prohibitions – on paying interest, gambling with derivatives law, banks do not have to set interest rates or ‘Morabaha’ on and options, and investing in firms that make pornography or deposits. Islamic banks’ customers, therefore, do not know trade in pork or pork materials. whether or not the money in their accounts is gaining more interest or indeed losing more interest than it would in an The Sukuk market has held its own amid a groundswell of concern about the credit crunch and dysfunctional money account in a non-Islamic bank, explained Al-Masri. markets. Although the current level of issuance remains a This explains the global trend towards Islamic finance, fraction of the global volumes of conventional bonds and ABS, since it can be more profitable for customers than traditional the Sukuk market soared in response to growing demand for commercial banking. During a recent visit to Kuwait, French alternative investments before the first episode of severe market Commerce Minister Christine Lagarde announced that France disruptions in 2007 showed the first effects. Gross issuance has made large-scale amendments to its financial and trade of Sukuk has quadrupled over the past few years, rising from legislation to attract Islamic finance in an attempt to compete US$7.2 billion in 2004 to close to US$39 billion by the end of 2007, with London in attracting Islamic finance investments owing in large part to enabling capital market regulations, a from Kuwait in particular. Since the summer of 2007, the favorable macroeconomic environment, and large infrastructure global financial system has undergone a period of dramatic development plans in some Middle Eastern economies.

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- Qatar - 61

ISLAMIC FINANCE

ISLAMIC FINANCE a paid up capital of US$100 million, Lebanon with the Arab Finance House which was incorporated with a paid up capital of US$70 million, The United Kingdom with the European Finance House which commenced its operations recently with a paid up capital of GPB 50 million, Bahrain, Yemen, and in Syria. QIB currently operates 20 branches in Qatar and a Correspondent Banking network in excess of 330 banks.

INTERVIEW: Salah Jaidah, CEO Qatar Islamic Bank

With a current Fitch Rating A in short term foreign currency and long term foreign currency, Qatar Islamic Bank is the best performing financially sound Islamic Bank with a vision “To be the World’s Leading Islamic Bank” by offering innovative and diverse Sharia compliant products and solutions to its existing clients. In line with the Qatar’s vision of strategic diversification, QIB derives most of its income from diversified businesses as well. According to QIB reports, the bank’s line of activities includes 56percent from financing activities, 18percent from financial and other

investments, 19percent from deposit and trade transactions, and 10percent from cash and other assets while geographically, QIB’s activities within Qatar reached 63percent, Europe with 20percent, the GCC with 13percent and others with 4percent. Although a substantial amount of QIB’s business occurs locally, QIB is leveraging itself to become a Qatari bank with a major international presence.

WSIG speaks to Choudhry Mohammad Wasi, General Manager Projects Group, Qatar Islamic Bank…….

What plans are in store for QIB domestically and internationally?

Domestically, we are currently focusing on our local business to grow in line with Qatar’s economic growth.

It is important to grow and develop as the country does the same as we are proud to be a Qatari company and a leading ambassador of Islamic finance in Qatar. We are proud to aid in the growth and development of Qatar, so it only makes sense that as this dynamic economy becomes stronger,

Qatar economic outlook and trend

A

s Qatar’s economy and population steadily grows, the state’s banking sector grows not too far off. The financial sector in Qatar is riding on Qatar’s growing wealth in the oil and gas sectors, as well as the burgeoning real estate, industry, and tourism sectors. With total banking assets of US$94 billion USD, the Islamic sector is quickly following pace with US$24 billion in Qatar’s banking sector alone. The profits speak for themselves in Qatar’ s banking sector, where banking assets to GDP grew 127percent from 2007 to 2008 with US $74 billion.

Qatar’s banking assets grew at 36percent over the last five years, even faster than its GDP growth.

Islamic finance in Qatar is making big headlines lately, with alternative options to banking. With increasing acceptance and participation in the western world in Islamic finance, the sector is quickly becoming a viable and respected way of banking and investing. Standard & Poor Services Rating Agency estimates that Islamic finance has a potential to grow to US $4 trillion over the next five years.

In Qatar, the major player in Islamic Finance is Qatar Islamic Bank (QIB), a leading Islamic bank in Qatar, which was established in 1982, and was incorporated as the fifth Islamic Bank globally, with US$9.2 billion in assets and a current market capitalization of US$3.4 billion. QIB represents approximately 10percent of the financial sector and approximately 40% of the Islamic banking sector in Qatar. As the fourth largest Islamic bank globally, QIB is spreading its wings by creating strategic partnerships, subsidiaries, and associations with QINVEST an investment bank formed under the Qatar Financial Center with an authorized capital of US$1.0 billion and a paid up capital of US$500 million, AQAR, a real estate development company operating since 1995, Al Jazeera Islamic Company, a consumer finance company operating since 1990. QIB expands its presence not only in Qatar but also in Malaysia with the Asian Finance House which holds

62 - Qatar - Wallstreet Investment Guide

we also become stronger. QIB is also focusing on enhancing income by launching QIB Capital. We will alsobe looking at the use of securitization for optimal use of shareholders capital, and strengthening shareholders’ equity by issue of Right Shares.

Internationally, we are looking at expanding through acquisition and green field operations within the GCC and Europe. We currently have 8 locations, and by 2012, we seekto add 4 more locations so that by 2015, we will have a total of 17 locations including 4 additional operations.

2005

2006

2007E

2008E

2009E

2010E

42,463

56,770

63,870

73,736

84,797

95,516

6.10%

9.90%

NA

NA

NA

NA

33.8%

33.7%

12.5%

15.4%

15.0%

15.0%

GDP per capita US$

49,655

57,350

61,449

67,564

73,999

81,046

Cu rr ent account surplus

14,107

16,102

21,757

28,779

28,022

34,563

Nominal GDP (US$ million) Real GDP change (%

)

Nominal GDP change (%

Oppo rt unities To Qatar Ban ki ng Sect or

)

Av erage oil produc tion (‘000) b/d ) LNG produc tio n (million of tons) Av erage oil expor t price ($ a barrel)

760

802

896

901

928

1,044

21.20

25.00

29.00

35.00

46.00

56.00

51.69

62.93

67.08

73.43

70.74

69.03

Expo rt s

26,122

35,083

45,480

57,902

63,384

75,837

Impo rt s

(9,064)

(14,811)

(19,106)

(24,073)

(30,140)

(36,168)

Trade balance

17,058

20,272

26,374

33,828

33,244

39,669

External debt

3,743

3,387

3,049

2,797

1,819

1,373

Go ve rnment net debt

5,935

5,595

4,932

3,188

1,274

1,069

Go ve rnment net debt ($ GDP )

14.00

10.60

7.50

3.80

1.30

1.00

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ISLAMIC FINANCE

ISLAMIC FINANCE IS HERE TO STAY AS SECTOR BOOMS WORLDWIDE region as the local economic boom continues. Edmund O’Sullivan, Chairman of the Middle East Economic Digest (MEED), commented that, “Standards of Islamic financing] are improving and many western banks are adding Islamic banking divisions. Improvements in availability and quality of products will inevitably lead to greater integration of Islamic project finance in the GCC and other Islamic and non-Islamic countries.”

A

pproximately one-fifth of the world’s population is Muslim, and these potential customers, many of whom have avoided banks and other financial services firms because of the Islamic prohibition on riba (interest), are discovering that Sharia compliant firms provide attractive services that conform to their religious beliefs. Many non-Muslims are also attracted to Islamic financial services because of their focus on risk management and ethical practices.

The top ten banks in the Gulf region grew by an average of more than 30 percent in the first half of 2007 compared to 2006, and demand for Islamic financial services is seen as a key to this outstanding growth. Islamic financial institutions throughout the area are expanding both locally and internationally as well as adding to their product portfolios.

More non-Islamic financial services firms are offering Islamic services. Lloyds TSB, for example, now provides Islamic financial services at all its 2,000 branches in Britain.

New trends in Islamic financial services include more longterm investors, the creation of a liquid secondary market for Islamic instruments, enhanced risk-management tools, new mortgage and other retail products, and increasing interest in Islamic insurance products (takaful). Popular Islamic banking options include floating-interest-rate loans, joint ventures (musharakah), and venture-capital funding (mudaraba). In all these arrangements, profit and risk are equally shared between the customer and the financial institution.

Islamic project financing, especially through sukuks (financial certificates that can be seen as the Islamic equivalent of bonds), is gathering pace throughout the Gulf

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According to Standard & Poor, “Retail banking services and sukuks have been and will continue to be frontrunners in the global Islamic finance boom.” The total value of sukuks issued in the Gulf region in the first half of 2007 alone reached US$22.4 billion or double the 2006 total, with a prediction that the total value of sukuks worldwide will reach US$100 billion by 2010.

CONSTRUCTION & REAL ESTATE

The Islamic investment-equity-funds market is also a fastgrowing niche within the Islamic financial system. Around 100 Islamic equity funds worldwide now manage more than US $5 billion, and the total has been growing by around 15 percent per year. Islamic mortgage financing is another highpotential trend that has seen particularly strong growth.

Clearly, Islamic financial services are here to stay.

Oppor tunities to Qatar Bank ing Se ct or Largest gas expo

rt er with GDP growth expec

ted at 15% over ne

xt 3 yrs

Bank ing se ct or growing faster than GDP (36% pa in the last 5 years)

Banks seek ing fresh capital f Impo rt s rising with CA

GR 32% and expor

or growth plan

s

ts 45% over last three years

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CONSTRUCTION AND REAL ESTATE

CONSTRUCTION AND REAL ESTATE

Construction to see recovery from middle of next year

T

he construction sector in the GCC will start moving towards recovery starting mid-2010, according to a survey of leading industry officials. The survey by Norton Rose (Middle East) also revealed that Saudi Arabia, Abu Dhabi and Qatar would emerge as the leading players in the sector. Developers, contractors, consultants and bankers in the Middle East construction sector were interviewed during April and May 2009 for the survey.

Overview of Qatar’s Construction Sector

C

ontractors are targeting Qatar as a big growth market for the year 2009, unlike some of its other GCC counterparts, thanks to the government’s commitment to developing infrastructure schemes, which is fuelling an ongoing construction boom.

Contractors in Qatar are cautiously optimistic about 2009, and their outlook appears justified. State infrastructure spending continues to drive the development of the country’s megaprojects, and the difficult global credit conditions have had little impact. Doha’s ability to invest is underpinned by a current account balance that stood at more than $50bn in 2008.

According to Bob Hope, director of UK-based consultant Atkins, “There is still a great deal of opportunity here, and we are encouraged by the government’s comments on infrastructure investment, such as Lusail City and Energy City. We will still see this as a market where we are targeting growth in 2009”.

According to Gulf project tracker MEED Projects, Qatar’s construction sector is worth US$119billion. Projects include the US$4.2billion 45 kilometer Friendship Causeway linking Qatar and Bahrain, the 35-square kilometer Lusail City real estate project, Sidra Hospital’s US$2.3billion at Education City, and the US$10billion Energy City, the Gulf’s first hydrocarbons industry business center, which is 70percent complete, with the center due to open in 2010. While neighboring Gulf countries are reining in their spending, the most pressing issue for Qatari clients and developers is how best to take advantage of falling materials and labor costs, which have been dropping since hitting their peak in the summer of 2008. With this in mind, construction contractors are expecting progress on projects to slow down, as local clients seek to secure lower prices on projects by negotiating, renegotiating, or retendering contracts.

Other contractors confirm that clients are seeking savings. “In general, there is a slowdown, which is a reaction to the economic situation, “ says Jenoe Ruff, GM of a construction formwork (concrete mould) provider, Doka. “The pricing on some projects was done last year in 2008 and by now they should have started, but clients are retendering.”

According to Kerry Galbraith, Qatar based head of the structural department at KEO international Consultants, “they are less impacted here than in other parts of the world, but projects are slowing down as developers adopt a wait-and-see-approach moving into the first and the second quarters of 2009”. Rebar (reinforcement steel bar) and cement have fallen, so tender

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prices are falling. Clients will sit and wait and possibly retender projects.” Severe cement shortages in Qatar drove price inflation to 16 percent in 2008, the highest in the Gulf. An absence of local production capacity, poor distribution networks and soaring domestic demand led to the creation of a black market for cement.

INTERNATIONAL FIRMS LOOKING TO QATAR Competition for work in Qatar is increasing. As the Dubai construction sector slows, contractors, consultants, and other suppliers are seeking to increase their operations in other Gulf markets. A buyer’s market means increasing competition, and not just from firms in neighboring countries. International firms are also working harder to break into markets such as Qatar.

With financing becoming more difficult to obtain, cash flow is increasingly important to construction companies, making payment delays even more critical. All firms in the market are adapting to the changing credit conditions, but remain encouraged by the Qatari government’s policy of putting infrastructure at the heart of the economic development plans.

At the same time, Qatar has been leveraging the influence gained from its energy wealth to position itself as a regional center for diplomacy by hosting Middle East peace talks. By building the Qatar National Convention Center in Doha, it hopes to become a center for international conferences and summits.

Major projects such as the airport, road upgrade program, QatarBahrain Causeway and the New Doha Port will all improve accessibility to the state, further encouraging business visitors.

BUILDING TALL IN DOHA Doha’s shortage of office space is well publicized, with occupancy rates of 95% and residential occupancy even higher, at 99%. Population growth in Qatar has been more conservative, and is related to the growth of the energy sector rather than construction boom, which means any unexpected drop-off in growth is expected to be less severe than in other neighboring countries.

Building heights are currently capped at 470 meters to allow flight clearance for planes landing at Doha airport, but the new coastal airport, New Doha International means planes will no longer fly over West Bay. So it will come as no surprise when we start seeing sky scrappers, literally reaching the cloudy skies!

Speaking to Emirates Business, Martin Preston, Construction and Infrastructure partner at Norton Rose (Middle East), said, “The survey result has been fascinating as it throws significant light on various aspects within the industry at such a crucial moment a majority of the respondents are of the view that the market would start improving from 2010 and the infrastructure projects would lead the way in its revival.” Almost 81 percent of the respondents said investment in infrastructure will have a positive effect on the Middle East economy and provide an impetus for further construction developments.

“Specifically you will see an increase in spending on projects for road, water, education and healthcare.

While some projects in Bahrain, Jordan and Abu Dhabi are financed on public private partnership (PPP), we could see more PPP-based funding for projects in the GCC,” said Preston. This is expected to sustain levels of construction activity, even if real estate developments may be significantly down on 2008 levels.

Saudi Arabia, Abu Dhabi and Qatar are regarded as having the most ambitious plans, but respondents point to Dubai’s continuation of many of its terminal projects.

Dubai recently announced an unparalleled budget deficit thanks to its commitment to fulfilling its infrastructure pledges, said the report. Emirates Business had recently reported that about US$243 billion worth of infrastructure projects are either being built or are in the pipeline in the region. While US$28.5bllion worth of projects are currently under construction in the UAE, another US$76.9billion worth of projects are being planned during the coming decades. Closely following the UAE is Saudi Arabia with US$17.9billion worth of ongoing projects and US$50.3billion worth of projects being planned for the future. Preston said the survey results proved that the Middle East construction market is powering on despite the economic gloom. “Leaving aside the downturn of the real estate sector in Dubai, the survey reveals the overwhelming impetus behind infrastructure and largescale residential projects across the Middle East. Activity is down but far from out”.

Highlights of the survey show that, almost 71 percent view Saudi Arabia, Abu Dhabi and Qatar as their primary markets. Fifty-five percent of those interviewed expected the effects of the economic slump to fade within a year and for the construction sector to stage a recovery in 2010. About 94 percent indicate that the downturn has

had a positive effect on the availability and cost of labor and materials, and 65 percent point to either a rise in crude oil prices or increased liquidity and bank lending as the key contributors to market recovery. Eighty-eight percent view transport, power and water as the most likely recipients of infrastructure investment. A vast majority (72 percent) of those interviewed have attribution clauses in their contracts, but not one respondent was currently in the middle of arbitration proceedings. While 83 percent want to see better regulation and transparency within the Middle East, few believe that this could have prevented the downturn.

The construction industry, according to the report, will be fuelled for many years to come, thanks to oil revenues.

Furthermore, with oil prices nearing the OPEC target of US$70 a barrel, GCC economies are expected to increase their spending on construction projects. With oil prices moving upwards, many anticipate that confidence will improve dramatically in the coming year.

Construction projects are predicted to move ahead unhindered by the lack of liquidity that is currently being blamed for delays and non-payments, and banks are also expected to start lending again, it said. The survey also points out that positive effects have also come from the downturn.

“Materials and resources are now plentiful and of a higher quality. The financial crisis has eradicated the riskier elements of the market and has prompted the end off ‘offplan’ sales in Dubai.”

Many also predict an era of better regulation and transparency, which will in turn generate greater market confidence, said the report. With the market less heated and with a greater emphasis on averting risk, this survey demonstrates that the construction industry is moving towards more sophisticated contractual relationships and is beginning to pay greater attention to the dispute resolution mechanisms and options available. According to the report, Fidic, the International Federation of Consulting Engineers, is the established form of construction contract, but it is far from popular. Most developers and contractors choose it through habit, but complain that it is too rigid and breeds an adversarial relationship. The current downturn may give contractors and developers time to reassess their contractual models and consider other forms of contract, including ICE, NEC and partnering contracts, the report said.

On arbitration, the report said few contractors are willing to risk damage to their reputation by launching claims against influential employers and developers. Many are wary of what are regarded as untested or unpredictable dispute resolution mechanisms and institutions in the Middle East, the survey added.

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CONSTRUCTION AND REAL ESTATE

CONSTRUCTION AND REAL ESTATE

IronWolf I

Outlook positive for Middle East Steel T

he collapse in global commodity prices has cast a shadow over the regional steel industry. Here we present a white paper of MEED Insight’s report. As of November 2008, projects valued at almost US$3 trillion were planned or under way in the Gulf. But with the credit crunch taking hold and oil prices collapsing, the big question for the steel industry is how many of these schemes will now proceed over what timescales. Given that a swathe of projects, especially in the key market of Dubai, have been put on hold or even cancelled, the outlook for real estate projects, which make up almost two thirds of the total, is mixed over the coming two years, while prospects for infrastructure schemes are brighter. In terms of new contract awards, 2009 is likely to deliver the lowest volume for five years, while there should be a pickup in 2010.

With high stockpiles, particularly in the UAE, and slackening demand, steel prices are expected to remain subdued in 2009 in the range of US$500 a ton. This would be a third of what they were at their peak in mid-2008, but a slight increase on their recent lows recorded in November 2008. With global steel demand weak and the Middle East a major importer of semi-finished products, the region is likely to become a focus for international steel suppliers with the prospect of dumping returning.

If this occurs, governments are likely to re-impose custom duties on steel imports in an attempt to protect local manufacturing, although such moves will do little to bolster prices.

Effects of the downturn The global downturn and the lack of available project finance have put the brakes on several regional expansion projects particularly in the downstream sector. Upstream, both Bahrain-based holding company Foulath and Brazil’s Vale (formerly CVRD), which are planning major investments across the region maintain that their projects will proceed, despite the difficult trading conditions. If

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implemented, the projects will take regional pelletizing capacity up to 68 million t/y by 2013. The slowdown is also expected to have a major impact on Iran’s much publicized plans to quadruple steel production over the next five years, which were already in trouble due to a lack of finance and bureaucracy prior to the onset of the credit crunch.

Major government-backed players in the regional steel industry appear well insulated from the effects of the global slowdown. However, smaller, private-sector firms, especially in the downstream arena, look vulnerable to prolonged downturn, raising the possibility that there may be some much-needed consolidation in the industry.

Qatar Steel and the Saudi Iron &Steel company (Hadeed) both pulled out of the planned direct reduction pelletizing project in Mauritania in 2008, citing disagreements with the project’s initiator as well as concerns about ultimate profitability. With global iron ore prices expected to fall by 30-50 percent in the negotiating round to be completed in April 2009, both regional companies are likely to delay their entrance into the upstream sector until the cost of entry declines further.

ron Wolfe is a US based equipment manufacturing company, from Noble, Oklahoma that is focused on gaining more market share in Qatar and the surrounding GCC region with their technology driven equipments, products and services. IronWolf manufactures a range of attachments and equipment designed for excavation, surface mining, milling, site development, road building, oil field, forestry industries and land clearing activities.

The idea behind the company’s innovative attachments and equipment comes from efficiency, which in turn leads to cost saving, an integral part of any industrial or construction site.

The sale and manufacture of IronWolf’s equipment begins by working closely with the client to determine what they really need and making sure each attachment and equipment fits the client’s applications. After each sale, IronWolf personally trains the operator so they are able to achieve maximum performance with the new equipment.

The company has six product lines designed for a range of material processing applications. All of the products use proprietary technologies enhancing functionality, reliability, and productivity. IronWolf produces the 700B product line and the Crusher which are designed for site preparation applications. The 700B is a purpose built surface mining machine that uses a 700 HP diesel engine to power the tractor and the cutting head assembly. The power and

design of the 700B enables the machine to process rock, concrete, asphalt, trees, and tree stumps. The versatility of the 700B gives clients a true competitive advantage.

The Crusher Series are surface mining attachments designed to mount on wheel and track loaders. This enables superior mobility for construction, reclamation and mining projects. The Crusher Series includes a cutter assembly with an 8 or 10 foot wide cutting drum and an auxiliary engine package including a 525 horsepower diesel engine used to power the cutter assembly. The cutter drum diameter options are 40 and 48 inches enabling cutting depths up to 12 and 16 inches, respectively.

The true advantage of the 700B and the Crusher is that the machines are able to process hard rock and surfaces into usable material (3 inch minus) that can be used for select fill. This ability eliminates the use of hydraulic hammers and rippers and reduces the need to haul material to and from the job site. Clients are able to minimize equipment and labor costs, thereby maximizing job profitability. The range and number of projects in Qatar and the region will challenge contractors to find innovative methods and operations to meet timelines and job requirements.

Novel products from IronWolf are creating new solutions for common applications and increasing contractors’ capabilities and profit margins.

Promising outlook The longer term outlook for the Middle East steel market is more promising, given an expected rebound in the oil price in 2010 fuelling economic growth and capital investment.

As a result, steel demand is set to rise over the next five years. By 2013, regional finished product demand is forecast to grow to 85.5 million tons with raw steel production projected at over 50 million tons. A growing issue for the regional steel industry going forward will be the availability of competitively-priced gas feedstock.

With competition for limited supplies intensifying from the regional oil and utilities sectors, new gas allocations are likely to cost much more than in the past, when steel producers could count on a gas price below US $1 a million BTU. Wall Sreet Investment Guide

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CONSTRUCTION AND REAL ESTATE

Ambitious Projects Attract Investor Attention Q

atar’s ambitious development plans are symbolized in the famed Pearl project, a string of artificial islands near Doha. With its islands forming a distinctive curved design that echoes the form of Doha’s historic natural harbor, the Pearl will eventually be home to 35,000 people and include multi-starred hotels, restaurants, boutiques, a 700-berth international yacht port and the world’s longest luxury retail promenade, among many other attractions.

The United Development Company, which is behind the project, has entered into a deal with Cisco Systems to set up world-class digital infrastructure in the Pearl, including a range of next-generation services and highspeed connectivity.

Prices for apartments in the area have doubled over the past two years, but remain very reasonable by regional standards, ranging from around US $275,000 for a 1,300 square foot one-bedroom apartment to less than US $500,000 for a fourbedroom unit. Buyers in the Pearl are acquiring property in the heart of the capital city of a country whose per capita GDP rivals Switzerland’s. With the multi-billion-dollar investment that Qatar’s government announced for infrastructure plans over the next few years, property values and demand in the Pearl are sure to rise as the economy expands.

Leading property firm First Qatar Real Estate Development has various projects in the Pearl that are open to foreign buyers and renters: First Tower at Porto Arabia, valued at US $110 million and delivered in September 2008; two towers at Viva Bahriya, a US $206 million project scheduled for delivery in October 2009; and a US $192 million project in the Abraj Quartier, set for June 2010 completion. “Our penthouse apartments offer optimum space, outstanding design, stylish furnishing, intimate yet discreet service and the kind of sea view that would expect in such a first-class development,” highlight First Qatar’s promotional materials.

Lusail: Catalyst for Investment in Qatar Lusail, a 380 million square foot US $5.5 billion waterfront development near the pearl and Doha’s new commercial

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center, is to be the biggest domestic real estate development in Qatar. It is a project of the Qatari Diar Real Estate Investment & Development Co, established in 2004 to coordinate real estate development priorities.

Lusail will contain two marinas, residential areas, commercial districts, two golf courses, an entertainment district, shopping malls, mosques, schools and medical centers, and Energy City, designed as a hub for companies in the oil and gas sectors. Lusail is expected to provide accommodation for over 200,000 people in 25,000 residential units. Foreigners can acquire property on a freehold basis.

Fox Hills: Centerpiece of Lusail The centerpiece of Lusail is Fox Hills, which will cover over 17.2 million square feet and feature residential properties, schools, playgrounds, shops, cafes, exercise trails, golf courses, beaches, health services, libraries, public works stations and mosques. Designs will combine traditional Qatari and European features, and residential units will have stunning views of parks, the golf course or waterfront.

Fox Hills will also include over 1.8 million square feet of office space.“The scope and mix of Lusail cannot be found anywhere else in Qatar. It is a breathtaking development that will dramatically improve the country’s economic and physical profile,” according Nassar Hassan Al-Ansari, Qatari Diar’s former CEO, who sees Lusail as a catalyst for inbound investment in Qatar.

“Fox Hills will have local, regional and international investor appeal. It will compete on a global scale through its commitment to world-class design and best-practice professional management which will ensure integrity, value and viability of investment over the long term. Lusail embraces an impressive vision of tomorrow for people wishing to live, work and invest in our thriving country,” he added.

Prices Rising Fast Even though the first units in Lusail will not be available until 2010, some prices have already doubled. Last year, Wallstreet Investment Guide

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CONSTRUCTION AND REAL ESTATE

CONSTRUCTION AND REAL ESTATE

one-bedroom flats in the development were priced at around US $200,000, rising to around US $400,000 for a threebedroom property, but are now going for around US $460,000 and US $740,000 respectively, according to a local real estate agency.

million worth of investment in properties in the region, including a US $10 million site that will become a mixed-use development in Oman and a US $18 million beach front plot of land in Kuwait that will be transformed into a distinctive residential property.

Direct Real Estate.

Regional leader Damac Properties has launched upscale residential projects within Lusail, including the Piazza, Garden Heights and the Terrace. All units in these developments are equipped with state-of-the-art accessories, and amenities include a health club, aerobic centers, steam and sauna facilities, multifunction rooms, swimming pools, lounges, a children’s play area, juice bars and mini-basketball courts.

Qatar’s property projects and ambitious developers are certain to continue to get international attention in the future.

Projects Planned Throughout the Country Other property projects in the works in Qatar include Al Waab City, around five miles from Doha’s waterfront, which is being promoted as an environmentally friendly development.

Al Waab City will cover more than 12.9 million square feet, and is expected to help meet the demands of Qatar’s rapid population growth, including the many foreign workers streaming into Qatar as the economy continues to expand.

It will provide housing for over 10,000 people in over 2,200 residential units, and will also include commercial space and a top-end 300-room hotel.

HE Sheikha Hanadi Al Thani, chief executive of Al Waab City, said, “It is important that Qatar develops both economically and socially. Al Waab City will provide homes for the people who are important for the development of the country, while also building a real estate community for them to live in.”

Other plans include the new city of Al Khor, a multibillion-dollar model-city launched by the Urban Planning Development Authority near the Doha International Airport and port; and Qatar Islamic Bank’s project with Redco Construction to build a 35-floor commercial tower, the Al Rames Tower, in downtown Doha.

The government is also considering opening areas in downtown Doha to foreign buyers, an unusual move in the Gulf where expatriates often gather on new suburban housing developments. Unit prices in the downtown area being considered start at about US $250,000 for a twobedroom apartment to US $300,000 for a three-bedroom flat.

Forward-thinking investors are seeking out opportunities near the planned US $2 billion, 35-mile Qatar-Bahrain Causeway, an ambitious task that will link the two nations and is expected to generate a huge demand for commercial property in surrounding areas. A US $1.2 billion leisure city near Doha and around 180 high-rise buildings are also in the planning stages, and new projects are being announced almost daily.

Local Property Developers Expanding Regionally While continuing to boost the growth of Qatar’s property market, some local developers are looking at opportunities throughout the region, a reflection of the Qatari economy’s maturity and international perspective.

First Qatar, for example, has announced over US $400

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“We are committed to developing quality living and leisure concepts with high business potential at First Qatar’s carefully chosen properties across the region,” said Fahad Al-Ghunaim, Chairman and CEO.

Qatar Property Market Facts & Figures, Incentives I

n 2006, Qatar changed its constitution to allow foreigners to acquire property in certain areas on a freehold basis.

‘Cabinet Resolution Six’ outlines the conditions and procedures pertaining to usufruct of real estate and property by non-Qatari nationals.

Freehold Law: Key Points s¬ .ON 1ATARI¬ NATIONALS¬ MAY¬ LEASEHOLD¬ REAL¬ PROPERTIES¬ ANDresidential units for a maximum period of 99 years, renewable for similar period(s), in the investment areas determined by law to be available to acquisitions by foreigners. s¬!LL¬PROPERTY¬ACQUISITIONS¬WILL¬BE¬REGISTERED¬WITH¬THE¬1ATARReal Property Registration and Notarization Department within the Ministry of Justice, a guarantee that transactions are above board and protected by law. s¬!¬FOREIGN¬OWNER¬MAY¬SELL ¬LEASE ¬TRANSFER¬OR¬UTILIZE¬THE¬RIGHTof usufruct in any way in accordance with the provisions of applicable laws. s¬4HE¬CHARGE¬PAYABLE¬FOR¬SUCH¬DISPOSALS¬IN¬CONNECTION¬WITHsuch usufruct – whether by sale to a third party, lease, transfer, utilization or renewal of the agreement – will be determined by a resolution issued by the Minister of Municipal Affairs and Agriculture. Such charges shall be determined pro-rata to the real property value. The resolution of the Minister of Agriculture will not be valid unless the Qatari cabinet approves it.

Areas where foreigners can purchase or lease property in Doha are the Pearl Qatar, West bay, the Lagoon Area and Lusail.

Buyer Profile According to Doha Municipality Director Ibrahim Al Malki, “Concerning residential units likely to be offered for lease or purchase to foreigners, any apartment should not be less than 807 square feet and villas should not be less than 4,300 square feet.”

Foreign purchasers or rents of property in Qatar will be granted visas and residency permits, although they must obtain permission to work in Qatar from relevant authorities.

A foreign buyer of land must begin construction on the land within one year from the date that the 99-year lease began.

A foreign owner has the right to live in, rent out or sell any property acquired under the 99-year lease agreement. If a foreign owner wishes to sell a property to another foreign

owner, the period remaining on the 99-year lease will be transferred to the new owner. Registration fee for property purchases in and around Doha is one percent of the total value of the property. Local mortgages for international buyers have an eight percent rate, while non-resident expatriates must present equity of 35 percent and resident expatriates need to present only 10 percent.

New rent law A new rent law came into force in February 2008 that is designed to help stabilize the inflation-prone market and slow down rent hikes. The law forbids landlords from raising rents for two years and regulates the sub-letting of properties.

The establishment of a Rent Dispute Settlement Committee and rent offices for registering tenancy contracts are other important features of the new law. The rent freeze could help cut inflation by up to 40 percent according to the National bank of Abu Dhabi.

Banks offer financial support Banks are happy to loan against freehold properties. Qatar National Bank will provide up to 100 percent of the value of the property, with a grace period of up to 30 years extended until handovers, for both Qataris and non-Qataris. The International Bank of Qatar offers variable repayment terms, up to 90 percent financing, and no repayments until the property is completed. Qatari National Bank has a strategic partnership with Dar Investment and Development Company and QNB Al Islami has provided Islamic finance to the tune of US $274 million to local firm Barwa Real Estate in order to fund their development projects.

Mortgages are available for up to 25 years for properties in the Pearl Qatar, and up to 85 percent of the total purchase price can be financed. A deposit of 20 percent is required upon reservation, with the remaining 80 percent on completion.

Why Qatar? s¬!¬HIGHEND¬PROPERTY¬MARKET¬IS¬BUILT¬ON¬A¬SOLID¬AND¬GROWINGeconomy in a stable and developing country. s¬ 4HE¬ GOVERNMENT¬ IS¬ FOCUSED¬ ON¬ MAINTAINING¬ A¬ THRIVING diversified economy based on high international standards. s¬,OCAL¬PROPERTIES¬RIVAL¬THOSE¬BEING¬CONSTRUCTED¬IN¬$UBAI ¬BUTare lower priced; high-specification and high-rise projects are the main features, and the majority of buyers and renters of new properties are expatriate professionals.

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CONSTRUCTION AND REAL ESTATE

New Doha International Airport Client: New Doha International Airport Steering Committee.

Completion Date: Work began in 2004 and final completion is expected in 2015 Estimated value: US $11 billion

Highlight of Qatar’s major Projects

With land area in excess of 22 km², the New Doha International Airport is designed to handle 50 million passengers, 2 million tonnes of cargo, and 320,000 aircraft landings and takeoffs each year. Over 60 million m³ of fill will be reclaimed from the sea and used to create the site, while over 6.2 million m³ of improperly disposed household waste has been removed from the site and disposed of in an engineered landfill. The runways, taxiways and aprons of the new airport require 3.7 million tonnes of high quality polymer asphalt and an additional 115,000 m³ of concrete, while 800,000 m³ of concrete will be needed for facility structures. In order to facilitate construction of the airport, over 17 km of temporary roads are being constructed within the site.

Over 100 hectares alongside the new airport have been reserved for commercial development, including a free trade zone, offices, hotels and retail mall.

The Pearl Qatar Client: United Development Company (UDC) Completion Date: Completion of entire project is expected in 2011 Estimated Value: US $2.5 billion

Education City Client: Qatar Foundation Completion Date: Initial phase scheduled to be completed in 2010.

Estimated value: US $8.24 billion The EDUCATION CITY Campus will continue to expand as new institutions decide to open in its campuses. Education City is the flagship project of Qatar Foundation. Located on the western edge of Doha, it is a campus that spreads over 1,000 hectares (equivalent to 10 million m²). The campus houses branches of world famous educational institutions in a set of futuristic buildings designed by some of the world’s greatest architects.

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The Pearl Qatar is a 4 million m² artificial island located off the coast of Doha and connected to it by road. Once complete, the island will boast 20 kilometres of sandy beaches. The Quartiers, Costa Malaz, Porto Arabia, Viva Bahriya, La Plage Villas, Bahri Villas and Isola Dana. A number of hotels and marinas will be built on the island, and residential buildings will include towers, low rises and villas. The developer expects around 40,000 people to reside permanently on The Pearl. Development plots have been sold off to a number of sub-developers.

Barwa Al Khor City Client: Barwa Al Khor LLC (Imtiaz Investment and Barwa Real Estate) Estimated value: US $8.24 billion Completion Date: Work is expected to start this year and finish in 2015.

Al Khor is a coastal city located 57 kilometres north of Doha.

In recent times, it has prospered as a hub for the country’s burgeoning energy sector, attracting ExxonMobil, Shell, Dolphin Energy, Qatargas and RasGas. The city needs high quality residential facilities for the professionals relocating to the city, which has given rise to the QR 35 billion Barwa Al Khor City project. The development will cover 5.46 million m² with a built-up area of 3.62 m². A total of 24,114 residential units are planned within the development, along with hotels, amenities, schools, office space and a golf course.

Lusail Client: Qatari Diar Estimated value: US $5.5 billion Completion Date: Infrastructure works are scheduled to be completed in 2011.

Lusail is an all-new coastal city under construction north of Doha. It will cover 35 km² and has a projected value of around US $5.5 billion. It is a multi-district, multiphase project with marinas, a corniche, themed residential areas, commercial districts, amenities and entertainment facilities. According to the master-developer, Qatari Diar, around 200,000 people will eventually live there.

Al Waab City Development Client: Nasser Bin Khaled & Sons Holding Company; Al Waab City Estimated value: US $3.2 billion Completion Date: Construction is underway and scheduled for completion in 2010.

Al Waab City Development in Doha covers an area of 1.25 million m². The city will include mixed-use residential units and low-rise office spaces. The heart of the city is Barahat Al Waab a 44,000 m² square that will become a central urban gathering space for tourists, guests and residents of the city. Barahat Al Waab will be anchored by a 200-room 5-star hotel.

Barwa City Client: Barwa Real Estate Estimated value: US$1.34 billion Completion Date: Work is underway and scheduled to finish in 2010.

Barwa City will occupy 2.7 million m² of land at Musameer, near Doha. It will house 20,000 families within a purpose-built community offering amenities, shops and public services. It will have its own district cooling system and total wireless internet coverage. Development is planned in two phases. The first phase includes the construction of around 6000 residential units that will accommodate up to 25,000 people. The second phase will involve construction of additional residential buildings, schools, a hospital and commercial complexes.

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Doha Convention Centre & Tower Estimated value: 1.2 billion USD Completion Date: Completion is scheduled for 2012.

Estimated value: US $1.2 billion Completion Date: Completion is scheduled for 2012.

Barwa Al Baraha Client: Barwa Al Baraha Estimated value: US $741 million Completion Date: A truck park opened in January 2009. Construction of built-up areas is scheduled for completion in 2011.

Barwa Al Baraha will involve the construction of living quarters and amenities for up to 53,000 overseas workers. Located in the industrial area, next to street 52, it will be built in two phases. Phase one will cost an estimated QR 500 million and the bill for phase two has been put at QR 2.2 billion. In addition to accommodation quarters, the campus will feature sports facilities, places of worship and shops. With family visitors in mind, a motel has been incorporated into the project’s design. A massive truck parking area will accommodate a total of 4200 vehicles of various sizes. The total area of the development is 1.9 million m², with more than half the area set aside for landscaping and recreational space. Phase one will focus on construction of the truck parking area, utilities, roads and landscaping. Phase two will focus on the construction of buildings.

The centerpiece of Doha Convention Centre & Tower is a 550 meter, 105 storey glass tower containing offices, apartments and a hotel. The tower has been designed by Chicago-based architect Murphy/Jahn with Arup providing engineering and consultancy services. The adjacent convention centre will offer 100,000m² of exhibition space and is positioned as a leading regional and international events venue. The tower has been designed with environmental concerns in mind. Double-skinned facades with external shading and internal blinds will help keep heat out while letting light in. The technology used in the building’s construction will also help reduce the amount of energy required for cooling. The project will be rated against the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) energy guidelines.

Energy City Client: Gulf Finance House Estimated Value: US $2.6 billion Completion Date: 2013

Qatar-Bahrain Causeway Bridge Client: Public Works Authority (Qatar); Ministry of Works (Bahrain) Developer: Qatari Diar $ Vinci Construction Grand Projects Completion Date: 2010-2011 Estimated value: US $4 billion

Lusail is also home to Energy City, a purpose-built business district aimed at companies involved in the hydrocarbon business. There is also a residential development involved which will cover approximately 700,000 square meters of land and will include 5,000 residential units, marinas, mall, and golf courses.

Construction is now scheduled to start in the fourth quarter of 2009.

Completion is expected in 2013. The much talked about QatarBahrain Causeway now looks set to begin construction towards the end of 2009. It will be the longest fixed link in the world.The 40 km road will link the two countries over a total of 18 km of embankments and 22 km of viaducts and bridges.

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Leading International firms Spotting Opportunities in Qatar

R

egional and international property sector firms have been quick to take advantage of opportunities in Qatar.

One example is ERA Real Estate, a 35 year old multinational firm with more than 3,000 offices worldwide. Its Middle East division began in Egypt in 2005 and ERA Middle East now has offices in Saudi Arabia, Oman and Qatar.

Majority of demand in Qatar at present is coming from the professional expatriate community and Qatari residents. According to Ahmed Al Shaer, president of ERA in Qatar, rapid rise in rental prices, combined with mortgage rates that are generally much lower than rental costs, have influenced customers who are looking for a place to live in Qatar to buy rather than rent.

Another strong trend, Al Shaer says, is for Qatari investors to buy properties in the country’s new developments with plans to rent out their purchases. In addition, the increasing independence of women in Qatar has led to more women investing in property on their own. UAE Property Firm Offers Foreign Investment for Local Residents. Leading UAE-based developer and multi-service provider Sweet Homes has announced the launch of an office in Qatar that will not only handle incoming investment but also investment by residents of Qatar in other growing regional markets.

“The Qatari real estate sector, which has grown to become one of the largest within the entire GCC with total value of US $37.8 billion in 2006, is currently experiencing incredible demand for

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highly profitable real estate investments, as evident in the keen interest of Qatari investors to purchase properties in other regional property markets,” said Fahad Sattar Dero, Managing Director.

He added, “With the outstanding reception our projects have generated among UAE-based investors, we are positive that customers from Qatar will also be immensely interested in our developments, especially now that we have an accessible office wherein they can conveniently gain a broader understanding of our high value offerings.” Sweet Homes is planning multi-billion-dollar investments this year in various residential, commercial and mixed-use developments in Qatar, Oman and Saudi Arabia and the UAE. Following its strategy to leverage the opportunities within the Middle East’s booming real estate market, the developer has also announced that it will market its Middle East projects in the UK, the US and Canada.

Focus on Upscale Properties Engel & Volkers, a global real estate group headquartered in Germany, has recently opened an office in Doha, which it feels is an ideal base for activities throughout the region and beyond. The firm, which specializes in high-end properties all over the world, is betting on Qatar in spite of the current challenges of rising prices of construction materials and rents.

Christof Birkofer, Managing Director, who represented the company at the Qatar International Real Estate

and Investment Exhibition (Q-REX) at the Doha Exhibition Center, commented, “The demand for local and international properties is high.

People who are visiting us at our Q-REX booth are genuinely interested in the properties displayed at the exhibition. The buyers are interested in residential and commercial estate, and Qatari investors are also considering properties overseas.”

Engel & Volkers has units available in Qatar’s Pearl from around US $275,000 for an apartment to US $8.2 million to US $10.9 million for a villa or penthouse; significantly higher returns than in Europe. German developer ACI Real Estate (Alternative Capital Invest) is a European firm that is planning significant activity in Qatar. In fact, the German-owned developer, whose projects in Dubai have been endorsed

by Michael Schumacher and Boris Becker, aims to expand across the Gulf region, where the company has found that property returns quadruple those in Germany. ACI now has offices in Dubai, Abu Dhabi and Qatar.“Dubai has made this region popular, Abu Dhabi has great plans and Qatar will be the same,” said Robin Lohmann, ACI’s managing director. He added that taxfree Gulf markets create returns of 12 percent a year for investors, compared to about three percent before taxes in Germany. ACI, which was launched in Dubai in 2004, has attracted more than US $920 million from European investors, mainly from Germany, Switzerland and Austria.

Regional Developers Setting Sights on Qatar The Land Holdings, a subsidiary of Jordan’s Al Rajhi Group, is another international property firm that anticipates continued strong growth in Qatar. Roger Harwood, Marketing Manager, says that the company plans to develop at least 17 residential towers in the Pearl, and is confident that they will sell quickly.

units in the country increased by a compound annual growth rate of eight percent between 2000 and 2006, while the supply has grown by only five percent.” The developer is reacting to the fact that Qatar has more than US $100 billion worth of projects in the pipeline, and nearly 200,000 families are expected to move to the country over the next three years, with around 500,000 more anticipated by 2012.

Harwood says money is not an issue for most up-market clients these days.

They are looking for the best, regardless of price, and Qatar is increasingly being considered as having some of the world’s best property offerings. The prices of the Land Holding properties in Qatar range from around US $192,000 for studio apartments to US $824,000 for three or four-bedroom apartments.

When the company put several properties on the market recently, they were sold almost immediately, over the phone.

Damac plans to open dedicated sales offices and a development office in Qatar to be responsive to new opportunities.

The company already has major projects in Dubai, Abu Dhabi, Jordan, Lebanon, Saudi Arabia and Egypt as well as Qatar.

Rasha Swaissi, a Land Holdings property consultant, says more than 50 percent of the company’s properties in the Viva Bahriya and Porto Arabia developments have already been sold out, and the Land Holding’s villas have generated enthusiasm among both local and foreign buyers. The commercial properties developed by the firm at the Science and Technology Park within the Lusail are also selling well.

The company has real estate projects in Saudi Arabia, the UAE, Jordan and Bahrain as well as in Qatar.

Looking Over from Dubai Dubai-based companies have been particularly quick to spot the Qatar market’s potential. Leading Dubaibased developer Damac Properties, the Middle East’s biggest private-sector master developer, launched a major project within the Lusail development in 2006 and is already planning to expand its operations in Qatar.

CEO Peter Riddoch said “The Piazza project of Damac (at Lusail) is a huge success, with around 90 percent of units already sold out. Our aggressive move to Qatar is due to the unprecedented growth in the property sector during recent years. The demand for housing

Property-Services firm Offers Innovative Mortgage Scheme Another Dubai-based international group, Asteco, the largest propertyservices firm in the UAE, has been appointed chief property sale agent for the Danat Qatar project within the Porto Arabia district of the Pearl, and is offering what the company describes as a ‘construction milestone’ mortgage that is a first in the Qatar market. The mortgage scheme releases bank funds to developers only when projects reach various stages on schedule and when professional surveys show that the projects adhere to specified criteria and construction standards. Developers are rewarded with each successive floor level built, while new homeowners gain peace of mind through the assurances that their new homes will be completed and ready to move into on time.

According to Asteco, the current trend in the Qatar property market is that real estate developers have financial agreements with banks to fund large development projects, and they sell ‘off-plan’ to fund repayments. Although this practice brings financial benefits for customers, there is no assurance of receiving a quality build. Asteco’s David Oayda explained, “We are a partner to this scheme because it demonstrates the faith we have in the developer to deliver the product on time. It is vital that our buyers receive information throughout the construction phase. We have confidence that our buyers will not only appreciate the peace of mind they

get through the construction milestone scheme, but they will clearly see the benefits of buying through Asteco in Danat Qatar.”The first phase of the Danat Qatar project is already underway, with the project scheduled for completion in 2009. Recent buyers of apartments in the project were given the chance to pay a US $13,700 deposit instead of the 10 percent payment usually required to secure an apartment. Oayda added, “Investors are seeing Danat Qatar as a long-term investment and are looking to invest in Qatar as the Dubai property market becomes more saturated.”

Investment Company Targets Major Projects in Qatar Leading Middle East Investment company Abu Dhabi Investment House is bringing its customers the chance to invest in two major projects in Qatar – the US $3 billion Entertainment City and Energy City Qatar, both within the Lusail development.

Entertainment City is designed not only for residents of Lusail, but also as a key tourism attraction, in line with the government’s goal of expanding Qatar’s tourism sector. The project includes themed attractions, retail outlets and a range of entertainment options, as well as villas and apartments, serviced tourism-related accommodations,dynamic office pace and several four- and five-star hotel properties. “Qatar’s already impressive growth in the tourism sector will be gauged by such developments, and significant financial returns can be expected,” stated the Abu Dhabi Investment House.

Energy City is designed as an ideal choice for the headquarters of global and regional energy groups, as well as a regional hub for the development and commercialization of hydrocarbon products and other energy resources.

It will be the Middle East’s first energy business center catering exclusively to the commercial, technical and human-resource needs of the oil and gas industry operating in the region.

Abu Dhabi Investment House sees this project as yet another high-potential possibility in fast-growing Qatar.

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Qatar’s Newly Open Property Market Focuses on Quality A

2006 law making it possible for foreigners to acquire freehold property in Qatar for the first time has spurred a wave of big-ticket global investment in local real estate. As property market leader First Qatar Real Estate Development explains, “Many international real estate investors who made a killing in the Dubai property market and have since been seeking the ‘next big thing’ in the Middle East are ploughing significant funds into Qatar.” “The economy is strong and strengthening and the government is totally focused on developing, broadening, and growing the economy.

Qatar will only become wealthier and attract greater numbers of expatriates who seek property for sale and for rent.”

Not Another Dubai The comparison to Dubai is a common one. Like Dubai and many other countries in the Gulf region, Qatar is planning for the future by diversifying its economy away from the oil and gas industries, promoting the private sector, encouraging foreign investment and carving out a niche for itself as an international business and tourism hub. Opening the local property market to foreigners is a logical step in this process. With the vast oil and gas revenues – proven oil reserves of more than 15 billion barrels and proven natural gas reserves of around 25 trillion cubic meters, about 15 percent of the world’s total – Qatar has the financial clout to create almost any type of mega-project, including the kinds of projects for which Dubai is famous. Qatar, however, has opted not to imitate its UAE neighbor.

Venice or Boston instead of Vegas Dubai’s over-the-top real estate ventures – a mass-appeal mega-mall complete with an indoor ski slope is just the beginning – have given its reputation as the region’s Las Vegas, but Qatar is more of a Venice: exotic but a bit old-fashioned, true to its traditional culture yet open to modern influences.

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Resolutely upscale, this befits a country whose GDP has reached approximately US $67,000. In fact, Qatar’s most high profile mixed-use development, the Pearl, includes “a waterfront village reminiscent of the best of Venice and Amsterdam,” according to promotional materials, where the coined phrase “the best of” reflects Qatar’s focus on quality and tradition rather than mass-market quantity or innovation for innovation's sake. Properties in this district sold out within 30 minutes of hitting the market, grossing US $412 million. As Steve Martin, head of marketing at Qatar Financial Center, puts it, “Qatar is not aiming to replicate Dubai. I see it as Boston to Dubai’s Vegas.”

Museum of Islamic Art Reflects Focus on Culture By taking the high road with its megadevelopments, Qatar has made itself very attractive to buyers in search of highend luxury property in a sophisticated setting. One of the country’s most ambitious projects is a case in point: the Museum of Islamic Art. Designed by none other than I.M. Pei, who came out of retirement to create the striking new building that has become a symbol of Qatar’s development strategy, the museum reflects Qatar’s preference for substance over show. The new museum, whose formal opening was in November last year, will be the world’s top institution for Islamic art. Under the patronage of HH The Emir, Sheikh Hamad Al Thani and his wife, HH Sheikha Mozah, Qatar is emerging as top regional cultural center.

Ruled by the Al Thani family since the mid-1800s, Qatar transformed itself from a poor British protectorate noted mainly for pearling into an independent state with significant oil and natural gas wealth, but its capital city was, until comparatively recently, an almost treeless, bleak desert outpost. In the 1970s, Qatar chose to go it alone when the British withdrew and other local

emirates joined forces to become UAE. During the late 1980s and early 1990s, Qatar’s economy was crippled under the past Emir’s rule until his son, HH The Emir Sheikh Hamad, overthrew him in a bloodless coup in 1995. Today, under HH The Emir’s forward-thinking leadership and with a prosperous economy, Qatar is thriving once again. It is the home of famed Arabic news agency Al Jazeera, a U.S. military base, multiple branches of top U.S. educational institutions (Cornell, Carnegie Mellon, and Texas A&M) and leading oil and gas multinationals, and it has been the target of extensive international investment for many years. HH The Emir, who is also head of the Qatar’s sovereign wealth fund, is leading the fund to make major realestate investments abroad, including London’s Chelsea Barracks.

Attractive Alternative Crowded, More Expensive Dubai The local real estate market is also making headlines. Thanks in part to foreign buyers choosing Qatar over crowded, more expensive Dubai, housing demand in Doha rose by 30 percent last year alone. One measure of Qatar’s growing appeal is that rent-price increases are outpacing anywhere else in the Gulf, according to industry expert Colliers International, which predicts that this trend will continue, although a two-year rent freeze enacted by the government in February this year will stall the spiral in the short term. Between the middle of 2006 and 2007, rents increased by more than 50 percent in some parts of Doha. Rents for luxurious one-bedroom apartments in West Bay, an upscale district of Doha near the Ritz-Carlton hotel, now average more than US $4,000 a month, while villas, even less-thanexclusive ones, are hard to come by for less than around US $4,200 per month.

These prices are still lower than Dubai’s average for similar properties, however, according to industry experts. Demand is outpacing supply in the commercial sector. Office rents, which rose by 20

percent to 50 percent two years ago, were expected to rise again by 20 percent this year (although the rent freeze will bring some relief), and demand is growing.

Although the supply of office space is expected to rise in 2008, the extra space will not satisfy the demand in the short term. Office space at the end of 2006 totaled about 3.7 million square feet, with delivery of 1 million square feet of extra office space anticipated in Doha by the end of 2008. Demand for new offices last summer, however, was estimated at over 800,000 square feet.

Vacancy rates for prime space are less than two percent, with occupiers forced to settle for lower-grade space or build their own facilities.

The Pearl and Lusail lead the way As new commercial and residential projects gather pace throughout Qatar, its best-known development, The Pearl, continues to garner attention.

Apartments and land plots in this US $2.5 billion initiative, which is open to foreign buyers, have been selling out as soon as they are put on the market ever since the project was launched.

Real estate on The Pearl already offers a healthy yield of at least 10 percent after all costs. Companies like Dubai’s Emaar Properties and Nakheel launched their first developments in Dubai with a similar projected yield, and many buyers have gone on to double or triple their investments. The Pearl’s Development Director, Nicholas Bashkiroff, says that the project is making an effort to avoid contributing to real estate speculation.

“When we say something is sold, it really is sold. As a private company we have a duty to be transparent and don’t want to build a false market. Also we don’t want to sell everything we have for a bargain price off-plan, so that speculators later make the profits and not us. Most of our buyers are end-users. That said, we have sold pretty much everything that we have released so far, and are ahead of schedule,” he explained.

The Lusail development, an upscale waterfront project near the Pearl, has been selling fast although the first units aren’t even available until 2010. Onebedroom units are now going for about US $470,000, while prices for three-

bedroom units average US $740,000.

Property Market a Boom, not a Bubble Can Qatar’s current boom avoid a bust?

The country’s healthy economy suggests that the growth trend will continue for some time to come: Qatar’s real GDP is set to rise by more than 14 percent this year and by around 13.5 percent in 2009. Other factors inspiring confidence include the government’s commitment to investing not only in new infrastructure but also in long-term public, tourism and cultural projects. Recent public-sector investments include US $5.5 billion for a new airport. US $1.8 billion for a Qatar-Bahrain causeway, US $3.8 billion for a five-year program of public works that ends by 2009, and US $3 billion for electricity and water projects.

As in most countries in the Gulf, government-owned firms are leading the construction drive. Qatari Diar, capitalized at US $1 billion, is currently managing projects in Lusail, Al Kharaij and Jebel Thiyab areas. It has also formed ventures with the private sector in a number of large-scale projects designed to make Qatar a hub for education, tourism, and financial services; such projects include Hamad Medical City, Education City, Qatar Financial Center, and Asian Games City, in addition to the Pearl. Qatar plans to invest US $20 billion in tourism-related projects over the next six to 10 years, and the private sector is investing billions in residential, commercial and hotel space to cater to the anticipated influx of visitors, tourism firms and professionals.

Challenges to Be Faced Challenges include the great demand for construction technology, power, building materials and equipment, along with rapidly rising prices for construction materials. Construction costs in Qatar have risen by as much as 35 percent since December 2004, with the costs of sand, cement and aggregate rising threefold over the last five years.

Ali Mustawi, business manager of Qatar Building Company, says that import costs have increased along with the prices of the materials themselves.“Last year, aggregate cost US $16 per ton, and now it is US $26 per ton. Concrete was US $165 per ton, and now it’s US

$330 per ton. So it’s bad news for the industry.” Qatar is also witnessing significant asset-price inflation, and inflation in general continues to surge, largely due to the increase in real estate prices. High demand for real estate continues, however, and Qatar, which was recently named the most competitive Arab economy by the World Economic Forum, has macroeconomic fundamentals solidly in place. The local property market is certain to continue to attract even more foreign buyers as new offerings come on board.

Financing Support for Foreign Buyers The third annual Qatar Real Estate and Investment Exhibition in March this year attracted around 100 exhibitors and more than 4,000 visitors from around the world. At the show, the International bank of Qatar presented its range of mortgage loans and services, and the bank’s Managing Director, George Nassra, commented that the real estate market in Qatar is growing at a phenomenal rate. He said Qatar is fast becoming a property hotspot in the region, and globally, with incredible growth prospects in the real estate market and the well laid-out plans for existing and future developments. Other local banks, including Qatar National Bank and Commercial Bank of Qatar, have launched home loans for nationals and expatriates as well, playing a leading role in Gulf Region’s US $1 trillion property market. Qatar is set to play an even more important role in the Gulf region’s fast-growing property sector, which was recently valued at around US $1 trillion by Moody’s Investors Service. New regulations allowing foreigners to buy property are of course stimulating this growth, as is a fast-growing population. Ahmed Al Shaer, President ERA Real Estate in Qatar, sees nothing but continued rising value in Qatar’s property market in the future where, “Highend units will not decrease in rent. In fact, we can expect a five percent increase each year. Qatar is at a very exciting time for real estate, and this is only the beginning. There is no bubble looming, that’s for sure.”

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B

ilfinger Berger Ingenieurbau takes on demanding design and construction contracts for clients in both the private and public sectors. The company’s global presence is based on a decentralized corporate structure. The company is represented in Germany and throughout the world with numerous branches and affiliated companies. Construction and engineering activities of Bilfinger Berger Ingenieurbau comprise the civil and industrial business segments: All types of bridge construction, some of which include industrial construction of power plants, water treatment plants and pipelines, dams, weirs, locks and hydroelectric power pants, road and railway construction including earthworks and the appurtenant civil structures, foundation technology including pits, piles, diaphragm walls, soil injections and anchors, the list goes on.

Bilfinger Berger AG in its present form is the result of a merger which took place in 1976 between the two construction companies Grun+Bilfinger AG and Julius Berger-Bauboag AG, both of which were founded before the end of the 19th century. Bilfinger Berger AG is a leading internationally active construction and services company. As a multi Service Group, Bilfinger Berger AG delivers comprehensive solutions both in German and international markets in the areas of real estate, infrastructure and industrial services. Its business activities range from consulting, development, design, financing and turnkey construction, as well as maintenance and operation. Its subsidiary, Bilfinger Berger Ingenieurbau GmbH, is among the leading players worldwide for major infrastructure projects, with highly specialized units for bridge construction, tunneling, foundation engineering, road construction, plant and infrastructure services. Bilfinger Berger is always a step ahead by being able to develop optimal solutions at any time.

BilfingerBerger Civil has operated successfully in the Arabian Gulf region for many years. Current projects are the Doha Expressway and Barwa City in Qatar, which are some of Bilfinger’s largest single order projects to date.

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modern construction techniques and a steadfast focus on building a safer, stronger and grander Qatar.

3. When was BARWA Real Estate Company created and why was it created?

Given the incredible success BARWA has achieved, it is easy to lose sight of the fact the company was founded as recently as 2005. In three short years, BARWA has grown to become one of the most successful Qatari Shareholding Companies, listed on the Doha Securities Market with total assets of QAR 25.2 billion (US$6.9 billion).

INTERVIEW:

Ghanim bin Saad Al Saad, 1. What are the main tasks and responsibilities for BARWA and how does it correlate with Qatar’s overall national vision?

Qatar is a place of rapid and exciting transformation. Changes are shaped by the powerful vision of the Emir, His Highness Sheikh Hamad Bin Khalifa Al-Thani, and driven by the true desire to help Qatar realize its full potential. Inspiring reforms and private and public sector initiatives, His Highness aspires to achieve a sustainable economy and a dynamic society populated with educated, healthy and creative citizens. As the premier real estate company and major partner in the architectural renaissance in the State of Qatar, BARWA Real Estate (BARWA) is proud to commit itself to realising the Emir’s vision. Each project we undertake must meet two key criteria: it must contribute to the development and strategic growth of our nation and it must generate profitability for our investors and shareholders.

2. Looking at 2007 and 2008, what major milestones have been achieved under your leadership?

Despite being a relatively new company and facing tremendous challenges, BARWA has succeeded in making waves on the national and international real estate scenes.

Located to the north of Al Khor town, ‘Urjuan’ project will be the closest community to the proposed Bahrain-Qatar Causeway Bridge. Designed by Canadian firm Cansult Maunsell, the 5.5 million sq. meter development is set to offer 24,500 residential units consisting of a beachfront luxury hotel and resort, and luxurious apartments to accommodate 63,000 residents. Commercial businesses including shopping malls, souks, leisure facilities, open gardens and tourist attractions such as a G+12 business hotel and an 18 hole specialty golf course. Covering an area of 393,000 sq m, BARWA Village

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Chairman Barwa Real Estate Company

is a new QAR1.046 billion (US$ 287 million) mixed-use residential and retail development with capacity for 13,000 residents in Al Wakra Municipality. BARWA Village is the company’s next mega project in Qatar, providing a mix of 144 studio, 262 one bedroom and 100 two bedroom apartment lifestyle options. Staying true to our objective of serving the community, BARWA Housing Program sees the development of two self contained communities with 1,984 residential units to provide comfortable yet affordable housing to middle income families. The project was developed at a cost of QR 1.4 billion, and allocation of units to deserving families is now complete.

Another project of significant human value is BARWA Al Baraha in Doha’s industrial area. The 1.8 million sq m development provides comfortable living conditions, recreational facilities and direct access medical care to 53,000 blue collar workers alongside parking for 4,200 trucks. The company has also completed and handed over the new Doha Exhibition Center in 2007. Built to serve the growing demands of the Meetings, Incentives, Conferences and Exhibitions (MICE) industry in Qatar, the QAR 200 million (US$ 55 million), 30,000 sq m world class facility injects further impetus into the country’s business tourism sector.

One of our most significant milestones during 2007 was the establishment of the BARWA Real Estate Bank with allocated capital of QR 1 billion. A 100 percent BARWAowned subsidiary, official approvals have been acquired and operations begin late 2008. Whilst BARWA has achieved much in just three years, we live by the maxim ‘The future is Qatar’, and must not rest on our laurels. We will continue the planned urbanization of the country through the use of

Based on a clear vision, BARWA has made a promise to be part of the legacy in developing the future potential of Qatar. Our mission is to help our nation realize its vision of developing new and sustainable environments that serve the community and reflect the creative imagination and ambition we possess as a nation. At BARWA, we see ourselves as one of the key facilitators of Qatar’s emergence as a vibrant investment hub for the global community.

4. What major projects are currently underway and planned? How are you making sure these projects will be executed qualitatively and on time?

This is an immensely exciting time for BARWA. If you look at our diverse development portfolio, you will see it reflects a strong commitment to creating innovative projects both in Qatar and overseas.

Located in the heart of Doha’s West Bay Central Business District, BARWA Financial District represents an integrated real estate solution designed to serve the local and international financial institutions. Covering a built-up area of more than 500,000 sq m, the project offers high quality office space with a solid infrastructure, stateof-the-art technology and parking for more 5,000 cars.

Future tenants, owners and visitors to BARWA Financial District will enjoy 5 star facilities including a luxury hotel and spa, conference center, landscaped outdoor plaza, international brand retail outlets and upmarket service solutions. Building heights range between 21 and 36 floors, culminating in a 52 floor flagship tower destined to become one of Doha’s premier architectural landmarks.

Targeted at Qatar’s young entrepreneurs and investors, BARWA Commercial Avenue is an 8 kilometer mixed development just outside Doha city. Built with the aim of establishing a world class commercial hub in Qatar, the QR 3.5 billion (US$ 961 million) project will address the current shortage of office and commercial space in the country.

Commercial Avenue will also feature stylish shopping malls, fine dining restaurants and luxury residential space. On the international level, BARWA International has entered into a strategic joint venture with Kempinski Hotels SA, the world’s oldest internationally renowned luxury hotel chain, to establish Shaza Hotels with US$ 250

million paid up capital. The new hotel brand will consist of 10 properties to be developed and managed by Kempinski Hotels SA, spread throughout the Middle East & North African (MENA) region.

Shaza Hotels is an innovative and niche hotel brand focused on an underserved market in the MENA region. It emphasizes on a combination of lifestyle, cultural awareness, international service and exceptional value, all expressed respectfully to regional traditions.

In light of Cairo’s international profile as a real estate hub, BARWA International took the initiative to build a self contained community, extended on an area of eight million square meters, in New Cairo City, an extension to Egypt’s capital. The New Cairo City Project will feature several unique villages containing every imaginable choice of lifestyle, from gated villas and townhouses to high-rise apartments. The township will include schools, a hospital, mosques, parks, shopping complexes, health facilities and a range of other amenities. The total investment, over the coming eight years, will exceed EGP 20 billion.

BARWA International owns four commercial properties in the heart of Paris. With an investment of more than 300 million Euros, these properties mark the company’s first presence in France. All four properties have been leased: to Peugeot as their Research & Development Headquarters, Aston (Metro/Train), France Telecom and other major tenants. BARWA International’s strategic investment was encouraged by the fact that the French real estate market is growing rapidly, allowing steady returns over the coming years.

In light of Switzerland’s strong economy, high per capita income, and flourishing tourism; BARWA International has strategically invested through ownership, development and refurbishment of seven premier hotels. The portfolio includes four hotels, conference center, modern SPA and Kids area in Burgenstock Resort.

Ajman Corniche Residence project, one of BARWA International’s strategic directions to diversify its financial resources, consists of seven interlinked waterfront towers in the UAE, Ajman Emirate. The towers, offering 900 luxury units, are likely to become a major landmark along the Ajman coastline with the two highest sections each standing at forty seven floors on top of an eight level podium. Ajman Corniche Residence is the first project for BARWA International in the UAE. In light of the continuous growth of the Turkish real estate market, BARWA International with its Turkish partner will be developing Istanbul Seagate, a mixed use project beautifully located by the sea, close to Ataturk airport and the Old City. Istanbul Seagate complements Turkey’s

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hospitality and residential sectors, will include a five star hotel, hotel apartments and condominiums.

Ensuring each world class BARWA project is delivered on schedule, on budget and to the desired specifications is a professional, high quality company infrastructure dedicated to implementing stringent international quality standards.

5. What type of partnerships is BARWA currently open to?

Our local and international partners will testify to BARWA’s 360-degree business approach, not limiting ourselves to any given activity. Exploiting the knowledge of our Board of Directors and the widespread economic opportunities presented in Qatar today , BARWA has diverse business interests in real estate & project development, property & facility management, construction materials production, environmental activities & health, banking & finance, hotels & resorts, technology & utilities, education, communications and agriculture. So we are very keen to work with companies in the above mentioned sectors.

6. What international partnerships has BARWA already established?

We participate in establishing other companies, either as subsidiaries or associates, and signing strategic partnerships to exchange expertise and manage complementary activities within the real estate industry. With QAR 500 million, Amlak Finance (Qatar) is a joint venture between BARWA Real Estate Company (60percent) and Amlak Finance PJSC (40percent) licensed by Qatar Central Bank in September 2008. In the fast developing Qatari real estate sector, Amlak Finance (Qatar) has ambitious plans encompassing the introduction of new products and services as well as the customization of existing products to suit local needs and requirements.

Amlak Finance’s existing portfolio includes leading edge products and services that have a proven track record and are already proven in other markets across the region.

BARWA and SUN Group have joined hands on a joint venture agreement to explore the Indian real estate market. We have formed a 50/50 joint venture company to be named SUN-BARWA Land. SUN-BARWA plans to obtain Foreign Investment Promotion Board’s (FIPB) approval in order to aggregate, acquire, hold and develop (directly or indirectly in collaboration with partners/developers) land banks in high growth corridors in India.

Furthermore, BARWA has partnered with Qatari Diar, GDF Suez Energy Services and Suez Environment to establish a multi-utility company in Qatar. The joint venture focuses on water treatment and distribution, wastewater collection and treatment, power transmission and distribution, energy services including gas supply and district cooling, solid waste collection and treatment, desalination and supporting Integrated Communication Technologies.

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Nuzul Holdings is one of BARWA’s most exciting international investment platforms. The company has purchased two properties, in Qatar and Bahrain, with future strategy to build an international network of serviced apartments covering the entire MENA region catering to the business sector and the high end family tourism sector.

BARWA has entered into a strategic joint venture with Kempinski Hotels SA, the international hotel chain, to establish Shaza Hotels, a new luxury hotel brand that will reflect local culture & tastes and emphasizes top class international service.

The joint venture plans ten hotels across the MENA region, with a belief that Shaza will appeal to regional travelers as a lifestyle brand that resonates with their self image, and to visitors from outside the region as a delightful window into a fascinating cultural experience.

In light of Switzerland’s strong economy, high per capita income, and flourishing tourism; BARWA International has invested through ownership, development and refurbishment of seven premier hotels in partnership with Rosebud Hotels Holding SA and Banque de Patrimoines Prives of Geneva.

Substantial investments have been made in several leading MENA corporations including Bahrain-based investment institution Ithmaar Bank and Kuwait-based small and medium enterprises investment vehicle Al Retaj Investment Company.

7. What major challenges do you foresee for Qatar while trying to reach its goals? And of course what role does BARWA play in handling these issues?

Bringing inflation under control is one of the major challenges for the future; restraint on current expenditure will need to be employed in addition to phasing out development expenditure as part of a tight fiscal policy and ongoing efforts to address problems related to supply-side bottlenecks such as housing shortages. Despite the challenges we face, Qatar will continue to perform extremely well in both the short-term and medium-term, with growth driven by the hydrocarbons sector as well as by diversification into higher value-added petrochemicals and real estate, financial and service industries.

Individually, the Qatari population is one of the richest in the world; with 2007 per capita GDP estimated in excess of US$70,000. The resulting inflation, largely due to the unprecedented government investment in petrochemicals, real estate, tourism and education, continues to be wisely controlled by the government. BARWA is playing a pivotal role, trimming inflated rents by offering competitive and affordable housing. Moreover, BARWA engineers are initiating a number of holistic solutions that will help combat many of the challenges Qatar faces, including inflation.

BARWA’s diverse portfolio offers shareholders and partners

a variety of projects, subsidiaries and joint venture investment options. Another factor that makes BARWA a preferred option for investors is that we remain a fast-growing company committed to operating in both emerging and developed markets.

8. How would you describe the current economic and financial climate here in Qatar?

Qatar is in the midst of an economic boom supported by its expanding production of natural gas and oil. In 2008, despite the difficulties affecting many of the world’s traditional economic powerhouses, Qatar’s economic performance remains nothing less than incredible, with real Gross Domestic Product (GDP) growing by approximately 17percent, driven by increased production of liquefied natural gas, and strong activity in the construction and financial services sectors.

Oil and gas continue to account for more than 60 percent of GDP, roughly 85percent of export earnings, and 70 percent of government revenues. With our extensive energy reserves, I am confident the country’s economy will remain strong in the medium term as oil prices help to increase Qatar’s trade surpluses and foreign reserves, and we push ahead with a series of substantial oil and gas projects.

In the medium term, the outlook for Qatar is highly favorable, with continued strong growth driven by the hydrocarbon sector being increasingly supported by an increasingly knowledge-based economy beginning to contribute significantly to Qatar’s future GDP. With an estimated US$150bilion in projects underway or at the planning stages, Qatar is likely to remain a country of vaulting ambitions and double-digit economic figures in the future.

9. How would you describe the current investment climate in Qatar?

The Government of Qatar, under the leadership of HH The Emir, continues to strongly encourage international investment in Qatar. The main economic stimulus is the development of our North Field natural gas reserves, the largest non-associated natural gas reservoir in the world.

Given what we know, it is most likely the oil and gas industry will continue to be the most attractive sector for foreign investors. Indeed, the state-owned Qatar Petroleum expects investments in upcoming projects will exceed US$100 billion before 2010.

Qatari law allows up to 100 percent ownership by foreign investors in certain sectors, including agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy or mining upon government approval. Foreign investment opportunities were further increased in 2004, when Qatar enacted Law No. 31/2004 which allows foreign investment in the banking and insurance sectors. Foreign investment is highly encouraged in sectors such as technology, where knowledge and advanced skill sets are paramount. Free Trade Zones such as Qatar Science &

Technology Park (QSTP) and Qatar Financial Centre (QFC), both allow 100 percent foreign ownership, streamlined registration systems and favorable tax regimes.

The QSTP was established for research and commercialisation, targeting technological start ups.

As an onshore financial and business centre, the QFC caters towards financial service companies. The separate, well regulated environment of the QFC, designed to best facilitate business for financial service companies epitomizes Qatar’s long term commitment to creating an economic climate which merges global best practice with the needs of local businesses..

10. How is Customer Social Responsibility incorporated in your organization?

Based on a clear vision and a strategy that works for the welfare of Qatari community, one thing always comes first – People.

BARWA toils ceaselessly to create a dignified environment for all to live and work in. While BARWA is essentially a real estate company, our calling goes above and beyond. Before we are builders, developers or property managers, we are a company devotedly committed to the cause of Qatar and its people. Barwa is as dedicated to its social responsibility as it is to profitability. While we conduct our business with the aim of generating maximum returns for our shareholders, we are stubbornly committed to certain principles that are never compromised.

As a concerned corporate citizen, BARWA has an enduring commitment to contribute to the social and economic betterment of society. To support this commitment, the company has developed a wide embracing program of corporate social responsibility activities, some of which include considerable financial contributions to a range of charitable, educational, social, cultural and sporting organizations and events, widespread sponsorship of conferences, seminars and initiatives, that support the growth of the real estate industry and further enhances the status of the State of Qatar regionally and internationally.

Particularly, two highly acclaimed endeavours, “BARWA Housing Program” and “Hasad BARWA” illustrate the level of commitment and scope of activities that we continually seek to develop for our communities. BARWA Housing Program reflects the responsibility of the private sector towards Qatar’s communities. Constructed in two locations and consisting of 62 residential buildings offering 1,984 residential units, BARWA Housing Program is integrated into an environment with gardens, playgrounds, health clubs, fitness centers, swimming pools and nurseries, all of which are strategically located to serve the compound’s multi racial community.

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The Global Economic Turbulence A

t the forefront of Qatar Property Investment Forum were deliberations among industry experts whose objective is to shape property market dynamics in the transitional period following the global economic turbulence. The focus was geared towards global trends in sustainable development, its long-term social, environmental and economic benefits and Qatar’s ability to adapt to environmental challenges facing the country and the international community.

Key Issues Gordon Jack, business development director Atkins, identified “pollution and increasing world population as key issues in real estate investment and development where the overriding objective is to minimize further increases in CO2 emissions whilst accommodating increasing world population and requirements of the property industry.�

Gordon Jack observed that “Qatar regularly features at the high end of the per capita CO2 emissions range where the challenge to improve quality of building are accumulating.

Qatar should invest in the future, now is the time to invest soundly and sustainably as there is a real opportunity for Qatar to lead in the technology of a low carbon built environment.� These sentiments were notably endorsed by others, including Hesham Al Emadi, CEO Energy City, a leading green building visionary in Qatar. He described the green building concept as," buildings that significantly reduce or eliminate the negative impact on the environment and occupants." It is broadly acknowledged by industry leaders that there are challenges to convince investors of the concept of sustainability. Anecdotal evidence suggests there is potentially a large market of quality oriented industry players that are still untapped within Qatar’s property sector. By adopting and enforcing innovative quality standards, much improved construction practices are addressed. These include concepts such as sustainable site planning, adopting measures designed to promote water and energy efficiency, conservation of materials and resources, and waste management together with end-user indoor environmental quality.

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Commercial Benefits With this scenario in mind, it is widely acknowledged by industry experts that benefits for building owners will include (without limitation): sÂŹÂŹ(IGHERÂŹCAPITALÂŹVALUE sÂŹÂŹ(IGHERÂŹOCCUPANCYÂŹRATE sÂŹÂŹ0RODUCTIVITYÂŹGAINS sÂŹÂŹ2EDUCEDÂŹBUILDINGÂŹLIFECYCLEÂŹCOST sÂŹÂŹ(IGHERÂŹLEASE RENTALÂŹRETURNS

sÂŹÂŹGREATERÂŹDEMANDÂŹFROMÂŹGOVERNMENT ÂŹMUNICIPALÂŹANDÂŹÂŹ institutional investors, and sÂŹÂŹQUITEÂŹCONCEIVABLYÂŹLOWERÂŹINSURANCEÂŹPREMIUMS

URBAN PLANNING AND INFRASTRUCTURE

All these benefits are part of the green concept of space optimization and responsible resource management.

Sustainability is not just as operational practice, rather it is a proven strategy to increase asset value thereby enhancing the investor’s bottom line. In order to achieve that objective, it is essential that a building owner receives a commitment of sustainability from its tenants to achieve maximum results or in other words a win-win outcome for all participants.

Although exact figures are still the matter of industry debate it is suggested that 1percent to 3percent of the cost of construction to obtain “green certification� is a small amount, but makes a significant difference by lowering operating expenses for the tenant. At the end of the day the tenant is always mindful of their overall occupancy cost rather than just base rent alone. If a building owner is able to minimize its tenants’ overall occupancy costs, this will enhance the attractiveness of the building in the marketplace, while providing the building owner with the opportunity to seek higher rental levels.

Conclusion For many years the construction industry has been reluctant to embrace “green buildings� regarding them as an extra cost which would cut into its margins and discourage buyers. However, the decline in the industry’s fortunes due to the present global market turbulence has encouraged its participants to consider new areas of investment potential such as sustainable buildings. The result is that earlier misconceptions are being seriously reconsidered and reevaluated and the construction industry in Qatar is taking a renewed interest in the concept of “green buildings� and sustainable property development.

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is one of the conventions affiliated to the IMO joined by Qatar. The Authority will strengthen control and inspection operations on all ships and in all ports of the state. sÂŹ%NVIRONMENTALÂŹPROTECTION ÂŹBYÂŹMONITORINGÂŹALLÂŹCUSTOMÂŹPOINTSÂŹ to prohibit contamination by radioactive sources and wastes and hazardous chemical substances.

INTERVIEW: Mr. Ahmed Ali Mohd Al Mohannadi Chairman, Custom & Ports General Authority How is the Authority participating in developing the 2030 Qatar National Vision?

The national vision of Qatar is based on four main pillars and the future tasks and responsibilities of the Authority will be absolutely influenced by these pillars.

Human Development This pillar is based on developing the people of Qatar to build a prosperous society. Globalization depends on knowledge and information technology, continuous employee training and education. The Authority will delegate a number of its employees to specialized universities and institutions to study subjects related to the Authority’s tasks and responsibilities. We are also focusing on information technology and foreign languages.

Social Development This is based on developing a fair and safe society that depends on morals and social welfare. A society that is able to interact with other communities will play a very important role in international partnerships for development. One of the main objectives the Authority seeks to achieve is taking measures that contribute to protecting the local community from hazardous materials that may have a negative impact on the security, morality and traditions of the society. This will be accomplished through the application of a number of legislations related to health specifications and standards, statutes &ethics, as well as legislations relating to weapons and explosives.

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Economic Development This consists of developing a diverse and competitive national economy that is able to meet the current and future needs of Qatari citizens and securing a high standard of living.

The Authority will encourage investment and strengthen the ability of the national industry to compete in raising the competence of the national economy by implementing transparency and clarity in customs legislation. Furthermore, the Authority has issued clear and detailed executive decisions and procedures for all laws applied to us. These decisions and guidelines will be available for all through our website and in hard copy. The authority ensures that legislations will not be subject to discretion and different interpretations by the employees responsible for applying them. This includes all customs circumstances that enable investors to import goods required in Qatar for executing different projects and allowing manufactured goods to be exported according to internationally accepted standards..

Environmental Development This pillar is based on the management of the environment so that harmony and coherence between economic and social development and environmental protection are duly met. In this regard, Customs and Ports General Authority will play a very important role in achieving the concepts of this pillar at two axels: sÂŹ 0ROTECTINGÂŹ THEÂŹ MARINEÂŹ ENVIRONMENTÂŹ FROMÂŹ POLLUTIONÂŹ BYÂŹ observing procedures of the International Convention for the Prevention of Pollution From Ships MARPOL 73/78, which

What are the main goals achieved under your leadership?

I was appointed Chairman of the Authority on March 4, 2008 and during this period we have continued to work in developing and modernizing the Doha Port and other harbors of Al Khor and Al Ruwais cities. We are also in the process of creating new laws for all ports according to signed international agreements from IMO. I have been involved in executing the Columbus project of capacity building in all legislative sides to raise the competence of manpower as well as procuring modern equipments and information technology systems. Another major feat was modernizing and developing Abu Samra Customs Department to be a land customs point according to international standards with the aim of facilitating and providing significant customs services and procedures. We have activated border measures to protect the rights of intellectual property through three major axels: s ! LEGISLATIVE AXEL OF PREPARING A LAW RELATED TO BORDERS measures of protecting intellectual property’s rights. This law will soon be issued. s !N ORGANIZATIONAL STRUCTURE AXEL OF ESTABLISHING AN administrative unit with the Customs Affairs Department. s!TRAININGANDQUALIFYINGAXELOFENCOURAGINGSUPERVISORS and inspectors to participate in international training courses specialized.

What projects are currently being executed under the Authority?

A number of projects under execution include the expansion and development of Doha Port and building piers to accommodate the steady progress of containers and imported goods entering the port. New Doha International Airport is under construction with the latest technology to include wide terminals that will accommodate the steady progress of passengers. The Cargo Village designed according to modern standards will be ready to deal with goods in a safe and accurate method. These projects require qualified and trained staff to meet our high specifications.We are also modernizing the marine units in Doha Port.

Future projects The most important future project is Doha New Port. The first stage of the project will be completed in 2014 with a capacity of 2 million containers, while the second stage will finish in 2020 with a capacity of 2 million containers, and the third stage will be completed in 2025 with a capacity of

2 million containers, with a total capacity of 6 million upon final completion How are you making sure that the projects will be accomplished on time?

To execute such projects, the governmental bodies use the tenders system to procure best international standards.

The execution process of the projects are followed up by specialized departments to ensure that the quality of execution is compatible to the specified standards and according to schedule. These contracts also include penalties imposed on contractors and vendors in case of delay.

What challenges does Qatar face while achieving its goals? And what is the role of the Authority in dealing with these challenges?

There’s no doubt that Qatar, like any other country, is influenced by changes occurring in the international economy, and by the increase of competition among other countries to attract foreign investments. We are focused on developing applied systems and the competence of manpower. We are also adapting transparency and clarity measures with all our clients inorder to compete globally.

What investment incentives and opportunities do you offer to attract investors to the Authority’s various business and projects? Why should foreign investors come to Qatar?

Although Qatar is a small country compared to other countries in the region, it has achieved economic growth that exceeds all expectations. The Doha New Port is of great interest to international investors and companies willing to participate in the construction process, and exchange knowledge and technology to the project. We also have the private economic areas created within the port for companies in the transportation and customs industry to partake in. It is going to be a very exciting time for us. The political stability and security in Qatar are the most important factors in attracting investors as well as the modern economic legislations Qatar has enacted, such as Trade Law, the Companies Law, the Money Laundry Law, the Intellectual Property Law and the Industrial Organizations law that grants the qualified factories custom exemptions. Qatar is currently attracting long term investors with cheaper energy, land, and in some cases, time period tax exemptions.

How important is the private sector in achieving the Authority’s goals?

The private sector plays a very important role in developing the Qatari economy, especially in the future. We have privatized some operations in Doha Port and Customs Departments, to create less monopoly and to allow smaller private companies an opportunity to be part of our growth.

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URBAN PLANNING AND INFRASTRUCTURE Major contracts have been awarded to international companies such as Ultra Construction & Engineering (Korea), and Stanley Consultant (USA), what other major firms are you working with?

Ashghal’s five year plan announced in May 2004 has provided immense investment opportunities for construction firms to come over to the state of Qatar. Many international giants are competing to win tenders for implementing major projects with Ashghal. International giants engaged with Ashghal projects include Bilfinger Berger (Germany) and Al Hamad (UAE) who jointly implement two major phases of Doha Expressway project.

We are also working with joint ventures between Degremont (France) and Marubeni (Japan) who implement Sailiyya Treatment Plant; one of the biggest wastewater treatment facility in the Middle East, as well as Singapore based Keppel Corporation, just to name a few.

INTERVIEW: Mr. Ali Al Mawlawi, GM Public Works Authority, ASHGHAL Could you start telling us about Ashghal, and the main sectors you are focusing on in Qatar?

Public Works Authority “Ashghal” is an autonomous governmental body that oversees all infrastructure related projects as well as public amenities of the State of Qatar. The Emiri Decree issued in January 2004 to set up Ashghal stressed on quality and perfection in infrastructure development in line with international specifications and standards. Ashghal focuses on development and maintenance of infrastructure in three major sectors: roads, drainages and public amenities. The formation of Ashghal has marked an important turning point in the history of infrastructure development of the State, which has embarked on a major phase of change and development in all aspects of life.

According to HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani, “Qatar will go ahead with its investments at home despite the global financial crisis”. How is Ashghal following up with HE’s statement?

As HE the Prime Minister and Foreign Minister remarked, Qatar is determined to go ahead with its developmental projects, for, the state is less affected with the global crisis. As one can see, Qatar is like a workshop with giant construction and infrastructure projects spread all over, not just in the capital city but in its suburbs as well. There is no doubt that these projects in all sectors, will keep pace with the economic renaissance happening in the country. As an important service provider in the infrastructure sector, Ashghal is working hard to implement projects with the highest degree of efficiency and within approved deadlines. We are determined to complete all

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infrastructure projects included in the five year plan by year 2011/2012.

What are the goals behind this organization?

Ashghal’s mission is to provide and maintain state-of-theart infrastructure that fully meet the national economic and social development plans by adopting the best practices known internationally: As an institution with strategic corporate development policies, Ashghal has certain goals and objectives to; - Fully meet the customers needs in the most efficient and effective manner.

- Develop a comprehensive communication strategy that raises the level of awareness of Ashghal’s activities externally and internally.

- Maximize the employment of Qatari nationals and realize their full potential.

- Develop the most competent human capital within the authority with emphasis on leadership, management and technical capabilities.

- Adopt and deploy best practices in the domain of infrastructure development and management.

- To comply with and exceed local and international standards in our practices.

- To fully optimize the use of all our resources to implement our plan in the most effective and efficient manner.

- To operate in a financially accountable and transparent manner and fully maximize the value we deliver from our funding expenditure.

The government has just outlined the Vision 2030 plan.

What crucial role will ASHGAL play within this outline?

Well, as a responsible arm of the government, Ashghal is determined to provide state-of-the art infrastructure facilities to the country, realizing the vision of the wise leadership of the state.

It has cast dozens of tenders for the implementation of mega projects with a total value of QAR 21.63billion and has awarded contracts worth QAR19.564 billion. The value of projects awarded to Qatari companies alone exceeds QAR6.75billion. The budget for the proposed projects during the fiscal year 2008/2009 exceeds QAR 12billion. This reflects Ashghal’s sincere efforts to reform and re-establish the infrastructure of the State of Qatar.

What type of partnerships is Ashghal currently open to?

As a governmental entity, Ashghal is keen on developing the competence of Qatari companies, and the policy of tendering has been drafted with this aim.

It is worth mentioning that Ashghal offers three types of tenders.

In the first type of tender where the tender value will not exceed QAR100 million, only Qatari companies are eligible to participate.

In the second type of tender value between QAR 100 to QAR200 million, joint venture companies, which include a Qatari Company having a minimum of 51percent share, can participate. The third type is for tenders worth more than QAR200 million where both Qatari and non-Qatari companies are eligible to participate.

In the third type, non-Qatari companies do not require to have Qatari partnership.

Who does Ashghal want to reach?

Ashghal’s beneficiaries are all those who reside in the state of Qatar irrespective of nationalities. Specifically, Ashghal aims to become the pioneer in the entire Middle East region in the provision of infrastructure development and management.

As one of the pillars and most important organizations in Qatar, how do you plan to make the leaders’ vision of urban structure of Qatar a reality?

The State of Qatar is witnessing a boom in economy and industry, characterized by a major drive towards development of infrastructure services and execution of several projects at the levels of private and public sectors. To cope with this development, the Public Works Authority (Ashghal) in coordination with the Ministry of Municipal and Urban

Planning is working on a Master Plan that covers all requirements of the state.

Ashghal has embarked on a five-year plan for infrastructure development. It envisages a total change of the existing cityscape to suit the needs of the upcoming generations. The plan covers around 80 infrastructure projects in the sectors of road, drainage and public amenities. All the projects shall be achieved by the year 2011.

For our readers that may not know a great deal about Qatar, what could you tell them about the urban development and infrastructure in Qatar?

In the new millennium, Qatar has embarked on a major transformation drive. There has been a rapid increase in construction projects in the last few years, during which major ventures have been set in motion, such as the Olympics Village, which hosted the delegates of the Asian Games Doha 2006.

The expansion of the Doha International Airport is another major project. Besides these projects, Qatar is in the process of revamping its network of roads by adding flyovers, underpasses, service roads. Improving the sewage collection and treatment system and development of major governmental buildings such as hospitals, schools and tourism facilities are also underway.

Among the major road projects implemented so far, is Gharafa Interchange, which serves as an entry point to Doha for traffic from the northern cities like Al Khor, Ras Laffan, Shamal and Zabara. It consists of a three-tiered flyover with three lanes on each direction to the length of 900m, and an underpass with three lanes, with a length of 900m. Al Asiri Interchange is also an important road project that has been completed to provide easy traffic flow between the west cities and the capital Doha. The 2000 m long interchange consists of a three lane dual carriageway with an over bridge stretching to 1350m.

The ongoing Salwa International Highway project extends from Doha to the Abu Samra check post bordering Saudi Arabia.

This 81km long highway with four lane dual carriage way serves as an expressway. It is being built according to international specifications. The salient features of this highway are emergency side parking spots and parallel service roads with 15 intersections.

It will be provided with all the necessary infrastructure services such as electricity, telecommunication and drainage system.

Traffic safety shall be the hallmark of all these projects, with adequate landscaping and illumination.

What would be your message to our readers, why come to Qatar and invest?

Qatar is the fastest developing country in the region with the current boom in economy and urban development, under the wise leadership of HH Sheikh Hamad bin Khalifa Al Thani, the Emir of the state. The state is blessed with abundant natural resources and there is a wide scope for this development drive for quiet some years. The services providing sector in the state including Ashghal, allows for immense opportunities for local as well as international companies to partake in. There are a lot of international companies already involved in the developmental process and a lot more are interested to work in the state’s developmental project. As the scenario is expected to continue for long time, it is for the investors to utilize the chances.

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BOOM CONSTRUCTION B

oom Construction Company offers a diverse background in general contracting, construction and construction management experience in commercial, industrial, infrastructure, and manufacturing sectors. With over 3000 employees, the company’s market knowledge and expertise allows it to provide clients with the best building methods and materials at competitive prices.

However, it is Boom Construction Company’s teamwork philosophy that separates it from the competition, according to the Doha, Qatar-based firm. “We recognize that the success of any project depends on having an integrated team, from owner to architect/design group to contractor who are able work together from the onset to establish common project goals and objectives. The result is a facility built on time and within budget. We have achieved substantial growth and multiple client assignments based on this philosophy, and our client list is perhaps the greatest tribute to the professionalism and performance of the company.”

Boom Construction’s clients include Qatar’s top organizations. According to General Manager Ahmed Mahmoud El-Naddaf, approximately 80 percent of the company’s work is for repeat clients. “that speaks well to the services that we deliver.” This is a testament to the firm’s overall goal of providing “quality, cost-efficient solutions for construction,” as well as its “commitment to providing a positive experience for our clients,” NO ACQUISITIONS NECESSARY Boom Construction Company has grown significantly since its inception, El-Naddaf asserts, but only through internal growth. It has not opted to acquire any competitors. “I think it has been our mindset to continue to grow and

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become a large national player,” he says. “But acquisitions are a challenge for everybody. We prefer to maintain our current client roster while attracting new opportunities and clients.”

As a privately held company “We answer to ourselves, and we have a high value for our clients,” El-Naddaf stresses.

“We are not solely driven by how much money we can make on a project; the first and foremost goal is customer satisfaction.” The goal of Boom Construction Company is to strengthen our position as a leader within the infrastructure and urban development realm. “This is accomplished with the dedication of each team member to perform beyond expectations and within all aspects of project development.

As a company, Boom emphasizes teamwork, local market knowledge, productivity and, most importantly, personal integrity. By applying these principles on each transaction, we achieve the ultimate goal of client satisfaction.”

Qatar’s development is essential to Boom Construction’s growth as it all goes hand in hand. ASHGHAL is an integral part of our business, we currently have about 20-25 projects with ASHGHAL where 80 percent of our work comes from the Public Works Authority. “This is no coincidence, we have proven ourselves time and time again to handle any scope of work given to us, and that is how you develop long and trusting relationships.” Some of our projects with ASHGHAL include the construction of temporary weight stations, reconstructing rehabilitating roads, as well as maintaining roads within the Northern Area and Rayyan Municipality Area, RIWs in Doha North and Doha South, RIWs in Al Khor Municipality, and Al Wakra Municipality.

In light of Qatar’s construction surge, Boom Construction is ready to partake in building Qatar’s urban, physical and social development.

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Working to help build Qatar’s Infrastructure Development TRAFFIC TECH, LLC

QATAR TRADING & CONTRACTING

B

illion dollar real estate and urban infrastructure projects are set to transform Qatar’s once sleepy capital while the public sector forges ahead with plans to build a sound infrastructure, and this is the right time for its local contractors to really leverage themselves with expertise, a skilled workforce, technology and innovative equipment, and the right international and regional partner companies in order to be a part of this construction boom.

Qatar Trading and Contracting Company is one of them.

QTCG was established in 1992 as a premier civil engineering and contracting company that has been integral in supporting Qatar’s urban development and growth. In order to achieve this, QTCG abides by the principles of Safety, Efficiency, Quality, and Delivery. The company is Grade A listed in all disciplines by the Qatari Government Central Tenders Committee to undertake construction projects at all levels of technology and complexity. QTCG has maintained its excellence by providing an effective, organized, reliable approach to working with its customer base thereby instilling long term relationships and trust.

According to Raed Ammori, Operations Manager for Qatar Trading and Contracting, “Trust is very essential in our business, although you are only better than your last job, the quality and professionalism in your last work is highly valuable in procuring your next job. So it is very important to our organization that our clients’ requirements are met and to ensure their ultimate satisfaction.”

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CURRENT PROJECTS IN QATAR With a workforce of over 500 multinational employees, it is no surprise that Qatar Trading and Contracting are able to perform a variety of services, some of which include, road and airfield paving to build and rehabilitate roads, parking areas and air fields, pipe line construction for drainage and all associated civil works, services in separation technology, turnkey construction of pumping stations, production of aggregate materials, trenching, microtunnelling.

With QTCG’s extensive experience and expertise, it is no surprise that the company has gained an impressive array of clients such as Qatar’s Public Works Authority, ASHGHAL with projects such as Doha & Rayyan Sewerage Industrial Area Sewerage, Civil Project Games Village Trunk Sewer, among others. Other major clients include Qatar’s Ministry of Municipal Affairs & Agriculture, Qatar Petroleum (QP), and Barwa Al Doha, among others.

Qatar Contracting and Trading has built an extensive array of projects and clients and is ready and as a partner to bring a spirited exuberance to any project involved in every stage of planning and construction with their experience, skill and building expertise.

T

raffic Tech (Gulf), a subsidiary of Traffic Tech Middle East Company was founded in 1999 in Qatar, as a consulting and contracting firm specializing in traffic management, parking, access control, security, and truck weighing applications. Traffic Tech (Gulf) was founded in Doha to specifically serve and gain market share in the burgeoning Gulf region. Today, according to Husam Musharbash, General Manager, the company has grown to become a full fledged in house, one stop shop for all traffic and security applications in the Middle East with projects spanning across Jordan, Saudi Arabia, Qatar, The UAE, Kuwait, Bahrain, Oman, and Yemen. Launched to handle the traffic needs of government and private organizations in the Gulf region,.

Traffic Tech develops and provides a comprehensive range of engineering, system integration, contracting and service capabilities that has earned the firm several accolades..

COMPETITIVE EDGE IS SPECIALIZED HIGH QUALITY SERVICE Describing Traffic Tech’s success story, Husam Musharbash explains the drive behind the business growth as focused on financial bottom line as well as the ethical and moral vision behind the company in saving lives and helping to decrease road accidents.

According to Husam, “there are many products being introduced in the traffic safety and management market, the key is to be a discerning client with the supply chain

management and only pick products and services that are feasible and conducive in the Gulf and Middle East region. It is important that Traffic Tech is credible in this market and region by introducing only the right product, services, and expertise, instead of flooding the market with unnecessary products that are not aligned with this region’s environment and actual requirements”.

WSIG asked Mr. Husam how Traffic Tech is able to introduce products and services that are conducive to the Middle East region “We are able to do this by studying and researching the market on a worldwide scale, and then we select the most appropriate technologies for this region. This is important because we want to establish and maintain long term relationships not only with our clients but also with our supply chain. Traffic Tech is involved in every stage of the project from design, system integration, supply, installation, commissioning, operation, and after sales services. Our extensive skills encompass all aspects of system design, and customizing hardware and software to fit specific client’s needs. This creates a relationship of trust with our clients to achieve any given project seamlessly”. This credibility has earned Traffic Tech (Gulf) several high profile clients and projects some, including Qatar’s Public Works Authority (Ashghal), Doha International Airport, The New Doha International Airport (NDIA), UDC Pearl Project, Qatar Petroleum, as well as other high profile private organizations and projects.

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Almana Design Consultants International

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ith billions of dollars worth of projects in the pipeline of Qatar’s construction sector, international, regional and local construction companies and design consultants are vying for top tender awards. The future of Qatar’s construction sector can only look forward to many years of growth as supply and demand try to balance out and prices start to level off. A revolution is taking place in Qatar’s construction sector. Qatar is becoming an international metropolis and is working avidly to build infrastructures, superstructures, and the urban and social development that is necessary for its growth.

Headline catching mega projects with billion dollar price tags are making an impact on the international real estate and construction market while changing the landscape of Qatar. It is quite difficult to ignore the announcements of such ambitious projects, such as the US$5.5 billion QatarBahrain Causeway Bridge or US $11 billion New Doha International Airport (NDIA) currently on the way. Although Qatar is focusing on its urban and social developments with its Public Works Authority, ASHGHAL. Big flashy ventures and major civil works are the highlights, and who is building them, who is funding them, and who will benefit from them are all worthy of a more in depth look.

ADCi (Almana Design Consultants International) is Qatar’s local design firm is promtoing itself as one of the premier design firms integral in building Qatar. Over the last 35 years, ADCi has helped develop the state with numerous public and private projects. ADCI is a professional Grade “A” multi-disciplinary practice established by Mr. Abdullah Khalid Almana with “in-house” disciplinces i.e.

Architectural, Structural, Mechanical, Air Conditioning, Electrical, and Public Health Services. Since its inception in 1974, ADCi has engaged in a variety of heavy industrial and engineering projects in Qatar and the surrounding Gulf

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regions. Over the past several years, ADCi has been fully involved with a diverse range of building projects in the Qatari market, thereby making the firm very familiar with the local construction conditions and Qatar Construction Specifications (QCS). ADCI has also extensive expertise in the market, relating to materials procurement and equipment and required specifications in Qatar and the surrounding regions. ADCi’s clientele roster includes HH The Emir of Qatar’s offices, Public Works Authority ASHGHAL, The Ministry of Education, Qatar Telecom, Qatar Fertiliser Company, Qatar Liquefied Gas, Qatar Petroleum (QP), Private Engineering Office (PEO), Hamad Medical Corporation, among other Government bodies as well as distinguished private individuals in Qatar.

As one of the leading local design firms, ADCi has shown extensive experience in HVAC, plumbing, public health, and electrical services with an in-house interior design and landscaping department. This creates a streamlined and independent organization geared to satisfy a client’s specific needs. Since its establishment, ADCi has managed to develop and maintain a very strong business relationship with all its clients, but more importantly with Qatar by really believing in the state’s development and contributing, enormously to its continued growth. ADCi has concurrently worked in designing various commercial projects, offices, Hospital/Clinics, residential complexes, educational projects, landscaping parks, and other heavy and complex industrial projects all around the State of Qatar.

A.D.C.i. has also established and maintained an effective quality system, proving to their clients that are committed to quality, according to BS 5750 and ISO 9000 specifications.

ADCi also uses its own quality system, adapted from norms of the BS & ISO regulations and professional experience over our period of 33 years.

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PROMER QATAR A

lthough there has been a bit of a lull in the construction industry, major tenders will continue throughout the year.

Approximately US$125 billion worth of projects are scheduled for completion by 2015 with more to be announced by the government especially in the infrastructure and civil sectors.

CONTRACTORS TAKING PART IN THE BOOMING CONSTRUCTION MARKET The Public Works Authority, Ashghal, is Qatar’s premier organization, charged with propelling the states’ infrastructure and urban development projects forward has been extremely busy pooling in international, regional, and local companies to build Qatar’s physical vision. Promer is a Turkish company with over 26 years worth of experience as Turkey’s leading construction company. Promer Ural Group was established in 1982 to contribute to society through construction related activities in public and private sector projects. Promer Ural Group has now evolved to a global scale, total engineering constructor with projects in Turkey, Qatar, The UAE, Kazakhstan, Russia and Ukraine.

Promer Qatar, a Grade A listed company, was established in June 2006 to be a part of Qatar’s booming construction sector. With specialty in superstructures, Promer Qatar is executing four projects worth over QAR100million for Ashghal, with the intention of forging a long and sustainable relationship with Ashghal and The state of Qatar. Some of their work with Ashghal includes the completed renovation of the Al Khor Municipality Building, the alteration and renovation of the Fish Market at Al Khor, as well as the construction of the inspection yard and offices at the Doha Port.

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WSIG SPOKE TO MR. ERHAN EKERMEN, CEO PROMER QATAR Could you tell us why Qatar is a viable market within the construction sector?

We are in Qatar firstly because the country is stable, and with a stable government comes a stable economy for your investment. Within the construction sector, Qatar is definitely booming with over 800 towers projected to be built here. There is a projected infrastructure development program of US$125 billion as decreed

by The Emir of Qatar. 93,000 residential units are projected to come up by the year 2010, and Qatar is generally a very dynamic business environment that we are proud to be in and partake in the urban development of the State with distinguished organizations such as ASHGHAL. What are your growth projections in Qatar?

We plan on tendering for contracts worth QR250 million to QR300 million by 2012.

Currently we are focusing on managing at least one project worth over 50 million QAR. We believe in a progressive organic growth, where we want to focus on our core strengths before diversifying into other disciplines. It is important to create a long lasting and trusting business relationship with our Qatari clients by proving our capabilities on every project we work on before garnering more complex and higher valued projects. Promer Qatar also has plans to run a residential real estate development project here in Doha by 2010. Qatar is currently focusing on its urban development goals, and we are here to support and implement that goal.

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QATAR FOUNDATION “EXCELLENCE IN HEALTH AND EDUCATION” Gulf Engineering & Industrial Consultancy

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ulf Engineering & Industrial Consultancy (GEIC) maintains its status as ASHGHAL’s Grade A listed subcontractor involved in the physical and social development of Qatar. GEIC is a Qatari-based consultancy firm founded in 2000 by General Manager Dr. Ali A. Al-Merri, who hopes to actively participate in the development of Qatar by providing the technical skills, support, and expertise required in the engineering fields of Qatar’s infrastructure development.

PROJECTS TO “ACTIVELY PARTICIPATE IN DEVELOPING QATAR” Gulf Engineering & Industrial Consultancy’s current project spans across Qatar with major projects, some of which include consultancy services for the construction of Mosques and Imam Houses in Qatar, design of the first large scale aquaculture facility in Al Wakrah and design of a Kindergarten Development Center. GEIC was also appointed by the Department of Technical & Economic Studies of the Ministry of Agriculture and Municipal Affairs (MMAA) to carry out preliminary and detailed design for three new wholesale central markets to be constructed at Umm Salal, Al Wakrah and Al Rayyan.

In its quest to not only support Qatar’s sustainable infrastructure development, GEIC is also working on Qatar’s social development by taking on the construction, completion, and maintenance of four new parks around Doha, in Al Assiri, Al Naijah East, Al Khalifah North and Al Khulaifat areas..

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One of GEIC’s unique features is that although the organization has a registered grade “A” listing to provide services in architectural, civil, electrical and mechanical disciplines, as well as a consultancy registration with Qatar General Electricity and Water Corporation (KAHRAMA), Gulf Engineering & Industrial Consultancy focuses on projects that facilitate in developing The State of Qatar, not only physically, but socially as well. Dr. Ali explains, that “we mainly focus on projects that really support Qatar and its growth. We currently have a workload consisting of design and construction supervision projects, which include commercial, residential and industrial buildings, roads, drainage and landscaping projects. We work on projects that highlight our vision to actively participate in developing Qatar.”

Gulf Engineering & Industrial Consultancy demonstrates its corporate responsibility to Qatar by working extensively with the Government. Some of its better known clients include The Public Works Authority, ASHGHAL and The Ministry of Municipal Affairs and Agriculture. In order to maintain such a busy and sometimes specialized workload, GEIC has extensive experience with international firms by developing association and partnership arrangements with consulting firms on a project by project basis, according to its needs, thereby creating a harmonious and knowledge -based organization. GEIC is always on the quest for clients, sub-consultants and future associates and partnerships that are aligned with its mandate of unparallel professionalism in consultancy services.

QATAR FOUNDATION

SPECIAL FEATURE ON QATAR FOUNDATION AND ITS ENDLESS POSSIBILITIES

General Overview

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atar Foundation is a private, non-profit organization founded in 1995 by HH The Emir, Sheikh Hamad Bin Khalifa Al Thani. Qatar Foundation exemplifies the value and importance His Highness places on education, science and community development. As further evidence of the significance of Qatar Foundation, HH Sheikha Mozah Bint Nasser Al Missnad, Consort of His Highness, serves as Qatar Foundation chairperson, personally supporting and guiding the organization with passion, vision and enthusiasm.

Qatar Foundation is dedicated to building human capital in a part of the world where the need and potential for human development are considerable. Qatar is blessed with oil and gas reserves that have brought it relative wealth for today and the foreseeable future, but this situation will not prevail indefinitely.

The only guarantee of lasting prosperity lies in the ability of its people to learn, adapt and innovate.

The establishment of Qatar Foundation was one of the Emir’s early initiatives, a testament to the importance attached to Qatar Foundation’s mission of creating human capital and building a knowledge-based society.

Through its threefold mission of education, scientific research and community development, it is helping to build a sustainable society where the sharing and creation of knowledge will

enhance quality of life for all. Qatar Foundation’s aim is to prepare the people of Qatar and the region to meet the challenges of an ever-changing world, and to make Qatar a leader in innovative education and research.

Qatar Foundation is achieving this goal through a network of more than 30 centers and partnerships with elite institutions that are dedicated to excellence in their respective specializations and that are growing together into a powerful force for social change.

The centers of excellence develop people’s abilities through investments in human capital, innovative technology, state of the art facilities and partnerships with elite organizations, thus raising the competency of people and the quality of life.

Most importantly, all member organizations are committed to the principle that a nation’s greatest natural resource is its people, and they are determined to defend and develop Qatar’s unique heritage and culture. Qatar Foundation sets out to be an asset not just for Qatar, but for the entire Middle East region and beyond. And as such, it already reaches communities and individuals well beyond the country’s borders.

Education City, Qatar Foundation’s unique, flagship project, is a 1,000-hectare (2,500 acre) campus on the western edge of Doha.

The campus houses the majority of Qatar Foundation’s member institutions in a set of futuristic buildings designed by some of Wallstreet Investment Guide

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QATAR FOUNDATION the world’s greatest architects. It is home to branch campuses of six world renowned universities and numerous other educational and research institutions, each offering degree programs in selected disciplines that have been identified as priority areas for the country.

A community of institutions designed to serve the educational needs of the whole citizen, from early childhood education to post-graduate study, Education City provides an environment that unites leading researchers with cutting-edge facilities and qualified graduates. This dynamic atmosphere feeds collaboration and the development of pioneering ideas into realworld applications.

Focus on Education Learning and teaching are pathways to fulfilment and prosperity across time and cultures. HH The Emir of Qatar and founder of Qatar Foundation, remains committed to bringing knowledge and learning to the people of Qatar and the region, thereby building a skilled human capital base.

By using innovative strategies and programs, Qatar Foundation focuses on capacity building and character development. This unique form of education involves select institutions known for the quality of their programs, from early years to university education at undergraduate level and beyond. Learning and teaching is focused on creativity, curiosity, conveying knowledge and life skills, to create lifelong learners.

Qatar Foundation is leading the evolution of a knowledge-based society in Qatar by enhancing the quality of life with access to information, skills and education. A highly educated population is a pre-condition for the knowledge-based economy which will come to the fore in Qatar, and is being built alongside the current economy that is based largely on the export of hydrocarbons. Qatar Foundation partners combine to form a collegiate environment where students, faculty, staff, and community members come together in the joint pursuit of learning.

Education City Education City is a center of excellence and a landmark in educational development. Through its range of members, Education City caters for learning at all levels, with a particular focus on preparing future generations to occupy leadership roles within a global society.

At the heart of Education City are six universities, they are the branch campuses of prestigious international institutions that are delivering some of their most renowned programs. The availability of these world-class programs within the region inspires young learners to strive for higher academic achievement.

By establishing and partnering with educational institutions of the highest standards, Education City gives a new generation of engaged and innovative leaders the tools required to face the challenges of an increasingly global society. Through these ground-breaking partnerships, Education City is proving to be a unique and dynamic vehicle to advance the goals of education, science and community development in Qatar.

Education City also contributes to community health and development programs, thereby helping to raise the quality

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QATAR FOUNDATION of life in Qatar and throughout the Middle East. By supporting advanced research, Education City fosters the creation of new knowledge and technologies, the development of existing industries and the inspiration of new opportunities and sectors.

Its many partnerships and synergies with local organizations ensure that Education City becomes totally woven into the fabric of Qatari society.

Academic Programs Qatar Foundation currently owns and operates three schools: Qatar Academy, Qatar Leadership Academy and The Learning Center, which, along with its international partner universities, call Education City home. By bringing these campuses and their programs under one vast umbrella, Qatar has created a unique higher education experience within the Middle East.

Qatar Academy Located in modern purpose-built premises, Qatar Academy was founded in 1996 and was the first unit of Education City. Qatar Academy offers a high-quality education for boys and girls from pre-school age to university entrance level. Its faculty and staff are dedicated to preparing students for further education and adult vocations through the pursuit of academic excellence. The first school in Qatar to implement the International Baccalaureate World School, Qatar Academy is accredited by the New England Association of Schools and Colleges and the European Council of International Schools.

The Academy exists to provide the highest possible standard of education and to achieve academic excellence for each student.

It aims to develop independent individuals, critical thinkers, lifelong learners and responsible citizens by encouraging learning through inquiry and creating opportunities for personal character and leadership development through extra-curricular activities.

Qatar Academy Al Khor Opened in 2008, Qatar Academy Al Khor shares Qatar Academy’s vision and mandate. The new school is a private, non-profit school with a mission to help each student achieve excellence. Qatar Academy, Al Khor, differs from its sister school only in that it is bilingual and that it is located in Al Khor, a growing community in northern Qatar.

Located in temporary refurbished facilities, the school features well-equipped classrooms, a large library, a science room, an IT center, an art room, a music room and spacious indoor and outdoor physical education areas. Qatar Academy Al Khor started the 2008/2009 academic year holding classes from Kindergarten to Grade 4, with plans to add a new grade level every year.

Qatar Leadership Academy Founded in 2005, Qatar Leadership Academy is a unique learning institution dedicated to developing the country’s leadership potential. The result of an innovative partnership between Qatar Foundation and the Qatar Armed Forces, the Academy is a boarding school for boys located in Al Khor that promotes excellence in four key areas: academic studies, leadership, heritage and Islamic studies and sports. Its unique educational experience emphasizes academic excellence, leadership, and moral values in its students.

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QATAR FOUNDATION The Learning Center The Learning Center (TLC) was founded by Qatar Foundation in 1996 as a program offering instructional services, diagnostic consultation and therapeutic services to students with average to above average learning potential who experienced academic difficulties within traditional educational environments.

Virginia Commonwealth University in Qatar Virginia Commonwealth University in Qatar (VCUQatar) was the first university to open in Education City in 1998 and celebrated its seventh graduation in 2008. Offering undergraduate degree programs in graphic, interior and fashion design, it brings design vision and excellence to the State of Qatar.

Established in 2002, The Learning Center School (TLCS) supports students in grades one through twelve who face challenges in their academic achievement. Offering an Alternative Educational Plan, small class sizes and best practices in teaching, TLCS carries out Qatar Foundation’s philosophy of fully developing each individual’s capabilities.

The Learning Center School is the only school of its kind in Qatar, and one of only a handful of unique institutions worldwide that are strictly devoted to helping students excel, while developing compensatory skills for academic challenges.

The university cultivates the creativity, innovation and practical skills necessary for students to bring ideas to life and secure careers and leadership roles in an array of business and organizations. VCUQ provides the highest level of design education and training for the citizens of Qatar and the region.

Academic Bridge Program The Academic Bridge Program is the first post-secondary education program in Qatar that helps students in the transition from high school to university. The ABP program provides top graduates of high schools in Qatar and elsewhere in the region with the academic and personal skills needed to successfully compete for places in high-quality Englishlanguage university programs. Many ABP graduates are currently enrolled in the universities in Qatar Foundation’s Education City, demonstrating the success of the program. The ABP is also a pioneer in the Middle East region in providing a co-educational opportunity for both young men and women.

Weill Cornell Medical College in Qatar Established in 2002, Weill Cornell Medical College in Qatar (WCMC-Q) is the first medical school in Qatar and a pioneer of co-education at university level. A branch of Weill Cornell Medical College in New York City, one of the top-ranked clinical and biomedical research centers in the US, WCMC-Q represents the first time that an American university has offered its MD degree overseas. The college celebrated its first commencement in May 2008.

WCMC-Q gives students in Qatar and the region an unprecedented opportunity to receive a world-class medical education at a branch of one of the leading universities and top-ranked clinical and medical research centers in the United States.

Working with the National Health Authority, Hamad Medical Corporation and Qatar Foundation, WCMC-Q is actively contributing to the health of the community. The Medical College is also helping to plan Qatar Foundation’s Sidra Medical and Research Center, which will become the primary teaching hospital for the Medical College.

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QATAR FOUNDATION Texas A&M University at Qatar Texas A&M University at Qatar offers world-renowned undergraduate degrees in chemical, electrical, mechanical and petroleum engineering, as well as Master’s degrees in engineering and science. With its long-standing reputation as a leading academic and research institution, Texas A&M University’s branch campus has been welcomed into Education City as a key partner for industry, research and education. Its engineering programs are highly rated and its graduates are sought after to provide leadership and innovative solutions to challenges in their field.

The curriculum integrates cutting-edge and applied research with innovative classroom instruction. Texas A&M at Qatar is dedicated to the discovery, development, communication and application of knowledge in a wide range of academic and professional fields. Since opening in 2003, the university has quickly become synonymous with engineering excellence and commitment to the local community. Texas A&M at Qatar graduated its first two students in 2007 and graduated its first full class of engineers in May 2008.

Carnegie Mellon University in Qatar Carnegie Mellon Qatar has been offering its programs in Computer Science and Business Administration since 2004, and recently added the new Information Systems degree, which links the degree courses already on offer and provides the knowledge and skills to design effective systems for data management. A purpose built, state-of-the-art learning and teaching facility for Carnegie Mellon Qatar opened mid2008.

An effective ICT infrastructure has been identified as one of the main pillars of the knowledge-based society that Qatar aspires to become. Carnegie Mellon Qatar is training the specialists that will develop this infrastructure for the country’s future needs. In partnership with Qatar Science and Technology Park, Carnegie Mellon Qatar is presenting an Executive Entrepreneurship Certificate Program that is open to managers and employees of large and small companies, government agencies, and individuals. In this way it is helping create an enterprise culture in Qatar.

QATAR FOUNDATION Georgetown University School of Foreign Service in Qatar The Georgetown University School of Foreign Service in Qatar (SFS-Qatar) is a branch of the Edmund A. Walsh School of Foreign Service at Georgetown University in Washington, DC. SFS-Qatar currently offers a four-year liberal arts curriculum, with a major in International Politics, leading to a Bachelor of Science in Foreign Service degree. Georgetown University in Qatar emphasizes Georgetown’s traditions of service and cross-cultural understanding and its mission of educating citizen leaders. These values support the ideals and goals of Education City and Qatar Foundation.

The Center for International and Regional Studies at SFSQatar fosters original research, especially the Gulf region and the Middle East. It is devoted to the academic study of regional and international issues through dialogue and exchange of ideas, research and scholarship, and engagement with scholars, opinion makers, practitioners, and activists. It conducts original research, as well as holds a variety of outreach programs for the local community. SFSQatar is educating the next generation of citizen leaders and preparing them for careers in the international arena.

Faculty of Islamic Studies The Qatar Faculty of Islamic Studies (QFIS) is an international centre for Islamic thinking and dialogue, and is committed to enhancing research into Islamic culture. QFIS began its two year General Diploma in Islamic Studies in 2007, which was followed in February 2008 by an MA in Contemporary Jurisprudence and an MA in Public Policy in Islam. All programs are instructed in Arabic and English.

QFIS serves Qatar Foundation’s primary missions of education and research, and ensures the sustainability of important aspects of the country’s culture by illuminating Islam’s contemporary role. Its primary objective is to produce future generations of scholars who are experts in Islamic culture and thought, and are equipped to tackle the challenges facing Muslim communities across the world. By encouraging the pursuit of knowledge, the Faculty aims to strengthen the confidence of its graduates to accurately represent Islamic culture and ideology on an international stage.

The curriculum illustrates the richness and diversity of Islamic culture, emphasizes the openness of the Islamic faith, and demonstrates the power and potential of Islam to serve humanity. The Faculty’s graduates are strongly grounded in Islamic faith, practice and civilization, and are open and prepared for engaging with all that their civilization has produced, and with the wisdom and thought of other civilizations.

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Lee is specializing in environmental management. The outcome of this collaboration will be new technology-based enterprises that will help diversify Qatar’s economy, and will provide exciting career opportunities for the country’s bright young scientists and engineers. By partnering with world-leading corporate and academic research teams, QSTP will also be a base for platform technologies that will underpin the growth of knowledge industries in Qatar for years to come.

RAND-Qatar Policy Institute The RAND-Qatar Policy Institute (RQPI) is a joint venture between Qatar Foundation and the RAND Corporation - a US-based think tank. The RAND Corporation was involved in Qatar’s public policy reform from an early stage, particularly in education and healthcare - the keystones of successful societies.

Northwestern University in Qatar Northwestern University in Qatar (NU-Q) is the latest branch campus to join Education City. Offering degree programs in journalism and communication, NU-Q prepares students to engage in the vital world of global media and communication in the Middle East and beyond. The Bachelor of Science in Journalism program trains students in core journalistic skills within a liberal arts context. The Bachelor of Science in Communication program prepares students to work in a variety of creative and management roles in the media and entertainment industries.

Qatar is rapidly becoming a media hub of the Gulf and needs professionals for its media and communications industries.

A vibrant media scene will bring about greater transparency and accountability, which are hallmarks of successful societies and essential to successful implementation of Qatar Foundation’s mission.

Focus on Research and Science The enrichment of human capital that is necessary for Qatar’s transformation depends to a large extent upon fostering a research culture. Recognizing this imperative, Qatar Foundation is an environment that encourages the pursuit of new knowledge, conducts scientific research and develops new technologies.

The development of this research environment is being led

by Qatar Foundation’s Research Division and its partners, who are working to build Qatar’s innovation and technology capacity, as well as uncovering solutions to national challenges in health, climate change, clean energy and other fields.

As evidence of its integrated approach to research, each of the Education City universities has a research element, and the SIDRA Medical and Research Center will be a cuttingedge research facility, as well as a clinical care provider and a medical training institution. Qatar Foundation’s research strengths will be organized around core platforms of medicine, biotechnology, information and communication technologies, environmental sciences, molecular sciences and nanotechnology.

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Each of the six Education City universities were also selected by Qatar Foundation to a large extent on the basis of their research records. During the initial growth phase, the universities each established their highly-regarded teaching programs and now their research activities are coming to the fore with a particular emphasis being placed on projects that are of clear benefit to the State of Qatar.

Qatar Foundation is also working with other research partners to stimulate the growth of a research culture in Qatar that is fully integrated with the country’s development into an advanced knowledge-based society.

To facilitate this process it is collaborating with bodies of international stature that possess relevant experience and expertise like the James A Baker III Institute for Public Policy and The Royal Society of London.

Qatar Science & Technology Park Qatar Science & Technology Park (QSTP) brings research and business together to support the country’s development of a sustainable, knowledge-based economy.

The role of QSTP is to support international companies, institutes and entrepreneurs to develop cutting-edge technologies in Qatar, to enable research and business ventures to materialize in the marketplace, and to foster their partnership with the renowned universities at Qatar Foundation’s Education City.

QSTP’s new facilities in Education City are slated to open in 2009 and includes research and training centers established by ConocoPhillips, ExxonMobil, Shell and Total that add value to Qatar’s hydrocarbons sector; local software company iHorizons joins Microsoft and Cisco in developing new IT applications; EADS and GE are at the forefront of industrial technologies; SMARD is Qatar’s first bio medical research company and Gartner

RQPI works closely with decision-makers in examining complex public policy issues and developing sound action plans, and helping carry these through to implementation.

RQPI strongly believes in making its work understandable and accessible, and it undertakes efforts to stimulate and inform public debate on prominent issues through presentations and publications.

With access to RAND’s global network, RQPI offers clients expertise in a broad spectrum of practice areas: education, energy, environment, health and healthcare, child policy, civil justice, economic development, international affairs, international security, labor and population, organizational effectiveness, public safety, science and technology, transportation and infrastructure.

Sidra Medical and Research Center Sidra Medical and Research Center will be a landmark development encompassing three primary missions: patient care, medical education and biomedical research. It is envisioned as a center of excellence that will raise the quality of medical care for Qatar and the region.

Health is central to the country’s commitment to enhancing quality of life, and Sidra will contribute to all three parts of Qatar Foundation’s human development mission - education, scientific research and community outreach. Due to open in 2011, Sidra will incorporate the most sophisticated digital technology in all areas - from administrative functions to the assembly and application of genetic coding in advanced scientific research. Sidra’s specialization will be women’s and children’s health, but it will offer select medical and surgical services for all adults. The facility will also focus on diabetes, cardiovascular disease, obesity and other illnesses.

Sidra will serve as a premier teaching venue for Weill Cornell Medical College in Qatar, and it will help establish the nation as a leader in the creation of scientific knowledge through its biomedical research center. Translational and clinical research will begin prior to Sidra’s opening through partnerships with WCMC-Q and Hamad Medical Corporation, the country’s major public health provider. The translational research agenda will encompass pregnancy health and infertility, women’s health and developmental and preventive medicine. The clinical portfolio will include medical devices, diagnostics, drugs and vaccines.

Qatar National Research Fund Qatar National Research Fund (QNRF) was created under Qatar Foundation to guide the creation of the country’s research programs, which will be a catalyst for a new knowledge-based economy. QNRF assesses research proposals from around the world that will advance human knowledge and benefit the State of Qatar.

QNRF actively seeks internationally recognized researchers to study topics of regional and global importance; however it is primarily dedicated to funding research in the national interest and fostering improvements in the health, environment and security of the people of Qatar and the region under the belief that targeted research will enhance the education and well-being of citizens, as well as the skill level of the workforce.

QNRF administers financial support to researchers at all levels, from students to professionals, in the private, public and academic sectors. Funding is awarded through a competitive process to original projects in engineering and technology, physical and life sciences, medicine, humanities, social sciences and the arts. It is part of the QNRF strategy to foster collaboration within academia and through public-private partnerships inside and outside of Qatar.

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QATAR FOUNDATION vocational training, workshops and conferences, and it forges partnerships with the government and the private sector to support community projects.

FOCUS ON COMMUNITY Focus on Community The education and scientific research elements of Qatar Foundation’s mission are long-term investments that will grow to fruition over years and generations, while the community development part of the organization’s mission enhances lives by identifying and meeting immediate needs and opportunities, and by addressing factors that impede human development.

Qatari companies and agencies provide training and employment placements, while community development projects create business opportunities for families and individuals. Training programs offer individuals the opportunity to acquire managerial, financial, technical and marketing skills. The Social Development Center also nurtures traditional craft skills such as metalwork, tailoring, catering, knitting, ceramics and wool weaving.

Initiatives may be targeted at social groups that require help in coping with their circumstances and they often have very broad appeal. Through these plans, Qatar Foundation demonstrates that it is flexibly tackling current social needs and preserving the country’s unique heritage, while at the same time building the foundations of a new knowledge-

Qatar Diabetes Association Qatar Diabetes Association (QDA) is at the forefront of efforts in Qatar and the Middle East to promote the prevention, care and management of diabetes. Since its establishment in 1995, QDA’s work has increased in importance due to the dramatic increase in the incidence of diabetes in Qatar and worldwide.

In addition to enhancing and extending the lives of people with diabetes, QDA aims to reduce the economic burden upon healthcare systems. QDA supports diabetics and their families in leading normal and productive lives by raising public awareness of the causes of the condition and by communicating how it can be managed through regulation of blood sugar levels in various ways.

based society.

Al Shaqab Al Shaqab is the region’s premier equine education resource center since 1992. Among its many equestrian amenities are a riding academy, an endurance training complex and a center for breeding and showing world-class Arabian horses. Preserving the valuable heritage of the Arabian breed remains an important focus at Al Shaqab.

An exceptional new facility, due to open within the Education City complex in 2009, will cover 800,000 square meters and provide stabling for more than 400 horses. Stateof-the-art facilities include multiple performance arenas designed for international show jumping and dressage competitions, the region’s most advanced veterinary hospital, a breeding center, a training track, high-speed and underwater treadmills for endurance conditioning and a full-service riding academy and equestrian club.

Formerly the stables of HH The Emir of Qatar, Al Shaqab has a vital new role contributing to the mission of Qatar Foundation with education, research and community outreach in all of the equestrian arts.

Reach Out To Asia Reach Out To Asia (ROTA) seeks to extend Qatar Foundation’s human development mission to an international arena by bringing high-quality education to the less fortunate across Asia.

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A non-profit, non-governmental organization devoted to providing Education for All throughout Asia and the Middle East, ROTA believes everyone has a right to high-quality education - regardless of age, sex or circumstance, and it promotes this cause by funding basic education, rebuilding classrooms and providing school equipment in disasterstricken and war-torn areas.

Launched in 2005, ROTA has raised more than US$35 million through its fundraising efforts, including concerts, community awareness events, and high-profile gala dinners, which have brought together statesmen, VIPs, sports icons and dignitaries. One of ROTA’s greatest strengths is its volunteer program, through which it coordinates with other national and international organizations devoted to educational and social work across Asia.

The Social Development Center The Social Development Center (SDC) supports, develops and invests in human resources through a set of programs and services that help Qatari families achieve self-reliance. It promotes the building of stable and self-sufficient families by offering workplace training and engendering a work ethic in low-income families, women and young people.

A series of initiatives enables individuals to acquire skills that will help them earn a wage, support a high-quality family life and contribute to the economy. SDC arranges

It works closely with health and sports authorities to encourage members of the community to exercise regularly and eat healthily. Particular attention is devoted to women as family health educators. QDA also engages with the medical community, particularly institutions and individuals involved in research and clinical practice in the areas of nephrology, urology and transplantation, and works in partnership with other organizations and stakeholders.

Cultural Development Center The recently inaugurated Cultural Development Center (CDC) plays a vital role in safeguarding and promoting the nation’s heritage. It is also developing a cultural program that will contribute to Qatar’s progress towards becoming an advanced, knowledge-based society.

The Center is responsible for the management and development of the Arab and Islamic Heritage Library, a collection of national importance and pride held by Qatar Foundation.

The Museum of Modern Arab Art has a diverse collection of more than 6,000 artefacts that will be housed in a specially designed building close to Education City, scheduled to open in 2012. Its mission is to promote public awareness and appreciation of modern and contemporary art that is from, or inspired by, the Middle East and the Arab world. The Museum will collect, document, conserve, exhibit and research artwork of historical and cultural significance to the region. It will also provide memorable and inspirational visits for the public.

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QATAR FOUNDATION The rare collections of the Arab and Islamic Heritage Library exhibit the depth and wealth of the Arab and Islamic civilizations, and demonstrate the extensive contribution of Arab and Muslim scientists, thinkers and pioneers to our global intellectual heritage. The Library’s main divisions are an Arabic section, comprising around 75,000 manuscripts, books, periodicals and newspapers, and a foreign section with around 25,000 books, periodicals and maps that demonstrate the interest of European Orientalists in the Arab and Islamic Heritage. The Heritage Library will occupy a specially designed space within the new Central Library of Education City.

Doha International Institute for Family Studies and Development The Doha International Institute for Family Studies and Development (DIIFSD) conducts research and promotes scholarship on the legal, sociological, and scientific basis of the natural family as the fundamental unit of society. Its initiatives seek to implement the Doha Declaration, an internationally recognized reaffirmation of Article 16 (3) of the United Nations’ Universal Declaration of Human Rights which reads: “The family is the natural and fundamental group unit of society and is entitled to protection by society and the State.”

The Institute contributes to Qatar Foundation’s community development mission through its policies and programs that build on the concept that a framework of strong, stable families facilitates dialogue and harmony at all social levels. DIIFSD achieves its objectives through regional family conferences, academic research, publications, inter-disciplinary studies and policy initiatives.

Qatar Debate QatarDebate was established in September 2007 as a national debating organization for Qatar. It aims to develop, support and raise the standard of open discussion and debate among students in Qatar and across the Middle East.

QatarDebate plans to establish a Qatar-wide debate league, to run national championships for schools and universities. It has run debating workshops at more than 20 different educational institutions in Qatar in which approximately 800 students and faculty have participated. Its activities are aimed at building a sustainable culture of student debating, and it is hoping to bring to Qatar the 2010 World Schools’ Debating Championships, an international competition for high school debaters.

Qatar Philharmonic Orchestra Qatar Philharmonic Orchestra was created to enhance community and culture within Qatar and throughout the region, while bringing a message of peace to the world via the union of eastern and western music. By instilling music culture locally and internationally, the Qatar Philharmonic Orchestra will build bridges through the presentation of a unique combination of Arabic and Western music that speaks purely to the soul; the only language capable of creating an environment of peace and love. Qatar Philharmonic Orchestra is composed of 101 musicians playing various instruments, including percussion, stringed, wind and keyboard instruments, who represent thirty nationalities and were chosen from among more than 3,000 applications.

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QATAR FOUNDATION Qatar Music Academy Qatar Foundation’s Music Academy is due to open in late 2009 and will initially be housed at Qatar’s new Cultural Village. Both organizations will later move to a purposebuilt facility at Education City.

The Music Academy will complement the cultural environment of the world-class academic institutions based at Education City. It is being developed as one of the Qatar Foundation’s Centres rather than as a branch of an existing institution, although discussions are already underway to develop links with leading international music schools and conservatories.

Green Project “The Qur’anic Garden” The creation of one of the region’s most innovative cultural projects - a garden that blends the teachings of the Qur’an with modern day horticultural understanding - was inaugurated in September 2008. The Garden is set to become a major attraction in Qatar and the region and will be located at Education City opposite the site of Sidra Medical and Research Center, which is currently under construction. The concept for the project comes from a region-wide UNESCO initiative and enjoys the sponsorship of Danish shipping and oil giant Maersk.

In addition to becoming a major recreational facility for the city, the garden is intended to give visitors insight into the teachings of the Holy Qur’an as it pertains to the modern day concerns of water and environmental conservation.

As an educational tool, the Garden will put the spotlight on the often overlooked aspects of Islam, not least its long tradition of ecology and concern for what is today called ‘bio-diversity.’

Focus on Broadcasting Qatar Foundation identified multi-media and broadcasting as critical vehicles to directly reach more people in its bid to building human capital. By using television as a medium, Qatar Foundation and its centers and partners effectively become a part of the viewer’s home, creating a dialogue with their audience members.

Broadcasting is a highly effective tool to share knowledge with a vast number of people. Qatar Foundation is using this medium to build a knowledge-based society within Qatar and to reach out to the entire Middle East region and beyond.

Al Jazeera Children’s Channel Launched in 2005, Al-Jazeera Children’s Channel (JCC) contributes to Qatar Foundation’s mission of building human capital through its use of innovative technology to influence a child’s development in the formative years. JCC is a pan-Arabic ‘edutainment’ channel that opens avenues for Arab children to learn about different environments and cultures, and encourages them to learn and be curious.

JCC promotes freedom of expression. It is the first Arabic children’s channel to air a debate show in which children voice their thoughts and concerns. It is also the first to

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produce thematic, educational magazines across a range of subjects including science and technology, health and sport, as well as competitions and quizzes. The channel produces and broadcasts an extensive range of children’s programs in Arabic. About 40 per/cent of broadcast programs are its own productions, and almost half of its programming is new material.

The Doha Debates The Doha Debates are monthly political discussion programmes which address pressing regional issues. They are filmed at Qatar Foundation headquarters and broadcast on BBC World television.

Since Qatar Foundation launched the Doha Debates in 2004, motions have covered whether the Palestinians should give up the right of return, how much Arab governments care about the situation in Darfur, and whether it is time to talk to Al Qaeda. Speakers have included Israeli Knesset member Yossi Beilin, former British hostage Terry Waite and Hezbollah spokesman Ibrahim El Moussaoui.

Periodically a single guest is questioned by a student-only audience. Guests of Doha Debates Special programmes have included former President, Bill Clinton, Israeli President, Shimon Peres, Archbishop Desmond Tutu and leading Islamic scholar, Shaykh Hamza Yusuf.

The Doha Debates reflect Qatar Foundation’s commitment to free speech and public dialogue, and to promoting education which goes beyond acquiring knowledge to the fostering of critical thinking.

Each month, students from more than 30 high schools and universities have taken part in The Doha Debates, representing not only Qatar but countries from across the Middle East and beyond.

Lakom Al Karar Lakom Al Karar - which in English means ‘The Decision is Yours’ - is a televised discussion program in Arabic, broadcast monthly on Qatar TV across the Arab world. In this open forum, young Qataris have a direct line of communication to challenge their leaders on public policy. Each broadcast focuses on a topical issue of importance to Qatar, the region and the wider Arab world. A high-profile figure is questioned by a mainly student audience, while a young moderator steers and stimulates the discussion. At the end of the program the audience votes on the question at hand.

By encouraging young people to engage with their wider community and important issues in public life, Lakom Al Karar helps students develop citizenship skills and a sense of social responsibility. The program reflects Qatar Foundation’s commitment to transparency and accountability as features of a successful participative society.

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Stars of Science Stars of Science is a reality TV program that brings together a group of 16 young men and women who are in competition to create an innovative Arab invention. Selected from more than 5,000 worldwide applicants by a professional jury, the successful contestants travel to Doha to develop and market their invention.

The participants spend a total of ten weeks in Qatar working to turn their ideas into inventions in a specially designed workshop, with state-of-the art tools and equipment and a computer lab. The contestants will be tutored by experts and will attend specially tailored courses to improve their skills.

Stars of Science will be broadcasted in Arabic to more than 19 Arabic TV channels around the Middle East. The program builds on other popular reality TV programs and takes a decidedly Qatari approach by incorporating youth, science and innovation.

Focus on Joint Ventures Qatar Foundation is an organization on the move, and fresh projects regularly emerge that will advance the organization’s broad mission in novel ways. Each of them contributes in one way or more to the Foundation’s goals of education, scientific research and community development, and often they are accompanied by an exciting architectural design and construction project.

In order to develop sectors within Qatar that are experiencing a shortage of specialized skills as a result of its fast-evolving society, Qatar Foundation has entered into joint venture arrangements with a number of partners to work towards sustainability. New companies are set up in Qatar, operating

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on a commercial basis, in which ownership is shared by Qatar Foundation and its partner.

Under the arrangements, Qatar Foundation provides premises and the partners provide the experienced professionals who can get locally-based enterprises off the ground. The joint ventures will, in time, recruit and train increasing numbers of talented Qataris, and transfer skills to the local population.

Qatar Foundation has also established a number of international partnerships to advance its mission to become an advanced knowledge-based society. To date, Qatar Foundation has a number of joint ventures across various industries: telecommunications, polysilicon and real estate, amongst others. Profits generated by the joint ventures are shared by both parties, and go to support Qatar Foundation’s core not-for-profit activities.

FITCH Qatar FITCH Qatar is a design studio that specializes in strategic branding - a very new industry in Qatar. A joint venture between Qatar Foundation and FITCH London, FITCH is part of one of the world’s largest marketing groups, specializing in retail focused design, branding, and strategy. FITCH London, established in 1972, operates design studios across the world using a similar consumer-focused philosophy.

The company’s philosophy is based on creating dynamic consumer experiences through environmental design, product development, packaging, digital media, live events and architecture. FITCH Qatar boasts a number of design graduates from Virginia Commonwealth University Qatar, further contributing to creating a sustainable, knowledgebased economy.

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QATAR FOUNDATION Vodafone services. And as of now, we have approached 20,000+ customers and counting. The Telecommunications market in Qatar is very viable where coming in as number 2 in the industry is a great opportunity. The market structure here is unusual in that Qatar has a smaller population but a great deal of population turnover. Every two years the cycle of expatriate workers coming into the country for the various projects going on in Qatar changes, thereby providing potential new customers every two years.

Graham Maher CEO Vodafone

Vodafone Qatar

A FITCH Qatar has created brands for prominent local clients including the Qatar Annual Cultural Festival, the Qatar Museum Authority, Karwa Transport, as well as Qatar Foundation and several of its member organizations.

Qatar MICE Development Institute Qatar MICE Development Institute (QMDI) is a joint venture partnership between Qatar Foundation and Singex Global, a Singaporean company with a strong reputation in this field.

The MICE industry (Meetings, Incentive Travel, Conventions and Exhibitions) has been identified as an important expansion area within Qatar as a result of Qatar’s growing role in international politics, education, industry, trade, finance, culture and sporting fixtures.

QMDI specializes in conference, exhibition and event management, offering clients and partners a complete package from conception to execution. QMDI aims to raise industry standards in Qatar by introducing a regulatory framework, setting licensing initiatives and establishing quality controls. QMDI is providing the expertise for Qatar to build its exhibition and conference industry and to ensure growth and international recognition within the MICE sector, and QMDI’s network gives it access to a global infrastructure with international expertise in production, sales, marketing and research. Profits generated by the joint venture are shared by both parties, and support Qatar Foundation’s core not-forprofit activities.

Qatar National Convention Center The Qatar National Convention Center, slated to open in 2009, will be a venue for international conferences, exhibitions, theatrical productions and music and art festivals. Designed

by Arata Isozaki, it will contain a 2,500-seat auditorium, a conference hall for up to 4,000 delegates, an exhibition floor, and a number of smaller rooms suitable for performances and meetings. This architectural showpiece will feature a treelike facade that resembles the Sidra tree, the symbol of Qatar Foundation.

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Upon completion, the facility will become the largest purposebuilt convention center in the Middle East. Designed to meet and exceed world-class standards, the Centre will feature 10 conference and performance venues including a 4,000 seat theatre-style conference hall and 2,500 seat auditorium, lyric style theatre for 500 and breakout rooms with capacity of between 90 and 400 delegates.

The Conference Centre will also feature banquet facilities for up to 7,000 people, as well as exhibition hall spaces, luxury and business lounges, prayer rooms, and catering facilities spread over three levels. The Convention Centre will offer conference organizers great choice and flexibility with the multiple venue options. Situated directly on the main axis and surrounded by several university buildings, the facility is the centrepiece of the impressive Education City campus.

fter being named as the successful applicant in the auction for Qatar’s second mobile license, Vodafone Group Plc (“Vodafone”) and the Qatar Foundation Consortium look forward to bringing choice and competition to Qatar’s fast growing telecommunications market under the name Vodafone Qatar.

Vodafone Qatar will work with Qatar Foundation to develop a knowledge based economy, while providing employment opportunities, knowledge transfer and best in class services for the people of Qatar. Services are slated to be available in 2009.

Vodafone Qatar’s IPO is the world’s biggest so far this year. Vodafone Qatar has confirmed that its Initial Public Offering (IPO) that took place from 12 to 26 April was a phenomenal success, raising US$1 billion. According to Arabian Business, “Vodafone Qatar’s IPO was at the time of the close of the subscription period, the largest IPO in the world in 2009. For comparison, globally there have been 11 IPOs of more than US$50 million per offering in 2009 that collectively raised US$2.1 billion in total. 82,000 Qatari national individuals subscribed for 65percent of the shares and 35percent of the shares were taken up by 273 institutional investors, resulting in a 100percent subscribed IPO. A significant number of the Qatari national population are now shareholders in Vodafone Qatar and thus a 77percent Qatari ownership. The result is amazing!” said Grahame Maher, CEO Vodafone Qatar. In any country in this world, this would not be possible. Qatar has demonstrated again that it is the leading Global economy with this very strong and successful result. Vodafone is very fortunate to be here and I want to reinforce my sincere gratitude to HH Sheikha Mozah Bint Nasser Al Missnad of Qatar Foundation, ictQatar and the Government of Qatar for their support and trust”.

Qatar is the fastest growing country in the world, and will be emerging as a powerhouse, not only in the Middle East but in the world. So Vodafone in Qatar and with Qatar Foundation as our long term business partners and investors, will consider future expansion plans in this region.

What challenges do you foresee in the telecom sector?

Well, the country is small, so the benefit is that Vodafone has a global footprint, we can use our global strength in a small country such as Qatar. With that in mind, development is currently underway, so a lot of processes are in trial mode.

But looking at this positively, we at Vodafone consider this an opportunity because everything is new and because the country is currently being built, we can do things that we have never done in Europe or America. We at Vodafone believe that the telecom industry will jump way ahead of America, and it will happen right here in Qatar. We are currently developing new technologies as we speak, new services are coming onboard. They are building new cities here in Qatar; The Pearl, Lusail, these are new cities that require new technologies and new services, so this is definitely an exciting period to be here in Qatar.

WSIG talks to Grahame Maher CEO Vodafone Qatar What is the current situation with Vodafone, Qatar?

Grahame: We are here in Qatar, and we have officially launched the network which was turned on the March 1st, where the 1st 1000 live trial customers could use our Wallstreet Investment Guide

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QATAR FOUNDATION MEEZA MEEZA is a new privately-held joint venture with Qatar Foundation that will deliver world class Managed IT Services and Solutions to enable Qatar’s rapidly expanding business community. MEEZA will offer a wide range of services to clients, from creating and managing IT infrastructure to providing full business and technology consulting.

The name MEEZA means advantage in Arabic, and the new venture provides clients with an advantage in a competitive market by delivering an agile, quality driven and high value model of Managed IT Services and Solutions. It offers clients world class IT security levels, dependable service delivered through a proven set of best practices and business solutions that help them respond fast to market changes. MEEZA is focused on building a strong presence in Qatar and as its capacity and reputation grow, it will expand across the Middle East and North Africa region, operating both independently and through partners.

Bloomsbury Qatar Foundation Publishing Qatar Foundation recently established a commercial partnership with Bloomsbury Publishing aimed at

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QATAR FOUNDATION transforming Qatar into a regional publishing hub and spurring a revival of literary culture in the Arab world. To be based in Doha and to publish books in both English and in Arabic, Bloomsbury Qatar Foundation Publishing will focus on books of excellence and originality in six main areas; fiction and non-fiction for adults and for children, educational books for schools, academic books for universities and researchers, classics of Arabic literature, and reference books. The books will be published around the world through Bloomsbury’s distribution network.

Creative writing skills will be taught in association with leading educational institutes worldwide to stimulate and cultivate new literary talent in Qatar and the Middle East, and the venture will encourage the enjoyment of reading and promote literary culture through a wide-ranging series of events and other initiatives. The partnership will also aim to help improve standards of translation into and out of Arabic. In addition, Bloomsbury will establish knowledgetransfer of publishing skills to Qatar, including a mentoring programme and the training of Qatari interns each year in London and Doha.

Looking Ahead In July 2008, Qatar announced its national vision: to be an advanced society capable of sustaining its development and providing a high standard of living for all of its people by the year 2030. Qatar’s National Vision defines the long-term outcomes for the country and provides a framework within which national strategies and implementation plans can be developed.

The National Vision foresees development through four interconnected pillars: Human Development: development of all its people to enable them to sustain a prosperous society.

Social Development: development of a just and caring society based on high moral standards, and capable of playing a significant role in global partnerships for development.

Economic Development: development of a competitive and diversified economy capable of meeting the needs of, and securing a high standard of living, for all of its people, both in the present and for the future.

Environmental Development: management of the

environment so that there is harmony between economic growth, social development and environmental protection.

Qatar Foundation’s mission to prepare the people of Qatar and the region to meet the challenges of an ever-changing world, and to make Qatar a leader in innovative education and research, is closely entwined with the Qatar National Vision. The four interconnected pillars of the QNV fuel the progress and development within Qatar Foundation and Education City.

The Qatar National Vision dovetails perfectly with the mission and vision of Qatar Foundation: achieving self-sustainability, building human capital, creating a knowledge-based society, and enhancing the quality of life for all Qataris. These themes recur within any discussion about Qatar Foundation or its many member organizations and centers of excellence.

Qatar Foundation remains committed to working with its valued partners and using every avenue available to successfully achieving the Qatar National Vision by 2030.

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In light of the current joint ventures between Qatar Foundation and other corporations, what criteria does Qatar Foundation look for when considering business partnerships?

Qatar Foundation’s vision is to develop human capital and help build a knowledge-based economy in Qatar.

When selecting our partners we take care to ensure that our business partners support and share our vision and are able to contribute to it in a positive manner. This contribution can be through the transfer of proprietary technology and knowledge or through the training and development of our citizens.

INTERVIEW:

Mr. Rashid Al Nuami VP Administration, QF Given your position as Vice President of Administration at Qatar Foundation, could you explain why your organization needs to engage in joint ventures?

Qatar Foundation engages in joint ventures for two key reasons. First, partnering with global corporations allows long-term sustainability of our projects and enables us to independently cover our operational costs. Equally important is promoting the national vision of Qatar, which is the development of a knowledge-based economy. Through our business partnerships we believe these ventures will contribute to an economy capable of sustaining itself without solely depending on revenues from oil and gas.

How does Qatar Foundation benefit from joint ventures?

While there is a direct economic benefit for our organization from these commercial partnerships, the long-term advantages surpass the financial returns. Joint ventures with renowned global corporations will improve business practice and leverage managerial standards in Qatar. It is also an opportunity to learn from our partners how to harness technology to improve productivity, which is what we need as we move towards the knowledge-based economy. Qatar Foundation is leading development across various sectors in the economy. Our joint ventures support the organization’s objectives and bring quality services and opportunities to Qatar and beyond.

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What are the major investment incentives and opportunities for foreign investors to invest in QF? Why should foreign investors come to Qatar and why should they do so now?

Qatar Foundation has invested millions of dollars in the development of the infrastructure of its flagship project, Education City. One such major project is the Qatar Science and Technology Park which is an economic free zone. The companies that decide to set up their research operations within the QSTP zone will benefit from a tax free environment, enjoy 100% ownership of their operations, be able to sponsor their own workforce and will have access to world class facilities and access to world class universities on their doorstep. Furthermore Qatar Foundation is leading the way in the establishment and development of new industries and is ready to partner with organisations that wish to take advantage of a favourable operating environment. Foreign investors will find Qatar a business friendly environment in which the economy continues to grow strongly year on year bring with it immense opportunities. Qatar, through the establishment of the Qatar Financial Centre Authority has also put in place an internationally acclaimed regulatory regime that ensures foreign investors are adequately protected both legally and financially.

The spotlight is really on Qatar right now and with HH The Emir’s vision to bring more growth while diversifying away from oil and gas, what opportunities do you see for investors within Qatar Foundation and the State of Qatar as a whole?

We are fortunate to have such a visionary leadership. The move to diversify away from the dependency on oil and gas has bought with it both challenges and opportunities. There is a substantial amount of capital that is being invested into building the economy of Qatar and to ensure the growth is sustainable. Many new markets are emerging from real estate, telecoms to healthcare and tourism and each of these new markets bring opportunities for both Qatar Foundation and the State of Qatar as a whole.

List of Qatar Foundation joint ventures: Vodafone Qatar FITCH Qatar Qatar MICE Development Institute Qatar National Convention Centre MEEZA Bloomsbury Qatar Foundation Publishing Wallstreet Investment Guide

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the lives of the Qatari people but also in the Middle East.

They will bring the best of best in education and healthcare and fundamentally change individuals learning experiences.

Burns & McDonnell is proud to be part of this far-sighted and revolutionary endeavor. The Qatar Foundation is the keystone client of Burns & McDonnell and our presence in the Middle East.

How will Burns & McDonnell contribute to the pace of development in Qatar?

Because we provide on time and on budget projects we hope to keep the Qatar Foundation projects on track, thereby contributing efficiency to the pace of development as the client requires. Our project pre-planning and resultant pace of work is intended to keep the client ahead of any issues or facilitate their resolution in a timely and cost efficient manner.

Why invest and work in Qatar?

opportunity to secure exactly what they need without having to engage multiple sub consultant firms.

Burns & McDonnell, Leading the way in Qatar What is the overall mission and vision of the company, and can you give WSMR readers a brief history on Burns & McDonnell?

Founded in 1898, Burns & McDonnell is a full-service engineering, construction, environmental and consulting solutions firm. Our multi-disciplined staff of more than 2,800 employee-owners includes engineers, architects, construction experts, planners, estimators, economists, technicians and scientists, representing virtually all design disciplines. We plan, design, permit, construct and manage facilities all over the world, with one mission in mind, making our clients successful.

As an American company with a global reach, how important is the Middle East market for the overall growth of the company?

Since becoming employee-owned in 1985 the company philosophy has been to provide excellence to our clients. Our relationship with the Qatar Foundation blossomed out of our relationship with long standing client, General Electric. Many of our overseas assignments can be traced to superb relations with international clients we have served in the United States. The opportunity to work in Qatar for first General Electric and now the Qatar Foundation has provided Burns & McDonnell with a unique foundation on which to build our Middle East business presence. The Middle East market is

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vibrant and is a critical part of Burns & McDonnell’s growth strategy, we intend to stay as long as our clients continue to call on us. In fact we will soon be opening an office in Doha to accommodate our growing client needs.

What services does Burns & McDonnell generally provide?

We are an Engineering, Architecture, Construction, Environmental, and Consulting services firm, we provide more than 365 unique services to our clients in areas such as architecture, aviation, water, waste water, information technology, energy, electrical transmission and distribution, process design, roads, bridges, ground transportation, healthcare facilities, environmental studies and permitting, remediation and construction services.

What differentiates Burns & McDonnell from the multitude of consulting firms breaking ground in the Middle East and in Qatar, specifically?

We are 100percent employee owned which means every Burns & McDonnell employee has a stake in making your project successful. To this day we are still doing work with some of our first clients. More than 85percent of our annual revenue comes from repeat clients who understand and embrace our mission to make them successful. Specific to Qatar, our diversity of services provides clients with the

How do you plan on gaining market share in the Middle East and in Qatar?

We plan to follow the model that has taken us to work in Egypt, Southeast Asia and Africa and around the world that is to support our good clients wherever their projects are and create success for them and their partners. The opening of our Doha office will demonstrate our dedication to our clients and our commitment to the region.

Within this vibrant and diversifying economy, the Qatar Foundation has fostered an opportunity for Burns & McDonnell to provide our clients, the Foundation and the region with projects that will make a difference in the methods of education. When we say our mission is to make our clients successful we mean it. We believe the work of the Qatar Foundation will pave the way for development of new technologies within an unparalleled institution of learning.

Our clients’ projects brought us to the area and we have become a good partner sharing the guiding principle of the Qatar Foundation that a nation’s greatest resource is the potential of its people.

Can you expand on the Qatar Foundation project and how you came about this project?

Through our long standing relationship with General Electric we where invited by the Qatar Foundation to compete for the GE Advance Research and Training Center located in the Qatar Science and Technology Park (QSTP). Our success in completing this project within Qatar Foundation’s established goals allowed us to compete for another project, specifically The Male and Female Student Housing complex within Education City. This project is expected to be the first LEED platinum sustainable project for Qatar Foundation and the first of its type in the world. As is our norm, we approach the Qatar Foundation projects with project excellence in mind, working as a team to achieve project goals and at the same time respecting the project requirements.

How important is the Qatar Foundation project to Burns & McDonnell in the Middle East?

It has helped us to establish our Middle Eastern presence and demonstrated to those in the region that we are a firm that can deliver quality projects. We have a number of followon projects for the Qatar Foundation upon which we are now working as a result of our proven project excellence.

These projects are helping to create a difference not only in Wallstreet Investment Guide

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“Langdon Wilson has a commitment for excellence in education, which is exactly what Qatar Foundation and HH Sheikha Mozah are building in Education City, our vision is perfectly aligned with Education City, and we are very proud to be a part of this establishment and what it stands for.”

WSIG spoke with Assad Khan, Senior Managing Partner, about Langdon Wilson’s contribution in the Education City Project and the company’s differentiating elements.

Langdon Wilson T

here is an atmosphere of confidence that really sets Qatar’s development apart from the other parts of the GCC region. The fact that demand is still very strong and the economic outlook is very positive is creating a positive atmosphere for Qatar’s development. Developers, consultants, and contractors from inside and outside Doha are looking forward to sustained growth in a market where supply is unlikely to meet demand for many years to come.

Having started a little later than some of its neighboring countries, Qatar has been in a position to learn from the experience of others. The government established tight planning rules and building controls relatively early on, and the quality of the build, on most projects such as Qatar Foundation’s Education City, and the large mixeduse projects in Lusail and Al Khor, is of very high standard.

The presence of leading international consultants is also evidence of the increasing maturity in the GCC construction market in general. Developers throughout the region are making better use of professionals when considering projects, which should ensure a greater rate of success.

Headline-catching mega projects. with billion dollar price tags, are making an impact on the international industrial and construction scene while changing the landscape of Qatar and slowly converting the State’s reliance on its energy resources.

The centerpiece of Qatar’s new education structure is Education City, chaired by HH Sheikha Mozah bint Nasser Al Missnad, the Emir’s wife. It houses the headquarters of

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Qatar Foundation, the chartered non-profit organization that has become the driving force behind much of the education reform in the country. Qatar Foundation has become synonymous with academic excellence.

BUILDING QATAR’S EDUCATION CITY’S STUDENT CENTER AND SCHOOL OF FOREIGN SERVICES The services Langdon Wilson provides are fairly simple; to meet the full range of a client’s needs, where, by developing personalized business relationships, they are able to design, construct, and deliver creative environments that fulfill each client’s needs in today’s facilities. Founded in 1951, in Los Angeles, California, Langdon Wilson has extensive experience in the planning, design, construction, project management and construction administration services with a portfolio of over $12 billion projects spanning across North America, Qatar, Kuwait, China, Korea, Mexico, France, and Germany.

In all its work, Langdon Wilson says it strives to provide clients with comprehensive services; on time and within budget. Its dedication to service and strong design is definitely creating a strong market share for the firm in the Middle East with over US$3 billion worth of projects in the region. Langdon Wilson has projects all over the Middle East and Gulf Cooperation Council (GCC) regions, including Abu Dhabi, Oman, Kuwait, Dubai, Jordan and Qatar, but the Education City Project for Qatar Foundation is special to Langdon Wilson, according to Assad Khan, Senior Managing Partner, Langdon Wilson.

What distinguishes industry?

Langdon

Wilson

in

the

s¬¬¬7E¬BRING¬FRESH¬IDEAS¬AND¬CREATIVITY¬TO¬THE¬DESIGN¬PROCESSby looking for design solutions that are not obvious.

Our goal is always to build long-term relationships with clients through service, doing the right thing and meeting their needs. We don’t just chase projects. Our credibility and experience worldwide really serves us, that is why every project is important to us in sustaining long-term client relationships.

Can you elaborate more on the Education City Project in Qatar? s¬ 7E¬ ARE¬ INVOLVED¬ IN¬ THE¬ PLANNING ¬ DESIGN ¬ AND¬ PROJECTmanagement of the Student Center and the Foreign Services Center for Qatar Foundation. From the beginning, we have worked in the feasibility, programming, planning, architecture, engineering and project management of both structures. Both the Student Center and the Foreign Services Center are currently under construction. The Student Center will be completed in approximately 8 months while the Foreign Services Center will be completed in about a year. This is a very dynamic project for us where a variety of distinguished architects, consultants and contractors are put together to really forge and transform Qatar from an energy powerhouse into a worldwide education hub.

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Davis Langdon: Construction D

avis Langdon is a leading global construction consultancy and has for the past 15 years been voted the top international cost consultancy by World Architecture. For the last 4 years, Davis Langdon has been ranked in the top 100 companies to work for list, published by the Sunday Times. The firm consistently carries out award winning projects with the most experienced and professional staff in the industry. With a passion for excellence, Davis Langdon prides itself in offering clients a collaborative approach which combines expert knowledge with innovative ideas.

Interview with Steven Humphrey, Director Davis Langdon Qatar What is the history behind Davis Langdon in Qatar and the Middle East?

Davis Langdon has been in Qatar for over 35 years and in the Middle East for over 60 years. During this time we have seen the country develop dramatically, most noticeably over the past 7 years. We have also expanded our operations here in the same peroid, where we currently employ over 70 staff and have plans to expand further in the coming 5 years. Davis Langdon currently has over

30 active projects in Qatar covering a range of market sectors and project scales. Our aim has always been to develop our business in response to the local market and as such we intend to ensure that with all our expansion plans continue to maintain a sustainable core business in the years to come.

As a majority of projects are being put on hold in the Middle East, especially in the UAE, how important is the Qatar Market to Davis Langdon?

Qatar is one of the most stable and prosperous countries in the world, and given the projected growth rate, there are an enormous amount of business and investment opportunities available. Despite its location and size the growth seen in the past and projected for the future , coupled with the ambitious plans already announced, means that there will be no shortage of interesting projects to explore.

Qatar’s market has always been important to Davis Langdon, and even more so in the past 12 months, where regional uncertainty has placed increased pressure on other offices in the region. We have established sizable offices in Bahrain, Dubai, Abu Dhabi and Beirut as well Wallstreet Investment Guide

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QATAR FOUNDATION

QATAR FOUNDATION as a growing presence in KSA. By having a diverse range of locations in the region we have been able to respond to those areas which have not suffered a significant economic slow down. Equally, by having over 90 offices around the world we are able to channel resources and business focus to a range of locations.

Can you describe for us Davis Langdon’s services to the QF, Education City project?

Traditionally Davis Langdon has focused on our core Quantity Surveying services when delivering Education City projects. However, in recent years, in response to the increased complexity and diverse nature of the design teams we have introduced design team project management, risk management, value engineering, specification drafting and sustainability advice to the overall range of services which we can and do deliver locally. Our investment in Doha can be demonstrated by the fact that we have been here for over 34 years and through that time we have seen market rises and falls.

We are committed to Qatar and we are currently exploring ways in which we can get more actively involved in the development of new initiatives within the local market and economy.

Qatari German Company for Medical Devices QATAR AS A REGIONAL HEALTH HUB: As Qatar is actively diversifying its booming economy across several sectors, billions of dollars is being invested to actively create world class facilities and services within the health sector in Qatar. The Ministry of Health in Qatar is very active in opening up the health sector by creating attractive investment opportunities for local, regional and international investors willing to call Qatar home. Some of the current active players within this sector include the government backed Hamad Medical Center (HMC), Qatar Foundation , Sidra Medical, and lets not forget the growing private organizations such as Al Ahli Hospital, and Qatari German Company for Medical Devices.

Eng. Hazem Al-Sharif, General Manager for Qatari German Company for Medical Devices, reiterated the importance of diversifying Qatar’s economy across a multitude of sectors.

Situated in the outskirts of Doha, Qatari German Company for Medical Devices is one of the few exporters of products in Qatar, excluding the energy sector, of course. QGMD is a pioneer Qatari manufacturer and exporter of specialized medical devices that is utilized not only in Qatar, but internationally, especially in the European markets in areas such as Russia, Ukraine, Greece, amongst others. But this Qatari manufacturer has expanded its exporting sights to other parts of the world including Turkey, Sudan and South Africa, just to name a few. It is no wonder Qatari German Company for Medical Devices is the largest medical devices exporter in the Middle East with sights to export to United States by the first quarter of 2009.

Qatari German Company for Medical Devices is a Doha Stock Market (DSM) listed company that specializes in the manufacturing and exporting of wholly patented medical

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devices such as IV Catheters, Standard Syringes, and Safety Syringes under the brand names of Q-JET, conventional single use syringes, Q-SAFE,Q-FLOW, IV catheters, and Q-NEED, needles. Similar to how the State of Qatar and its leaders have a vision of Diversifying Qatar’s economy; Qatari German Company for Medical Devices is also diversifying its product line to add two more products by the beginning of 2009. This falls directly in line with the government’s overall vision and commitment to diversify the economy as whole, its products, and its services for a long term sustainable Qatar.

COMPETITVE EDGE IS HIGH QUALITY INNOVATIVE PRODUCTS WITH LOW COST PRODUCTION. Qatari German Company for Medical Devices is a very streamlined organization with approximately 40 employees, yet the company has a capacity export of 450 million medical products per annum. This is due to state-of-the-art manufacturing facilities that is fully automated, an excellent knowledge base that is the result of high investment in human capital, and patent ownership from technology providers in Germany, Italy, and Switzerland. The QGMD brings credibility and trust with quality certifications and recognition, which includes ISO 9001:2000, CE- Mark, FDA 510K, PCT, and ISO 12385:2003.

Under the dynamic leadership of HH The Emir, Qatar has made rapid and progressive changes in its economy, and Qatari German Company for Medical Devices, with its young, dynamic management and experienced and qualified workforce, has taken the lead to be a part of this development by providing quality medical products locally, regionally, and internationally.

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Office of Metropolitan Architecture The Office for Metropolitan Architecture has a consistent objective in every project to provide the client with intelligent concepts and practical architecture that attempts to go beyond standard solutions. Their method for achieving this is based on two fundamental principles: research and collaboration.

WSIG talks to Holland’s Office of Metropolitan Architecture on working with Qatar Foundation Can you describe for us OMA’s services to the QF, Education City project?

OMA is designing three buildings for the Qatar Foundation in Education City, a 14 km2 campus composed of international and regional universities, on the outskirts of Doha. The new buildings are the headquarters for the Qatar Foundation, the Strategic Studies Center for the Rand-Qatar Policy Institute, and Education City Central Library.

Qatar Foundation is dedicated to fostering scientific research and community development in the region, and is chaired

by HH Sheikha Mozah Bint Nasser Al-Missnad. For the Foundation’s new headquarters, OMA conceived a generic cube, 57 metres tall, that will contrast sharply with the prevalent irregular-shaped buildings in Education City and in Doha generally. The building’s unique form and dilating grid

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screen / facade make it one of the most distinctive buildings in Education City. The cube is simple on the outside, but carved out to produce a complex interior space for 29,000m2 of offices in three main volumes: the Executive Tower, the Staff Tower, and Her Highness’ wing. These areas are composed around a central outdoor atrium protected from the sun and linked by a system of sky bridges. The building has office space for about 500 people, with meeting rooms an auditorium and lecture facilities.

The Strategic Studies Center for the Rand-Qatar Policy Institute is conceived as a rectangular think tank daringly suspended above a transparent entry level, presenting an image of openness while maintaining a sense of integrity. The think tank is a research/office space docked above a square entrance plinth partially submerged below ground, creating a stealthy contrast with the adjacent large Qatar Foundation headquarters. The building’s total area of 5,600m2 includes offices for the SSC’s research as well as public spaces for meetings and lectures. The offices are located on the upper level, with an auditorium and public spaces on the lower two levels. A central void connects the three floors and provides light and views. To realize Qatar Foundation’s vision of a library with a million books in its main collection, we conceived a building in which the entire collection would be instantly visible within a single space. Our design for the Education

City Central Library, with an area of 42,000m2, provides unprecedented immediate access to books – a reactionary approach to re-empower books as the primary medium of education and information in the age of digital technology.

The library’s form consists of two square plates (138m wide), pulled apart and folded diagonally at the corners to create a shell-like container. The sloped interior surfaces of the plates create three large terraces that are stacked with 300 bookshelves, visible from a central communal space called the Urban Plaza. The library employs advanced technologies such as automated book sorting systems, people movers, and electronic tagging to facilitate the easy retrieval of any of the million books in the collection.

AMO The counterpart to OMA’s architectural practice is AMO, a design and research studio based in the company’s Rotterdam office. While OMA remains dedicated to the realization of buildings and masterplans, its subsidiary AMO is a think-tank that operates in areas beyond the traditional boundaries of architecture and urbanism, including media, politics, technology, and art.

AMO’s resume includes work for the European Union, Universal Studios, Amsterdam’s Schiphol airport, Harvard University, Condé Nast, Heineken, and Ikea. Recent projects include the ongoing development of a curatorial masterplan for the Hermitage museum in St. Petersburg, conducting the research behind OMA’s Prada Transformer pavilion in Seoul, and producing the exhibition ‘Waist Down’ that appeared inside it; curating the exhibition ‘Dubai Next’ at the Vitra Design Museum in Weil am Rhein, and editing Al Manakh, a guide to the rapid transformation of the Gulf region.

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INTERVIEW: Gordon Jack

Resident Director Middle East & India, Atkins

O

riginally a family-owned business that began operations in the 1930’s, Atkins has now grown to become a London Stock Market listed, multinational engineering and design consultancy company that is known worldwide for planning and designing complex projects.

You dream it and they design and build it for you in the most environmentally and sustainable way possible.

Atkins is known for consistently being innovative when it comes to technology, design, implementation and the environment. It is no wonder that when Atkins decided to open up a Doha office, they immediately landed top projects with some of Qatar’s leading organizations, some of which include the Qatar Foundation, Education City, The Public Works Authority, Ashghal, Qatar Diar and Qatar Petroleum, among others. Whether a project involves the concept of a high-rise building, the improvement of a management process, or the concept of a rail network, Atkins is able to plan, design and enable a successful solution. That is why Atkins is regarded as the largest consultancy in the UK, as well as being the world’s eighth largest design firm, and the largest multidisciplinary consultancy in Europe. This allows them an unlimited access to an unrivalled pool of creative and professional people who are able to work cohesively in the most challenging projects worldwide.

With a global network of offices in North America, Middle East & India, Europe and the Asia Pacific regions, Atkins is able to provide services to a range of markets including Aerospace, Water, Defense, Education, Oil and Gas, Environment, Energy, Transport and Telecommunications market, among others.

“THE SIMPLEST ARTICULATION OF WHAT WE DO IS PLAN, DESIGN, ENABLE” This pretty much sums up what Atkins is all about. When it comes to planning, Atkins has proven time and time again to succeed in everything from cost and risk planning, feasibility studies and logistics, thereby “planning every aspect of our clients’ projects”.

In the design process, Atkins designs physical structures such as highways, schools and bridges.

Projects designed by Atkins all follow the same stringent quality standards synonymous with the

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Atkins brand. After planning and designing a project, Atkins takes it a step further with its stellar project management; enabling the project’s success with on time delivery and a cohesive management of all people involved. WSMR had the opportunity to talk to Gordon Jack, Resident Director, Middle East & India, Atkins, in their Doha Offices.

in every project is essential. We continually strive to work on projects that are also aligned with our overall vision of sustainability and technical innovation.When we spoke with Saad Muhannadi, VP Capital Projects, Qatar Foundation, he stressed the importance of companies in Qatar acting responsibly and being viewed as good corporate citizens.

How do you think the construction sector here will progress towards 2009? What is Atkins doing to ensure a market share?

The State of Qatar and its government are really forging ahead with projects that are invaluable to the development of Qatar.

There are many developmental projects still in the pipelines here in Doha. The New Doha International Airport (NDIA) worth several billion dollars is currently on the way. The Lusail Project is a major developmental project with the likes of Energy City and Entertainment City breaking ground, as well as the rail infrastructure projects with QDVC (Qatari Diar Vinci Construction), just to mention a few.

We understand that you are only as good as your last project.

Our work simply has to speak for itself, but we also have to leverage the advantage of the specialist skills we can bring to Qatar, especially in these current times. We consistently strive to work and build on tangible relations with each client and each project. This is because when you have personal relationships, you build trust with the client, thereby creating an amicable working environment. In Education City with Qatar Foundation, for example, we have worked hard with the client and everyone involved to improve communication and delivery mechanisms for the project. Striving for success

In what ways does Atkins contribute to the overall development of Qatar?

We consistently endeavour to be good corporate citizens in every market we enter. Instead of working on a project by project basis we seek to build long term relationships with our clients. We have invested in the State of Qatar by firstly opening a permanent office and tapping into the local talent.

We are becoming more involved in the education system here, and when it comes to the overall development of Qatar, we strive to produce quality engineering and quality infrastructure for the sustainable future of Qatar.

As one of the leading foreign companies that has been successful in Qatar, why invest in Qatar?

Qatar is a very interesting and dynamic place to be and work. Qatar is not only politically stable, it also boasts a very financially viable and sustainable economy with transparent business practices. We have been very fortunate to be in such an energetic and far sighted environment where the government is proactively working on building and developing a viable future for its people. We plan to be here for the long term and participate in the future development of the country, because we believe in the vision of the State of Qatar.

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L

egorreta+Legorreta is a Mexican architecture firm known worldwide for projects that have won numerous awards nationally and internationally. Established in Mexico City 40 years ago by Ricardo Legorreta, Noe Castro and Carlos Vargas Sr. Legorreta+Legorreta has managed to stay faithful to its original objective of creating the best architecture, inspired in human values.

During the 60s and 70s, Legorreta was well known for its work in projects such as the Camino Real Hotel in Mexico City, Cancun and lxtapa, office buildings for Seguros America, Banamex and IBM in Mexico, laboratories and factories for Kodak, Smith & Kline, Nissan and Renault, as well as low income housing projects for infonavit and several residential works.

In the 1980’s, Legorreta Architects began designing projects in other countries, with several in the United States, South America, The Middle East and Europe, where they have collaborated successfully with different local architects.

This allowed Legorreta to assist with local codes, gain continuous contact with the client and to elaborate more on construction documents.

In the beginning of the 90’s, Ricardo’s son, Victor Legorreta, joined the firm by leading a group of young architects.

Alongside Ricardo Legorreta, the two became involved in the design of all the projects. By 2000, the name of the firm changed to Legorreta+Legorreta, to represent not just a name, but a new organization with new philosophies and ideals.

During the last years, Legorreta+Legoretta has been working directly with the federal and state governments of Mexico, as well as with public institutions of several countries, in different architecture projects, master plans and interiors. Legorreta+ Legorreta develops Residential design, Hospitality, Institutional buildings universities, schools, student housing, museums, and religious centers, as well as factories, laboratories and renovations, both corporate and commercial. Legorreta +Legorreta has professional experience in several countries in which it collaborates with local architects and engineers as well as consultants, and the firm is currently in active in Mexico, USA, El Salvador, Honduras, Nicaragua, Costa Rica, Brazil, England, Germany, Spain, Greece, Japan, Israel, Qatar, Dubai and Korea.

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TOURISM

TOURISM

TOURISM

Cruise Ships According to the Qatar Tourism and Exhibition Authority (QTEA), cruise ships brought in 3,000 tourists to Qatar in the beginning of 2009. Despite the economic crisis and its subsequent effect on the travel and tourism industry globally, Qatar continues to receive more tourists each year as a result of thoughtful exposure and the QTEA’s wellrounded tourism strategy. Number of visitors to Qatar has increased from 400,000 in 2004 to over a million in 2008 and the government has announced an investment of US$17billion to improve the country’s tourism infrastructure over the next five years.

Tourism Overview F

ew destinations can compete with the unique hospitality Qatar offers its visitors. Plush up market hotels combined with impeccable and discreet service, wonderful restaurants and fantastic leisure facilities define Qatar’s tourism and hospitality industry. With more hotels underway, visitors to Qatar will have a wider array of choices to stay, shop, and dine in the future.

Hamad Medical City and the New Doha International Airport, strongly substantiates Qatar’s claim to becoming the desired quality destination for tourists from all over the globe. Hospitality and tourism are inextricably linked to the overall economic development of any country. Qatar is no exception. With the boom in the economy, there has been a positive rub off on the tourism sector.

The government and private sectors are developing several new hotels with projected room capacity from the current 6,500 rooms to over 17,000 in the next three to five years.

The contours of the hospitality and tourism industry in Qatar can be represented by two phrases: Unprecedented capacity expansion and ratings and classifications of hotels. The express purpose of the classification and ratings of hotels is “to prepare Qatar’s hospitality industry for the challenges of the 21st century”, according to Qatar Tourism and Exhibitions Authority (QTEA).

Accompanying the boom, is a rush of activities in the hospitality industry, where new hotels are being announced, existing players are doing capacity expansion and refinement, and the new international airport, which is currently under construction will aid in boosting Qatar’s tourism sector. In Hospitality 2010: A five year wake up call published by Deloitte, the firm states that “Gulf states are investing heavily in tourism infrastructure and markets such as Dubai, Qatar, Bahrain and Oman, will challenge the traditional continental Europe destinations for tourism, business, leisure and residential travel. Massive investments are already paying off as the Middle East is now the fourth most visited region in the world. Investment in tourism in the Middle East is the highest in the United Arab Emirates, followed by Saudi Arabia, with Qatar projected to have the highest growth.”These major investments are a result of the region’s efforts at reducing the economies’ dependence on oil and diversifying.

Together with the growth in number of hotel rooms, Qatar’s tourism sector is witnessing massive development in key niche market segments: sports, culture, education, medical and business tourism which will continue to dominate the growth graph. Landmark developments such as the Museum of Islamic Arts, The Pearl Qatar, Lusail, Qatar Science & Technology Park, Al Waab City, Al Khor Area Development,

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TOURISM Since early 2009 when QTEA reviewed visa procedures, and up until March, Qatar has received six tourist ships with varying numbers of passengers. The new rules allow authorities to process passenger visas within four to seven working days before the ship’s arrival. On the day of the ship’s arrival the passengers are received with fanfare and given traditional Qatari hospitality. To make their visit a memorable one, QTEA have made arrangements to specially welcome every tourist ship. They have a live band on standby and they are entertained by local divers as information brochures and maps are distributed. Part of QTEA efforts to boost cruise tourism was to ensure a deeper depth at the bay for larger ships at the old and new ports, as present facilities can only take in 200–230 meter long ships. QTEA is also planning to build a bigger arrival hall at the new port to receive guests. QTEA has also introduced a scheme called ‘Qatar 48’ where guests are invited to experience Qatar in 48 hours. The Souq Waqif and the launch of the Museum of Islamic Art have made the country much more attractive to visitors.

Tourism in trying times Held in April 2009, Qatar Summit, explored solutions to major human resource challenges facing the tourism sector.

The summit organised by QTEA, under the auspices of the Prime Minister and Minister for Foreign Affairs HE Sheikh Hamad bin Jassim bin Jabor al-Thani, had over 40 top guest speakers from the professional, institutional and academic fields of the tourism sector.

TOURISM UN World Trade Organisation’s (UNWTO) secretary general Taleb Rifai and ministers of tourism from Jordan, Lebanon, Tunisia and Syria as well as a group of panelists from Mexico, Australia, China, Spain and the Middle East also attended the event.

The QTEA also hosted the 32nd Commission for the Middle East of the UNWTO. The meetings were part of UNWTO’s roadmap for recovery for the tourism industry, to help not only the industry, but the global economy. Qatar’s hosting of the summit helped activate the UNWTO in the region by drawing from its wealth of experience, programmes and training expertise to boost the tourism sector while attracting attention to the region to assist in job creation.

The summit discussed creative approaches and best practices including sharing practical experiences of governments and institutions through manpower planning, addressing the image and working conditions of tourism jobs, and developing leadership in the sector. There was also a special focus on engineering education and training programmes, discussing how education and training for the region can provide for the future needs of the sector.

W Hotel

Redefining Luxury in Qatar

W

elcome to the new W Doha Hotel & Residences….

Founded in 1998 in New York City, WHotels continues to transform itself into a major global powerhouse in the tourism and hospitality industry. W Doha Hotel & Residences is the brand’s first hotel in Middle East region.

It is considered the stepping stone for the W brand’s foray to the Middle East and has been received warmly by the region. Designed by London-based United Designers, W Doha Hotel & Residences merges traditional Arabian imagery with the contemporary cool design of the W brand and the modern creativity of United Designers.

W Doha Hotel & Residences offers 291 guest rooms, 31 suites, and 154 W-branded Residences. It also features three stylish lounges for guests to mix and mingle, two concept restaurants by Michelin star chef Jean-Georges Vongerichten as well as the signature New York based Bliss Spa. Located in the Doha’s prime West Bay area of Doha’s city center, and overlooking the Arabian Gulf, W Doha Hotel & Residences brings new heights of luxury as the first lifestyle design hotel in the region.

It is no surprise that W Doha Residences are very popular in the local market, where residents have access to the W lifestyle as well as the hotel’s restaurants and lounges, fully equipped SWEAT gym, WET swimming pool and of course, the BLISS spa.

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TOURISM

Business & Leisure Q

atar is situated in the heart of the Arabian Gulf , which not only describes its geographical location but also the importance given to the country’s Arabian culture, heritage and warm hospitality. Holiday makers, business travelers and residents alike can enjoy Qatar’s year round sunshine.

Diverse activities, friendly people and a relaxing atmosphere define Qatar’s tourism sector. Tourism is afforded the same importance as other sectors, and thus the state provides facilities and incentives so that the industry can keep pace with other developments in the country.

The Qatar Tourism and Exhibition Authority(QTEA) was established with the aim of promoting the country locally, regionally and internationally, as well as to support activities relating to the general trends of the nation’s policies. Qatar’s surface is structured by a number of geographical features, which are distinctive to the west coast of the Arabian Gulf. Sand dunes in the country can reach an altitude of 131 feet above sea level, and traveling over them offers an unequalled view of the desert.

Surrounded by the Arabian Gulf on three sides of the peninsula, Qatar offers plenty of opportunities for water sports and cruising. Two artificial reefs have been built for scuba-diving and create a welcoming environment for marine life. A sunset-cruise on a traditional dhow in Doha Bay provides a stunning view of Doha at night.

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From tiny souk stalls, to the large shopping complexes, eager shoppers will find everything they need and more.

Qatar already hosts a number of world-class hotel brands, which provide safe and comfortable restaurant and spa facilities for the whole family. By 2016, the hospitality industry is expecting a capacity of at least 80,000 hotel rooms within the city.

The country is currently the building New Doha International Airport (NDIA) which is expected to bring in an Influx of tourist and business travelers in the country. The first two phases are scheduled to open in 2009 while the third and final phase is scheduled for 2015. The airport will be built over 13 square miles, on mostly reclaimed land. The expected capacity would be up to 93 million passengers, making it the second largest capacity holder in the region after Dubai. With the right planning, the tourism industry, like everything else in the country, looks set to develop at a measured and sustainable pace.

Qatar branding itself as a destination of Culture with the Qatar Islamic Museum

Q

atar Islamic Museum has truly put Qatar on the map in the arts and cultures scene. The museum opened in November 2008 by HH The Emir and HH Sheikha Mozah bint Nasser Al Misnad. The opening marked a milestone in the history of the country, unfortunately for Qatar, it had to compete with the opening of the Atlantis, on the Palm Jumeirah, Dubai, which was just days before. A tough one to beat! Never the less it was an impressive show. A galaxy of celebrities from Robert De Niro to Riz Khan, graced the VIP opening. Years of hoping and planning were fulfilled on that night, when the Museum of Islamic Art opened its doors to the world.

Standing on a specially constructed island, the museum creates a stunning visual image that was designed by renowned 90-year-old Chinese-American, I M Pei. The medieval mosque Ibn Tuloun, in Cairo, provided the source of inspiration in the design of the Qatar Islamic Museum.

Even if you are not a fan of Islamic Art, the museum is worth a visit purely for its impressive architecture. The museum is a visionary combination of the essence of Islamic architecture and extremely modern techniques.

Due to its physical isolation on the island, the Museum of Islamic Art is visible from much of the multi-lane Corniche and across the bay around. The museum is surrounded by

a formal alley of beautiful tall date palms and a sloping path with a cascade of water running through from the fountain plaza. Pei, who is also the designer of the glass pyramid in the Louvre, Paris took into consideration, the harsh climatic conditions like humidity and high temperatures while designing the project, so a specific type of natural stone that is resistant to water, humidity and heat was used. Built in honey coloured stone hues, the museum comprises a five-storey main building and a two-storey education wing, connected across a central courtyard and approached by two shaded pedestrian bridges.

Not only is the museum a breathtaking piece of architecture by one of the world’s most celebrated architects, it also houses a collection of a more than 800 rare masterpieces with exhibits arranged according to themes. The awe inspiring assemblage of carpets, textiles, calligraphy, metalwork and miniature paintings on display comprises pieces from the Islamic world from the seventh century onwards, embracing the creativity of 13 centuries and spanning countries across the world. The collection represents the fullest scope of Islamic art and includes manuscripts, ceramics, metal, glass, ivory, textiles, wood and precious stone from places like Spain and India. Many objects from Middle Eastern countries are included. The eye catching collection of Wallstreet Investment Guide

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City Center Doha City Center Doha opened on the 15th of April 2001 marking the beginning of the term “Shopping Center” in Doha. City Center is the pioneer in one destination shopping with prime locations in the heart of Doha, in the emerging West Bay area. It is the largest mall in Qatar with over 300,000 m2 spanning across 5 floors with 373 retail shopping units & more than 120,000 square meters of prime leasable area. City Center is subsidiary under Aamal Company and is managed by ECE Projektmanagement, the European market leader in the shopping center business.

priceless jewels is hard to miss, a cup carved from a solid emerald and a jade amulet worn by the Moghul emperor Shah Jahan himself in the 17th century are highlights.

For those who are not aware, this is not the first time Qatar has made history in the museum world. In October 1977, when the Qatar National Museum opened in the converted buildings of a former palace belonging to the ruling family, it was the first of its kind in the Arabian Gulf. Housing the largest collection of ethnographical, ecological and historical material assembled in eastern Arabia and the Gulf in the seventies it set a new standard for such institutions in the Middle East. Three decades later, Qatar once again leads the way in setting new standards in the museum world, not only in the Arabian Gulf but worldwide.

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What impact does City Center have on the Retail sector here in Qatar?

As City Center is the pioneer in one stop destination shopping in Doha, I really believe City Center is the primary meeting destination for families and friends to spend time together, whether it be for coffee, to watch a movie, or to shop. The vision behind City Center is as a tourist location and as an ideal place for the local and international community to congregate socially, while having all their shopping. At the moment, City Center has more than 370 retail shops with a variety of well known international, regional, and local retail brands and services all spread across five floors. Some of the well known brands include Carrefour, Home Center, Debenhams etc. We currently have complete service facilities with spacious car park areas, 18 elevators and 8 travelators, 26 escalators, 15 prayer rooms and 26 restrooms. City Center Doha boasts a range of family entertainment venues with a 14 screen Cinema complex, 2 food courts, 33 restaurants, children's entertainment area, an ice rink and a Bowling alley. So, one can see that City Center is really a one stop entertainment destination for all.

In addition to Carrefour and Mango among others, what other plans does City Center have in creating a larger mix of products and services for the shopping center?

Not only are we offering big brand names, we are also offering brands from a wide variety of interests. Unlike other shopping destinations that cater primarily to the Luxury market, City Center Doha is catering to a variety of tastes and income levels. We want to encompass the entire gamut of Qatar’s

growing economy by introducing a balanced mix of brands and branches for all target groups. Instead of being exclusive, we wish to be inclusive to all the prevalent target groups in Qatar especially to families.

With difficult current economic times, how has this affected City Center and Qatar’s retail sector?

Because Qatar is a liquid market that is tied to a tangible product, we have not felt a drop in purchases or towards space lease. At this moment, there is a waiting list to lease a shop here at City Center. Because Qatar is a vastly developing country, you will find that, in spite of the current financial crisis, roads must be built, development projects must go on, hospitals must be built, the overall infrastructure of Qatar must go on, and this requires human capital. Company employees must have social lives in order to function adequately, people have to shop, eat, and play, and that is what City Center offers. A break from the everyday life for Qatar residents, and tourists, and a meeting point to relax and enjoy ones’ families and friends. So we do not find any changes so far in consumer spending.

How is City Center Doha reinventing and maintaining its top status in the industry?

City Center is currently the largest and the most attractive shopping mall, not only for retailers, but also for residents and tourists alike. We are currently in a reconstruction phase to increase the tenant mix, create more choices and create more value for our discerning clients.

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SPECIAL FEATURE

African companies making headway in the continent.

Nigeria's HiTV, really spearheading the way in entertainment.

I

ncorporated in February 2006, Entertainment Highway Limited (EHL) provides a platform for the broadcast of quality programmes in genres like music, sports, news, film and general entertainment.

EHL operates HiTV- the fastest growing Direct to Home (DTH) TV service in Nigeria. By using DTH satellite technology, we can provide digital transmission with world class clarity and picture quality. Our company’s tremendous growth is driven by HiTV’s majority broadcast rights to the Barclay’s Premier League and recently, exclusive broadcast rights to the UEFA Champions League across Nigeria. Also, we operate a business model premised on affordability which has endeared our brand to the hearts of the Nigerian public, coupled with our ‘Proudly Nigerian’ positioning. Our platform currently offers thirty channels, giving unrivaled value to our teeming subscribers.

We are focused on being the preferred medium of delivering the very best of information and entertaining channels into every home in Nigeria. With a current subscriber base of 230,000, we continue to deploy technologically advanced digital broadcasting systems, acquire and build highly rated world class channels, employ and develop a highly proficient pool of Human capital and adopt strategies that will deliver excellent corporate performance, exciting quality and sustained subscriber satisfaction CHANNELS CURRENTLY ON THE EHL PLATFORM HITV-owned Channels hi nolly: hi nolly showcases the very best of Nollywood, the next rated movie industry after Hollywood. It features recent movies, series and documentaries. hi mix: hi mix is a general entertainment channel covering a broad range of foreign genres. It Showcases hit dramas, sitcoms, block buster movies, talk shows, reality shows and lifestyle programming. hi movies: Recently launched, hi movies is a wholly movie channel offering recent, top of the range content. hi soccer: hi soccer is a 24 hour soccer channel showing live, delayed and repeat matches, highlights, magazine shows and other soccer related programming from the best leagues in the world including the Barclays Premier League, UEFA Champions League, UEFA Europa League and Carling Cup. hi sports 1: hi sports 1 offers viewers the very best in top

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quality sports action from around the world. The channel broadcasts a mix of sports programmes such as wrestling, athletics, and tennis e.t.c hi sports2: hi sports 2 serves as a spill-over channel for other live sports events. hi kids: hi kids is an edutainment channel that caters to children and families with a mix of carefully selected animated shows and live-action series.

Nigezie: Nigezie is a music and lifestyle channel with main focus on Nigerian artistes, music videos and general entertainment. This channel adopts a glitzy presentation style with trendy programming and up-to-the minute information fresh off the local and international show biz circuit.

In line with diversifying its product offerings, HiTV also showcases international channels, some of which include, Movies/General Entertainment: Sony Entertainment TV (Africa), Zee cinema, Animax, BET, and E! Entertainment, Lifestyle/Religion: GOD TV, Sports: Eurosport news, Setanta Africa, News: BBC World news, CNBC Africa, Fox News, Sky news, Aljazeera (English), Bloomberg, Kids Entertainment: Kidsco, Nickelodeon, Music: Trace TV, Documentaries: Discovery World Other product offerings include Indigenous Channels, which include, Movies (strictly Yoruba): Amuludun, Lifestyle: Biscon, Religion: Dove TV, General programming: TVC CONTACT DETAILS Entertainment Highway LIimited: 10 Ondo Street Ebute-metta, Lagos Phone: 01-8990003-9 HiTV 25B Karimu Kotun, Victoria Island, Lagos Phone: 01- 8990880 Website: www.hitv.com.ng

SPORTS TOURISM OVERVIEW

SPORTS TOURISM OVERVIEW

SPORTS TOURISM OVERVIEW

Sports in Qatar Q

ataris love sports! Football is the national sport and it is played with passion both in stadiums and on roadsides.

Tennis is a close second on the favourite list and can also be watched and played at many venues around the country, including tournaments held at the Khalifa Tennis and Squash Complex. In 1970 The Qatar Olympic Committee (QOC) was established and joined the International Olympic Committee (IOC) in 1980. The President of the QOC is the Heir Apparent His Highness Sheikh Tamim bin Hamad Al Thani who has held this position since 2000.

Qatar also has a beautifully maintained 18 hole championship golf course, home to the Qatar Master’s Tournament, complete with top instructors, driving ranges and a sports shop. There are also horse riding courses and shows that exhibit HH The Emir’s internationally recognized Arabian horses. For aquatic lovers, several clubs and hotels, particularly in Doha, offer great sailing (including an international regatta), jet skiing, scuba diving, and swimming options. Qualified coaches in various sporting activities are available to offer training sessions and lessons for children and adults. The camel races and horse races are held in cooler months.

Qatar’s recent success in various sports disciplines and its emerging status as a sports powerhouse is credited to good infrastructure and a pool of federations that are efficiently managed by a team of administrators under the dynamic leadership of HH The Heir Apparent Sheikh Tamim bin Hamad Al Thani. Qatar’s sports tourism sector has never witnessed a

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flurry of activities as it is now. Tournaments such as the Qatar Open and the Qatar Masters are helping Qatar achieve its goal of defining itself as a world class sports destination. After successfully staging the 2006 Asian games and bidding for the 2016 Olympics, Qatar is geared to host more world class sports events of global appeal.

Qatar hosts numerous international, regional and local championships that have drawn the world’s attention and given the state a prominent place in the international sports map. Events such as the Qatar Open Tennis Tournament, organized by Qatar Tennis Federation, the Qatar Masters Squash Championship, organized by the Squash Association , Qatar Gymnastics Grand Prize, organized by the Gymnastics Federation , MotoGP, Grand Prix of Qatar, organized by Qatar Motor & Motorcycle Federation , Qatar International Bowling Championship, organized by the Qatar Bowling Federation and the Qatar International Rally, organized by Qatar Motor & Motorcycle Federation are some of Qatar’s notable events.

Nasser Al Attiyah Qatar Champion Rally Driver

N

asser Al Attiyah is Qatar’s national symbol of motorsport, both internationally and locally, being the first Arab driver in history to win a World Rally Championship (WRC) crown after clinching the 2006 Production World Rally Championship (PWRC) title.

Barwa is the ace rally driver’s current sponsor. The contract comes as part of the company’s policy and commitment in supporting successful sporting Qatari talent. As part of its corporate social responsibility, Barwa Real Estate Compnay will sponsor Nasser ’s participation in the World Rally Championship (PWRC), Middle East Rally Championship (MERC) and the Dakar Rally Championship.

“He needs our support and encouragement to maintain his results in his upcoming participation in regional and international competitions. As a result of the sponsorship agreement, the Barwa World Rally Team will sponsor Nasser Al-Attiyah in the WRC and MERC for three years, while the Dakar Rally will be for one year, to be later reviewed for future sponsorships." Barwa’s Chairman, Ghanim bin Saad al Saad commented that “Barwa is a firm believer in promoting entrepreneurship of all kinds and our commitment will not be restricted to sponsorship but also to start an academy with Nasser to provide guidance to identify and train talented Qatari youth into world class drivers."

In a press conference announcing the sponsorship, five time Middle East Rally and 2006 Production World Rally Champion, Al Attiyah expressed his happiness with the contract and conveyed his appreciation to Ghanim bin Saad al-Saad and the Barwa

management. Later addressing mediapersons, Al Saad said the agreement had been signed as the company was aiming at addressing a bigger worldwide market segment and to tap into newly targeted investment markets during the year. Al-Attiyah is currently ahead in the MERC standings after the second leg in the seven round series, after completing his 31st regional rally victory in Kuwait, Nasser finished third overall in Group ‘N’ in the Cyprus Rally.

With three FIA’s triumphs, was 2008 a good year for your career?

2008 was a rewarding year for me. The three FIA title triumphs made it possible to garner more support from my country. The support I receive from the government helps me keep my mind focused and also helps me set high career goals each year. My sole aim is to keep winning for my country. It is an honor to do something you love while getting support and accolades from your own country. I hope to continue winning rallies and I am determined to scale new peaks and raise the bar to win four FIA titles with an additional participation in the Production World Rally Championship. Winning the Dakar Rally would be a nice way to begin the year prior to my participation in the Middle East Rally Championship and other events.

How do you want to be perceived in the world of sports?

I will like to be known as a sportsman that dares to dream big and attain set goals with hard work. Giving my very best performance in every event is the only way I can justify the faith placed on me and my responsibility to my family and my country.

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SPORTS TOURISM OVERVIEW

SPORTS TOURISM OVERVIEW

Qatar Motor and Motorcycle Federation: Another growing sports sector

The Qatar Motor and Motorcycle Federation (QMMF) has become synonymous with sporting success in the Middle East and has made tremendous developments in a very short time. QMMF is appointed by the FIA and the FIM to promote and organize National and International Motor and Motorcycle Sport in the State of Qatar. They are also the sole governing body for both sports in Qatar. It is the QMMF’s responsibility to license, permit and authorize motorcar and motorcycle sports in Qatar as well as organize the major two and four wheeled motor sports events in the country.

With humble beginnings, from a few races in the season, Qatar Motor and Motorcycle Federation is now staging several events every season. Local and internationally acclaimed names in motorsports have all participated in Doha. Sensing the growing popularity of the sport in Doha and the continued interest in motorsports from fans, QMMF launched its website to communicate with its worldwide supporters and fans. Nasser Khalifa Al-Attiyah, President of the Qatar Motor and Motorcycle Federation (QMMF) has been very influential in bringing Moto GP and Superbike racing to the Gulf region and equally enjoys his occasional return to the rally driving seat. In 1993 he was runner up in the FIA Middle

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East rally series. He now attends many of the region’s motor sport events and has taken part in recent rallies in the UAE and Saudi Arabia, where he recently participated in the 2009 Abu Dhabi Dessert Challenge in which he drove a powerful Nissan Patrol.

2009 also saw the launch of the Speedcar Series at Losail International Circuit where Qatar’s first night took place in February 2009. Fourteen drivers including MotoGP Champion Marco Melandri and over seven teams competed in the two day race weekend on the 5.4 kilometer long track.

Qatar Sailing Federation Sailing is becoming an increasingly popular sport in Qatar.

Large sailing vessels are built for catering to numerous offshore races. Tourists fond of sailing in Qatar can also opt for adventurous rides in the Gulf waters. In the past, sailing was a popular activity among locals, thus the push in its revival. The most popular venue for sailing in Qatar is the Corniche, where sailors enjoy the crystal clear Gulf waters along with spectacular views of the city. Many popular hotels and beach clubs organize regular sailing for their guests. Qatar Sailing & Rowing Federation (QSRF) was formed in May 2003. The main aim of the Federation was to ensure implementation of the Olympic Charter and

promotion of sailing & rowing activities in Qatar. QSRF is controlled by an Executive Committee under the leadership of Khalifa Mohameed Al Suwaidi. QSRF conducts all its activities from the platform of Doha Sailing Club (DSC). DSC is a private club with 250 members. All residents of Doha including expatriates and visitors can become members.

The federation has all necessary facilities for sailing, rowing and coaching with various types of boats. Many boats are available to the federation.

A new sailing and rowing school has been created with Rashid M. Al-Sulaiti as its director general and Captain (R) A R Arshad as its director. The Federation has full time coaches and many part time coaches that offer beginner classes. QSRF organizes regular National & International events including Sail the Gulf, Gulf Trophy and Match Racing which are conducted every year and attended with great enthusiasm by all international Sailors. The Federation believes in social activities where a number of functions, ‘get togethers’ and social evenings are organized throughout the year.

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SPORTS TOURISM OVERVIEW

SPORTS TOURISM OVERVIEW

to collaborate and complement each other for the overall success of Aspire’s students, parents, and community.

Aspire aims to discover and develop sports talent, as well as achieve international excellence in sports performance, to provide an exceptional physical and educational environment, to provide the highest international standards of sports sciences, training and support, while integrating sports into the life of the people of Qatar.

Aspire aspirants have to go through a series of evaluations which are in phases of Bronze, Silver, and Gold ASPIRE. These tests are carried out in different independent schools, all Ministry of Education schools, private schools and all sport federation athletes are encouraged to participate in the two week test period. The Academy’s growth strategy is an organic growth method where quality precedes quantity. In 2005, the academy accepted approximately 60 students. Eventually, the goal is for everyone from ages

12 to 17 to be tested annually through the ASPIRE Talent Identification program.

This talent identification program consists of three stages to find the best students with exceptional physical talent, after which these students will be filtered into the ASPIRE sports division to be trained by highly qualified coaches and teachers.

Qatar is branding itself as a major sports hub, not only in the region but also in the world. Qatar successfully hosted the Asian 2006 Games, it proudly bidded for the 2016 Olympics with confidence and pride, and Doha is set to host the 2012 Asian Football. The sky is the limit for this little peninsula state with major sports aspirations. The ASPIRE Academy is proudly aiding in Qatar’s quest to becoming a sports city by not only hosting sports events but also taking the time and patience to nurture, train, and educate its future superstars.

Aspire to Inspire A

spire is a place for those who dare to dream. Aspire is Qatar’s visionary sports academy that launched its academic curriculum in September 2004 with a vision to discover the best young sporting talent in the region and transform them into world renowned champions. This will generate a sports culture in Qatar where each generation of athletes inspires the next. This seems like a dream, but in Doha, it is actually a reality, where the state of Qatar and its people have invested heavily in the sports culture.

The dome, as it is fondly called, is the Aspire Dome widely known for its state of the art facilities and world renowned, international-standard training facilities, some of which include the state-of-the-art fitness halls, a state-of-the-art physiotherapy and medical center, state-of-the-art sports science labs with high altitude labs, power analysis labs, physiological labs, sports equipment labs, a mechanical and electrical workshop and an official size football pitch, a small football field, a 200 meters athletics track, an Olympic and diving swimming pool, 13 table tennis courts, a gymnastics hall, 2 squash courts and other technology driven sports facilities. Aspire is the reality of the idea that world class athletes and the next generation of athletes need world class facilities.

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Besides the physical facilities Aspire has to offer, Aspire is on the cutting edge of technology and methodology by integrating its training with intensive, comprehensive and intellectual education where all needed support is given to its athletes. Some of the services Aspire offers include scholarships and grants to less privileged athletes in developing countries, state of the art facilities that abide by international standards, not to mention an excellent educational institution for sports athletes, as well as short term camp training options during the summer and winter breaks.

Aspire’s Mission is to establish the organization as an elite sports institute developing exceptional athlete. The academy also integrates this training with an intensive and comprehensive education system where all students are given the training they need.

The Aspire Academy as a whole is a massive establishment consisting of five major departments which includes the sports department, the quality management education and social affairs (QESA), the IT department, communications, and finance and administration (F&A).

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SPORTS TOURISM OVERVIEW

QMSF: Emerging Marine Sports in Qatar T

he Qatar Marine Sports Federation was formed in January 2000 under the auspice of the Heir Apparent HH Sheikh Tamim bin Hamad Al Thani. The main aim of the Federation is to ensure implementation of Olympic Charter and promotion of power boating in Qatar under the leadership of Sheikh Hassan bin jabor Al Thani, the driving force behind this emerging new sport. The QMSF receives an annual grant from Qatar Olympic Committee (QOC). Under the leadership of Sheikh Hassan Al Thani, QMSF strives to be the pioneer and organizer and host for all primary water sports in Qatar. The federation currently hosts and organizes the world class events such as the annual Class 1 Offshore World Championship, and Formula 2000 Championship in Qatar. Under the QMSF umbrella includes the Class 1, Class 3, Formula 1, Formula 2000, Pleasure Boat, Dhow Sailing, and Jet Ski activities.

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The federation has all facilities for, Power Boating, Sailing, Rowing and coaching with various types of boats. Some of the exciting events in the current calendar can be viewed on its website.

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SPORTS TOURISM OVERVIEW

Prestige Rental Feature W

arm clear waters, white sandy beaches and constant sunshine are just a few of what Doha has to offer.

Exclusive shopping malls, an international assortment of restaurants and hotels with excellent service, wonderful traditional shopping souqs, not to mention the new Doha Islamic Museum, and you have got a new business and tourist spot in the Gulf. Stick around more and you may have celebrated Andy Murray win the Qatar Open Tennis Match or you may have stepped on the greens when the world’s most celebrated golf players played in Doha at the 2009 Qatar Masters. Don’t be surprised! This is all happening in Qatar.

All the international acclaim in Doha, politically, socially, and economically has inspired the country and its citizens to focus on its services and infrastructure, from how business is conducted, to how services are provided, accessibility to information, etc. Businesses know this and will invest in knowledge transfer and know how to really understand how businesses work on a global scale. One of the premier business groups that have taken the baton and ran with it is The Alfardan Group of Companies, with its selective and diversified portfolio of businesses, including automotive, real estate, exchange, jewellery, and marine service divisions.

Under the Alfardan umbrella is the Prestige Rental Cars Company that really embodies the idea of “Diversifying with a Vision”. Prestige Rental Cars is not just an auto rental company, it is also diversifying its services with its current focus on long term leasing services, conferences and events.

Organizations are quick to list their services, but Prestige

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Cars Company achieves them as is evident in the recent success of providing all the transportation and logistics needed during the Qatar 2009 Masters Open. Qatar has currently been hosting major VIP events and conferences, whether it is sport related, economic or politically related, and one never fails to find Prestige Cars Company at the center of it all.

According to Prestige Management, the organization maintains its trusted name in Qatar by investing in trusted staff, excellent service, unparallel luxury and selection of up to date, luxury brands such as BMW, Land Rover, and the now currently available Jaguar Brand. Established as a subsidiary of Alfardan Automobiles in 1997, Prestige Cars has become the most trusted name in Qatar when it comes to leasing, rental and limousine services. Prestige Rental Cars Company has serviced some of the largest events in Qatar’s history, including government conferences and meetings, sporting events and multi-national gatherings. Prestige Cars caters to Qatar’s most distinguished businesses, working with corporate and individual customers through special outlets at five star hotels including The Ritz-Carlton Doha, the InterContinental Doha, and the Sheraton Doha. Providing a mix of services, Prestige Cars is repeatedly called upon for its rental, limousine and leasing services.

The company distinguishes itself by continually providing excellent service and a luxurious experience. Every facet of the organization is geared towards customer satisfaction.