04 qt april '14

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inside this issue APRIL 2014 / VOL. 40/ ISSUE 4

COVER STORY

34 THE INSURANCE DEBATE

56 ENTREPRENEURS IN A CLIMATE OF PLENTY

26 A HUMAN CAPITAL CATASTROPHE

74 THE FUTURE THROUGH SAP'S LENS

48 FOOD FOR THOUGHT

88 NO MOUNTAIN TOO HIGH

Rising income levels, burgeoning populations and robust economic growth in the GCC countries are defining the course of the insurance and reinsurance sectors, which have witnessed rapid growth during the past decade. Qatar Today takes a look at recent developments in these sectors in the region,

The oil and gas industry, globally, is going to face its toughest time ever with a rare kind of drought – the decline of experienced technical hands,

With several different ministries currently involved in the regulation of food outlets, Qatar is in the process of changing the way it keeps food at restaurants safe.

With an economy as thriving as Qatar’s and growth that has no intention of slowing down any time soon, is there any incentive to take the risk of starting your own business? Here’s why Qatar is the perfect setting to jump-start an entrepreneurial ambition.

A tour of SAP's stand at the Mobile World Congress and talks with some of its top executives highlight some of the more diverse and cuttingedge areas the company is working in.

The How Women Work (HWW) conference was a meeting ground for eager minds – of the female kind.




inside this issue APRIL 2014 / VOL. 40/ ISSUE 4

16 QATAR'S PROJECTS GAIN PACE

Qatar’s project activity, which started in 2013, is expected to gain momentum this year with contracts to the tune of $29 billion (QR105.56 billion) likely to be awarded in the coming months.

24 THE REAL BENEFITS OF VIRTUAL IT

In the current business environment, corporate IT departments are scrambling to keep pace with new technologies. An increasing number of employees want to work on their own mobile devices, rather than corporateissued desktop PCs.

30 VALUE DESTRUCTION

Value creation isn’t just about financial improvement; it also involves taking steps to mitigate issues that can damage a business’s value.

62 GENERATION GULF

In his new book Tocqueville in Arabia: Dilemmas in a Democratic Age Joshua Mitchell discusses how today's young Khaleejis balance modernity with tradition.

53 A LANE OF THEIR OWN

With Doha gradually installing cycling facilities all over town, could the sport become a larger part of daily life in Qatar?

91 TAKING A LOOK BACK

The collaborative partnership between the British Library, Qatar Foundation and Qatar National Library has begun to reveal moments in Qatar's own history, from the vast collections of the India Office Records.

and regulars 12

NEWS BITES

18

BANK NOTES

20

O&G OVERVIEW

21

REALTY CHECK

78

TECH TALK

80

SPORTS

85

AUTO NEWS

87

MARKET WATCH

92

DOHA DIARY



from the desk March 27, 2014 will go down in the history of Qatar’s courts as the day they handed out two landmark verdicts. One made us rave about the justice of the court proceedings that gave a death penalty to a Qatari for raping and brutally murdering a British teacher; the other, where an American couple were sentenced to three years in jail for the murder of their adopted child, showed up glaring deficiencies in the judicial system, and underlying prejudices. What is justice when it is realised through a veil of cultural preconceptions? It's the same prejudice that we thought the Western media were influenced by when they looked at labour and worker issues in Qatar, and assumed the deaths and projected deaths of workers were all caused at building sites, a fact that the authorities have vehemently denied. This month the European Parliament’s Ad hoc delegation on the situation of migrant workers visited Doha, and although they seemed optimistic about the direction that Qatar is taking, the fact remains that the picture that has been painted is mostly true. The opportunity has presented itself, with the 2022 World Cup, to change that picture, and it is being utilised. One step towards workers' welfare is the health insurance scheme that is being made mandatory for all residents in the country. The insurance sector in Qatar is poised for growth, and health insurance is just one of the drivers. With a compound annual growth rate of 17.9% between 2006 and 2012, Qatar is viewed as the second fastest growing insurance market in the GCC region. This month Qatar Today finds out more about this sector. Qatar looks at food safety rules very conscientiously, and restaurants being closed down by a directive from the Municipality has now become a norm. While consumers benefit from this approach, the restaurant owners are usually left in the dark with no communication to support the action. Greater transparency and a new set of regulations are set to bring about changes inthe system. Our intern from Northwestern University pursues the trail. And we have plenty more interesting stories – on the dearth of professionals in the oil and gas sector, the rise of the entrepreneurial mindset, activities in Doha like the fascinating talk by a media expert, and an avid enthusiast's take on Maserati. Please read on.

SINDHU NAIR



PUBLISHER & EDITOR-IN-CHIEF YOUSUF JASSEM AL DARWISH CHIEF EXECUTIVE SANDEEP SEHGAL EXECUTIVE VICE PRESIDENT ALPANA ROY VICE PRESIDENT RAVI RAMAN EDITORIAL EDITOR SINDHU NAIR DEPUTY EDITOR V L SRINIVASAN SENIOR CORRESPONDENTS EZDIHAR IBRAHIM ABIGAIL MATHIAS AYSWARYA MURTHY SUB EDITOR SUE EEDLE ART SENIOR ART DIRECTOR VENKAT REDDY DEPUTY ART DIRECTOR HANAN ABU SAIAM ASSISTANT ART DIRECTOR AYUSH INDRAJITH SENIOR GRAPHIC DESIGNER MAHESHWAR REDDY PHOTOGRAPHER ROBERT F ALTIMIRANO MARKETING AND SALES SENIOR MANAGER – MARKETING ZULFIKAR JIFFRY ASSISTANT MANAGER – MARKETING THOMAS JOSE SENIOR MEDIA CONSULTANTS HASSAN REKKAB LYDIA YOUSSEF MARKETING RESEARCH AND SUPPORT EXECUTIVE KANWAL BALUCH SENIOR ACCOUNTANT PRATAP CHANDRAN DISTRIBUTION SR. DISTRIBUTION EXECUTIVE BIKRAM SHRESTHA DISTRIBUTION SUPPORT ARJUN TIMILSINA BHIMAL RAI BASANTA POKHREL

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affairs > local

IT’S A PROBLEM FOR ANOTHER DAY HH the Emir Sheikh Tamim bin Hamad Al Thani attends the Arab League summit. Palestine, Syria and economic development were on the agenda; the widening GCC crisis was not. It was to be resolved within the Gulf and not at this meeting of Arab states, it was reported. AFP PHOTO/YASSER AL-ZAYYAT

MORE AND BETTER SCHOLARSHIPS ANNOUNCED

At the first Higher Education Forum held recently, new scholarship policies were discussed, giving more students opportunities to pursue their education abroad.

Dr Khaled Al Hurr, Director of the Higher Education Institute at the Supreme Education Council, announced that Qatari students can now take advantage of a 20% increase in financial incentives (with an added 10% if they are pursuing medical or bioscience streams). To give more students the chance to study the subject matter of their choice, the number of universities that students can apply to has been increased by 560 from the current 900, the new universities being situated mainly in the UK, the US and Australia. Foundation courses and, in some cases, language courses will also be supported under the scholarship in addition to extra financial aid for students who perform extraordinarily. 14 > QATAR TODAY > APRIL 2014

DEEP RIFTS IN THE GCC ON THE MUSLIM BROTHERHOOD ISSUE

A diplomatic standoff that began with three GCC countries withdrawing their envoys from Doha over Qatar’s role in supporting the Muslim Brotherhood has yet to be resolved.

T

he UAE, Saudi Arabia and Bahrain made a joint announcement recalling their ambassadors from Doha after Qatar refused to temper its support for the Muslim Brotherhood and to curb Qatar-based Egyptian cleric Yusuf Al Qaradawi’s fiery rhetoric against the UAE. Qatar had pointed out that Qaradawi didn’t represent the country’s foreign policy, which wasn’t susceptible to external pressures, but decided not to retaliate by recalling its own diplomats. The situation continued to deteriorate with the Saudi Kingdom reportedly making several demands of Qatar and asking Saudi citizens working in the media in Qatar to resign immediately, amid reports that it would close its borders with Qatar and ban Qatari planes from using Saudi airspace. It was under this cloud that the Arab League summit commenced in Kuwait, under the auspices of Kuwait’s ruler, Sheikh Sabah Al Ahmed Al Sabah, who is expected to mediate between the four GCC states.


EUROPEAN PARLIAMENT DELEGATION VISITS DOHA

Delegates from over seven European Union member countries were in Doha for two days, discussing bilateral trade, cooperation between regional blocs and Qatar’s efforts to improve the situation of migrant workers.

T

he European Parliament’s Delegation for relations with the Arab Peninsula (DARP) and an ad hoc delegation composed of members on the Committee of Foreign Affairs and the Subcommittee on Human Rights visited Doha between March 23 and 25, meeting a range of officials including Prime Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Minister of Culture HE Dr Hamad bin Abdulaziz Al Kuwari, senior government officials and representatives of the Shura Council, Hamad Bin Khalifa University, the Qatar Investment Authority and Qatargas. Angelika Niebler, Chair of DARP, stated there were a lot of fruitful discussions around Qatar’s commitment to supply gas to European Union states whose energy supply might be held hostage to the Crimean crisis; promoting cooperation in research between the universities in Europe and Education City; and pushing for a region-to-region free-trade agreement between the GCC and the EU. The Ad hoc delegation on the situation of migrant workers was chaired by Mario David, who commended the Qatari authorities across various levels of government for their willingness to talk frankly about these sensitive and serious issues.

“There is an open spirit," he said, "and that makes me optimistic that there will be fundamental changes in the way of life of the migrant workers here, including domestic workers who suffer many abuses behind closed doors.” He mentioned that many of the laws already in place, if implemented properly, can improve the situation dramatically. “The Qatari government is serious about introducing deep reforms in the kafala system; a law has already been passed which bans the confiscation of passports. Wherever we went we kept hearing the word ‘catalytic’. There is no doubt that the World Cup is being used to drive change in various spheres,” he said, praising the stamina and enthusiasm he found at the Supreme Committee for Delivery and Legacy offices as contagious. Richard Howitt MEP, Spokesperson of the Socialist and Democrat Group on human rights, said that three tests would confirm whether future reforms were “genuine or in name only” – abolishing the exit permit system, allowing expats to change jobs without the permission of their employers, and transferring sponsorship from the employers to the government. The delegation also visited the Detention and Deportation Centre and met with many of the migrants detained there.

HILTON’S NEW HOTEL AT THE PEARL

ROB PALLESCHI, Global Head, Hilton Hotels & Resorts, alongside ALA RAMDAN, VP, First Qatar Real Estate Development Company Hilton Worldwide, along with First Qatar Real Estate Development Company, will open Hilton Doha The Pearl Residences by early 2017. The new 41-storey, 445-room hotel will comprise a mix of serviced apartments from small studio units to expansive three-bedroom apartments, penthouses and townhouses. The hotel will feature three boardrooms, a business centre, a large health club and an outdoor swimming pool. Dining options will include a lobby lounge, an all-day dining outlet, a specialty restaurant and a pool bar. QATAR TODAY > APRIL 2014 > 15


affairs > local

RESULTS OF INVESTIGATION INTO DEADLY BLAST REVEALED

The blast was the result of human error and not a deliberate act, officials said at a press conference.

T

he 1,000-litre gas tank belonging to Woqod was not the cause of the blast at the petrol station, the Ministry of Interior’s Forensic Lab Department Chief, Brigadier Hassan Ahmed Al Obaidly, announced at a press conference. After a “detailed and careful” analysis, it was found that the explosion was caused by a gas leak in a pizza oven that had been left open since the restaurant closed the night before. For more than seven hours flammable gas filled up the restaurant, and it finally ignited after the regular operation of some electrical appliances in the neighbouring restaurant caused a spark. These findings have been forwarded to the public prosecution to complete its own investigation and proceedings, it was reported.

MOI AND INTERPOL SEIZE COUNTERFEIT GOODS

In a five-day operation called "Shaheen", raids were conducted leading to the seizure of over 50,000 illicit items and fake goods from around the city.

DOHA TOP CENTRE OF FINANCE IN THE REGION

O

rdered by the Director-General of Public Security and carried out by the Ministry of Interior's Arab and International Police Communication Department in cooperation with Interpol, the operation was launched in the wake of the Interpol Regional Program to Counter Trafficking in Illicit Goods and Intellectual Property Crimes, held in Doha, as a practical implementation of papers presented in the programme. During the five days, inspection campaigns were carried out in various parts of the state at shops, stores and warehouses. 147 people were referred to the investigation authorities and 51,000 electrical items such as lights, electric welding ribbons and fuses were seized, according to the ministry. A large number of counterfeit audio and video products and auto parts, expired food items and non-standard building materials, as well as some computers, printers and mobile phones, were also seized during the campaign.

16 > QATAR TODAY > APRIL 2014

The latest Global Financial Centres Index, GFCI 15, covering 83 financial centres and published recently by the London-based Z/Yen Group, has ranked Qatar as the top financial centre in the GCC. Qatar’s rating rose by 15 points, mainly driven by its increasing competitiveness and perceived significance as a financial centre. The index saw the ratings of Bahrain, Riyadh and Abu Dhabi in the region also increase; however Qatar maintained its leading position. Shashank Srivastava, CEO and Board Member of the QFC Authority, said: “The GFC Index, which is published twice a year, is a highly relevant and recognised indicator reflecting the views and opinions of executives from all over the world. Qatar’s position and rise in the ratings reflects how well the economy is performing, the competitive business environment and the world-class legal, regulatory and tax platforms.”


EMPLOYMENT MARKET ON A HIGH GULFTALENT.COM’S LATEST SURVEY, ENTITLED “EMPLOYMENT AND SALARY TRENDS IN THE GULF”, HAS LOADS OF GOOD NEWS FOR QATAR’S JOB MARKET.

75%

OF QATAR COMPANIES SURVEYED PLAN TO CREATE JOBS IN 2014. DURING 2014, QATAR SALARIES ARE EXPECTED TO RISE BY AN AVERAGE OF

OPENING OF KAHRAMAA PARK DELAYED The Energy Awareness Park at Al Thumama, which was scheduled to open this April to coincide with Earth Day celebrations, will not be ready to receive the public at least till the end of June, an English daily reported. This is the second time the opening date for this edu-recreation centre has been pushed back; it was initially scheduled to open in 2013.

6.7% 5.6%

QATAR SALARIES INCREASED BY

IN 2013, COMPARED WITH INFLATION AT 3.1%.

SHERATON HOTEL SHUTS DOWN

An iconic part of Doha’s skyline and one of the city’s oldest hotels has shut down indefinitely for renovations.

ACROSS THE GULF, THE HEALTHCARE, TELECOMS & IT AND RETAIL SECTORS SAW THE LARGEST HEADCOUNT EXPANSION LAST YEAR. SAUDI ARABIA ENJOYED THE HIGHEST RATE OF JOB CREATION IN THE REGION AND BAHRAIN THE LOWEST

AFP PHOTO/KARIM JAAFAR

Employment growth by sector: Net percentage of firms increasing headcount

2014

2013

Hospitality

A

lthough Katara Hospitality, which owns the Sheraton property, had been hinting at a large-scale renovation that would require a temporary closure of the hotel since a year ago, it’s the suddenness of it all that took many, including the employees of the hotel, by surprise. Even a week before the closure was announced, operations continued as normal, with restaurants hosting food festivals and the main desk accepting reservations. Speaking to a local news website, the hotel’s general manager, J Thomas C van Opstal, said everything was still “fluid” at this time, and a reopening date has not yet been set. There were unconfirmed reports later that the hotel might reopen by the end of the year.

61%

60%

Retail

57%

62%

Construction

56%

40%

Healthcare

52%

80%

Real Estate

52%

33%

Telecom & IT

49%

67%

Logistics

48%

50%

42%

Banking Oil & Gas

25%

32% 57%

Source: Gulf Talent Survey of HR Managers QATAR TODAY > APRIL 2014 > 17


affairs > local

QATAR’S

PROJECTS GAIN PACE

BY V L SRINIVASAN

Qatar’s project activity, which started in 2013, is expected to gain momentum this year with contracts to the tune of $29 billion (QR105.56 billion) likely to be awarded in the coming months. Project spending in Qatar is estimated to be $285 billion (QR1.04 trillion) by 2030.

C "Qatar National Bank has a presence in 26 countries, and we can leverage foreign direct investments to Qatar as well as act as an incubator for Qatari firms to go abroad." ALI AL KUWARI Acting CEO, QNB Group

18 > QATAR TODAY > APRIL 2014

ontracts on most of the big projects like the Doha Metro, Sharq Crossing, Doha Expressways, Al-Sejeel and Al-Karaana petrochemical complexes, the 2,400 MW independent water and power project at Mesaieed and some building contracts for Energy City are expected to be awarded this year. Having generated surplus wealth due to the sale of hydrocarbons, Qatar plans to spend more than $200 billion (QR730 billion) on infrastructure between 2013 and 2018 as part of development activities in various sectors including housing, roads, ports, transport, water and electricity. Of this, the government will finance around $150 billion (QR546 billion) and is planning to raise the remaining money from the market and private sector besides foreign investors. These projects are in preparation for the 2022 FIFA World Cup as well as to meet the goals set by the Qatar National Vision 2030. Addressing the recent MEED Qatar Projects Conference 2014, Yasser Al Mulla, Project Manager at Al-Rayyan Precinct for the country’s Supreme Committee for Delivery and Legacy, assured the world that Qatar’s preparations for FIFA 2022 World Cup are on track. Al Mulla revealed that Qatar would issue 10 tenders this year for project managers and design consultants on the stadiums being built for the games. “We are in the advanced stages of design work for six stadiums, and this year we will see five

stadiums begin the early works on foundations and construction,” he added. Moreover, Doha expects to spend an additional $4 billion on building stadiums and related sporting infrastructure for the World Cup. The largest new stadium planned is the Lusail Iconic Stadium, which will have a capacity of more than 86,000 people and is to be used for the opening match and the finals. The government is confident about raising funds for the infrastructure projects as the capital markets are robust and growing at a healthy pace. Not only banks but even other government-related entities (GREs) like Ooredoo and Mesaieed Petrochemical Holdings Limited have gone to the market to tap funds and met with success. Enthused by their success, more companies are planning to follow suit. “Qatar National Bank has a presence in 26 countries, and we can leverage foreign direct investments to Qatar as well as act as an incubator for Qatari firms to go abroad,” said Ali Al Kuwari, Acting CEO of QNB Group, at the Qatar Projects conference. The interest shown by foreign investors is evident from the fact that a high-level US business delegation, comprising representatives from 21 companies and led by Secretary of Commerce Penny Pritzker, paid Qatar a two-day visit a short time ago and met with Qatari government and corporate leaders to explore business opportunities in the wake of the country’s development programmes.


QATAR’S BOOMING PROJECT MARKET

(valued at over $200 billion) at a glance:

"Unskilled migrant workers, who constitute the bulk of the population, will also have a choice, and they can choose where they want to work." DR JOSEPH EVAN LEBARON Former US ambassador to Qatar

One of the major challenges the country will face is the absence of skilled, semiskilled and unskilled workers to complete the projects on schedule. This is also because Dubai, which will host the World Expo in 2020, and Saudi Arabia, with the announcement of several infrastructure projects, will also be recruiting workforce from around the world. The other challenges include project monitoring, disposal of construction waste without damaging the environment, the logistical challenges of incorporating tunnels into existing underground infrastructure and material management. Former US Ambassador to Qatar (2008 -2011) and Daruna Brand Chairman Dr Joseph Evan LeBaron says the tangential services needed to attract manpower are schools for children, healthcare and other parallel services, all of which will be stretched as the population increases. “However, it is not just skilled workers that are a major challenge. Unskilled migrant workers, who constitute the bulk of the population, will also have a choice and they can choose where they want to work,” says Dr LeBaron. “Hopefully, Qatar is on the right track, with the Qatar Foundation standards for Migrant Workers being issued and steps taken to create a charter of laws for the migrant workers.”. Project monitoring is another important area and a vital tool for ensuring that

projects are delivered on time and on budget. Any delay will translate into cost escalation, which can lead to litigation. Hence, long before the project is conceived, the government and the developers should consider a range of monitoring tools to ensure smooth delivery of the project. Partner at K&L Gates Matthew Walker says: “These tools begin with the contract. The contract is a document which the parties should invest considerable time and effort in drafting, to ensure that the client and the contractor clearly understand their responsibilities and that they have also analysed and allocated the risks involved in delivering the project. Expert advice should be obtained to ensure the contract captures all of the required detail and fairly allocates responsibilities and cost.” A carefully-drafted programme will allow the parties to identify any key risks to delivery from a timing perspective – key dates for arranging access, producing designs or delivering materials. According to Walker, communication among those involved – the government, the project manager, the contractor, the designers and engineers – in the delivery of the project is critical so that any problems that occur can be resolved amicably. Dr LeBaron feels that a streamlined permitting process and detailed inspections, as part of project monitoring, will go a long way to ensure timely delivery

"Expert advice should be obtained to ensure the contract captures all of the required detail and fairly allocates responsibilities and cost." MATTHEW WALKER Partner, K&L Gates

QATAR TODAY > APRIL 2014 > 19


business > bank notes “Total assets of banks in Qatar grew 11.4% in 2013 compared with 2012 to about QR900 billion. Likewise, deposits in banks from customers were up 19.7% in 2013 to reach QR948 billion while net profits to shareholders of Qatar’s banks rose 11.5%.” HE ABDULLA SAOUD AL THANI Governor, Qatar Central Bank

QCB WANTS ALL BANKS TO TRANSFER ACCOUNT DATA

QIB’S DISTINCTION Doha-based Qatar Islamic Bank (QIB) has been awarded three accolades by Islamic Finance News, based on 2013 financial results, achievements and major financing deals.

The Qatar Central Bank (QCB) issued a circular recently asking all banks to provide it with basic information about their customers’ accounts, including individuals and companies. number, commercial registration (for companies), customer’s name, IBAN and date of opening the account. All banks operating in Qatar have started implementing this directive. The procedures include a deposit and direct debit system – QATCH – which effectively handles the exchange of financial orders among local banks via a secure electronic network. Once the system is fully implemented, it will not be permitted to pay workers’ salaries in cash, regardless of the amount. The system aims to organise and ensure regular payment of salaries and make sure that employers don’t default or delay payments.

20 > QATAR TODAY > APRIL 2014

(% change, 2013-2014)

20

10

UAE

0

Selected GCC Countries

5

Source: Bloomberg and QNB Group forecasts

15

Saudi Arabia

B

esides QNB, six other Qatari banks made the list: Commercial Bank is ranked 18th, followed by Masraf Al Rayan (24th), Qatar Islamic (25th), Doha Bank (32nd), Qatar International Islamic (45th) and Al Ahli (51st). As far as the 75 fastest-growing banks listed on Arab stock markets are concerned, QNB is placed second, after Saudi Arabia’s Alinma Bank. QNB is followed by Al Rayan (fourth), Commercial Bank (ninth), Doha Bank (22nd), Qatar International Islamic (23rd), Qatar Islamic (44th) and Al Ahli (51st).

Assets Loans

Qatar

Qatar National Bank (QNB) has topped the Forbes Middle East list of the 75 largest banks quoted on Arab stock markets.

25

Oman

QNB LARGEST BANK ON ARAB STOCK MARKETS

The awards were for ˜Best Islamic Bank in Qatar”; “Arranger of the Syndicated Deal of the Year” for a QR1.23 billion ($340 million) ijarah facility; and "Arranger of the Tawarruq Deal of the Year" for the QR2.41 billion ($662.4 million) Maran Nakilat Co. revolving commodity murabahah facility. Saeed Alkhayareen, Acting General Manager of QIB’s Corporate Banking Division, received the awards on behalf of the bank at a ceremony held in Dubai.

Asset and Loan Growth: Selected GCC Countries

Kuwait

T

he move is part of the wage security system initiated by the government to ensure that the wages and salaries of workers in the public and private sectors are transferred to their banks. The data does not include account balances but is limited to general information about the accounts. This data should be sent to the QCB before the eighth of every month, according to reports. A special code – SALA – has been given exclusively for the transfer of wages and salaries of workers. This code should not be used for any other purpose. The requested data includes account number, Qatari ID



business > oil&gas DIVERSIFICATION PLANS INTENSIFY

The petrochemicals sector is set to emerge as the major driver of Qatar’s diversification dream, with at least three mega projects, along with several other small projects, expected to be operational between 2018 and 2020.

T

he foundation stone for QP’s joint venture new condensate refinery (LR2) will be laid in April. The planned LR2 refinery will be similar in configuration to Laffan Refinery 1 (LR1) and will have a processing capacity of 146,000 barrels a day of condensate. QP’s downstream mega projects, namely Al-Karaana, Al-Sejeel and the gasoline and aromatic projects, are also moving ahead. Most of these projects are targeted to be on stream between 2018 and 2020. Qatar’s planned investments in the downstream sector will increase Qatar’s export portfolio of chemicals and petrochemicals to 23m tonnes per year by 2020. “These diversifications in Qatar will create opportunities for medium and small enterprises, which is an important part of achieving Qatar National Vision 2030,” Mohammed Nasser Al Hajri, Director of Downstream Ventures at QP, noted while addressing the MEED Qatar Projects conference last month.

DEMAND FOR NATURAL GAS GOES UP Between 2012 and 2035, natural gas demand is expected to grow by an average of 1.9% per year, outpacing all other energy sources, according to the latest BP Energy Outlook 2035, QNB Group said in its weekly analysis. Non-OECD countries, led by China and India, are expected to generate

78

%

of natural gas demand growth, with industry and power generation accounting for the largest increments to demand by sector. Shale gas supplies are projected to meet 46% of the growth in gas demand and account for 21% of world gas and 68% of US gas production by 2035. Such large demand is likely to put upward pressure on natural gas prices, including LNG. Qatar is likely to benefit significantly from these developments. Over

95%

FOCUS ON EDUCATION Four outstanding Qatari nationals were recognised with PhD Student Awards for the Advancement of Education for supporting the country's ambition to transform into a knowledge economy through their contributions in education and research and development, as part of the Gulf Intelligence Qatar Energy R&D Forum.

22 > QATAR TODAY > APRIL 2014

Global energy consumption will grow by 41% from 2012 to 2035.

of this demand growth is projected to come from emerging markets, including China and India.

LNG exports are expected to grow more than twice as fast as gas consumption, at an average of 3.9% per year, accounting for 26% of growth in global gas supply to 2035.


business > realty check

NEW HIGH-RISE TOWER IN WEST BAY

HIGHEST PER CAPITA INVESTMENTS IN DUBAI REALTY IN 2013 QATAR

Rabban Hospitality has announced the commencement of work on its new 46-storey executive high-rise tower in Doha West Bay, which is likely to be completed in the third quarter of 2015.

A

ccording Rabban Hospitality Director Nasser Khalid Al Rabban, the company has chosen Frasers Hospitality to operate the development, which will be branded as Frasers Suites West Bay Doha. The tower was designed by Arab Engineering Bureau (AEB), one of the leading multidisciplinary consultancy firms in Qatar. Frasers Hospitality is a Singapore-based serviced apartment operator, with the Rabban Hospitality deal being its second property in Doha. The deal is a mark of the company’s future expansion plans in the Middle East.

DHS6.7I

MILLION (QR6.65 MILLION)

OMAN

DH5.77

MILLION (QR5.72 MILLION)

UAE

DH4.56

MILLION (QR4.52 MILLION)

SAUDI ARABIA

DH3.7I

MILLION (QR3.68 MILLION)

AL WA’AB CITY -FACT SHEET

TOTAL VALUE OF THE PROJECT (ESTIMATED): QR15-16 BILLION BY 2017

GERMANY

DH2.37

Total area

1.25

million sq. m.

Villas

MILLION (QR2.35 MILLION)

INDIA

400 +

DH2.22

Apartments

MILLION (QR2.20 MILLION)

Commercial space

BRITAIN

1,450 + 200,000

sq. m.

Retail space

100,000

sq. m.

Accommodation

8,000

residents

DH2.II

MILLION (QR2.09 MILLION)

FRANCE

DH2.05

MILLION (QR2.04 MILLION)

RUSSIA

QATAR CRACKS THE WHIP

Qatar has issued a new law that includes stiff penalties for real estate developers and construction firms that violate standards.

T

he new legislation stipulates that a fine of upto QR200,000 is to be imposed on any real estate developer who does not start a project within six months of getting approval without an acceptable reason. Construction firms that fail to hand over units to buyers within the deadline mentioned in the agreement without justifiable reasons, or if the sold units do not fulfil the technical standards mentioned in the contract, will also be subject to a one-year jail term or a fine of upto QR50,000, or both. The same punishment will be applicable to anyone who sells real estate units showing fake designs or anyone who receives loans without approval from the authorities concerned.

DH2.05

MILLION (QR2.04 MILLION)

CANADA

DHI.98

MILLION (QR1.96 MILLION)

USA

DHI.83

MILLION (QR1.81 MILLION)

SOURCE: Dubai Land Department QATAR TODAY > APRIL 2014 > 23


news bites > regional

24 > QATAR TODAY > APRIL 2014


ROSA RY R EQ U E STS Nuns who were among a group freed after being held hostage by Islamist rebels in Syria pray during a mass to celebrate their release at the Church of the Holy Cross in Damascus on March 10. The group of nuns, kidnapped by rebels in the Syrian town of Maalula in December last year, were released on March 10 thanks to Lebanese-Qatari mediation and handed to the Syrian authorities. A monitoring group said the release was secured in exchange for some 150 women prisoners who were being held in Syrian regime jails. AFP PHOTO / LOUAI BESHARA QATAR TODAY > APRIL 2014 > 25


affairs > local business > viewpoint

THE REAL

BENEFITS OF VIRTUAL IT

In the current business environment, corporate IT departments are scrambling to keep pace with new technologies.

26 > QATAR TODAY > APRIL 2014

A

n increasing number of employees want to work on their own mobile devices, rather than corporate-issued desktop PCs. Personal devices are obviously more convenient than the company systems. The difficulty is that these personal devices can create security threats and compliance issues. There is, however, a way to respond to these challenges that can accommodate employees and improve corporate performance: so-called desktop virtualisation. Also known as “desktop-as-a-service”, this allows remote users to gain access to everything they do on their computers – their applications, work in progress, corporate data

and systems – without necessarily being in the office. It gives employees the freedom to work any time, anywhere, and on any device and operating system they choose, and can reduce costs. Leading companies are adopting desktop virtualisation thanks to recent advances in cloud computing and other technologies. These have made desktop virtualisation, which vendors started offering to the market over a decade ago, a viable option for many organisations. So while the concept is not new, the technology has now matured sufficiently to address efficiency and security concerns. Indeed, some Middle East service providers and telecom operators are exploring this concept and believe that


it will be introduced in the region soon. To implement desktop virtualisation, a company’s IT staff has to shift all corporate systems and applications onto central servers so that employees can access them through the company network. Employees have personal profiles that determine what they can access – whether in terms of software programmes, applications or data – while their device controls how they can interact with the server. For example, PC-based laptop users would access the network through one interface, Mac users through a second, and mobile devices users via a third. The challenge for companies is that a considerable amount of behind-the-scenes work is needed to ensure that each component of the system fits together and that the entire experience is completely transparent to the user. Companies cannot simply throw a switch and immediately shift to the most mature and flexible desktop virtualisation technology. The pay-off is that, if implemented correctly, this offers clear advantages over traditional IT systems. For employees, the upside is obvious – desktop virtualisation allows them to access their work from any device, anywhere, any time. They can log into company systems such as customer relationship management and call centre applications easily, picking up wherever they left off and with full access to corporate databases. Companies also realise clear business advantages. Firstly, it is less expensive compared with issuing company PCs or laptops with all the required applications preloaded to all the employees. The result is significantly lower up-front costs for purchasing hardware and software. One large organisation reduced its overall costs to buy and maintain its employee computing needs by 30 percent. The second advantage is lower ongoing maintenance and support expenses. This is because with desktop virtualisation the IT department can manage and upgrade all corporate technology assets from one central location, making software upgrades and repairs easier. Fast-growing companies can scale up their IT infrastructure by adding computing power and storage as needed. The third advantage is improved security. Although many IT professionals are

wary of the risks associated with desktop virtualisation, the technology has advanced to the point where it is actually more secure than traditional systems. By maintaining all sensitive data in a central location, companies avoid the many risks involved in storing data on stationary desktops or mobile laptops, both of which are subject to data corruption, hacking attacks, loss and theft. One aspect of this enhanced security is strong employee authentication. This allows for secure connections with little risk of unauthorised use, no matter which device is being used. In addition, companies in highly-regulated industries such as financial services and healthcare can comply more easily with rules regarding data location and access. In the event of security breaches, the centralised data storage lets companies update, cleanse, duplicate, back up and recover data at a single point, ensuring common, consistent information for all users. The US health insurance giant Aetna provides a good example of desktop virtualisation’s business advantages. In the past, Aetna had a traditional approach to IT that used centralised servers. However, with half of the company’s employees working from home, and a quarter travelling regularly, Aetna realised that it needed to change how its workforce accessed information. The company therefore switched to a virtual IT system for approximately 50,000 employees. Aetna saved money and became far more responsive in its dealings with third-party service providers. The company found that it could manage its office real estate and upgrade hardware and software better centrally, and even integrate new acquisitions more rapidly. Importantly, given the confidential healthcare information that Aetna deals with, the company found that the virtual system actually offered tighter control over the location and distribution of sensitive data. Thanks to advances in the underlying technologies, and in areas such as cloud computing, desktop virtualisation has reached the point where no large company – and few smaller ones – can afford to ignore its virtues. Implemented correctly, this offers a means to reduce costs, improve IT and employee productivity, and strengthen data security. In a global, mobile, and highly competitive business environment, it is the wave of the future

BY OLAF ACKER, Partner, and DANNY KARAM, Principal, Booz & Company

ABOUT BOOZ & COMPANY Booz & Company is a global management consulting firm involved in helping some of the world’s top businesses, government ministries and organisations. Its founder, Edwin Booz, can be said to have defined the profession when he established the first management consulting firm in 1914. Today Booz & Co. has over 3,300 people working in more than 60 offices around the world. QATAR TODAY > APRIL 2014 > 27


development > listening post

ALERT:

A HUMAN CAPITAL CATASTROPHE

28 > QATAR TODAY > APRIL 2014


THE OIL AND GAS INDUSTRY, GLOBALLY, IS GOING TO FACE ITS TOUGHEST TIME EVER WITH A RARE KIND OF DROUGHT – THE DECLINE OF EXPERIENCED TECHNICAL MINDS. HILDA HOUWER MULLS THE HIGHS AND LOWS WITHIN THE INDUSTRY THAT KEEPS THE WHEELS TURNING FOR ANY COUNTRY. BY SINDHU NAIR

H

ilda Mulock Houwer, Global Advisory Leader, Energy and Natural Resources at professional services firm KPMG, is not short of subjects to debate or content to talk about. Energy dynamics is of course her pet mission, but women's empowerment in the energy sector takes precedence. She laments the lack of women in the energy sector, especially in developing countries. She also warns us about a looming calamity. “A human capital catastrophe is going to hit the energy sector," she highlights, as “all experienced professionals in the oil and gas industry are either leaving the country or retiring from their jobs”. This is why she stresses the importance of training more professionals, Qataris and others, in the energy field, and encourages more Qataris to choose this dynamic sector as a career option. “It is now unconventional versus conventional, so we need new skillsets, which are not necessarily there. The pipeline of oil and gas technicians and the level of skills required are not sufficient to fill the gap,” she says. Asia is coming up, and there will be a huge middle-class that will come on board as spenders. Governments, shaken by the

strong tides of the Arab Spring throughout the region, have employed more young nationals in the public sector. The International Monetary Fund has estimated that public spending in the GCC increased by 20% in 2011 from the previous year. It follows from this spending spree that the price of oil needed to balance budgets is at a historic high and rising further. This economic strain impacts the national energy industry in two ways. First, the obvious remedy for the budget crunch is to pump more oil and gas, which can pose a technical challenge for national oil companies. Second, the energy industry is called on to create more jobs for nationals and opportunities for the private sector. Houwer talks to us about the changing dynamics of the energy sector and whether they will affect Qatar’s growing importance in the market as a supplier. Oil markets are changing, and this is having a profound effect on energy relationships. Given the changing dynamics of the oil and gas industry, with the focus for the Gulf countries moving from the West to a stronger eastern interest, as detailed in the KPMG report "An Emerging Strategic Energy Relationship", where is Qatar placed in this scenario? Houwer says that this will

“ A human capital catastrophe is going to hit the energy sector as experienced professionals in the oil and gas industry are either leaving the country or retiring from their jobs.” HILDA MULOCK HOUWER Global Advisory Leader, Energy and Natural Resources at KPMG QATAR TODAY > APRIL 2014 > 29


development > listening post Government expenditure growth, 2011 (Contributions to total, percentage points, US$) 40% 35%

13%

30%

"For a period from 2014 to 2020, 90% of Qatar’s LNG is committed. Qatar is taking gas from its own resources and making it more valuable, and hence all this is highly economical for the country."

not affect the Qatar market much. “Firstly, there will not be much change in the situation for Qatar as Asia has always been its more important market. Already more than 60% of the gas exports are allocated to Asia,” she says. She predicts smaller developments and MOUs that will bring in more Asian players, with much less gas going to established markets. Middle East exporters will be increasingly dependent on markets to the east. By 2030, close to 60% of the world’s oil trade will take place within the Asia region and between Asia and the Middle East. While the eastern focus for Qatar never slows down, another putative game changer in gas dynamics is the growth of unconventional oil and gas production, in North America in particular. Considering most global yet-to-find oil reserves are located in the US, Russia and Canada – areas that are more "open" to investment – KPMG’s report talks about expecting significant investment there in the coming years. Wood Mackenzie indicates that more than half of the international oil companies’ longterm capital investments are going into deep water, shale/tight oil, shale gas and oil sands. While opportunities for investment will emerge in the Middle East (notably in Iraq, Libya and the United Arab Emirates), the terms in the Middle East have to be really attractive to draw the Western majors away from the "open" potential elsewhere. Houwer feels that while shale gas is indeed a game changer, it will be used to feed the 30 > QATAR TODAY > APRIL 2014

6.5%

25%

4%

15% 10%

5%

3%

20%

27% 19%

19%

19%

0.5% 22%

18% 12%

5% 0% -5%

-13%

-10% -15%

Kuwait

Oman

Qatar

Current expenditure

Saudi Arabia

UAE

GCC

Capital expenditure

Bahrain

Source: Country authorities, Bloomberg, IMF staff calculations (in "Economic Prospects and Policy Challenges for the GCC Countries", IMF, October 2012)

Pacific region, while the gas from the Middle East will all be directed to Asia and the area around. “Basically you will have two big markets: the Americas, which will serve the Pacific region, while the other half of the continent (basically Asia) will be served from the Middle East and Russia,” she says. “It doesn’t make sense that American shale gas serves the Asian market, as the trade route is too complicated and long,” she argues. It all boils down to the question of whether the Middle East and Russia can serve the Asian market demand, she says. But for the medium term, Houwer is unconvinced that American shale gas will be any threat for the Middle East. She is also of the opinion that the supremacy of oil-producing Saudi Arabia will not be affected by the gas discovery in the US. “The Middle East is still the cheapest producer of oil,” she says. The price of oil, a globally traded commodity, is influenced by the supply and the factors that affect the supply, she argues. The OPEC, already has a picture of the best price for oil and it is in the interest of OPEC (which includes a lot of GCC countries) to come up with a price that justifies the countries’ supply stock. “They (OPEC) have now reached a comfortable position in the range of $90 to $110 per barrel, so I don’t think the US’s unconventional hydrocarbon production will have an effect on the oil price,” she says. While the shale gas discovery had an impact on the shale revolution, it has not yet

had a perceptible price impact. In gas, we can safely say that with existing regional markets separated by high transport costs and differing market structures, the US production increase has suppressed prices in North America, but Houwer feels the effects will not be felt globally for some time to come. “There is no reason for the Middle East to be concerned, and Qatar is in a good position,” she says. The Qatar edge Moving on to GTL, there is a wide divergence of views about the monetary benefits versus the huge production costs of this environment-friendlier gas, with Shell deciding to abandon its ambitious GTL project in Louisiana – a $20-billion undertaking to turn natural gas into liquid fuels – because of rising costs and the ever-present uncertainty in oil and gas pricing. Will Qatar Shell's Pearl GTL prove to be another white elephant? “Why did Qatar decide to produce GTL?” asks Houwer, and answers the question herself. “Because the biggest raw material for GTL is gas, which the country has in abundance. From an economic point of view, the country has more gas than it needs. So it can export gas and it can also refine it and ship the by-products, for which there is a big demand. According to energy predictions, by 2030 the demand for energy-intensive products is going to go up dramatically.


General and youth unemployment rates in select countries 50%

30%

45%

45.3%

25%

40% 35%

20%

27.3% 25.0%

30%

25.9% 23.3%

15%

19.6% 13.5%

10%

25%

20.7% 17% 12.5%

20%

12.1% 15%

11.0%

10%

6.3%

5%

Youth unemployment rate

Unemployment rate

24.4%

5%

4.2% 0%

3.4%

2.1%

0.6%

Bahrain

Kuwait

Qatar

0%

Oman

Libya

Unemployment rate

Iran

Saudi Arabia

Iraq

UAE

Youth unemployment rate

“So that presents an opportunity for energy-intensive by-products. This will expand the economy by focusing and broadening the gas by-products. So Qatar is keeping an eye on the energy market and producing higher-value products,” she explains. If you look at what Qatar is doing, she says, you will understand the dexterity of planning that is going into each of its actions. “For a period from 2014 to 2020, 90% of Qatar’s LNG is committed. Qatar is taking gas from its own resources and making it more valuable, and hence all this is highly economical for the country," says Houwer. Qatar has a unique position in its unique mix of natural resources, she goes on. Firstly, Qatar has the third-biggest gas reserves in the world and the demand for gas will increase by 50% by 2035, and that makes the country unique. But not just that, says Houwer; if you take into account Iraq and Qatar, that geographical area has the biggest natural gas reservoir in the world. “It cannot get more exceptional than that,” she states. The moratorium There is currently a moratorium on new projects in Qatar’s massive North Field, while operators continue to examine ways of sustaining high levels of output over the longer term. The moratorium, initially scheduled to end in 2008, will run till at least 2015 after several extensions. Nevertheless, growth from other fields and

new projects could result in overall output growth, though probably at low levels “If you look at the per capita savings of Qatar, it averages around $50,000 per person, amongst the highest in the world. This rate is coming down but it is still sufficient,” says Houwer. “I think they are generating sufficient income for the budgets and also saving for the future. Gas meets the country’s demands and also generates sufficient export revenue to be reinvested. So they are in a very safe position.” She also feels that the moratorium is a sustainable approach for future generations. The way forward, according to Houwer, is for the existing operators to be smarter and improve efficiency. “The operators need to optimise production, and the moratorium also opens up the possibility of looking at smaller fields, outside the big North Field,” she says. The future of oil and gas Houwer feels that the oil and gas trade will be balanced with proper market shifts with two distinct regions served by two producers, the US and South America for the whole of the American continent and Russia and the Middle East serving the Asian region. “It is interesting to see things open up. To see Mexico opening up its energy sector. I see a consolidation of the energy trade,” she says. “Gas is not a global trading commodity, and gas prices will be determined more by regions. You will not see gas price

Source: United Nations, Department of Economic and Social Affairs

convergence in the short to medium term however Asian countries are collaborating more to have bulk purchases ahtat can have an impact on LNG prices. So will that put pressure on Qatar and its export strategy? Houwer says that 90% of Qatar’s gas has already been committed upto 2020. “Spot trading is then the only option, which obviously cannot be predicted,” she says. Renewables will slowly gain prominence in the energy mix in developing countries and Europe, but it will be a slow climb. “It is government policy that drives the usage of renewables,” she says firmly. Will there be more investments in renewables, with their high investment costs? “Yes,” she answers, “but it will depend on government subsidies.”

Source: World Economic Outlook Database, 2013

QATAR TODAY > APRIL 2014 > 31


business > viewpoint

VALUE

DESTRUCTION

Value creation isn’t just about financial improvement; it also involves taking steps to mitigate issues that can damage a business’s value.

V

alue destruction, a reduction in a business’s share price and perceived market value, can be a result of many things including poor financial planning, mismanagement, misalignment of strategies with objectives, failed investments or even inattention to regulatory and compliance matters. The collapse of Lehman Brothers in the United States and Northern Rock in the UK are believed to have been associated with inappropriate strategies (sources: The Star Online, Business News). Lehman Brothers’ shareholder value erosion alone was estimated to be $660 billion (QR2.4 trillion) at the time. According to press reports, Rio Tinto’s $35 billion (QR127 billion) value destruction after 2007, when metal prices were on the rise, is believed to have also been attributable to non-financial factors and the alleged mismanagement of the company. Profit and share price are results and metrics rather than sources of value. Businesses might end up focusing too much on maximising these metrics, and in doing so they risk overlooking business-wide commercial issues that may impact value over the longer term. Addressing these issues requires an understanding of the key parameters that impact value creation. These include but are not limited to: Cash management Cash flows are the lifeblood of a business and have a fundamental impact on value. Therefore variations in earnings, working capital, capital expenditure and depreciation can directly impact a business’s cash flows and, as such, its value. Over- or under-spending on capital expenditure, having an underperforming sales team, poorly negotiating costs with suppliers, slow debtor settlements and low stock turnover can be common ailments associated with future cash flows that restrict cash availability and destroy a business’s value over time. In essence, insufficient cash available in a business can lead to a downward spiral; as

32 > QATAR TODAY > APRIL 2014

it can impair its ability to fund day-to-day working capital requirements as well as the ability to pay regular dividends to its shareholders, thereby impacting shareholder value and returns. Diligent M&A activity There are numerous examples of failed mergers and acquisitions in history. According to a study conducted by Deloitte, over 60% of M&A transactions do not achieve the expected effects and aims in full. Some of the common reasons for failure include inability to successfully extract synergies, ineffective integration of businesses and the lack of strategic and/or operational alignment. Not only do M&As involve costs to transact, but failed deals can result in substantial value-erosion for both parties. Some widely accepted examples of value destructive takeovers include AT&T and NCR, AOL and Time Warner, BMW and Rover, France Telecom and Orange and Royal Bank of Scotland and ABN Amro. These transactions accounted for more than $150 billion (QR546 billion) of value destruction for shareholders through share price reductions (source: ElectronicsWeekly.com). A successful M&A transaction requires clarity, control and people. Clarity is knowing what is being bought and that it is the right business for the right price. Control is about having the right level of integration and support over the transaction from planning to execution. People, arguably the most important part of integration, should be carefully transitioned into a business combination. It is hard to quantify intellectual capacity, but an individual’s know-how of a business is where real value can be extracted. Robust 100-day, 10-day and 1-day plans need to be in place, which should form part of appropriately-engineered post merger integration planning. Brand and reputation There is an inextricable and sensitive link between a brand or trade name’s


perception with its associated value. This sensitivity was clearly illustrated when Tiger Woods was subjected to bad press after his car crash on November 27, 2009 and announced his “indefinite leave” two weeks after the incident. The group of brand names sponsoring Tiger Woods at the time (including Nike, Gillette, Gatorade and EA Sports)are estimated to have lost between $5-$12 billion (QR18-QR43 billion) in value over the two weeks following the incident (source: study conducted by the University of California). Damaged reputation directly impacts revenue, which in turn can impact re-branding costs as companies will need to spend more on marketing efforts to correct the damage caused in the first place. Reputation and brand management are critical to any business and, given their sensitive nature, a business’s value can easily be held hostage to them. This is why brand-conscious businesses hire branding professionals to build and maintain a healthy reputation. Management and regulation In the Rio Tinto example mentioned earlier, management and leadership were key instigators of value destruction, according to press reports. Managers and leaders set the tone across an enterprise, and their quality translates into results and profitability. Achieving operational effectiveness and efficiency; implementing adequate policies and procedures while ensuring regulatory compliance; and motivating people, are all facets of good management and leadership. Deficiency in any of these areas can lead to instances that damage value in the longer term. Furthermore, better corporate governance and controls are proactive measures that mitigate value damage. For example, fraud, misappropriation and regulatory non-compliance can be budding issues which can rapidly grow into bigger problems that negatively impact businesses and shareholder value. For listed businesses, negative impacts from these can be more pronounced. For example, penalties, legal cases or fines for non-compliance not only damage reputation over the longer term but may also lead to an immediate outlay for cash settlements from what could have been shareholders’ dividends. Strategy and planning Creating a corporate vision and then successfully delivering it requires a holistic view of a business, the markets in which it operates and its future outlook. Having

MERGERS AND AQUISITIONS THAT WERE COUNTER-PRODUCTIVE

BY MILHAN BAIG Director at Deloitte

These transactions accounted for more than

QR546

BILLION of value destruction for shareholders through share price reductions

an under-or over-ambitious strategy can be damaging to a business’s value in the long term from mismanagement of shareholder expectations or underutilisation of capacity. However, having a strategy alone isn’t enough. Strategy should translate into goals that should be paved by meticulous planning and effective actions. It should involve the whole business and its people to ensure a collective focus and a unified vision. In conclusion, owners and managers should not only pay attention to value drivers but also focus on issues that may destroy value. Business should employ both preventative and detective measures to protect shareholder value over the longer term

DELOITTE The opinions expressed here are the views of the author and do not necessarily reflect the views and opinions of Deloitte & Touche (M.E.). Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Deloitte is the first Arab professional services firm established in the Middle East region, with uninterrupted presence for over 85 years, providing audit, tax, consulting and financial advisory services through 26 offices in 15 countries, with over 2,500 partners, directors and staff. QATAR TODAY > APRIL 2014 > 33


news bites > world view

M YST E RY I N T H E A I R A performer poses in front of messages expressing prayers and good wishes for passengers on board the missing Malaysia Airlines (MAS) flight MH370 at Kuala Lumpur International Airport in Sepang on March 17. Debris, supposedly belonging to the aircraft, was discovered in the southern Indian Ocean, though it has not yet been confirmed nor is it known why the plane took such a drastic diversion. AFP PHOTO / MANAN VATSYAYANA 34 > QATAR TODAY > APRIL 2014


QATAR TODAY > APRIL 2014 > 35


affairs > local

COVER STORY

THE

INSURANCE

DEBATE

36 > QATAR TODAY > APRIL 2014


RISING INCOME LEVELS, BURGEONING POPULATIONS AND ROBUST ECONOMIC GROWTH IN THE GCC COUNTRIES ARE REDEFINING THE COURSE OF THE INSURANCE AND REINSURANCE SECTORS IN THE REGION. BUT THIS DOES NOT COME WITHOUT ITS SHARE OF CONCERNS: UNSOPHISTICATED SOLVENCY REGULATION; LOW TRANSPARENCY STANDARDS; INSUFFICIENT GUIDELINES TO REGULATE INVESTMENTS OF INSURERS; A WIDE RANGE OF REGULATORY DISCREPANCIES ACROSS THE REGION AND A SEVERE SHORTAGE OF SKILLED LOCAL WORKERS ARE JUST A FEW OF THEM. QATAR TODAY TALKS TO INDUSTRY EXPERTS ABOUT THE GROWTH PROSPECTS AND THE CHALLENGES FOR THE INSURANCE SECTOR IN THE GULF. BY V L SRINIVASAN QATAR TODAY > APRIL 2014 > 37


spotlight > healthcare

COVER STORY

“The prospect of major infrastructure and construction projects in the Gulf region ranks highest in terms of market opportunities. By contrast, the current low level of insurance prices in MENA’s commercial and personal lines business is seen as the region’s main weakness.” DR KAI-UWE SCHANZ Advisor to the Qatar Financial Centre Authority and Chairman of its Multaqa 2014 conference

T

he insurance industry’s turnover in the GCC region was around $6.4 billion (QR23.24 billion) in 2006 but more than doubled to $16.3 billion (QR59.33 billion) in 2012. It grew at a compound annual growth rate (CAGR) of 18.1% (ranging from 19.7% in Saudi Arabia to 7.9% in Kuwait) between 2006 and 2012 and is expected to reach $37.5 billion (QR136.5 billion) by 2017. However the Kuwait Financial Centre (Markaz) says in a report that the GCC insurance market will be worth $28 billion (QR101.92 billion) by 2015 and cross the $40 billion (QR145 billion) mark by 2017. The volume of premiums was around $16.3 billion (QR59.33 billion) in the region in 2012 and insurance penetration was 1.14% compared with the global average of 6.5% that year. According to a Moody’s Investors Service report, insurance premiums in Qatar stood at $1.3 billion (QR4.73 billion) in 2012, approximately 8% of total premiums in the GCC during the year. With a CAGR of 17.9% between 2006 and 2012, Qatar is viewed as the second fastest growing market in the GCC region. However, according to Moody’s the high CAGR experienced in the GCC insurance market during the period 2006-2012 has not yet been fully reflected in reinsurance

38 > QATAR TODAY > APRIL 2014

premiums. Indeed, as local and regional insurance carriers have become increasingly sophisticated, insurers have sought to capture more of the value chain by retaining more insurance business on balance sheet and ceding less to reinsurers. Despite this, the local reinsurance market looks set to expand over time. The GCC reinsurance market comprises both international and local reinsurers. The majority of international reinsurers focus on conventional reinsurance, underwriting larger commercial risks, often as the lead reinsurer, and in many cases providing the reinsurance expertise and capital to enable local insurers to act as fronting agents. Local reinsurers typically use their strong local knowledge and connections to write personal lines risks, with several focusing on providing re-takaful (Sharia-compliant reinsurance) coverage to the region. The Moody’s report adds that although the capitalisation of local reinsurers is strong compared with the risks underwritten, in many cases the local reinsurance market remains limited in terms of geographic coverage and, to a lesser degree, line of business, exposing them to "meaningful concentration risk”. Insurance penetration in Qatar has been one of the lowest in the Middle East – 0.8% in 2009, 0.7% in 2010, then stagnant for the next two years at 0.6% – due to the transient nature of expatriates and also due to overall GDP that has outpaced the expansion of the insurance industry over the years. The industry received a boost with Qatar

announcing a slew of measures such as the Qatar Central Bank Law No. 13 in December 2012 and also launching a national health insurance programme in July 2013 for all of its residents, including expats. Once the national health insurance scheme becomes fully operational next year, private insurers are expected to become more active in marketing top-up health insurance packages to capture corporate and retail customers who want further cover tailored to their individual needs. Law No.13 has also tasked the Qatar Central Bank (QCB) with the licensing and supervision of all insurance and reinsurance companies and insurance intermediaries, which previously came under the purview of the Ministry of Business and Trade. Furthermore, regulatory development in the insurance industry received a fillip with the launch of the Strategic Plan for Financial Sector Regulation by the QCB, the Qatar Financial Centre Regulatory Authority and the Qatar Financial Markets Authority (QFMA) in December 2013. The Strategic Plan underscores the QCB’s role as primary regulator of the sector and aims to encourage insurers to innovate by developing policies, promote healthy competition, and make insurance compulsory for specific risks, besides guiding the industry on issues relating to market development. At present, there are 27 companies – 26 insurers and one reinsurer – that are permitted by the authorities to conduct operations in Qatar. Of these, six companies


“There is a huge catch-up potential for Qatar’s insurance market. Health insurance business is set to expand rapidly on the back of the recentlyintroduced mandatory scheme.” AKSHAY RANDEVA Director of Strategic Development, Qatar Financial Centre Authority

(Qatar Insurance, Qatar General Insurance and Reinsurance, Al Koot, Doha Insurance, Al Khaleej Takaful Group and Qatar Islamic Insurance) have a market share of about 80%, and the rest is divided among others. But the turning point for the insurance sector has been Qatar’s decision to undertake various mega infrastructure projects as part of the Qatar National Vision (QNV) 2030 and in preparation for the 2022 FIFA World Cup, besides investments in the nonoil sector. While personal lines is set to benefit from national health insurance programmes in the region as mandated by the UAE, Qatar and Saudi Arabia, commercial insurance too is expected to receive a boost from new infrastructure and construction projects in the GCC, which are estimated to be tune of $71 trillion (QR258.44 trillion), over the next ten years. The takaful (Sharia-compliant insurance) sector too is gaining ground, and its growth prospects are said to be very exciting. Takaful follows core Islamic principles of mutual cooperation and risk-sharing. Its philosophy of ensuring the well-being of society resonates in Islamic markets. As awareness about the wealth protection, savings and security benefits of takaful increases, families are likely to demand more such products as they broaden their use of Islamic financial services products. Given the existing low insurance penetration levels among Muslim populations in the region, it is plausible that takaful insurance growth will outstrip that of

conventional insurance over the next few years in both Qatar and the rest of the GCC.

QUICK LOOK AT THE INSURANCE INDUSTRY IN THE GCC

Huge potential “The prospect of major infrastructure and construction projects in the Gulf region ranks highest in terms of market opportunities. By contrast, the current low level of insurance prices in MENA’s commercial and personal lines business is seen as the region’s main weakness,” says Dr Kai-Uwe Schanz, Chairman of the Multaqa Qatar 2014 insurance conference. The findings of the second Middle East and North Africa (MENA) Insurance Barometer suggest that the region’s greatest strengths are its continued economic growth and the solid rise in direct insurance markets. Dr Schanz, quoting these findings, says confidence in the future of the MENA insurance market strengthened in 2013. “As much as 76% of the interviewees expect regional premiums to outgrow gross domestic product (GDP), up from 68% a year ago,” he says. The Qatar Financial Centre (QFC) Authority's Director of Strategic Development, Akshay Randeva, says the country’s economic dynamics have translated into strong insurance market growth, averaging 10% after inflation from 2007 to 2012. However despite this strong expansion premium growth trailed Qatar's exceptional GDP growth due to the government’s LNG expansion programme over the past five years.

APPROX.

$6.4

BILLION (QR23.24 BILLION) IN 2006, AND

$16.3

(QR59.33 BILLION) IN 2012, AN

I8.I

%

ANNUAL GROWTH RATE

QATAR TODAY > APRIL 2014 > 39


affairs > local

COVER STORY

“The sector faces a severe shortage of skilled local workforce. This has, in turn, affected the underwriting and risk-bearing capabilities of companies while increasing their operating overheads. Awareness about insurance and its benefits remains low among typical GCC consumers and small and medium businesses.” SANJAY VIG Managing Director, Alpen Capital

QUICK LOOK AT THE INSURANCE INDUSTRY IN THE GCC

EXPECTED TO REACH

$37.5

BILLION (QR136.5 BILLION) BY 2017

40 > QATAR TODAY > APRIL 2014

“As a result, non-life insurance penetration (premiums as a share of GDP) decreased from 1% to 0.7% during that period of time. Another reason for this is price competition, which obviously depresses premium volumes, whereas exposures (measured by sums insured) grow at a much faster pace,” Randeva says. In addition, personal lines such as motor and health insurance are still of relatively limited importance in Qatar compared with other countries in the region. These lines of business have proved to be the most powerful growth engines in Saudi Arabia and the UAE, for example. “Against this backdrop, there is a huge catch-up potential for Qatar’s insurance market. Health insurance business is set to expand rapidly on the back of the recently-introduced mandatory scheme. In Saudi Arabia, where such a scheme was established in 2008 for all private sector employees, the health segment now accounts for more than 50% of the entire insurance market. “The country’s insurance penetration has increased from 0.4% to 0.8% over the same period of time. The UAE has also seen non-life insurance penetration increase from 1.3% to 1.6%, which is partially attributable to mandatory health schemes in some emirates. All this suggests that Qatar’s insurance market (currently worth about QR5 billion according to Business Monitor International) might reach a multiple of this volume in the not-too-distant

future,” he says. Another boon, of course, will be infrastructure and construction investments requiring property and engineering insurance and reinsurance. “And, last but not least, the ongoing economic diversification away from hydrocarbon revenues augurs well for insurers and reinsurers. The changing risk landscape, e.g. the growth in services and manufacturing, requires additional insurance solutions, in professional and product liability, for example,” Randeva adds. PricewaterhouseCoopers' director responsible for financial services deals in the Middle East, Raymond Hurley, says too that insurance penetration, which measures insurance premiums as a proportion of GDP, is low in Qatar compared with other economies. “However, this is partly due to the disproportionate representation of infrastructure and engineering spend in Qatar’s GDP. A more telling statistic is insurance density, which measures dollar-spend on insurance per head of population. “At QR2,573 ($707) per head in 2012, Qatar had the second-highest spend per head on insurance in the GCC. As awareness of the benefits of insurance and insurance products grows, and as the insurance regulatory framework develops further, penetration levels should also rise. Given the establishment of the National Health Insurance Company (NHIC), continued population growth and the significant ongoing spend on infrastructure, the growth prospects for the Qatari insurance and


“The ensuing growth in the Qatari health insurance market, and in other personal lines, should translate into greater scope for Qatarbased insurers and reinsurers to increase their premium retention levels. The continued dominance of high-risk engineering, energy and other commercial projects will mean that a lot of reinsurance will continue to be ceded to international markets.” JONATHAN THORNTON Deals Partner, PricewaterhouseCoopers

reinsurance industry are very strong,” Hurley feels. The life and health insurance market has evolved to a perceptible size only since 2009, before which almost the entire insurance premium in Qatar was contributed by the non-life segment, says Lukas Mueller, Head of Market Underwriting, Africa and Middle East, for Swiss Re of Zurich. The main challenge for the life segment is that the local population do not need to fund their long-term retirement (and other needs) through life insurance, as social security benefits are extremely generous. “The life insurance companies generate growth by targeting the expatriates section of the population. Similarly, health insurance too constitutes a very small share of the pie when compared to other GCC markets. This is mainly due to government benefits through provision of free and subsidised healthcare to nationals and expatriates respectively. Nonetheless, the health insurance sector is poised to benefit from the expected implementation of compulsory medical cover for nationals, expatriates and visitors,” Mueller says. What’s the forecast According to a report by Alpen Capital entitled "GCC Insurance Industry", the nonlife insurance segment is expected to outperform the life segment by 2017. "Overall insurance penetration in the GCC is expected to improve from 1.1% in 2012 to 2% in 2017, while insurance density is anticipated

to more than double during this period,” the report says. While Saudi Arabia may surpass the UAE as the largest insurance market in the region going forward, Oman is expected to outgrow Kuwait by a small margin to become the fourth-largest market in 2017. The Saudi insurance industry is seen as a major driver behind the growth of the GCC insurance industry. Most of the remaining markets are also expected to witness a double-digit CAGR between 2012 and 2017, the report adds. In its findings, Swiss Re says Qatar’s insurance industry was valued at $1.3 billion (QR4.73 billion) as of 2012 compared with $0.8 billion (QR2.91 billion) in 2011. The non-life segment dominated the show with $1.2 billion (QR4.37 billion) and the rest was accounted for by the life segment. Challenges aplenty However, the growth of these sectors in Qatar is not without its challenges, and more steps are needed to instil confidence among the insurance companies, which are faced with a limited domestic demand base, both for private and commercial lines. Oliver Wyman Partner Sven-Olaf Vathje says: “Although the GDP growth in Qatar is strong, a good portion of it is driven by government activity, with a lower requirement of governments to use insurance. We expect the larger Qatari insurers to increasingly expand abroad into new premium pools. The GCC countries, but also countries with whom the government of Qatar is

deepening its relationships, would be candidates for foreign expansion.” Another challenge to the Qatari insurance sector is potentially increasing regulatory requirements around capital ratios, but also around business operations and sales. Some insurance companies will struggle to transform their business to the next level of proficiency. This may lead to consolidation in the market, with new entrants waiting to take the available new spots. Profitability pressures will remain high. "Given continuous cost inflation pressures, network management for productivity and efficiency will be a key differentiator for successful insurance companies,” Vathje says. With regard to reinsurance in Qatar, Vathje feels it should normally benefit from access to capital in Qatar. However, risk diversification is crucial for a successful reinsurance operation. “The Middle Eastern markets are comparatively small for reinsurers, and some of the risks are correlated across markets. For a viable reinsurance business, it will be crucial to expand portfolio exposure to new markets beyond the GCC, through foreign expansion, partnerships, or portfolio deals. Interesting target markets can be found in other rapidly-developing regions (e.g. Asia, Africa) that are not yet as penetrated and price-sensitive as mature markets. Sharia-compliant reinsurance offerings could also be a differentiator,” Vathje feels. Sanjay Vig, Managing Director of Alpen Capital, says that the development of the QATAR TODAY > APRIL 2014 > 41


COVER STORY

“The life and health insurance market has evolved to a perceptible size only since 2009, before which almost the entire insurance premium in Qatar was contributed by the non-life segment.” LUKAS MUELLER Head of Market Underwriting, Africa and Middle East, Swiss Re

QUICK LOOK AT THE INSURANCE INDUSTRY IN QATAR

QATAR'S INSURANCE INDUSTRY VALUED AT

$1.3

BILLION (QR4.73 BILLION) AS ON 2012 COMPARED WITH $0.8 BILLION (QR2.91 BILLION) IN 2011.

42 > QATAR TODAY > APRIL 2014

regulatory environment in the region’s insurance sector is viewed as inadequate. Some of the major deficiencies sighted in the framework are: unsophisticated solvency regulation, low transparency standards, and insufficient guidelines to regulate investments of insurers. Furthermore, there is a wide range of regulatory discrepancies across the region. “The insurance sector faces a severe shortage of skilled local workforce. This has in turn affected the underwriting and risk-bearing capabilities of companies while increasing their operating overheads. Awareness about insurance and its benefits remains low among typical GCC consumers and small and medium businesses. Many fail to recognise insurance as an effective means of wealth protection, savings and security,” Vig says. The Arab uprising has heightened concerns of overall political instability in the entire Middle East. Any recurrence of such events may disrupt the general business and investment climate and cause a sudden spike in insurance-related claims. “Although the sector has continued its upward trend, it is still relatively underdeveloped, and key market indicators trail the world average by a large margin. However, fundamental industry drivers suggest solid growth prospects, and we expect the sector to grow and evolve further in line with positive regulatory developments and efforts by some players towards attaining greater operational scale and efficiency,” Vig says.

“The ensuing growth in the Qatari health insurance market, and in other personal lines, should translate into greater scope for Qatari-based insurers and reinsurers to increase their premium retention levels. The continued dominance of high-risk engineering, energy and other commercial projects will mean that a lot of reinsurance will continue to be ceded to international markets,” says Jonathan Thornton, Deals Partner at PricewaterhouseCoopers in Doha. Foreign players Undoubtedly, the GCC region is a happy hunting-ground for global insurance companies in view of the growing economies, spurt in population and low penetration of the insurance market. While Qatar’s insurance companies are looking overseas to tap global markets and Qatar Insurance Company has floated a new firm, Q-Re, for the purpose, their foreign counterparts too are keen to start operations in the region in view of the bright prospects for the industry and also due to stagnant growth in their home markets. In fact global insurers like Allianz, Axa, AIG/ Alico, Mitsui Sumitomo and Zurich FS are looking at Qatar as a gateway to the Middle East insurance market – but will their entry stunt the growth of local insurance firms? According to Randeva, the entry of foreign firms will add competitive pressure for domestic insurers as they bring to bear their global experience in pricing, product


“The increase in the number of insurers operating in the local market is not necessarily positive from an industry point of view. The market will look to regulators to ensure that an increase in local capacity will not lead to unsustainable and unhealthy discounting of rates, in order to ensure ongoing growth in the industry.” RAMIZ SHLAH Associate, Clyde & Co

development, client servicing, distribution etc. in the short term. “On the other hand, their market entry should not be considered a zero-sum game. The premium pie in Qatar will continue to grow rapidly, offering opportunities for both existing and new insurers. In addition, if foreign insurers introduce relevant product innovation, they would help further accelerate market growth, to the benefit of all players. In addition, Qatar’s insurance sector is also set to benefit from the depth of expertise and track record in innovation of foreign insurers,” Randeva says. Sanjay Vig says foreign insurers possess higher technical know-how, distribution capabilities, customer orientation and financial strength. An expanding expat base is also seen as a vital factor in boosting the market share of these insurance companies, since the expat community may have a preference for service providers from their home countries. “QFC has become a base for global insurance companies due to its favourable business environment," Vig observes. "Liberal government policies, ease of doing business, and opportunities for underwriting large commercial risks have attracted many international primary insurers and reinsurers to the country. “International players may also capitalise on the existing competitive pressures and acquire a few domestic insurance companies under a wave of industry consolidation in the GCC. Having said that, the

largest component of the insurance market is the government and oil sector in Qatar. As long as the government sector has a preference for local insurance companies, this may restrict the growth of international insurance players,” he points out. Vathje feels there will be a push for innovation as international insurers will bring new products, distribution channels and risk assessment methods to Qatar. “They will also implement good industry practices regarding business operations and sales, raising the bar for the Qatari insurance sector as a whole. Last but not least, international insurers will also bring more insurance talent to Qatar, which will contribute to a vibrant insurance sector,” Vathje says. Ramiz Shlah, an associate with Doha-based Clyde & Co., says the increased number of insurers and reinsurers will result in increased competition and subsequently lower insurance rates in Qatar. “The increase in the number of insurers operating in the local market is not necessarily positive from an industry point of view. The market will look to regulators to ensure that an increase in local capacity will not lead to unsustainable and unhealthy discounting of rates, in order to ensure ongoing growth in the industry,” Shlah feels. However, Thornton says: “The global insurers will bring valuable technical know-how, solid underwriting capacity and innovative distribution capabilities

QUICK LOOK AT THE INSURANCE INDUSTRY IN QATAR

AT

QR2,573

PER HEAD IN 2012, QATAR HAD THE SECOND-HIGHEST SPEND PER HEAD ON INSURANCE IN THE GCC.

QATAR TODAY > APRIL 2014 > 43


COVER STORY

“The success of bancassurance offerings will however depend on clarity around the regulatory framework, products that are well designed for Qatari customer preferences, and proper training and incentivisation of frontline bank staff.” RAYMOND HURLEY Director responsible for financial services deals, Middle East, PricewaterhouseCoopers

QUICK LOOK AT THE INSURANCE INDUSTRY IN THE GCC

THE TAKAFUL (ISLAMIC INSURANCE) SECTOR GREW

I6 % 22 %

IN 2012 GLOBALLY, A NOTICEABLE MODERATION FROM A

CAGR OVER 2007-2011.

44 > QATAR TODAY > APRIL 2014

to the market that will promote a dynamic and customer-centric competitive environment. The regulations for licensing new foreign market participants remain pending. These will be important for ensuring appropriate control over the number and quality of new foreign entrants to the market.” Takaful sector In a report entitled “Global Takaful Insights 2013”, Ernst & Young says the takaful (Islamic insurance) sector grew 16% in 2012 globally, a noticeable moderation from a 22% CAGR over 2007-2011. Takaful in most markets is still in its infancy, and its potential to replace conventional insurance in leading Islamic finance markets is still largely untapped. The report also finds that, in order to maintain its growth trajectory, there is a need for larger regional players who can provide leadership for building capacity in the industry and to address a number of business risks that industry executives cite as challenges to the industry as a whole. In percentage terms, Islamic insurance is growing very fast but generally still lags significantly behind conventional insurance, as there are only a limited number of insurance but also investment products available yet. In addition, the biggest area of growth for Islamic products is with personal lines of business, which remain underdeveloped (compared with other emerging markets) in the region. It is anticipated that Islamic

insurance will grow further across the Gulf but probably not outpace conventional insurance products. Vathje says: “Takaful has not yet achieved the same level of consumer interest as Islamic banking, but it is clearly gaining attention. It is trailing the Islamic banking market by a decade or more. There is no global takaful leader established yet; an ambitious and well-funded Qatari insurance company could aspire for that role. “We estimate that takaful could ultimately reach a market share of up to 30%," he goes on. "This will mostly result from personal lines. However, similar to Islamic banking, also commercial lines will see a significant rise in Islamic insurance. It is the ethical appeal of Islamic insurance that is attracting clients, especially in lines like motor insurance and life insurance.” Sharia-compliant insurance offerings could serve as a key differentiator for Qatari insurance companies seeking to compete abroad. Predominantly Muslim economies are among the strongest-growing economies in Asia, the Middle East and Africa. “The role of the takaful sector in increasing acceptability for insurance in the Gulf is recognised strongly, and the regulatory framework and operational metrics specific to this market are likely to undergo positive changes as the industry evolves,” says Vig. Eventually, new and innovative product offerings are expected to generate higher demand for family takaful products in the Gulf. The sector is expected to launch a strong recovery and grow at a CAGR of


“Takaful has not yet achieved the same level of consumer interest as Islamic banking, but it is clearly gaining attention. It is trailing the Islamic banking market by a decade or more. There is no global takaful leader established yet; an ambitious and well-funded Qatari insurance company could aspire for that role.” SVEN-OLAF VATHJE Partner, Oliver Wyman

23% between 2011 and 2016 to $ 1.2 billion (QR4.37 billion). The brisk rate of expansion in the family takaful segment is likely to help in improving the overall life insurance penetration and density in the GCC. It is believed that Islamic banking, which has now developed a strong footprint in the region, could play a key role in helping takaful providers to reach a large audience through the BancaTakaful channel (Islamic variant of bancassurance). Although small in terms of absolute market size, Qatar is considered a major hub for Islamic insurance given the large footprint of takaful companies and a progressive framework that supports strong governance and innovation, Vig adds. While Islamic insurance continues to play a major role in addressing some reservations vis-à-vis conventional insurance, which many scholars of Islam criticise, there are also current problems that need to be solved. “Given its profitability record, many market executives expect a wave of consolidation to reshape the takaful sector. They also believe that differentiation from conventional products is still insufficient,” Randeva points out. He says the takaful market in the Gulf region, measured in terms of gross contributions, was estimated at about 35% of the total, with strong rates of expansion over the past ten years. Family takaful (personal lines and life insurance) has been the fastest-growing segment. There is a broad consensus that the takaful industry has proved an important means of increasing

acceptance and awareness of (life) insurance in the Gulf. “In the area of family takaful, there is significant scope for differentiation against conventional insurance products, which regional insurance executives widely consider the key success factor in competition. Therefore, this segment is believed to continue outgrowing the overall market even though previous double-digit expansion rates are expected to come down over the next few years. “Future growth is likely to be driven by advances in product development, the removal of regulatory gaps and distribution synergies with Islamic banks, which have developed a strong footprint in the region through the Bancatakaful channel, the Islamic variant of bancassurance,” Randeva says. Bancassurance gaining Bancassurance is altogether a new concept for the region, but it is catching up fast, and providers have a market to cash in on the available opportunities. However the regulators should be cautious enough to prevent unscrupulous distributors from taking advantage of the same. QCB regulations on bancassurance will go a long way towards shaping the market. For now, it remains uncertain as to whether access to insurance products through this channel will accelerate growth in the market or not. The key question that Qatari insurers will be asking is: “Will this channel improve penetration levels?” Raymond Hurley of Pricewaterhouse-

Coopers says that Qatar is well placed to benefit from the gradual growth in the bancassurance channel, although the impact of the NHIC scheme on prospects for bancassurance has yet to be fully played out. Users of retail financial services in the Qatari market are growing in sophistication and awareness. The larger Qatari banks and the more innovative Islamic banks should be well positioned to leverage the trust that customers place in their brands when making key investment and personal wealth protection decisions. “The success of bancassurance offerings will however depend on clarity around the regulatory framework, products that are well designed for Qatari customer preferences, and proper training and incentivisation of frontline bank staff,” he says. As for Qatar’s preparedness to keep tabs on rogue distributors taking advantage of bancassurance schemes, Jonathan Thornton says the financial services regulatory environment has seen a number of positive advances over recent years, though further changes to the regulatory structure for the insurance industry are also expected. “While insurance regulatory oversight was consolidated under the QCB under the new law in 2012, QFC-based insurers remain under the remit of the QFCRA. Bancassurance market participants will be subject to QCB scrutiny, and as the channel grows in acceptance in the Qatari market it should in fact marginalise ‘rogue distributors’ and similarly small agencies who avoid regulatory oversight,” Thornton adds QATAR TODAY > APRIL 2014 > 45


business > bottom line

SHOW YOUR EMPLOYEES THAT YOU CARE

A happy workforce is a productive one. But how can companies nail this elusive mental state among a cross section of employees, each with his or her own aspirations?

A

n issue most managers are increasingly facing is the disconnect between what the company’s employees feel about the company and what the management wants them to feel. This is particularly noticeable among large corporations with tall and complex internal structures. By identifying this problem and giving it due attention, you can nip this issue in the bud before it becomes detrimental to your organisation, because a disgruntled employee can be costly. By making sure you have the right policies in place, you too can let your employees know that you truly care for them. Here is a three-step plan from the HR experts at Bayt.com to help you show your employees that you care.

BE THERE

BAYT.COM Bayt.com claims to be the #1 job site in the Middle East, with more than 40,000 employers and over 15,000,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels.

46 > QATAR TODAY > APRIL 2014

"Being there" translates into being present for your employees and caring for them, whether it’s by giving them the recognition they deserve upon achieving a particularly difficult target or by identifying a gap in their skill-set and offering them training opportunities. The Bayt.com "Happiness and Wellbeing in the Middle East and North Africa" survey of July 2013 shows that receiving recognition at work is the number one factor MENA professionals claim to be important to their professional life, and one that has a direct impact on their happiness and well-being. According to the Bayt.com "Millennials in the MENA Survey" of February 2014, 28% of the millennial workforce (i.e. professionals younger than 35 years) prefer an open and positive work culture. A positive work culture is one in which employees are happy, motivated and challenged, and where they can express themselves openly to decision-makers who are humble and approachable. Organisations need to create a healthy and stress-free work environment that, in return, will boost employee morale.

BE NOTICED

Once you have worked hard and established the right policies to encourage a positive work culture, you need to make sure the same is communicated publicly. Showcase your work culture through photos of your team, but also through videos and testimonials on your corporate website and social media pages. A recent Bayt.com poll on "Employer Branding in the MENA" shows that nine in 10 professionals research a company online before considering its job opportunities. The poll also reveals that jobseekers would like to see a description of the company’s activities: video of its corporate culture, but also testimonials from clients and employees, and company awards.

BE ACTIVE

The tendency with most companies once they have sent out internal feedback surveys is to stand back and take in the results. Do not be passive. Actively engage with your employees. Ask them for suggestions on changes they would like to make and work with them to implement these changes. Being active is to maintain this process on an ongoing basis, and not leave it as a one-off event. Employers of choice are good not only at retaining talent and achieving a lower turnover rate, but also at attracting the best people in the job market. In fact, nine in 10 professionals in the Middle East and North Africa region feel that companies should promote themselves to jobseekers as employers of choice (as per the Bayt.com "Employer Branding in the MENA" poll, February 2014). Aiming to be a caring employer and a great place to work is indeed a lofty goal; and requires consistent direction and efforts from all departments within an organisation. As a result of its efforts, Bayt.com woman award this year, as one of the top 10 places to work in the UAE from the Great Place to Work Institute for the fourth consecutive time, and you can do it too!



business > bottom line

THE IMPORTANCE OF

EMPLOYER BRANDING

The global economy has finally made a turnaround, with many large organisations now showing positive signs of recovery and looking to meet newly-set growth targets. To achieve these targets, the battle for talent has once again surfaced as one of the main challenges and is high on the agendas of senior managers.

F

ailure to attract or retain top talent is ranked as the number five risk for employers globally, while damage to an organisation’s reputation is ranked fourth, based on global recruiting trends. Both these factors are cornerstones for an employer’s brand. It has therefore become imperative for an organisation to start focusing on building a strong “employer brand” to complement its own organisation brand. Aon Hewitt’s "Best Employers" study has proved that a compelling employer brand will have a direct effect on an organisation’s employee engagement, and therefore, lead to a committed workforce that delivers stronger business results. The same study has also seen that leaders of the most successful organisations have already recognised that only engaged employees can bring to life the proposition that organisations make to their customers, and that this is what will define the business success of their companies. Additionally, organisations that have invested resources in conscious employer brand-building have seen faster internal rewards, such as 35% higher employee engagement, an 89% improvement in reaching quality candidates and 57% less

48 > QATAR TODAY > APRIL 2014

fluctuation (i.e. firing and hiring). We can therefore see many advantages to building a compelling employer brand, as the best talent will always reach out to high-potential organisations with strong employer brands. These advantages include lower recruitment costs and a competitive advantage in talent attraction with a shorter lead time to identify target groups. So what exactly is an employer brand, or "Employer Value Proposition" (EVP)? It is a set of associations and offerings provided by an organisation in return for the skills, capabilities and experiences an employee brings to the organisation. A compelling and differentiating EVP that defines the work experience creates higher value for both parties. "Best Employers" organisations, in comparison with others, are characterised by consistently high employee engagement. Other organisations, whose engagement scores fluctuate, tend to have a more turbulent relationship with their employees (see Chart 1 on the next page). The ability of Best Employers to differentiate themselves is dependent on focusing and developing EVPs that are: Long-term initiatives, fully backed by the organisation and meeting


Engagement per service year Best Employers engagement

80%

71%

70%

65%

61%

58%

60%

53%

51%

2 - 3 years

3 - 5 years

54%

Other organisations engagement

50%

40%

30%

20%

10%

0%

Less than 3 months 3 months - 1 year

1 - 2 years

5 - 10 years

10 years or longer

CHART 1

employees’ needs across their entire life cycle. Otherwise, an EVP is ineffective, because employees view it as a new fad and can become cynical, ultimately resulting in negative “word of mouth”. Not about glossy brochures, catchy slogans and spending more money. Rather, it is about spending existing resources effectively. As with any effort, the best way to kill an EVP and lose credibility is to launch it without the supporting mechanisms. To create an effective EVP, everything that touches the employment experience should be aligned. EVPs should change, evolve and adjust to meet the current business needs. An EVP should be carefully managed over time. Positive word of mouth from employees who speak positively of their organisations has a significant effect internally and externally. Unfortunately, detractors (employees speaking negatively of their

workplace) have a bigger effect on an organisation’s employer brand, and that has increased the popularity and importance of measuring the “Employee Net Promoter Score” (ENPS) (see Chart 2). To calculate this, take the percentage of employees who are Promoters and subtract the percentage of Detractors. Best Employers strive to continuously increase their ENPS because it will serve as an effective attraction and retention tool. In conclusion, with business environments and workplaces constantly changing, an organisation’s only real competitive advantage is often its outstandingly talented workforce. Building a sound and long-lasting EVP/employer brand will allow the organisation to consistently attract and retain the talent who will guarantee future business success

BY DR MARKUS WIESNER CEO, Aon Hewitt Middle East and North Africa

How likely are you to recommend your employer to a colleague or friend? Detractors

0 Not at all likely

1

2

3

Passives

4

5

6

7

8

Promoters

9

Neutral

10 Extremely likely

ABOUT AON HEWITT ENPS

CHART 2

% of PROMOTERS (9s and 10s)

% of DETRACTORS (0 to 6)

Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aonhewitt.com.

Source: The Ultimate Question, Fred Reichheld QATAR TODAY > APRIL 2014 > 49


development > tag this

50 > QATAR TODAY > APRIL 2014


FOOD FOR TH UGHT BY CONNOR SEARS

With several different ministries currently involved in the regulation of restaurants, Qatar is in the process of changing the way it keeps food outlets safe.

QATAR TODAY > APRIL 2014 > 51


development > tag this FOOD RULES THE AMENDMENTS TO LAW NO. 8 OF 1990 REGARDING THE REGULATION OF HUMAN FOOD CONTROL INCLUDE: PUTTING UP A NOTICE AT THE VIOLATING OUTLET CITING THE REASON WHY IT IS BEING CLOSED

I “I would be looking at why 30 days was moved to 60 days. Maybe [the restaurants] weren’t taking it seriously enough. Maybe [the ministries] weren’t seeing enough change taking place in the establishments when they had infractions.” GARY HUNT Public health lecturer, College of the North Atlantic Qatar

52 > QATAR TODAY > APRIL 2014

POSTING THE NAME OF THE OFFENDING OUTLET, WITH DETAILS OF THE VIOLATION, ON THE MINISTRY’S WEBSITE

t’s not an unusual story. A trip to a favourite Doha restaurant is cut short when you arrive at the front door and spot the notice posted on its door. The restaurant has been shut down. The reasons behind the closure aren’t always immediately apparent. It’s difficult to tell if the closure is due to a serious health violation that should cause concern or if it’s the result of a minor slip-up that can be fixed within the week. All the notice says is that the establishment violated regulations and is now closed. The whole process can be confusing for anyone not immediately in the know, but some changes in how Qatar handles food safety that are being rolled out in the near future could make regulating restaurants much easier for everyone involved. Qatar has big plans for changing the way the state handles the regulation of restaurants. One issue to tackle is the matter of transparent information, making clear to interested individuals the reasons behind a ministry’s closure of a restaurant. This change would greatly benefit the public, according to Adam Neave, lead instructor for the environmental health and safety programme at College of the North Atlantic Qatar (CNA-Q), which includes a two-year food safety and inspection diploma. “Ultimately, you get to make choices about your own health and safety,” Neave says. “If you know a place has been shut down for a particular reason, maybe you decide not to go there any more. Or perhaps you decide, ‘Well, once they get this corrected, it’s not going to be an issue for me.’ But right now we don’t have that choice; we don’t know why places get shut down.” Sitting next to him, CNA-Q public health instructor Gary Hunt adds that increasing this kind of transparency would also benefit other restaurateurs. If other owners see

LENGTHENING THE AMOUNT OF TIME A VIOLATING OUTLET CAN BE CLOSED, FROM UP TO 30 DAYS TO A MAXIMUM OF 60 DAYS INSTEAD

SHORTENING THE AMOUNT OF TIME OUTLETS HAVE TO APPEAL AGAINST CLOSURES, FROM 15 DAYS TO 10

that a nearby restaurant was closed for a particular reason, he says, it could motivate them to actively prevent the same issue from occurring at their own place. The move to publiclly displaying the reasons behind a restaurant’s closure is, in fact, in the works, according to Omar Al-Yafei, Director of Public Relations and Communication at the Ministry of Municipality and Urban Planning, one of the governmental bodies with the authority to close restaurants based on health violations. Once the other ministries involved approve the measure, information on the reasoning behind restaurant closures will begin being posted both at the restaurant itself and on the website of the relevant ministry. Some of the changes to Qatar’s restaurant regulation are already in effect. Back in late February, new amendments to Qatar’s food control law were ratified that increased the maximum length of time a restaurant can be shut down following a violation to 60 days, twice the original maximum time of a month for a first violation. “I don’t think a 60-day closure is out of the question for specific reasons,” Neave says. “And if those reasons are clear under a law as to why a place would get shut down for 60 days and it’s posted on the restaurant so potential customers and the public know why the restaurant is closed down. Sixty days is actually quite a normal closure by Canadian standards for certain corrections that need to be made.” “I would be looking at why 30 days was moved to 60 days,” Hunt says. “Maybe [the restaurants] weren’t taking it seriously enough. Maybe [the ministries] weren’t seeing enough change taking place in the establishments when they had infractions. Often when you have a climb like that it’s to get more reaction to infractions.” The 60-day closing period is only an


“The fact that the programme exists, the fact that they’re investing in this food security programme, indicated to me that they’re taking this seriously, that it’s important and they want to take steps to continuously improve.” ADAM NEAVE Environmental health and safety programme lead lecturer, College of the North Atlantic Qatar

upper limit. Restaurants can be shut down for periods as short as just a few days. Penalties vary based on both the nature and the severity of health violations, says Hakan Kizilkaya, who owns the restaurant Turkey Central with his father and uncle. Another facet of the amendment is a decrease in the amount of time a restaurant owner has to appeal the decision to close his establishment. The appeal process that used to allow 15 days has been shortened to 10 days. Though the changes in this amendment – regarding both the maximum closure time and shortened appeal time – seem to put more strain on restaurants, Kizilkaya says the closure process is still fair and necessary. “The rules here are good because all the restaurants here should be clean. They have to take care of themselves and the workers,” Kizilkaya says. “They never close without a reason. If you don’t sell safe food, they should close you, of course. It’s a good thing for the people living here. If you don’t do a good job, they’ll close you, but they are right to close you.” Another issue facing restaurant regulation in Qatar at the moment is a lack of centrality. As it stands now, the Ministry of Municipality and Urban Planning and the Supreme Council of Health have overlapping responsibilities in the food safety sector, resulting in there being no cohesive strategy to ensure food safety. Fixing this problem is one goal of Qatar’s National Health Strategy (NHS) 2011-2016. The strategy calls for the establishment of a centralised Food Safety Authority tasked with managing all aspects of food safety in Qatar. According to the details of the plan, the agency is set to be completed by 2016 with full implementation by 2018.

“That’s really going to help improve things, streamline enforcement and better promote what is required by law,” Neave says. Creating a community Some aspects of restaurant regulation, however, can still be improved. Language barriers and the lack of a single ministry to work through can lead the general misunderstanding between food providers and food safety inspectors. The interaction between restaurants and regulators can be tricky to navigate, and although this could be improved through the work of a new central food authority, it could still be several years before this kind of centralised body is fully realised. The Food Safety Management Community (FSMC) is a private community in Qatar that aims to act as an intermediary between government bodies and private sector food providers like hotels, restaurants, catering services and suppliers, helping them better understand what is expected of them in terms of health regulations. “Basically, what we are doing is understanding local government requirements because, unfortunately, there are no clear guidelines in Qatar so far. The only thing we have is the inspectors list. That’s it. No guidebook at the moment,” says Mariah Nakajima, organiser of the FSMC. “When I talk with five-star hotels, even they wouldn’t know about the local government, and they were suffering from so many penalties or shutdowns by the municipality. That was the starting point.” The FSMC organises community meetings of local food outlets several times a year to discuss matters of food safety. The community meetings also sometimes

“What we expect is the private sector and the government sector to communicate very well and understand each other. And hopefully the private sector can get workshops or a training course from the government so they can understand government requirements exactly.” MARIAH NAKAJIMA Organiser, Food Safety Management Community

QATAR TODAY > APRIL 2014 > 53


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“They never close without a reason. If you don’t sell safe food, they should close you, of course. It’s a good thing for the people living here. If you don’t do a good job, they’ll close you, but they are right to close you.” HAKAN KIZILKAYA Co-owner, Turkey Central

54 > QATAR TODAY > APRIL 2014

include visits from representatives of Doha Municipality, continuing with the goal of increasing the amount of communication between the restaurants and regulators. “I believe they have started to communicate,” Nakajima says. “The main problem is language. There are hotels and restaurants who can speak Arabic, and they can communicate with the municipality or other ministries. But if they don’t have an Arabic speaker, that is a big problem. Even when we visit the ministry, they give us everything in Arabic. That is why we started such a community.” Kizilkaya agrees that the language barrier can be difficult for the large number of restaurant owners across the city from outside the Arab world. Turkey Central, he says, has two Arab-speaking people that work with the restaurant just for these issues, serving as intermediaries between the restaurant and the government. Misunderstanding and miscommunication, Nakajima says, are a factor in the shutting down of many food outlets. In these cases, restaurants don’t know enough about the health regulations to follow them sufficiently, something that in other countries, she says, is helped by government-supported training courses and materials that more clearly spell out what is expected and required of food providers. Increasing understanding between these two groups is a primary goal of the FSMC. “What we expect is the private sector and the government sector to communicate very well and understand each other,” Nakajima says. “And hopefully the private sector can get workshops or a training course

from the government so they can understand government requirements exactly.” Even at this stage, however, Qatar is moving forward in terms of being able to guarantee an atmosphere of safe food for its residents. “I do work placement. I take students to the municipality and to the Supreme Council of Health for their work term – a seven-week period where they go out and shadow the inspectors,” Hunt says. “So what I’m seeing from my students is that things look very much similar to what I see in Canada in their reports.” “The food is safe here, I think more so than in my country, than Turkey,” agrees Kizilkaya, for whom maintaining a healthy eating environment is not only a requirement, but simply good business. “In Turkey, nobody comes in and checks what you are doing. People do whatever they want. But in here, most of the restaurants use fresh food and safe food because [inspectors] are always coming to you, and you don’t know when they are going to come, not even us, after 30 years. Even if they don’t come, we will do a good job because people will like your food more if you give them fresh food and safe food.” Looking ahead, the Qatar National Vision 2030 calls for a healthy population so that all in the country can contribute to the development of its society, and food safety is a central part of the public health equation. Despite the current system of overlapping authority that probably will take at least a couple years to resolve, measures are still being taken to ensure food safety throughout the country. Until the centralised Food Safety Authority is developed enough to manage the safety of the state’s food industry, small steps like more serious penalties for violations and making information on closed restaurants more transparent can, little by little, increase the quality of food in Qatar. “Our food safety programme wouldn’t exist if the industry didn’t recognise a need,” Neave says. “The whole basis of establishing the programme here is that we meet with industry stakeholders, they tell us a little about what they need, they indicated a need for food safety inspectors and more training for food safety inspectors, so we get the necessary expertise in place and develop the programme. The fact that the programme exists, the fact that they’re investing in this food security programme, indicated to me that they’re taking this seriously, that it’s important and they want to take steps to continuously improve.”


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A LANE OF THEIR OWN With Doha gradually installing cycling facilities all over town, could the sport become a larger part of Qatar daily life?

BY CONNOR SEARS

I

t doesn’t take long living in Doha to realise that traffic is an ever-present issue in the city. Whether it’s on the morning drive to work or heading to a popular meet-up location at night, everyone is familiar with the sight of a Doha traffic jam. Seeing several lanes of cars packed bumper to bumper, releasing harmful exhaust as they all wait for a light to change, is a regular experience around these parts. But with the right combination of government initiative and popular support, we could slowly start seeing some of these huge, polluting vehicles swapped out for something a bit less imposing. Cycling is steadily gaining traction in Qatar. Many different cycling groups in the country coordinate rides in and around Doha for people of all ages and nationalities. The government, too, is helping to encourage this movement by slowly rolling

out bike lanes across the city. Back in 2010, the Ministry of Municipality and Urban Planning announced the Qatar National Bicycle Master Plan, with a goal of becoming a regional trendsetter for bicycle accessibility. Ashghal President HE Nasser bin Ali Al Mawlawi then stated in 2011 that each new Ashghal road project would involve the incorporation of dedicated cycling lanes along the road. Since then, small areas around Doha like Aspire Zone and the airport arrival area have been retrofitted with cycling facilities, which are already seeing some use. “The cycle lane on Al Waab goes on both sides of the road up past Villaggio,” says Ben Keane, a member of Qatar Chain Reaction, one of the country’s cycling groups. “In the morning time and in the evening time, you can see people making use of these facilities, which is very good. And it’s not just QATAR TODAY > APRIL 2014 > 55


hazardous, says Keane. He points out an example on Al Refa road, where cars will sometimes illegally speed down the cycling track, trying to shave some time off their commute. As a result, these cycling groups often prefer to ride out of the city, onto more northern roads by Lusail or Al Khor, where they have much more room to ride and less traffic to deal with. Also standing in the way of cycling becoming a reliable mode of transit is the weather. Though cycling can be a very enjoyable sport during the cooler months, the summer heat renders bicycle travel around the city very impractical, if not outright impossible.

"We should not treat the whole of Doha as one thing. We can start to look at different regions of the city that have different characteristics, different identities, different styles." DR YASSER MAHGOUB Associate Professor, Department of Architecture and Urban Planning Qatar University

Europeans, Americans, Canadians or Australians. There’s Filipinos; there’s Indians. In our group, in Qatar Chain Reaction, we’ve had 27 different nationalities in the group that all go riding.” It’s no surprise that cycling seems like such an attractive option for Qatar residents. At its core, it’s a relatively inexpensive recreational activity that keeps the rider physically fit, perfect for a country trying to encourage its residents to live a more active lifestyle. Bicycles are also very friendly to the environment, requiring no fuel at all. In other cities across the world, cycling is even becoming a regular mode of transportation, providing a viable alternative to congested automobile traffic. In many European countries, bicycles have even begun outselling cars as more and more people opt for this cheaper, healthier alternative to driving. Finding a way to circumvent the traffic in Doha would certainly be an advantage for cyclists, but with only a few areas set up with cycling lanes at this point, getting around the city only by bicycle is problematic. “We don’t recommend riding around on bicycles inside the city proper, especially without helmets, lights and visible reflective vests,” says Ramon Munoz, a member of Pinoy Roadies Qatar, an all-Filipino cycling group. “What we recommend is for them to at least have a group and ride around the city proper as a group so it will be easier to identify that they are riders.” The danger posed by cars is an important reason why cycling is not yet a viable transportation method for Doha. Even riding on roads with dedicated cycling paths can be 56 > QATAR TODAY > APRIL 2014

A city built for cars However, according to Dr Yasser Mahgoub, an associate professor in the Department of Architecture and Urban Planning at Qatar University, the most basic reason why cycling is not a reliable mode of transportation for Doha is the layout of the city itself. Because the city has done all of its growth and was planned largely in the 20th century, it was designed with cars in mind as the major source of transportation. Like many cities in the region, this led to a city map spread over a large area with wide roads connecting far-flung neighbourhoods. “And people started to realise the negative impact of the car planning on the city: the urban sprawl, the urban spread, the traffic jams, the difficulty moving from one part to another, this large space that is occupied by streets and parking areas,” Mahgoub says. “Actually, now to start to transform this city into a bicycle-friendly city is a very difficult task and very challenging. European cities and older cities that started before the automobile are easier to implement or encourage people to use bicycles, because the streets are narrow, the buildings are not very high and the traffic is already slow. So they are people-friendly and bicycle-friendly and pedestrian-friendly, but cities that depended in their planning on automobiles are very hard to transform.” Because of this, and considering the harsh weather as well, Mahgoub says cycling will probably not become the dependable mode of transportation in Qatar that it is in other countries. Bicycling remains a viable recreational activity, however, and the city can still do much to help make cycling a safer and more enjoyable experience for those who want to try it. Mahgoub says the challenge of encouraging biking in the city should not be attempted with costly long-term goals like


"It would be very convenient for all riders to have dedicated bicycle lanes inside the city itself. There are already bicycle lanes on Salwa road, which are located parallel to the road. If they can do this all around Doha, interconnecting cities and towns, that would be very nice also." RAMON MUNOZ Pinoy Roadies Qatar

installing cycle lanes along every road. Instead, the focus should be on smaller, more manageable goals that can, over time, create a more bicycle-friendly environment in Doha. These smaller ideas include allowing bicycles to be available for rent along the Corniche so riders can pick one up at the Sheraton then drop it off at the Museum of Islamic Art before a day in the park. Mahgoub also suggests closing roads to cars in certain districts at the weekend to allow cyclists to ride on the streets without worrying about keeping their distance from vehicles. With these smaller goals, Doha could become friendlier toward bicycles without needing to break the bank on infrastructure. Still pedalling Moving forward, both Mahgoub and Keane say that to really make Qatar a regional leader in cycling, the sport needs to be introduced to the younger generation. No matter how much infrastructure the city invests in this healthy and eco-friendly sport, it will require passionate members of the community to keep cycling alive in Qatar. “If you can bring cycling to school for the young kids and bring them out to these areas where they can go cycling – the Corniche or airport road or any of these areas – start them at a young age and get them interested in cycling, for sure it will help Qatar no end,” Keane says. Of course, expanding the existing network of cycling lanes to make riding around the city safer would also encourage more

people to get involved, while expanding the range of more experienced cyclists. “It would be very convenient for all riders to have dedicated bicycle lanes inside the city itself,” Munoz says. “There are already bicycle lanes on Salwa Road, which are located parallel to the road itself. If they can do this all around Doha, interconnecting cities and towns, that would be very nice also.” Qatar also has opportunities to integrate cycle facilities from the beginning in new developments like Msheireb Downtown Doha and Lusail that are being constructed from the ground up. What the city should aim for, however, is not necessarily a fully bicycle-friendly city, Mahgoub says. Rather, more focus should be put on making bicycle-friendly areas throughout the city, picking out certain districts to turn into safe havens for cyclists and equipping them with lanes, parking and other facilities specifically for bicycles. Though the city as a whole might not become bicycle-friendly, he says, what’s important is that cyclists still have somewhere they can go, which is a much more feasible goal. “We need to look at the city as multiple cities within the city,” Mahgoub says. “We should not treat the whole of Doha as one thing. We can start to look at different regions of the city that have different characteristics, different identities, different styles. One area can be bicycle-friendly. Another area can be pedestrian-friendly. Another can be car-friendly. When a metropolis or large city starts to grow, it does not grow as one entity. And this is healthy.”

"If you can bring cycling to school for the young kids and bring them out to these areas where they can go cycling – the Corniche or airport road or any of these areas – start them at a young age and get them interested in cycling, for sure it will help Qatar no end." BEN KEANE Qatar Chain Reaction

QATAR TODAY > APRIL 2014 > 57


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ENTREPRENEURS

IN A CLIMATE OF PLENTY

THE PERFECT SETTING TO JUMP-START AN ENTREPRENEURIAL DRIVE? BY SINDHU NAIR

58 > QATAR TODAY > APRIL 2014

E

ntrepreneurs are said to be the product of conflict or difficult economic situations. Entrepreneurial activity shows positive signs during hard times, according to the Global Entrepreneurship Monitor (GEM) 2008 National Entrepreneurial Assessment for the United States of America, produced by Babson College and Baruch College. Necessity-driven entrepreneurship rose in Egypt between 2008 and 2010, from one out of five entrepreneurs driven by necessity in 2008, to three out of four in 2010, which was the

highest among all of the GEM 2010 countries, irrespective of their level of economic development. This does not point, though, to a higher rate of entrepreneurial success, as a relatively high number of Egyptian businesses discontinued too in this period because they were not profitable. (All figures from Global Entrepreneurship Monitor Egypt 2010.) But in a country like Qatar, with almost zero economic adversity where business creation is viewed as tedious, and easy options like joining the government with excellent pay scales for nationals and


“Ideas are everywhere; ideas are the easiest part of business creation. Ideas are not valuable by itself. What is valuable is your drive in implementing the ideas.” PROFESSOR FILIPE SANTOS Associate Professor of Entrepreneurship INSEAD

comfortable work conditions are preferred, how is entrepreneurship to thrive? Dr. Filipe Santos, Associate Professor of Entrepreneurship at the international business school, INSEAD, feels that regulations and market needs might be different around the globe, but the essence of entrepreneurship is universal. He says that a culture of abundance does not necessarily clog entrepreneurial drive. “With the 2022 World Cup, and an estimated higher level of consumption, there are service demands to be met, trends in the economy, health issues, the ageing of the population; all that can serve as ideas to jet-start an enterprise," he says. "Entrepreneurs are good are spotting trends, and within that trend finding niche businesses that will work in the given scenario and taking their pick from the ideas that will answer some of the concerns of the region. Being in a country of plenty does not in any way discourage entrepreneurs, and in a way it makes it more exciting for him/her to find their niche business.” The entrepreneurial mind-set, according to Santos, is not about personality or the ideas generated but actions towards realisation of those ideas. “It is not about ideas alone,” says Santos, “but how they are implemented.” And in the region and Doha specifically what is (sometimes) missing is not ideas but the drive, shares Santos. “No

country can thrive on one sector, it needs to diversify. It needs to use the revenues of that successful industry to diversify, and that is why entrepreneurs are necessary to find new business.” Yacoub Hobeika, Partner – Audit and Advisory of KPMG agrees that it is a challenge for the country with the majority of the younger generation opting for government jobs, but there will be change with all the initiatives that governmental organisations are taking to push the SME sector. In every economy there will always be QATAR TODAY > APRIL 2014 > 59


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(Adapted by KPMG Future Focus team)

BUSINESS MODEL CANVAS

a small minority who will never be satisfied with “safe and secure jobs”, and it is these people that we need to identify and nurture, says Santos. The big plan Hobeika is highly optimistic about the steps taken by the government in supporting entrepreneurs. He says that organisations like Bedaya Centre and Enterprise Qatar (EQ) are competing to help provide support to the new businesses. the Bedaya Centre, he says, is giving a 75% discount to provide professional services to entrepreneurs, providing feasibility studies and even accounting services while EQ has paid advisors to help existing small businesses realise professional management services. EQ is also helping those with new ideas to develop them into business plans and go ahead with their dreams. All the businesses dealing with a local accountant were helped by EQ to be managed by international advisors and accountants in order to help develop their ideas and take their business to the next level. “Now, in the next stage, they plan to help those who have a business plan in tangent with the National Vision 2030,” says Hobeika. Many a struggling entrepreneur has lamented the lack of availability of finance. In this scenario how useful is a business plan for an entrepreneur who cannot fund his initiative? Qatar Development Bank is the bank responsible for taking care of the finances of new businesses. Hobeika agrees that even though banks like QDB have the agenda 60 > QATAR TODAY > APRIL 2014

to help small enterprise, these banks cannot go forward until there is a firm business plan in place with a strong feasibility study indicating cash flows, with distinct methods of acquiring finances for the first few years. That’s why KPMG and INSEAD are explaining the essential drivers of new businesses, putting pen to paper and drafting a business plan, the nitty-gritty of moving forward towards a successful enterprise formation. Thus the efforts of EQ and Bedaya Centre are prudent as planning is foremost. “If there are feasible ideas it is easier to facilitate funds,” adds Hobeika. Does that mean that the entrepreneurs in the country lack ground-breaking ideas? “There is no lack of ideas,” counters Hobeika, “but there needs has to be more planning for the future. Business drivers (like market needs, customer understanding) need to be tacit. Entrepreneurs need to have their foot on the ground, to realistically go forward and make their ideas work.” Santos doesn’t feel that ideas alone are the drivers for an entrepreneurial mentality. “People say that entrepreneurship is about ideas for business. I disagree,” he says. “Ideas are everywhere; ideas are the easiest part of business creation. Ideas are not valuable by themselves. I tell entrepreneurs that with the internet, ideas are easy to beget. What is valuable is your drive in implementing the ideas.” Santos supports Hobeika’s argument, saying that the homework has to be done well before a business is launched. The real needs of the customer, professional interactions, meeting customer trust and having a good customer relationship is all important for entrepreneurs. Funding and even business plans come much later, he says, what’s most vital is “to understand the real needs of the customer and then acquire his trust by meeting his needs”. “The finances, the cost analysis, requirements of man power all fall closely behind, in the path to forming an SME,” says Santos. Santos also feels that instead of seeking resources from outside in the initial stages it is better to start by pooling resources from known sources until completely sure of the plan to be implemented. A culture of entrepreneurship The general level of entrepreneurship is very high in the US and reflecting on the huge success stories of entrepreneurship that have come out of the Americas, Santos agrees that there is an appetite for entrepreneurship in the US that is almost a


“If there are feasible ideas it is easier to facilitate funds.” YACOUB HOBEIKA Partner -Audit and Advisory KPMG

cultural thing, as it is an immigrant country, with people coming there in search of a better life. “And entrepreneurship is pursuing a vision of a better life,” he says. Unlike countries in Europe and the Middle East, the people there know that they are on their own and that the state or the government is not going to provide for them which makes them, even more self-reliant and open to starting on their own.” Another element is how individuals accept failure. In the US, failure is taken positively, while in Europe and the Middle East it is not taken very well. It is almost taken as a badge of shame. “I tell my students that failure is inevitable, but try to fail in a clever way by learning something new. Also, minimise or limit the cost of failure by not committing too many resources, so that failure does not halt your business. In other words, manage your failure,” he says. The negative perception of failure has to change. The true shame of failure is not to have tried rather than to have tried and failed in the process of building something. Santos talks about three types of entrepreneurship; lifestyle entrepreneurs, who have a certain expertise and start their own business to sell that expertise; necessity entrepreneurship, an absence of a job where in the only solution is to go and make something; and growth entrepreneur, which is more prevalent in Silicon Valley, the idea of transforming the world. “Here (in the Gulf region and Qatar in particular) there is less or almost no necessity entrepreneurship models, while you may have lifestyle entrepreneurship. What we have to do is to instill the tools to

nurture the ambitions for a growth entrepreneur. Once you understand the needs in the market and become a leader in the market niche, your opportunity to be a market driver is unique,” he says. Examples of countries that, like Qatar, have high economic stimuli but (unlike Qatar) have still worked on their growth entrepreneurship are Israel and Lebanon. “Lebanon is an interesting example. If there was one country to single out for having a highly entrepreneurial attitude, I would single out Lebanon,” says Santos. “They (the Lebanese people) are highly resilient and very open to change, and a very proactive group. Being in a country which is open to new developments makes the people more entrepreneurial.” But Hobeika is categorical when he says that there is no country like Qatar. “Qatar is a unique country. With such a small density of population and about three-fourth of its population being expats and being such a prosperous country, it is difficult to compare Qatar with any other country. In Lebanon there are more opportunities for entrepreneurs since the government cannot afford to take care of all of its population hence the highly-educated population is left to their own means,” he says. Santos adds that the uniqueness of Qatar comes with strengths and weakness too. He says, “The focus should be on how the weakness can be turned into advantages. A new idea can be implemented, or an idea can be replicated for the region; the possibilities are infinite, and if a small percentage of the population can be motivated, then there is no end to ßrevolutionary enterprises.” QATAR TODAY > APRIL 2014 > 61


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Cluster General Manager of the Ritz-Carlton Hossein Vetry talks about the steady strides that tourism in Qatar is making and how hotels can play a role in this growth.

BY AYSWARYA MURTHY

62 > QATAR TODAY > APRIL 2014

PASSING THE MANTLE ON TO DOHA

H

ossein Vetry is of the firm belief that Doha can’t think of itself in isolation. Qatar’s growth will be more spectacular if growth from the region complements it. “Dubai and Bahrain have so far done an amazing job promoting the region. Now Doha is doing the same. The key to bringing more business to the country is putting the whole region in the spotlight.” Subsequently this hospitality veteran also asks us not to be disheartened by the thought of competing with Dubai for tourists. “The focus of the two cities is entirely different. I’d like to think that Dubai and Doha complement rather compete with each other. Doha is a little bit more traditional and family-oriented with a spotlight on culture and arts, unlike Dubai, which is more modern and consumer-oriented. This is not necessarily better or worse. It just means that a person spending three days here and then three days in Dubai will have two entirely different experiences over the week,” he says. But this doesn’t mean there isn’t much more to be done in Qatar to promote

tourism. The Qatar Tourism Authority announced its Tourism Strategy 2030 in March. An ambitious plan to get tourism to contribute substantially to the national GDP and employment, it has reportedly been crafted with the help of stakeholders from across the sector. Vetry reveals some details of the strategy’s talking points. “We have had two meetings with the QTA to thrash out this long-term strategy. Among the many things discussed was the need to improve and encourage sports tourism. I feel this is where the focus would lie. Qatar is already doing a good job of it but it could be better, making it the primary location for sporting events in the region. Another recommendation from our side was to ease the visa process for some nationalities like Indians, Chinese, Russians and Brazilians. If you look at the UAE and Dubai particularly, Russia and China play a huge role in the leisure tourism sector. They come in large numbers and spend a lot of money too,” he says. Vetry believes the true potential lies in making Doha desirable to weary long-haul travellers looking for a relaxing and fun


stopover. “Imagine you are travelling from Hong Kong or Tokyo onwards to Europe. Doha is ideally situated to take a couple days of enjoy the weather and the beaches. It’s safe, it’s clean and it’s beautiful. And there are enough attractions to pack those two days with–shopping, museums, Souq Waqif, Katara. Even five years ago this wasn’t the case,” Vetry points out. The hotel has been working closely with Qatar Airways to promote Doha as a 48hour layover hub, he says. “Qatar Airways has been a great partner and has been instrumental in positioning the country from a tourism point of view. The numbers for this programme literally doubled last year.” The QTA has also been actively promoting the destination at various roadshows. “The Ritz-Carlton is invariably part of the contingent during these shows, and we have already done about 10-12 this year, including in Dubai, Berlin, Singapore, Saudi Arabia, Frankfurt, Kuala Lumpur, Hong Kong, Shanghai and more.” MICE (Meetings, Incentives, Conferences and Exhibitions) tourism is another area where Qatar has a lot of potential, Vetry says. “With the sheer size and quality of the facilities available in Doha, MICE will start becoming a strong contributor. In fact we’d like to go one step ahead and see more companies moving their regional headquarters to Qatar.There are a lot of companies looking to set up offices in the Middle East and we just have to make Qatar a desirable and profitable option. It’s something we are talking to the QTA about, and we ourselves try to influence this by actively talking about and promoting the country to our customers. Bahrain has recently lost out on a lot, unfortunately, and Doha can fill this gap. Qatar is one of the more stable countries to do business when compared with other economies. It’ll mean a lot of conferences, visitors, more room nights and business,” he says. Looking inward Vetry is unperturbed at the prospect of competition. “It’ll be fierce, no doubt. It’s a small market. We only just passed the two million mark. But international brands like us have an advantage because we have followers. So much so that people look at locations of the hotels and plan their travels accordingly.” Though the market was flooded with new rooms last year, Vetry says their occupancy has remained the same over the past two years. So how do they keep demand up in the face of oversupply? “Dropping prices drastically is not an option, as

we have to protect our brand integrity. Luxury resorts like the Ritz-Carlton don’t go on sale. So we go about creating more value instead, on an account-by-account basis,” he says. But oversupply is not something that’s going to go away; It fact, it’s only going to get more crowded, with as many new rooms under construction as exist. Vetry wants to tackle this fear rationally. “Nine years ago if we had said we are going to have 20,000 hotel rooms in Doha one day, it would have been laughed off. But today we do. It’s working; the country is developing and maturing as rapidly as the businesses here. The numbers predicted are not unreasonable. 2022 is a great highlight, but it’s for only a month. 2030 is more of the focus. That’s when we can say the country has truly finished building.” The hotel itself is heavily focused on regional tourism. The surge in inter-GCC travel is pulling a lot of visitors from the neighbouring countries to Doha and vice versa and the Ritz-Carlton is prepared to cater to this demand, Vetry says. “The number of visitors from KSA doubled last year: those from Kuwait went up by 40%, and the UAE by 40%. These are big numbers. A lot of families who used to go to Bahrain and Dubai are now more attracted to Doha.” And wherever they are from and wherever they are going, there is a Ritz there to welcome them. “We have a Ritz in every neighbouring state. Riyadh, Muscat, Bahrain, two each in Dubai and Egypt and three under construction in Morocco. Since we are a quality-driven instead of a volume-driven company, opening more hotels is not necessarily what we want to do. We’d rather want to make sure we have great quality hotels.” The Ritz-Carlton in Doha is testimony to that. Though Vetry is reluctant to reveal how well the hotel has fared in the face of competition, he says that among the seven hotels in the same competitive set as the Ritz-Carlton, they had the most improved revPAR (revenue per available room) last year. “We are also in the final stages of renovation within the hotel, improving the guest rooms over the past three years. All the food and beverage outlets will be renovated over the next three years. We are also looking to potentially add four or five new restaurants. We are the largest hotel in terms of land and there are plenty of avenues to add more features. Luckily we have very supportive owners who are ready to invest. They know and understand that the Ritz-Carlton has always been a flagship property for them, for us and for the city.”

"Dubai and Bahrain have so far done an amazing job promoting the region. Now Doha is doing the same. The key to bringing more business to the country is putting the whole region in the spotlight" QATAR TODAY > APRIL 2014 > 63


development > tag this JOSHUA MITCHELL Professor of Political Theory Georgetown University

GENERATION

GULF

In his new book Tocqueville in Arabia: Dilemmas in a Democratic Age Joshua Mitchell discusses how today’s young Khaleejis balance modernity with tradition. BY LUCY KOONS

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he students in Qatar laughed. Their professor had just offered to confiscate their mobile phones for an entire semester. Why take their phones? Because the students were complaining that modernity was eroding today’s families and causing tradition to disappear. Yet the students chose to keep their phones. Students in today’s Arab world speak fondly of their family traditions and culture. At the same time they seem to be leaving behind the communal and civic connections that shape their identities. Students in Qatar, for example, are “pulled in two very different directions,” says Dr Mitchell. In your book, you claim the psychological restlessness of the masses that Tocqueville predicted nearly two centuries ago for the West (as the ideas of the Enlightenment period began to dissolve aristocratic powers) can be seen today in the Persian Gulf. Can you provide some examples of this? I think that young people everywhere suffer from this restlessness, but that in the Middle East the contrast between traditional life and the seemingly unbounded world promised by the virtual world that the Internet provides is more acute. The virtual world knows few boundaries. Young people everywhere are drawn to it. Yet in the Middle East young people still have very strong family ties. The gap between the two worlds, one virtual, and the other palpable, is what causes the restlessness.

It goes without saying that this is a mixed blessing, since the cost of such freedom often involves isolation of the sort my students in the Middle East do not yet know. While generalisations are always dangerous, I think it safe to say that my American students often see tradition as something of a constraint, whereas my Middle Eastern students still largely feel comfortable within their traditions. This has implications for how they view the economy, for example. In the American case, the idea of the “free market” has more appeal, because tradition is not very strong while in the Middle East the idea of “free markets” is less appealing, because the cultural cost, so to speak, is much more evident. That is why my Middle Eastern students often say they want “modernisation” but not “Westernisation”. The premise of your book is that if you really want to know what a civilisation holds dear, see what it teaches its young. From an educator’s perspective, what do you see students in the Middle East being taught, and what do those teachings reveal about the commitments and worldview of leadership in the region? I understand the need to teach science, business, and technology here in the Middle East, but I greatly worry that here, as well as

You have taught in Washington, DC and Doha, and you were acting chancellor at the American University of Iraq. What do you see as different when you compare your students based in the US with your students in the Middle East? In general, my students in the United States are more comfortable with individual freedoms than my students in the Middle East. QATAR TODAY > APRIL 2014 > 65


PICTURE COURTESY: NIGEL DOWNES

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back in the United States, the push in these directions comes at a cost. Some portion of a student’s education really must be devoted to asking questions about who they are, where they come from, what is worth preserving, and why. These questions are valuable in themselves to answer. In addition, however, the exercise of answering them helps students develop their ability to think, speak, and write in their own voices, so to speak, which is something invaluable for the development of science, business, and technology. The greatness of a nation, and of a civilisation, is not measured by the command over nature it possesses, but by its judgment and wisdom about how, when, and why it is to be used. What do you feel are the most prevalent aspirations and anxieties experienced by today’s youth in the Middle East? Their aspirations and anxieties are mixed together. Both are fixed on the future. Modern education, for better or for worse, teaches students everywhere that their future depends on the educational level they achieve. I, for one, do not believe the connection is that direct, because with the passage of time, good fortune, natural talent, and hard work are the real causes of success. The effect of this teaching, however, is that students in the Middle East today are more anxious then they were a generation ago. Add to this the slow-growth economy so many parts of the world seem to be in, and you have a recipe for tremendous anxiety about the future. I always ask of 66 > QATAR TODAY > APRIL 2014

my students that they be patient, because their lives will be full of surprises they cannot even anticipate at the moment and they will often discover that a better measure of their success is not what they do, but rather how they face the challenges that life presents them. Do you think there is any hope of students in America acquiring an understanding of how students in the Middle East are pulled in two very different ideological and cultural directions and the agony that can cause? It is a source of frustration for me that many of my American students have no real understanding of the power of family, of local community and of religion, among other things. Their view of freedom, consequently, is sometimes quite skewed, and they imagine that happiness can only be achieved by being released from the ties that bind most of my students in the Middle East. That is, I think, why American foreign policy has not been successful in the region. The term “American exceptionalism” is thrown about recklessly these days but the truth is, the term is an important one. Americans are the exception around the world, for very interesting historical reasons, because they did not, and do not now, have the “linkages”, as I call them in my book, to family, to place, to history, to religion etc that peoples elsewhere around the world do. In my view, the beginning of a real conversation about the roots of misunderstanding must begin with this fact


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healthcare

THE CHANGING FACE OF HEALTHCARE

A SPECIAL REPORT ON THE BIG STRIDES QATAR IS MAKING IN THIS FIELD QATAR TODAY > APRIL 2014 > 67


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HEALTHCARE IS FOREMOST

CONTINUING ITS PLANS TO PROVIDE HEALTH INSURANCE TO THE PEOPLE, QATAR IS ALL SET TO LAUNCH THE SECOND STAGE OF THE NATIONAL HEALTH INSURANCE SCHEME (NHIS) LATER THIS MONTH. DURING THE SECOND STAGE, ALL QATARI NATIONALS WILL BE COVERED UNDER THE SCHEME TO MEET THEIR BASIC HEALTH NEEDS.

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he NHIS will provide universal health coverage to all people living in Qatar by the end of 2015. Among with Qatari nationals, expats and even visitors to the country will have access to a range of public and private healthcare providers, offering people access to more quality and choice for their healthcare needs. The first stage of the scheme was launched in July 2013 to cover Qatari females aged 12 and above for gynaecology, obstetrics, maternity and related women’s health issues. Subsequently, the scheme was extended to cover the majority of specialties, beginning with all Qatari nationals in late April 2014 followed by a phased roll-out for non-nationals in 2015. The scheme is considered vital in meeting the objectives of the Human Development pillar of the Qatar National Vision 2030, which aims for a healthy, productive society and calls for healthcare to be accessible to all, and Goal Six of the National Health Strategy, which focuses on the establishment of social health insurance as part of bringing greater efficiency and transparency to the operation of the country’s healthcare sector. The Minister of Health and Secretary-General of the Supreme Council of Health HE Abdullah bin Khalid Al Qahtani said a few months ago that Qatar would be spending QR38 billion on its healthcare system in the next few years. The expenditure will be on workforce and services provided for the patients, excluding infrastructure. “As many as 39 projects have been initiated and some of

them have already reached completion,” the health minister added. The overall approved budget for financial year 2012/13 was QR 9.15 billion, 47% higher than 2011/12. This included an approved budget of just over QR1 billion for the Primary Health Care Corporation (PHCC) and over QR7 billion for Hamad Medical City, which together with the Sidra Medical and Research Centre will continue to develop the tertiary care capability. Even Finance Minister HE Ali Shareef Al Emadi, addressing the World Exchange Congress a few days ago, hinted that the government would allocate more funds for healthcare in its budget for 2014-15. However, he did not elaborate. The NHIS is a large, complex programme of work, with many interdependencies. The main challenge is to ensure all the project teams across the health sector are talking to each other about the plans and the impact changes will have upon other key projects, stakeholders and services. Qatar has a hospital-centric approach, and Hamad Medical City is where the population wants to go for quality healthcare services. The PHCC’s aim is to reduce that, with primary care being the first contact for the population. This should be a humongous task, as the population's trust in the primary care centres is still precarious. Another initiative has been the launch of the “Hand in hand for safety” project by the PHCC in February this year. This was aimed at supporting patient safety and upgrade services provided in health

centres in terms of service improvement. This initiative is a top priority for the PHCC in the coming days. It will focus on various programmes that stress patient safety and raise staff competences in order to provide safer medical services. In this context, the PHCC stresses that patients are the main priority in this project because they will act as instructors or inspectors for their own safety by communicating with healthcare providers. Under the patient safety project, people visiting the health centres should make sure of their data when presented to doctors and other staff. As for prescriptions, the PHCC points out that patients should ask their doctors or pharmacists about prescriptions, verify the type of medicine and get written information. Furthermore, the Supreme Council of Health (SCH), in collaboration with the Ministry of Communication and Information Technology (ICT), will set up a “Health Call Centre” to receive complaints or queries from the public about healthcare providers and services. “The round-the-clock call centre will be set up by May this year and will receive complaints and inquiries about the services of Hamad Medical Corporation, the Primary Health Care Corporation and the private healthcare providers functioning under the SCH,” Ahmed Abdullah Al Khulaifi, Assistant Secretary-General for Administrative Affairs at SCH, said. Besides receiving queries and complaints from the public, the call centre will raise health awareness among the public and keep them updated about the healthcare programmes in the country QATAR TODAY > APRIL 2014 > 69


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COLLEGE OF PHARMACY CELEBRATES MILESTONE

QATAR UNIVERSITY’S COLLEGE OF PHARMACY (QU-CPH) RECENTLY CELEBRATED THE FOURYEAR ACCREDITATION STATUS AWARDED ITS DOCTOR OF PHARMACY (PHARMD) PROGRAMME BY THE CANADIAN COUNCIL FOR ACCREDITATION OF PHARMACY PROGRAMS (CCAPP).

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he college of Pharmacy and its partners joined Qatar University administration, faculty, staff, students and alumni to celebrate the milestone; which came within three years of the programme’s first graduates. QU President Prof. Sheikha Abdulla Al-Misnad commented: “This is a testament to the quality and excellence of the programme’s course content, its faculty, students, facilities and resources, which place it among other leading pharmacy schools and colleges around the world. The college must today be very proud of this achievement, which is the result of hard work, determination and commitment of all its members towards this success. This is a notable recognition of its commitment to continuous improvement to ensure that its graduates meet the international standards for pharmacy and patient care and the healthcare needs of Qatar.” CCAPP accreditation team member Dr Wayne Hindmarsh said: “Pharmacists are an integral part of the healthcare team. The Canadian Council for Accreditation

of Pharmacy Programs has had the pleasure of following the development of the pharmacy programmes at Qatar University. We acknowledge the leadership of the College of Pharmacy in offering excellent pharmacy training. The PharmD programme is training pharmacists to be better equipped as leaders in medication therapy. These students are trained by excellent faculty, and the graduates, working as part of a healthcare team, ensure the most effective medication therapy is delivered to patients. We congratulate the College of Pharmacy and Qatar University on their excellence in education.” CPH Dean Dr Ayman El-Kadi said: “We are pleased to be the first and only international pharmacy programme to be awarded full accreditation status by CCAPP for its graduate programme, and the fifth such institution in the world to achieve this hallmark of excellence. The wider community will benefit from the knowledge and experience of our fine graduates, who will contribute to national efforts to provide optimum healthcare to meet the country’s growing demands and



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healthcare health challenges. This accreditation is another step in our contribution towards the objectives of the National Vision 2030, the National Health Strategy and other development initiatives.” PharmD Programme Director and Experiential Coordinator and Associate Professor Dr Kerry Wilbur thanked the programme’s team, saying: “My sincere gratitude to the campus-based professors, cross-appointed and adjunct faculty and our many domestic and international partners who have been instrumental in providing advanced clinical training to our students, and who participated in the accreditation process of self-assessment, peer review and improvement. This mark of distinction is a testament to our joint commitment for advancing pharmacy practice and patient health in Qatar.” Shaikha Al-Naimi, Clinical Pharmacist, Neonatal Intensive Care Uunit at Women’s Hospital, said: “The accreditation received by the College of Pharmacy, Qatar University is an outstanding achievement that we all, as alumni, were anticipating. As of now, we are the first college outside of Canada to receive the full CCAPP accreditation for both the Baccalaureate and Doctor of Pharmacy degrees. This means that the college is keeping its academic standards in line with those of Canadian pharmacy programmes. As students we went through hard times, and had to follow strict rules in order to meet the accreditation requirements, and it is such a joy to see all that hard work pay off. The College of Pharmacy continues to be a source of pride for its alumni.” Current PharmD student Mawadda

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Gajam was very pleased to have the programme accredited as it “is a quality assurance criteria that ensures the adequacy and appropriateness of the programme as well as to ensure the adherence of the programme to high quality standards will offer me an excellent chance of being in a well-equipped environment”. The good news kept coming, with CPH’s third-year students Oraib Amjed Abdallah and Fatemeh Ali Bakhsh Jalali winning first place with their poster presentation entitled “Preparation and characterisation of 3D electrospun biodegradable nanofibres for wound dressing and other tissue engineering applications” at the sixth International Conference on Drug Discovery and Therapy, that held between February 10 and 12 in Dubai. The event drew four Nobel laureates and scientists from more than 50 countries. Abdallah and Jalali won a certificate of first place rank amongst the 135 competing presentations and $1000 (QR3,640). Dr Husam Younes, Associate Professor of Biopharmaceutics and project supervisor, CPH commented: “This is another great achievement by our students in Dubai as a witness of their dedication and high quality of work conducted in a directed-studies research course at Qatar University. We are really proud that our Pharmaceutics and Polymeric Drug Delivery Research Laboratory (PPDDRL) is actively involved in these courses and cultivating research culture among our students.” These two students also participated and won first place for their research poster a few days later in the joint QU and Texas A&M University at Qatar fifth Annual Materials Science and Engineering Symposium, held at QU on February 18. They received QR5,000 and a certificate of excellence. Dean Dr Ayman El-Kadi said: “We are always pleased to see our students compete and to showcase their talent on the international and local stage in front of such a prestigious scientific audience. They continue to make us proud.” Senior MSc student Youmna Mohammed Hassouna also gave a podium presentation related to her research entitled “Synthesis, characterisation and cytocompatibility of poly (diol-co-tricarballylate) biodegradable matrices for use in tissue engineering and other biomedical applications”. She is the first MSc (Pharm) student at CPH to present her oral invited talk at an international conference. Hassouna is currently in the UK on an internship as part of her MSc project


UCQ OBTAINS INTERNATIONAL ACCREDITATION

THE CANADIAN ASSOCIATION OF SCHOOLS OF NURSING (CASN) RECENTLY GRANTED ACCREDITATION TO THE UNIVERSITY OF CALGARY IN QATAR (UCQ). THE ACCREDITATION WILL RUN FOR SEVEN YEARS, THE LONGEST TERM THAT CAN BE AWARDED.

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chieving national accreditation provides students and graduates with assurance that the University of Calgary in Qatar programme meets recognised standards of excellence that are applicable to Masters programmes throughout the world,” states Dean and CEO Dr Kim Critchley. Accreditation is an internationally accepted way of promoting quality in education and is an important, objective method of assessing professional university

programmes. Achieving CASN accreditation for the nursing programmes at UCQ is also an important ingredient in the National Health Strategy’s aim of regulating healthcare practitioners in Qatar and ensuring the quality of the education they receive for their professional development. “UCQ’s CASN accreditation demonstrates the commitment of Canadian institutions to academic and professional excellence in Qatar,” said the Canadian ambassador to Qatar, André Dubois. “UCQ and others are helping the next generation who will fulfill the Qatar National Vision 2030, particularly in QATAR TODAY > APRIL 2014 > 73


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healthcare

healtcare. This is a further demonstration of how Canada can be a partner of choice in Qatar. “ The CASN Accreditation Bureau gave high marks to UCQ for its ability to adapt its nursing programme to incorporate the local culture and support students whose first language is not English. “Nursing education programmes must continually incorporate new knowledge and be responsive to the changing needs of students and the healthcare environment. Graduates must be prepared to work safely in increasingly complex environments in the context of the constantly changing and growing body of knowledge on which nursing practice is based. One of the ways to ensure this is being done is the CASN accreditation process, which demands the content and standards of education are maintained,” Critchley explains. In the autumn of 2014 the first class of Master of Nursing students will graduate from UCQ.

Inter professional education for healthcare professionals Initiative in healthcare research is one of the key areas in which UCQ demonstrates its commitment to enriching health and wellness in Qatar. One such project, Inter Professional Education (IPE), focuses on enhancing the interprofessional and collaborative nature of healthcare delivery. In February, healthcare educators began their training to implement interprofessional education (IPE) into their daily practice in the first of five workshops to be conducted by UCQ. IPE, a collaborative educational approach in the development of healthcare 74 > QATAR TODAY > APRIL 2014

“UCQ’S CASN ACCREDITATION DEMONSTRATES THE COMMITMENT OF CANADIAN INSTITUTIONS TO ACADEMIC AND PROFESSIONAL EXCELLENCE IN QATAR.” ANDRE DUBOIS Canadian Ambassador to Qatar

students and professions, is promoted by the World Health Organisation (WHO) as a tool to improve healthcare systems. A recent WHO report concluded that IPE can produce a more efficient workforce, enhance healthcare systems and improve the quality of patient care. The Qatar Academic Health System (AHS) has awarded approximately QR2.3 million to develop a training programme to integrate IPE throughout Hamad Medical Corporation, Sidra Medical and Research Centre and the Primary Health Care Corporation. This project is being led by the University of Calgary in Qatar, one of nine AHS members. The IPE project focuses on the four priority areas that AHS has identified: neuroscience, cardiovascular disease, endocrine disease and oncology. Sixteen healthcare educators are being brought into the project and will be given training on how to implement IPE in their daily practice. “We’re using an evidence-based approach to develop an interprofessional education project that is suitable for and

fits the Qatari context. We believe it will improve patient outcomes, potentially improve patient safety, in addition to improving staff morale and well-being and a whole other range of potential benefits,” explains Jason Hickey, UCQ nursing instructor and Project Lead. Plans are in the works for five IPE training workshops this year that will train key healthcare professionals in a variety of disciplines on combining their areas of expertise to communicate and collaborate more effectively. The outcome will be monitored continuously to ensure the programme’s effectiveness. If successful, the training programme will be expanded to include more healthcare professionals. “I feel confident about the progress we’ve made. I’ve had unanimously positive feedback across the administrative levels at HMC and a lot of interest from the implementation team co-leads to be involved in something that we believe will be very positive for the country,” states Dr Hickey. Hickey feels there are already benefits of IPE visible in the Qatar healthcare system. “Educators from different disciplines are talking to each other and working together, even more so than they did before, and everybody realises the importance of IPE. Also, this project has the potential to make a really important contribution to the global discourse in interprofessional education. Right now, the majority of the literature that has been published comes from Western countries. Being able to design and implement a programme that is created for the Qatari context will add a unique perspective. “Nurses are always involved in coordinating healthcare teams. They spend the most time with the patients and work with all the professions. So it makes sense that UCQ, being a nursing school, is coordinating a project like this. Through the support of the Qatar National Research Fund (QNRF) and our other partners, UCQ is also developing an undergraduate IPE programme. Now the post-licensure project is being led from here, and I’m proud of the contribution that UCQ is making to advancing IPE in Qatar. Part of all our students’ clinical evaluations has to do with interprofessional education. So the more capacity we build amongst faculty and staff the more our students will benefit. We’re extremely grateful to the Qatar Interprofessional Health Council and the funding provided by the QNRF and the AHS,” Hickey concludes



development > tech talk

THE FUTURE THROUGH

SAP’S LENS

A tour of SAP’s stand at the Mobile World Congress and talks with some of its top executives highlight some of the more diverse and cutting-edge areas the company is working in.

BY AYSWARYA MURTHY

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1:50 scale model of “smart” cranes, a futuristic vending machine, augmented reality, football statistics and beer analytics... It was an engaging experience to walk around the German multinational’s interactive stand at MWC in Barcelona, seeing how some of the core technologies developed by SAP are finding applications in such diverse industries. Among the software giant’s key developments is its proprietary in-memory computing platform HANA (High-performance Analytic Appliance), which it released a few years back. Talking more about this game changer, Adam Stein, Senior Director of Mobile Product Marketing, said: “HANA can provide the back-end computing power to run a wide range of analytics applications. When integrated with HANA, big data and the accompanying analytics can be easily visualised through the mobile application.”

Though the stand had showcased a select few examples where the technology was being implemented resulting in exponentially increased productivity, in reality there isn’t a single industry that couldn't benefit from HANA and its accompanying business suites. Route profitability analysis for airlines, personalised product offering, solving crimes in less time and personalised patient treatments are just some of the exciting applications that HANA is being used for. The Smart Vending Machine really brought the technology to life. Backed by cloud-based software, scanning your smartphone at the machine activates an interactive touch screen menu. If the user has the HANA app installed on their phone, preferences and purchase history can be tracked and analysed. Not having to struggle with coins and currency notes or watch helplessly as your bag of crisps gets stuck on the way down would be great, but that’s not what all this innovation is about. “The machine will track the purchases, the time a customer spends in front of the machine, which products are most popular, and send the bulk of the information to the cloud for further analysis. It will also maintain a real-time inventory and alert distributors when the stock is running out, in addition to remotely signaling technicians about any maintenance issues,” Stein points out. Maybe even directly to a delivery truck when it is in the vicinity. SAP also recently signed up to help the German national football team train more efficiently using sensor technology, cloud computing and big-data technology. By capturing and analysing data like the position of players and how they move on the field relative to the ball (which is also fitted with a sensor), coaches can optimise training in real time. This has gained far more traction in the United States than in Europe, and Dinesh Sharma, Vice President, Marketing, Internet of Things predicts that in another three to four years sensor-based analytics


will be widely used in professional games to drive fan engagement. Are you the owner of a bar/pub and want to track the alcohol consumed at your establishment, what the popular brands are and when they move fastest, how much is being wasted and what kind of offers will help boost sales? A company called Weissbeerger is doing exactly that with the help of HANA. They are calling it alcohol analytics. Stein also talks about how SAP helped revamp the Montreal transit system to make it more engaging and customer-friendly. “The STM Merci app replaces your train/ bus card and makes the whole process electronic. It also learns about your interests and likes and rewards you with localised offers based on that,” Stein explains. So after you take a certain number of rides, you are eligible for a free or discounted coffee at a café nearby (determined using real-time location-based services). “This has not only led to increasing number of people using public transport but also provides the train company with added digital advertising revenue.” It’s a win-win situation. SAP is also modifying this concept to be used in the Connected Car that they are working on with BMW. “Offers and coupons are pushed to the user depending on their GPS location. But better than that is helping you better understand how optimally your car is functioning, and telling you exactly what’s wrong when you have a breakdown.” HANA in the Middle East Paul Devlin, Director, SAP Platform Solutions at SAP MENA, spoke to us about how the technology is finding specific applications in the Middle East. “We have worked with SK Solutions, who provide software for anti-collision systems, who are fitting the super-sized cranes (modern cranes are immense, able to lift loads of more than 19 tons to heights of more than 80 metres) at construction sites with sensors, and analysing the data in real time on the HANA platform,” he said. This has been deployed in Qatar as well. It enhances worker safety and improves productivity by pulling together data such as three-dimensional motion control, location, load weight, equipment usage, wind speed and direction etc and analysing it to automatically prevent a potential collision. “As the global leader in anti-collision systems, we understand the value of real-time information for saving lives,” says Dr Séverin Kezeu, CEO, SK Solutions. “Our collaboration illustrates how information technology and

operational technology are converging. A unique portfolio of SAP solutions is expected to help us provide accurate, timely and secure information to construction equipment operators, fleet managers and senior construction managers.” Solutions like HANA are finding uses in the energy sector as well, to aid oil exploration in remote and difficult locations. This digital innovation comes in the form of distributed sensors, high-speed communication and data mining. The large volumes of data generated from the millions of sensors deployed on the ocean floor, for example, are analysed on the fly at any level of granularity, aggregation, and dimension. Another interesting application, Devlin says, will come in the field of medicine. “Genome analysis, which generally takes weeks or months, can be done in real time on the platform. This will help towards arriving at the optimal diagnosis and has a positive impact on the stress levels of the patient,” he says. This is already being done at many hospitals in Europe and the United States.

"When integrated with HANA, big data and the accompanying analytics can be easily visualised through the mobile application." ADAM STEIN Senior Director of Mobile Product Marketing

Internet of Everything “As we move from the third era of industrial revolution to the fourth, the bidirectional connections between machines, people and data will become increasingly important,” says Sharma. By the end of the decade, some 50 billion devices will be talking to each other, according to networking giant Cisco. These will start from household appliances like your refrigerators to multi-tonne drill bits used in hydrocarbon exploration. But expectations have to be tempered according to the rate of adoption. So how do you convince business leaders of today to make the leap? This is where people like Sharma come in. “Here at SAP we have created a list of 25 industries that we’ll focus on in the next years, figuring out how the Internet of Things can drastically change the way they work, and create new business models that didn’t exist before. Increased operational efficiency and lowered costs is the simplest argument you can make,” Sharma explains. His job is to make this real for executives and find avenues where connected devices will make a tangible difference to the bottom line. “There is already an understanding that your value at the stack will be in jeopardy if you are not doing something in this direction. Because for sure your competitors will, putting you at a disadvantage. So if we can show our customers what this level of capability can do for their processes and workflow, it’d be easier for them to make the transition.” QATAR TODAY > APRIL 2014 > 77


development > tech talk

"Here at SAP we have created a list of 25 industries that we’ll focus on in the next years, figuring out how the Internet of Things can drastically change the way they work, and create new business models that didn’t exist before." DINESH SHARMA Vice-President, Marketing, Internet of Things

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He goes on to talk about Hamburg Port, clearly one of his favourite case studies. “Hamburg is home to the second largest port in Europe. Today they handle some nine million containers annually. By 2025 this number will be close to 25 million.” He pauses for effect. Sinking money into making another port or expanding the current one is something that will definitely come up for debate. And you can be assured that it will be a lengthy, contentious one. But such is the age we live in that the ability to do more with less is always possible and it’s often just a brainwave away. “The question was, could we make the existing port more efficient? Yes, we could. We equipped 5,000 trucks with telemetry systems through which we could constantly monitor where they were and what loads they were picking it up.” It sounds simple at first but the fact that most trucks are owned by sole proprietors meant it was difficult to incentivise the programme for the owners. “So the port authority did it for them as part of their licensing. How did they make money out of it? This is the brilliant bit. The port authority was able to sell this information as a value-added service to shipping companies like Maersk and Evergreen, who were more than willing to pay for this information; it gave them a holistic picture of all the congestion and helped streamline their own operations.” This is a perfect example of how new business models, in the tens and hundreds, will continue to emerge as the Internet of Things (IoT) becomes more pervasive. There isn’t a sector that can’t be touched by this, according to Sharma. “Value proposition can be created anywhere – in higher education, banking, insurance, defence, retail, healthcare...” The possibilities are endless. “Take something as small as blood pressure monitors. A hospital typically has several of these and often people don’t always know where they are. This means they often have to invest in buffer machines. But if the BP monitors were fitted with sensors, you’d know where each one is at all times.” While on the medical side this not only saves money and makes data collection more efficient (for example, by directly recording the BP measurements in the patients’ medical record) but it creates new opportunities for the vendors as well. “The machines can now be remotely monitored and are accessible for preventive maintenance. So as a vendor, I can sell a service and not just the product. This is going to be increasingly prevalent in a lot of areas.” The above example explains why SAP

considers asset management one of their “biggest tickets”. “We have the solution and a platform that it can be deployed on. On top of that, we bring more value because we already know the operational processes and can give a clearer picture of how the data can impact this. Among the industries we have picked, many of them already know the value of asset management. The oil and gas industry, for example, has always been adding sensors to the expensive drill bits they use. The cost of the equipment runs in the hundreds of thousands and they don’t mind spending money to protect and monitor this high value asset.” But there is so much more that you can do with them when we add them to existing data from other resources, Sharma says. It’s much more valuable to have the whole picture from every sensor. “Many companies are half-way across the bridge; we are just taking them through the rest of the path.” Tapping into telecom The region’s Head of Telco at SAP MENA, Sherif Hamoudah, was also present at MWC to emphasise the big shift in how telecom operators are viewing themselves, and how this will prove to be a big growth opportunity for the company. This is further brought into focus by the important partnership announcements that were made at the event with two of the biggest players in the Middle East, STC and Etisalat. “It’s an exciting, growing market which is currently quite underserved, signifying plenty of opportunities. Telecom is one of SAP’s four strategic industries, and it is our goal to help telecoms better serve their customers.” These kinds of partnership will create the ecosystems be needed to deliver effective solutions in the future. When companies with different core competencies and appetites come together to build a solution, the customers believe in them more. “Take the example of the smart vending machine. We can work with two companies at most on building the machine. But, say, a soft drink company might own, say, 40,000 such machines regionally. This immediately makes the scope of the work much, much larger. But if we partnered with a company that has the perfect infrastructure, resources and capability, give them the platform and they’ll take care of winning those 40,000 machines. We have enough feet on the street, while the company has a new source of revenue. It’s a great complementary relationship. We are really energised by what we think an ecosystem like this can do.”



development > tech talk ZUCKERBERG PHONES OBAMA Facebook CEO Mark Zuckerberg posted on his wall recently that he had called US President Obama to “express my frustration over the damage the government is creating for all of our future”. But true and full reform, he wrote, would take a long while. AFP PHOTO/MANDEL NGAN

WHAT THE FUTURE WILL LOOK LIKE

Cisco predicted that the Internet of Things, context-driven applications and redefined networks are closer to realisation than we think.

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isco’s Technology Radar study highlighted some of the key trends set to redefine businesses and life across the Middle East in 2014. Based on intelligence gathered by over 70 global technology “scouts”, Cisco’s study says context-aware computing, machine-to-machine connections, browser based video and collaboration, video mega trends, building the next internet with new architectures, security and mobile device management will be the buzz words for the year. Driving all of these is the Internet of Everything – the interconnections of people, processes, data, and things – which the company believes represents a $19 trillion opportunity, globally, over the next decade, much of it in the private sector. By 2020, the growth of connected “things” will reach 212 billion,

it said. Tarek Ghoul, General Manager, Cisco Gulf, Levant and Pakistan said that these were global predictions, and there was no reason why the pace of realisation of these technologies in the Middle East shouldn’t match, say the US or Western Europe. “This region’s great advantage is that there is less or no legacy to deal with. So the countries here have the ability to adopt technological advancement at a higher pace. This combined with the political will to move things forward (majority of the Gulf states have specific social and economic agenda with technology playing an integral role) will assist governments and industries here in actualising these concepts in a shorter amount of time.” The only thing that might inhibit the process is the availability and cost of bandwidth, he said.

THE WORLD WIDE WEB AND ITS FUTURE Twenty five years on since he first presented the idea of a common protocol to link information across a network, founder of the World Wide Web Sir Tim Berners-Lee spoke in Doha about what we can expect from the Internet in the next 25 years. In an engaging, albeit a little technical, talk, he spoke about his days at CERN where the WWW was born. The need to easily exchange information across the research facility's network led to the creation of the first hypertext-linked document. He joked that his then boss thought it was "vague, but exciting". Using many of the slides he had used 25 years ago to explain this new concept to the world, Sir Berners-Lee literally brought history to life. While talking about pressing issues like privacy, he also stressed the need for a new Bill of Rights for the web and invited everyone present to voice their opinions through the site webat25.org.

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MICROSOFT EMPOWERS QATARI SMES WITH CLOUD TECHNOLOGY During a visit to Doha recently, Microsoft’s International's President Jean-Philippe Courtois announced that the company is eager to provide up to 10,000 small- and mediumsized enterprises with know-how and technology to work on the cloud. The cloud, Courtois said, would enable a business to seamlessly connect with customers, investors and industry players, while being safe and cost-effective, with up to “40 times more cost benefits”. He noted that “Microsoft is committed to helping the country address its national priorities through technology, bringing innovative products and services to the market for the benefit of Qatari SMEs, the local economy and the country’s overall competitiveness.” He remarked that businesses that have embraced new technologies and make maximum use of the Internet create more jobs and value.


MILLIONS SEARCH FOR MH370 ONLINE As the mystery of the missing Malaysian aircraft has the navies of over 20 countries searching the seas, a unique crowdsourcing effort has allowed millions around the globe to join the search as well.

READY FOR VIRTUAL

D

igitalGlobe, a commercial vendor of satellite images, launched the site Tomnod on March 11, after almost a week of fruitless searching for the missing jet. It has uploaded images from its five high-definition satellites of a 24,000-square-kilometre area, starting with the Gulf of Thailand and expanding into the Indian Ocean, for volunteers to examine and tag – do they see debris, oil slick, rafts or nothing at all? The company said more than three million people have participated in the programme so far, with some 257 million “map views” and 2.9 million areas tagged by participants. “DigitalGlobe’s expert analysts will examine the tags to identify the top 10 or so most notable areas and share the information with customers and authorities,” a statement

REALITY GAMING?

Sony revealed a prototype virtual reality device called Project Morpheus at the Game Developers Conference last month in San Francisco. Though the company has said that the device will be compatible with the new PlayStation 4, it declined to comment on the specifications, costs or estimated release date.

from the company said. “Perhaps the biggest value-add of this digital search lies in identifying where the aircraft is most definitely not located-that is, approaching this crowdsourced operation as a process of elimination,” Dr Patrick Meier, who leads a similar crowd sourcing initiative called MicroMappers for natural disasters, wrote on his blog. “In other words, the crowd can provide the first-level filter so that expert analysts don’t waste their time looking at thousands of images of bare oceans.” He and his colleagues at the Qatar Computing Research Institute have also been using this incident to train their Artificial Intelligence for Disaster Response platform to automatically categorise tweets based on whether they offer news, prayers or opinions.

FEEDBACK AT YOUR FINGERTIPS To commemerate World Consumer Rights Day, ictQatar launched the app Arsel, which now allows you to file a complaint or feedback about your telecom provider. Initially available on Android, the app will be released on the iOS and BlackBerry platforms soon.

ASSISTANCE AT THE TOUCH OF A BUTTON

Volkswagen Qatar has launched a new app that can help you locate its nearest workshops or contact Volkswagen roadside assistance through your phone.

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he Volkswagen Service App, available in both English and Arabic on Google Android and iOS platforms, is designed to provide instant access to information on the location and contact details of service centres and dealers, routes, offers and more. In case of a breakdown or accident, you can contact the nearest workshop or emergency services or summon Volkswagen roadside assistance to your location. It also has an Accident Report function, which enables customers to create their own reports with sketches, pictures and witness insights. The Volkswagen Service App also includes many handy features including a dictionary of dashboard warning lights, a parking place reminder and timer, a function to book test drives, a translator and a travelogue to chart important trips and journeys. QATAR TODAY > APRIL 2014 > 81


focus > sports file

ALL VERY FAMILIAR FOR QATAR DOWN UNDER

Qatar will face regional rivals UAE and Bahrain in Group C of the 2015 Asian Cup in Australia next January.

2015 ASIAN CUP GROUPS Group A:

Australia, South Korea, Oman, Kuwait

Group B: Uzbekistan, Saudi Arabia, China, North Korea Group C: Iran, UAE, Qatar, Bahrain Group D: Japan, Jordan, Iraq and the 2014 AFC champions QATAR’S FIXTURES: January 11: Qatar vs UAE (Canberra) January 15: Qatar vs Iran (Sydney)

AFP PHOTO / WILLIAM WEST

January 19: Qatar vs Bahrain (Sydney)

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he official draw was made at the Sydney Opera House last month, and Al Annabi – who were in Pot 3 – will be delighted to avoid pre-tournament favourites Australia, South Korea and Japan. However, they will renew acquaintances with 2014 World Cup participants Iran, whom they met four times during qualification for that tournament. Qatari supporters won’t be fazed by this particular opponent, though, because Carlos Queiroz’s outfit only managed to win one of the four games. The sides drew 1-1 in Doha in September 2011 in the third round of qualification, while a late goal from Mohammed Kasola tied the game for Qatar in Tehran in February 2012, thus ensuring their passage to the next round. They were drawn in the same group once again in the fourth round, and a scoreless draw in Doha in June 2012 was followed by a 1-0 win for the home side in Tehran a year later. Qatar was eliminated from the group while Iran qualified for Brazil in top spot, ahead of South Korea and Uzbekistan. Qatar has built up an even greater ri-

82 > QATAR TODAY > APRIL 2014

valry with Bahrain in the recent past, with little or nothing between the teams on each occasion they’ve met. Both nations easily qualified from the same group for the 2015 Asian Cup, which included a 1-0 win for Bahrain in Riffa in March 2013 and a scoreless draw in Doha last month. They also met in the third round of qualification for the 2014 World Cup. Again there was nothing between the sides as two scoreless draws – in September and November 2011 – helped Qatar to qualify from the group in second place ahead of their neighbours. Bahrain also scored a 1-0 win over Qatar in the group stage of the 2013 Gulf Cup in Bahrain in January of last year. The UAE may be the dark horses of the tournament itself, however, and have been in great form in the recent past. Since they finished bottom of their group in the third round of qualification for the 2014 World Cup, they’ve managed to put a formidable string of results together. The Whites beat Qatar 3-1 in Bahrain in the 2013 Gulf Cup en route to winning it outright, and topped their group with consummate ease to qualify for the 2015 Asian Cup.


QATAR 2022 FACES MORE QUESTIONS

Qatar will come under increasing pressure in the coming months to hold on to the rights to stage the 2022 FIFA World Cup.

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recent investigation by the Daily Telegraph newspaper in the United Kingdom revealed that a former official and his family were paid almost $2 million from a firm linked to Qatar’s successful 2022 campaign. Senior Members of Parliament (MPs) in the UK have stressed that FIFA itself should now open an inquiry into the serious revelations. Clive Efford, the shadow sports minister, said: “FIFA should carry out a full investigation. It looks like there may have been serious corruption in the bid, and it has to raise serious concerns about sending the World Cup to Qatar. If FIFA looks into all the information and finds that there is corruption, they should reopen the bidding process.” John Whittingdale, chairman of the parliamentary culture, media and sport select

committee, said that the payments “provide further evidence that casts doubt over the credibility of the entire process to select Qatar as the country to host the 2022 World Cup”. The investigation revealed that Jack Warner, the former vice-president of FIFA, appears to have been personally paid $1.2 million from a company controlled by a former Qatari football official shortly after the decision to award the country the tournament. Payments totalling almost $750,000 were made to Mr Warner’s sons, documents show. A further $400,000 was paid to one of his employees. The investigation revealed that the payments were made by a Qatari-based company, Kemco, which is owned by Mohamed bin Hammam, the former executive committee member for the Gulf state.

JACK WARNER Former Vice-President of FIFA AFP PHOTO / LUIS ACOSTA

QOC ANNOUNCES EXCITING CALENDAR

The Qatar Olympic Committee (QOC) has announced an actionpacked schedule of sports in the country for the coming 12 months.

NEW F1 SEASON TAKES OFF Mercedes driver Nico Rosberg of Germany (L) sprays champagne on the podium after winning the Formula One Australian Grand Prix at the Albert Park circuit in Melbourne on March 16. AFP PHOTO/WILLIAM WEST

The new season will host almost 100 events, including the IHF World Men’s Handball Championship (January 15-February 1, 2015); the 12th FINA World Swimming Championships (December 3-7, 2014); Qatar PSA Squash World Open (November 14-21, 2014); the 47th World Military Sailing Championship (November 21-30, 2014) and the World Schools Tennis Championship (March 8-15, 2015). The calendar also includes the IAAF Diamond League next month (May 9); the Qatar ExxonMobil Tennis Open next January; and the Commercial Bank Qatar Golf Masters in February. Information about all the events that Qatar will be hosting over the coming 12 months can be found on www. olympic.qa. NEW SEASON WILL HOST ALMOST

I00

EVENTS

QATAR TODAY > APRIL 2014 > 83


business > braking news

CONFESSIONS OF A CONVERT BY ABIGAIL MATHIAS

It is hard to be objective. Extremely so when you are asked to test drive a range of brand new luxury cars. As a novice to the auto world, I found this task exciting and daunting at the same time.

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he team from Maserati pulled out all the stops on a road trip that was straight out of a movie. Media from around the world were invited to take part in a celebration of the 100 years of the Italian brand. Picture, if you will, sleek international world-renowned cars, the tallest building in the world and an adventure-packed 72 hours. But I am getting way ahead of myself. After having the ethos of the brand carefully explained to us, we were invited to follow a convoy that tested the newest range of Maserati cars on the busy streets of the UAE. Naturally, there was excitement. With careful instructions about safety and security, we were paired in groups of two for a whole day of driving. I was determined to put my driving skills to the limit testing each of these beauties. Riding a sports car on Dubai’s roads from the Burj Al Arab to the Palm Jumeirah and back is an experience not easily forgotten. Maserati is an Italian luxury car manufacturer, established in 1914 in Bologna, Italy by its founder Alfieri Maserati and his brothers. Today,, the company’s

headquarters and main production location are in the Italian city of Modena. Chief Marketing Officer Saad Chehab explains: “We are a small brand with great vehicles.” The trident logo was inspired by the fountain on the Piazza del Nettuno in the centre of Bologna. It is a symbol that ties together the brothers, their hometown, and the artistry and craftsmanship for which Bologna and the Emilia-Romagna region are known. In addition to the successful GranTurismo and GranCabrio ranges, the latest generation of Maserati’s flagship sedan, the Quattroporte, and the new sports executive sedan, the Ghibli, provide the cornerstones to the brand’s strategy of producing some 50,000 units annually by 2015 and gaining a significantly strengthened presence in the global luxury car market. Umberto Cini, Managing Director of Brand Maserati, has a passion for racing horses and cars. He is perhaps the most fitting representative of the brand, not merely due to the fact that he is Italian, but because he actually always wanted to work for the company. “Personally, the brand means a lot to me,”


NUMBERS For 2013, Maserati posted a

148% 15,400

increase in shipments to

vehicles, driven by the success of the new Quattroporte and Ghibli models. Its major markets include the USA (2013: 6,900, up 138%), China (2013: 3,800, up 334%), Europe (2013: 2,500, up 133%) as well as Asia-Pacific (2013: 1,300, up 52%) and the Middle East (2013: 750, up 81%).

he admits. “When I was a child, my father, who was passionate about cars, took me to the Maserati showroom... I was around 12 years old, and sitting in the car at the showroom, I felt like a kid in a candy shop. We could not buy that car. Many years later, when I started to work for Maserati, my boss told me 'we are not selling cars, we are rewriting history'. For me that is a legacy that has come true. It is extraordinary to be part of the 100-year special.” Reminiscing about his recent visit to Qatar, Cini adds: “I am part of this region for the past seven years, and for us Qatar is a very important segment." The Ghibli and Ghibli S Named Best Car of the Year two weeks ago, the Ghibli has quickly gained quite a reputation. The launch of this car, named after a hot drywind, marks a turning point in Maserati’s history, giving the marque two concurrent four-door sedan models for the

first time in its 100-year history. Sitting in this car is almost like a cockpit experience. Both versions of the petrol range, Ghibli and Ghibli S, feature a new-generation twin turbo-charged 3.0-litre V6 engine and an eight-speed ZF automatic transmission. With its power output of 410 hp the Ghibli S races to 100 km/h in 5.0 seconds and reaches a top speed of 285 km/h.

UMBERTO CINI Managing Director, Maserati Global Overseas Markets

KEY FEATURES

The MTC (Maserati Touch Control)’s 8.4” touch screen display, which comes as standard on the Ghibli and Ghibli S, allows the user to intuitively control almost all of the Ghibli’s on-board equipment such as CD/DVD player, radio and navigation as well as Bluetooth mobile phone connections.

GHIBLI ENGINE:.................... 3.0L 60° V6 POWER:..................... 330 HP TRANSMISSION:....... ZF EIGHT-SPEED AUTOMATIC GEARBOX TORQUE:................... 500 NM TOP SPEED:............... 263 KM/H ACCELERATION:....... 5.6S 0-100KM/H QATAR TODAY > APRIL 2014 > 85


business > braking news

WI-FI HOT SPOT

The new Ghibli contains optional WLAN technology that effectively turns the car into a Wi-Fi hotspot. The owners can place a SIM card into its WLAN router to receive internet signals, which can be resent around the car wirelessly. Up to three devices can be connected simultaneously.

T HE GRANTURISMO MC STRADALE ENGINE:.................... 4.7L 90° V8 POWER:.................... 460 HP TRANSMISSION:...... SIX-SPEED ELECTRO- ACTUATED GEARBOX - MC RACE SHIFT TORQUE:.................. 520 NM TOP SPEED:.............. 303 KM/H ACCELERATION:...... 4.5S 0-100KM/H

86 > QATAR TODAY > APRIL 2014

ENGINE

The engine, designed by Maserati, is being manufactured by Ferrari in Maranello for Maserati’s exclusive usage. This new-generation engine is more powerful, more exciting to drive and more eco-friendly.

SAFETY

The Ghibli is equipped with a seven-airbag system and anti-whiplash front headrests.

GHIBLI S ENGINE:...................... 3.0L 60° V6 POWER:...................... 410 HP TRANSMISSION:........ ZF EIGHT-SPEED AUTOMATIC GEARBOX TORQUE:.................... 550 NM TOP SPEED:................ 285 KM/H ACCELERATION:........ 5.0S 0-100KM/H

Every finished Ghibli is tested on-road for 60 km before it is delivered to the customer. The GranTurismo MC Stradale The Stradale four-seater perfectly blends high-performance driving with the luxury of a coupé made in Modena. First launched in 2010, the previous twoseat GranTurismo MC Stradale took development ideas from the Trofeo track racing cars to the road. Now Maserati has evolved the supercoupé into a machine that is just as fast but even more practical, technically advanced and beautiful. It radiates its athletic character in its entire appearance and all detailing. Its long front, muscular rear and defined lines suggest a forceful forward movement – even at a standstill. Particular attention has been paid to precise adjustments in its shape to perfect aerodynamics. Developed from both track feedback and complex computational fluid dynamics (CFD) research, the GranTurismo MC Stradale sports a re-shaped bonnet that adds high-speed stability without increasing drag, mainly by relieving under-bonnet pressure


business > auto news

FERRARI 458 SPECIALE MAKES DOHA DEBUT

Alfardan Sports Motors, official importer of Ferrari in Qatar, launched the Ferrari 458 Speciale at a special evening.

NISSAN ANNOUNCES 2014 MOTORSPORTS ACTIVITIES

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he 458 Speciale features Ferrari’s core philosophy of extreme technological innovation and is a completely unique model designed for owners looking for an even more focused sports car offering extreme driving emotions. “Ferrari has deeply set its roots in motorsport and is investing extensively in innovations and technologies that make drivers feel at one, whether on the road or on the track. The 458 Speciale is one of the most powerful roadworthy naturally-aspirated V8 engines ever produced, and it certainly

lives up to its name,” said Giulio Zauner, General Manager, Ferrari Middle East and Africa. “The automotive sector is one of the most dynamic and innovation-driven business sectors in Qatar. Luxury cars have seen robust growth last year and we expect it to continue. Owning a Ferrari is an ultimate lifetime dream that suits everyone who admires the sporty luxury. I am sure the 458 Speciale will be taking off in Qatar at lightning speed,” said Mohamed Kandeel, General Manager of Alfardan Sports Motors.

Nissan Motor Co. Ltd and Nissan Motorsports International Co. Ltd will take part in several sporting activities in 2014. They include entering the Le Mans 24 Hours (Garage 56) with the world’s fastest electric-powered car, the Nissan Zeod RC; participation in the GT500 class of the new 2014 Super GT series with the Nissan GT-R Nismo GT500; global support with Nissan GT-R Nismo GT3 for customer racing; and expanding the Nismo Athlete programme.

ALFARDAN SUPPORTS GCC TRAFFIC WEEK

Alfardan Automotive Group supported the 30th GCC Traffic Week that concluded here recently. Besides displaying its most advanced vehicles, such as the Jaguar XJ, Land Rover LR4, BMW X5 and BMW 6 Series Gran Coupe, the group also provided a fleet of more than 12 vehicles of the BMW 7 Series and BMW 5 Series to transport VIPs attending the event. Alfardan Automotive Group General Manager Mohamed Kandeel said: “We always support the core national initiatives, particularly ones which would help safeguard the future of our society. Road awareness and traffic safety are key issues we should all consider and firmly drive in our community. The Traffic Department and the Ministry of Interior of Qatar have spared no effort in crafting an annual road awareness programme that brings people to better understand the importance of road morals.” QATAR TODAY > APRIL 2014 > 87


ROLLS-ROYCE WRAITH TAKES CENTRE STAGE AT QMS ROLLS-ROYCE MOTOR CARS DOHA PRESENTED THE ROLLS-ROYCE WRAITH, THE MOST POWERFUL AND DYNAMIC ROLLS-ROYCE IN HISTORY, AT THE 2014 QATAR MOTOR SHOW. WITH AN ELEGANT FASTBACK DESIGN, THE WRAITH, FROM THE WORLD’S PINNACLE ULTRA-LUXURY MARQUE, PRESENTS A UNIQUE CHARACTER DEFINED BY POWER, STYLE AND DRAMA, WITH A HINT OF NOIR.

2014 MOTOGP’S OFFICIAL SAFETY CAR

INFINITI Q50 IS COMING

Introduced to the region at the Dubai International Motor Show 2013, the Infiniti Q50 premium compact sedan brings distinctive design, engaging performance, world-first technologies and unmatched levels of connectivity and personalisation, including the brand’s first hybrid powertrain.

Set for release in April, the Infiniti Q50 offers all that people like best about smartphones. The Infiniti Q50 takes staying in touch while on the move to a new level of convenience.

88 > QATAR TODAY > APRIL 2014

The BMW M4 Coupé made its Middle East debut at the showroom of Alfardan Automobiles, the official BMW Group importer in Qatar, ahead of its appearance as official safety car for 2014 MotoGP, the world premier four-day Grand Prix motorcycling racing event, which began at the Losail International Circuit on March 20.

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MW Group Middle East Managing Director Johannes Seibert said: “Middle East customers appreciate our BMW M vehicles; they place high value on their powerful performance, quick response and individual driving dynamics on the roads.” Head of Cooperation of MotoGP at BMW M GmbH Axel Mittler commented: “Four generations of the BMW M3 have blended motorsport genes and uncompromised everyday usability within an emotionally rich overall concept.” Alfardan Automobiles General Manager Mohamed Kandeel said: “Qatar is a perfect platform for the M brand as it shares the same core values: dynamic, sporty, agile and high-performance. The vehicle combines outstanding motor racing heritage with hallmark M high-performance engineering with everyday practicality.”


business > market watch FOOTBALL STAR NEYMAR BECOMES CASTROL'S GLOBAL AMBASSADOR

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he partnership between the international football star and the world’s leading lubricants brand will run for one year. The deal will see Neymar, with all his breathtaking tricks and flicks, become the face of Castrol’s World Cup promotions as well as a ground-breaking new Castrol activation to be launched in April. A S Ramchander, VP Global Marketing at Castrol, said: “We are thrilled to be working with Neymar. He demands the best

performance from himself in every game he plays, just as Castrol demands the best performance from our oils every time the engine starts. The 2014 FIFA World Cup is the perfect opportunity for us to combine our respective passions for superior performance, innovation and football.” Commenting on the new partnership, Neymar said:”I’m delighted to be working with Castrol on an exciting new project that I hope will enable me to take my game to a new level.”

Brazilian footballer and FC Barcelona forward Neymar Da Silva Santos Jr. signed on with Castrol, official sponsor of the 2014 FIFA World Cup, as its global brand ambassador. The annoucement was made in Qatar by Auto Future Tech, Castrol's exclusive distributors in the country.

EUPHORIC MOMENTS Launching its newest collection, Calvin Klein’s latest fragrance for women and men is called, Euphoria Liquid Gold. It is mixed with a dry down of sandalwood, which warms the senses with its rich and powerful scent. The fragrance opens with a hint of cinnamon, creating a lavish, exhilarating feeling that deepens with the mystery of black orchid. The perfume, by Calvin Klein, is exclusive to the Middle East.

MOLTON BROWN NOW IN QATAR

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he first Molton Brown boutique in Doha has newly opened at Lagoona Mall. Over the decades the people at Molton Brown have built up a reputation for being London’s bath, body and beauty connoisseurs. Molton Brown began life in 1973 as a hair salon setting out to do things differently. Shunning the Seventies’ love for all things peroxide and blow dried, the first products were hand-blended from plant and marine extracts to enhance natural beauty. Today the dedication to making innovative products with real benefits remains. The products are never tested on animals and each ingredient is sustainably sourced from around the world. QATAR TODAY > APRIL 2014 > 89


affairs > doha diary

NO MOUNTAIN TOO HIGH

The How Women Work (HWW) conference was a meeting ground of eager minds–of the female kind.

BY ABIGAIL MATHIAS AIZHAN TEMERKHANOVA This serial entrepreneur, who is currently running an event management company, Q-Live Events, was at the conference for the very first time. Even though she missed the first day, she still got a lot out of it. “I REALLY LIKE THE CONCEPT OF THE CONFERENCE. IT’S WHAT WAS MISSING HERE IN QATAR SOMETHING TO ENGAGE WOMEN FROM DIFFERENT PROFESSIONAL AND PERSONAL BACKGROUNDS TO LEARN MORE ABOUT HOW THEY WORK, LIVE AND KEEP THEMSELVES ENTERTAINED. AND IT’S A RICH, CROSS-CULTURAL EXPERIENCE.”

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ow in its fifth year, the conference attracted a fair turnout of women from varied fields and backgrounds. The agenda was simple: mingle, network and celebrate sisterhood. In the packed conference hall, there was a collective glow about the 300 or so women brought together by several common causes–meaningful careers, a drive to change society, balancing priorities, health, happiness and peace. The event took place on March 5 and 6 (close to International Women’s Day on March 8) at the Crowne Plaza Hotel in

ELIZABETH FLEMING The Managing Director of Qatar Development and Consultancy Centre was thrilled to have an opportunity to empower others by sharing her knowledge and experience. It’s a two way street that left her feeling empowered as well. "THIS IS MY SECOND TIME TAKING A WORKSHOP AND MY FOCUS HAS SHIFTED SINCE LAST YEAR; FROM COMMUNITY TO THE WORKPLACE. I AM TALKING ABOUT HOW YOU CAN ENGAGE BETTER IN THE WORKPLACE AND IT’LL BE INTERESTING TO HEAR FROM THE WOMEN HERE ABOUT WHAT’S AMAZING OR LACKING WHERE THEY WORK. IT’S SUCH A WONDERFUL PLATFORM TO BE A PART OF AND I SEE A LOT OF MORE DIVERSITY, WITH A HUGE RANGE OF PEOPLE, THAN COMPARED TO FOUR YEARS AGO WHEN I FIRST ATTENDED." 90 > QATAR TODAY > APRIL 2014

Doha, though the buzz of the conference had been built up, in advance. Inspiring keynote speakers aside, the 90-second pitches were among the more exciting sessions to be part of. Women lined up to get in front of the audience and speak about what they were there for. One was looking for an opportunity in HR; another was offering detox treatments; yet another had a business idea that she wanted to develop; and someone promised to transform you in 12 weeks. The workshops and panels were divided into three streams meant for people


looking for different things: Entrepreneurs & Executives, Corporate Employees & Jobseekers; and Individual Women with Ambitions & Aspirations. Most people picked the ones that resonated most with what they were and where they wanted to go. Unsurprisingly, the workshops on happiness and dreams were extremely popular. Take Nadine Drummond’s workshop on "Achieving your dreams," for example. The London native born to Jamaican parents is a producer for Al Jazeera in Doha. She gave up a career in law to pursue her passion–people and their untold stories. Sharing her dreams and juxtaposing them with the recent victory of Oscar winning Lupita Nyong'o’s life ambitions was both timely and touching. On the career side, it was interesting to note that most of the careers we had dreamed for ourselves as children were based on external facts. But as we grew and came in to terms with our personalities, we began to understand where we were more suited. In the Portable Careers discussion, a distinguished panel of women from various backgrounds–lifestyle, etiquette training, journalism, retail and more–debated how you and your work can be made relevant no matter where you go and what you do. The facilitated networking session was also a new, great way to connect with people who share your interests. Based on feedback collected the day before, the short networking session divided the women into different interest groups - entrepreneurship, health and well-being, communities, language and translation and so on. To re-energise yourself through the course of the day, complimentary yoga sessions, manicures and pedicures were organised in the Cozy Corner. To kick off the HWW conference, Julie Lewis ensured that the crowd was first shaken out of its comfort zone. As founder of group coaching and accident company Mountain High, Lewis has more than 25 years of successful experience in the health, adventure and personal leadership field.

She has taken breast cancer survivors to the "top of the mountain" to realise their own potential. Talking about the conference and the relevance of the theme, she said: “The theme of ‘Inspiring Fulfilling Careers ‘ is such a great theme to have for the conference.” Giving her insights on fulfilling careers, she said: “I believe it is important for women (and men) to enjoy fulfilling careers that resonate with their personal values and have the potential to make a difference to the lives of others. We spend so much of our

ELSBETH BLEKKENHORST A founding partner of Global Women Qatar, Blekkenhorst regrets that she could only be at one place at any given time, since so many of the sessions she liked were happening in parallel. “THIS IS THE THIRD YEAR WE HAVE BEEN INVITED TO PARTICIPATE IN THE CONFERENCE, WHICH, IN MY OPINION, HAS GROWN MORE FOCUSED AND RELEVANT TO WHAT PEOPLE ARE LOOKING FOR. THEY SHOULD CONTINUE THIS APPROACH; IT HAS BEEN SUCH A SUCCESS SO FAR. THE WOMEN WHO USUALLY COME AND TALK TO ME AT THE CONFERENCE ARE MOSTLY INTERESTED TO LEARN HOW THE JOB MARKET WORKS. IT’S QUITE DIFFERENT TO FIND JOBS HERE AS THE MARKET IS NOT TRANSPARENT AND JOBS AREN’T USUALLY ADVERTISED. SO WE ARE HAPPY TO TELL THEM HOW THEY CAN CONNECT WITH PEOPLE AND BUSINESSES.”

JEHAN SALEH This entrepreneur-in-the-making has just arrived in Doha from Jordan. Saleh made a beeline for the conference when she heard about it. “I AM WORKING ON AN E-STORE THAT RETAILS CHILDREN’S PRODUCTS. IT HASN’T GONE LIVE YET AND I WANT TO LEARN AS MUCH AS I CAN MEANWHILE. IT HAS BEEN VERY INSPIRING TO MEET ALL THESE ENERGETIC WOMEN WHO HAVE ALL UNIFORMLY BEEN SUPPORTIVE AND HELPFUL. ALL THE ENTREPRENEURIAL SESSIONS I HAVE ATTENDED WERE VERY USEFUL. I ESPECIALLY LIKED THE WORKSHOP ABOUT EXPLORING THE ROLE OF PERSONALITY IN CAREER CHOICES AND IT COMPLETELY CHANGED A LOT OF PERCEPTIONS IN MY HEAD ABOUT HOW WE THINK ABOUT OUR WORK.”

time at work it makes a lot of sense to really love what you do and do what you love.” She touched on the importance of having a clear vision of what you want to do and having the courage, energy and resilience to do it, to step out of your comfort zone to ensure continual growth, and and finally to have a strong support network around you (your tribe!). “I believe for us to be happy and successful in our work and lives it is important to make choices that are aligned with our highest values,” she added. Lewis’s role model is her mother, “with her strength, spirit, words of wisdom, encouragement and never-ending, unconditional love”. Lewis believes in giving women an opportunity to have a voice and contribute to the community, and she wants to take a bigger role in facilitating and encouraging women in business

ABOUT HOW WOMEN WORK The HWW community offers events every month, which you can find out more about on hwwqatar.com or on Facebook: “How Women Work”. QATAR TODAY > APRIL 2014 > 91


affairs > doha diary

NEW MEDIA, NEW IMPACT

In a talk in Doha recently, Philip Seib, professor of journalism, public diplomacy and international relations at the University of Southern California, described how the nature of news dissemination has impacted us in unimaginable ways.

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hilip Seib is someone who, from the vantage point of the intersection of media, public policy and social media, can produce a coherent picture of how these factors interact together better than almost anyone else. We are still in the process of understanding how new media are changing our lives, how we consume information and what we do with them; and Seib, in a 30-minute talk, is able to conjure up stark images of the endless possibilities that lie ahead, both good and bad. “Universities no longer train broadcast or print journalists but multi-platform journalists,” he says, pointing to the emergence of increasingly elaborate online news websites with an emphasis on video and the endless ability to link to millions of sources. “Gone are the days of set deadlines. Now there are deadlines every minute. People expect websites to be updated constantly as the story develops.” But what is sacrificed in the process? Verification, collaboration, research and analysis, he says. “Speed changes the rules of the game. Is the mantra still ‘Get it first, but first get it right’?” Seib asks. This has also opened up new channels of information, independent from those that were previously the sole privilege of the big media houses. “This is definitely paving the way for more empowerment. People have access to so much information and they are hungry for more. There are no barriers now between the newsmakers, the journalists and their audience. Direct give and take is the norm, allowing for better understanding of all sides of the story,” he says. Pointing out another practice that has become very common among news organisations who regularly accept videos and pictures from the public, Seib says citizen journalism has further empowered those who previously had no voice. “Take the example of Neda Agha-Soltan. On the morning of June 20, 2009, Neda marched in protest against the Iranian election results. Suddenly she was felled by a shot to the chest taken by a hidden sniper.” The shaky video of her last minutes, as she lay bleeding on the ground, is regarded as “probably the most widely-witnessed death in human

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history”, with close to five million hits on YouTube. “Though the Iranian government tried to block access to YouTube, the video had made its way to the Netherlands, outside Iran’s influence. Soon the whole world knew,” Seib says quietly. “And it transformed the perception of Iran’s revolution. Now there was a name and face – a young woman dying in full view of millions.” The power these kinds of videos wield to touch the heart, bypassing the brain, can’t be disregarded, Seib says. In this case, the material was accurate. But what if, as often is the case, it is not? Mainstream news channels might reject a video if unsure of its veracity, but this doesn’t stop it from going viral online. An unfortunate example of this is the “Innocence of Muslims” video, which was directly responsible for several deaths and widespread protests. “Anyone can now wreak this kind of havoc with a trashy bit of film. Make a nasty five-minute video and we’ll start a war, I told my students once,” he says. Social media are surely bringing government and people closer, but there is another facet of politics that this new technology is radically impacting: diplomacy. “Diplomatic decision-making is having to adapt to this new speed and delivery of information. If fast diplomacy is bad diplomacy, you can see the perils,” he says.

He pulls up an iconic event from the notso-distant past – the erection of the Berlin Wall – and makes a conjecture as to how things would have gone differently if it had happened today. “At 1.30 a.m., August 12 (Saturday), 1961, the CBS correspondent based in Berlin was alerted that the East German forces were closing the border between East and West Berlin. He and his crew captured a film of the construction of the wall which was put on a plane to London and onwards to New York. By the time it reached the CBS studios in America, was processed, edited and aired, it was already Tuesday, four days after the wall went up. This kind of soft coverage was the backdrop to which President John F Kennedy would have shaped his response. He was on vacation at that time,” Seib says, “and officials delayed contacting him because they were unsure of what the East Germans were up to. Finally JFK decided to take no action because there seemed to be no threat to American interest. Instead, the president said he was going sailing.” Now imagine if live news, satellite television and twitter feeds had been in the picture. “The images of the construction of the wall would have been delivered live to millions of televisions and smartphones as breaking news, accompanied with dramatic commentary and minimum context of larger geopolitical issues. Hashtags on the subject would have been trending on Twitter, Facebook groups created to protest it. How would have JFK have reacted then? Would he have thought that rolling some tanks to the wall would have made good PR and reassured his citizens? Would he have gone on air to challenge the Soviets? Would this have been good diplomacy?” Seib asks. "You don’t know what people are doing with all the information that they have – are they bored, are they panicking, are they expecting an immediate response? Since politicians are constantly worried about public opinion, this affects their decision. “We know that online media is rewiring the world’s nervous system but we are still unsure about the effects of this change,” he concludes. It’s going to be an interesting process of discovery


TAKING A LOOK BACK

The collaborative partnership between the British Library, Qatar Foundation and Qatar National Library has begun to reveal key moments in Qatar’s own history, from the vast collections of the India Office Records.

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s you drive down the Corniche in Doha you cannot help but be impressed by the landscape of the city. Doha is a place that exudes the excitement, energy and innovation that come from the multiple business centres and cultural hot spots. Yet although Qatar’s development has been rapid it has not happened overnight. There have been a series of historical milestones that have led to its transformation. These moments, viewed through the lens of the British Empire’s own historic interests in the region, cast light on Britain’s relations with the inhabitants of Qatar, and Qatar’s progress towards becoming an independent nation state. Among this material there are three key collection items which have emerged that warrant greater attention the contribution they make to Qatar as we know it today. One of these is the first survey of Qatar’s coastline and the town of El Biddah in the 1820s. Throughout the 1820s, Britain’s Indian Navy carried out the most comprehensive survey of the Gulf’s coastal waters to date, using modern trigonometric surveying methods. In 1822 the naval brigs Discovery and Psyche arrived off the eastern coast of Qatar to survey in detail the town of El Biddah and its coastal waters. The sketch produced in 1823 by the Discovery’s

draughtsman, Lieutenant Houghton, is the earliest known visual representation of Qatar found in the India Office Records to date. From the decks of the Discovery and Psyche, the British officers saw El Biddah as groups of houses tightly clustered around two forts, many of which had been damaged the previous year when the East India Company’s brig Vestal bombarded the town, as punishment for its inhabitants’ alleged involvement in piracy. Another key moment in Qatar’s history is the 1868 Treaty between Qatar and Great Britain, which showed the British recognition of the Al Thani family as sovereign rulers of the Qatar peninsula for the first time. The conflict between the forces of Bahrain and Abu Dhabi against Qatar that took place between 1867 and 1868 led to the establishment of formal political relations between Qatar and Great Britain. On September 12, 1868 the ruler of Qatar, Sheikh Muhammad bin Thani, signed a treaty with Britain’s Political Resident in the Gulf, Lewis Pelly. Pelly’s private papers make up an important component of the British Library Qatar Foundation digitisation project. In a letter written by Pelly to a compatriot working for the British India Steam Navigation Company, dated December 6, 1868, Pelly wrote that “the arrangements [...] on the coasts of Bahrain, Guttur [Qatar] and Abuthabee [Abu

Dhabi] have stood excellently; in no single point have they as yet broken down”. The discovery of oil in the Middle East was also a key moment for Qatar, but the extent of the resource was not fully realised until after the Second World War. In 1935 Sheikh Abdullah bin Thani signed an exploratory oil concession with the Anglo-Persian Oil Company. Four years later, the first significant evidence of oil deposits in Qatar was found at Rig No.1 in the west of the country. A telegram from the Bahrain Political Agent, to the Political Resident, dated October 11, 1939, read: “Petroleum Development Qatar have had slight show of oil in their test well near Zekrit. Drilling continues.” On January 14, 1940 the Bahrain Political Agent wrote to Sheikh Abdullah to personally congratulate him on the discovery of oil in Qatar, stating that he “earnestly hoped that future drilling will prove that Qatar possesses a valuable oil field”. Who was to know at the time what impact this discovery would have for Qatar and the surrounding regions. As Qatar continues to develop and thrive, the history of the country becomes ever more important in local communities' gaining an even better understanding of their heritage and history. The British Library Qatar Foundation portal will be a rich resource for those who want to research the history of this region QATAR TODAY > APRIL 2014 > 93


culture > doha diary BRITISH FESTIVAL KICKS OFF WITH WELSH WEEK

To mark the beginning of British Festival 2014, a month of British culture organised by the British Council and the British Embassy, the Welsh government celebrated Welsh Week, dedicated to strengthening the ties between Qatar and Wales.

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lthough the Qatar UK 2013 Year of Culture is already behind us, the British Embassy hopes to keep the celebration of British culture alive for years to come. The inaugural British Festival kicked off in March, and official events will continue into the middle of April. The festival puts a special focus on education, commerce and culture, and it is trying to continue the momentum of the previous Year of Culture by keeping the relationship between Qatar and the UK in the spotlight. To get the celebrations under way, the festival took a week to highlight the country of Wales and its growing partnership with Qatar. With the support of the Welsh government’s regional office, the festival hosted a series of events throughout the week that all promoted Welsh education, commerce and culture, mirroring the focus of the rest of the festival. The idea to have a week dedicated to highlighting Wales in Qatar was considered even before the start of the British Festival, but the celebration became a nice way to implement the idea. “We had already intended to do a Welsh cultural week. We were talking to the British Embassy about this and, coincidentally, they wanted to do a British Week that grew into a British Month then into a British Festival,” says Lee Jennings, Regional Manager for the Welsh government’s MENA office in Dubai. “Of course, you can do a British Festival, but if you don’t look at the component parts of what actually makes up Britain, then it’s potentially just an English Festival.” The week started with an event for alumni of several Welsh universities who had travelled from Qatar to study in Wales. The gathering, held at the Renaissance Hotel, also featured an exhibition of photographs of famous Welsh celebrities. According to Jennings, there is a sizeable population of students who come from Qatar to study in Wales then return to take up jobs at influential local companies like Qatar Petroleum and Qatargas.

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On the cultural side of things, the week also saw a visit from members of the Welsh National Opera, who performed at the British Embassy and held workshops about developing musical talent at the Qatar Music Academy. Though the showing was only from a select few members of the orchestra, Jennings says he hopes the entire company will soon get the chance to perform in Doha. This year marks the 10th anniversary of the Welsh government’s office in the region, and in that time the amount of trade between Wales and Qatar has seen significant growth. The value of Welsh exports to Qatar has increased from $10 million to $600 million in the past decade, with no sign of stopping. “I think that’s really been due to the increased number of trade missions and exhibitions that we as the Welsh government have supported over those ten years,” Jennings says. “We help develop relationships, partnerships and distribution agreements between our companies and local businesses, and that has really taken off. Because we have a wide range of high-quality prod-

ucts and services, it fits in quite neatly with what the demands are of the market here.” Wales already has a foothold in the region’s food and drink sector. One major focus of the country’s export campaign is Welsh lamb, which Jennings says is popular for use at five-star hotels and restaurants. This market is already open in the UAE and Bahrain, with hopes of introducing the product to Qatar. Clogau Gold, renowned jewellery brand that utilises scarce Welsh gold, is also hoping to break into the gold market here in the region. The trade is also growing in the opposite direction, with Wales looking to Qatar for much of its imports of liquid natural gas. It’s these kinds of mutually beneficial partnerships that the Welsh government is hoping to encourage by promoting its country with Welsh Week. “We’re trying to build on those relationships, looking to other kinds of synergies where we can kind of bring more investments from Qatar into Wales,” Jennings says. “I think we’re enhancing our relationships all the time.”


CMU-Q CELEBRATES 10-YEAR ANNIVERSARY

The ceremony took place in the atrium in the CMU-Q building in the presence of HH Sheikha Moza, CMU President Dr Subra Suresh, students, faculty, alumni and other distinguished guests.

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he evening was about looking back at the past as much as it was about looking into the future. A lone bagpiper, reflecting the Scottish heritage of the university’s founder Andrew Carnegie, kick-started the evening, soon followed by Carnegie Mellon’s Matisse Quartet, who performed a specially-composed piece dedicated to HH Sheikha Moza. Dr Suresh, Executive Vice-President Dr Mark Kamlet, student body president Tarek Al Hariri and alumna Nofe Al Suwaidi took to the stage to reflect on the school’s and their own personal journeys since classes first began in 2004. Since then the student body has grown from 41 to 400, with a Qatari enrolment of almost 40%. Over 300 students have graduated since CMU-Q opened its doors in Education City, and Dr Kamlet mentioned how “time and time again, we hear how pleased employers are with their Carnegie Mellon hires. They praise them for their hard work, their creativity, and their teamabove-self approach.” Speaking exclusively to Qatar Today about fostering a culture of research and innovation in CMU-Q comparable to that in Carnegie Mellon's home

campus in Pittsburgh, Dr Suresh said: “As students and faculty in both campuses have greater opportunities to interact in education and research, a cross-fertilisation of ideas and innovation will happen, leading to spin-out companies that we see in Pittsburgh. The campus is only a few years old, and over time this culture will carry over. The students here are also very bright and talented which makes me even more optimistic.” He says soon students in the region will start to focus beyond local needs like energy, finance and management into more eclectic and diverse areas of study. Through a partnership between the university and the Sheikh Faisal bin Qassim Al Thani Museum, Carnegie Mellon has opened a unique exhibition of Qatari and Islamic artefacts entitled “Travelling Through Arts and Times”, which was launched under the patronage of HH the Father Emir. The display contains more than 160 rare artefacts from the private collection of Sheikh Faisal bin Qassim Al Thani, spanning centuries of Qatari and Islamic history, including a collection of coins dating as far back as the 7th century.

SEEING HISTORY THROUGH ART

Artists from all different disciplines came together at the Katara Art Center to talk about the more artistic aspects of the history of Qatar. The first two days of Global Art Forum 8 came to the Katara Art Center, bringing artists and art enthusiasts from all over the world into Doha for interviews and discussions. The forum took the title “Meanwhile... History” and featured appearances by writers, architecture experts and museum curators who discussed the cultural side of Qatar’s history. Topics included the construction of Doha landmarks and the disappearance of traditional pearl diver music after the rapid decline of Qatar’s pearl industry. After its stay in Doha, the forum finished with two more days in Dubai.

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affairs > doha diary

ART THAT SPANS A LIFETIME

A new Mathaf exhibition follows the prolific and diverse work of an 89-year-old Lebanese artist.

Mathaf: Arab Museum of Modern Art has opened a new exhibition featuring the work of Lebanese artist Etel Adnan. Entitled “Etel Adnan in All Her Dimensions”, the exhibition showcases the broad range of art and writing the 89-year-old has created throughout her decadeslong career. Showing work from as early as the 1960s, the exhibition includes Adnan’s paintings, tapestries, watercolours, folding books, poems, novels and films, truly showing off all dimensions of Adnan’s prolific body of work. Adnan’s visual art is distinctly abstract. The square lines of her canvas paintings reveal her early desire to get into architecture, while her folding books and the wall filled with her multilingual quotations show her love of the written word. At one end of the exhibition space a compilation of all of her video clips, originally shot with a Super 8 camera, display scenes of the natural and manmade worlds with little pretence. “Etel Adnan in All Her Dimensions” will be displayed at Mathaf until July.

DOHA LOVES TO EAT At the Qatar International Food Festival, stalls serving signature food from every corner of the world took over MIA Park, and people thronged the event all weekend, dining on the ground, dining in the water and dining in the sky.

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FUNNY FILMS IN THE LANGUAGE OF LOVE As part of a global week-long celebration of the French language, the Doha Film Institute organised screenings of four movies by one legendary filmmaker.

UPCOMING

EVENTS

ARAB HIP HOP FESTIVAL 2014 April 3-5 Hilton Hotel Doha Over the three days, more than 1,200 visitors are expected, including renowned artists from the Arab world like Ahmad Aba-zaid, Big Hass, Satti, Sotusura, MC Thaer, Boikutt, Malikah, MC Amin, K.I.M, Arabian Knightz, El Far3i and B.M.G.

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t the Katara Drama Theatre, the Doha Film Institute organised the showing of four movies from French cultural icon and comic filmmaker Jacques Tati. The series was part of the worldwide celebration of the Francophonie, the name used to describe the areas all over the world where French is spoken. The festival’s opening was attended by diplomats from three francophone countries: France, Canada and the Central African Republic. This showcase marked the Gulf debut for these digitally-restored films. All four films were originally made between 1949 and 1967. Three featured Tati’s recurring leading funnyman Monsieur Hulot, played by Tati himself, who started his comedic entertainment career as a mime.

KEEP IT IN CHECK

The Museum of Islamic Art (MIA) is sharing a more personal and practical side of art with a new exhibition celebrating the history of board games. Not all pieces of art hang on a wall or sit untouched in a pristine case. Sometimes even the most beautiful figurines were made to be rolled, knocked over and moved around a board. In its new exhibition entitled “Kings and Pawns”, the MIA displays finely-crafted chess pieces, backgammon sets and pachisi boards to walk visitors through the history of board games. From small game pieces carved from bone to luxurious boards inlaid with precious materials, the exhibition celebrates these games that have captivated commoners and royalty alike all over the world. Continuing in the museum until mid-June, “Kings and Pawns” includes special events that cover topics like the Qatar national chess teams, the conservation of centuries-old game pieces and chess-playing computers.

ARAB FUTURE CITIES SUMMIT April 7-8 The Ritz-Carlton Doha With a focus on knowledge-sharing and networking, the summit will bring to light some of the best practices, strategies and innovative solutions that will integrate a city’s citizens, systems and services. THE URBAN PLAYGROUND April 7-12 Souq Waqif The UK’s leading "performance parkour" group will showcase their skills between April 10 and 12, along with school workshops scheduled for between April 7 and 10. CIRQUE ELOIZE April 2-5, 7 p.m. Qatar National Convention Center Based on the multidisciplinary talents of its artists, Cirque Éloize expresses its innovative nature through theatricality and humanity, and combines circus arts with music, dance and theatre. AL DABKE FESTIVAL April 3-5 Building 15, Katara Amphitheater and Katara Esplanade The Al Dabke festival is being organised to highlight Arab folklore’s historical and cultural richness through workshops, exhibitions and shows. There’ll be an attempt to break the current Guinness world record for the largest dakbe gathering, with 20,000 people expected to attend. THE FIRST TURKISH FESTIVAL April 9-12 Katara Cultural Village The four days of activities aim to promote Turkey's cultur and history and its modern aspects, and is expected to be attended by VIPs, delegates, government officials, ambassadors from neighbouring countries, students and residents.

THE ENCHANTED FOREST April 7/14/21/28, 10:30 a.m. - 12:30 p.m. Museum of Islamic Art Discover the enchanted world of plants and floral decorations found in the magnificent art works of Muslim artists in the Golden Age. Come and pick up your brush to create your own masterpiece. TCHAIKOVSKY 4 April 12, 7:30 p.m. Opera House, Katara Cultural Village Music director Han-Na Chang conducts Peter Ilyich Tchaikovsky's fourth symphony in F minor in addition to an overture composed by the Rahbani Brothers and Francesca da Rimini: Symphonic Fantasy After Dante. JAZZ IN THE PARK April 16, 7 p.m. - 8 p.m. MIA Park The Museum of Islamic Art has partnered with Jazz at Lincoln Center Doha for a series of free world-class jazz concerts in the park. KOREAN KITE FLYING April 18, 10 a.m. - 5:30 p.m. Museum of Islamic Art The gigantic kites from Korea come in the most amazing shapes and colours. They will be soaring in the Doha skies controlled by highly skilled Korean kite masters. A flying demonstration and a kite-making workshop make this an event for all ages. TEDx QATAR UNIVERSITY May 2 Katara Opera House Designed to empower and inspire, the event will gather inspiring speakers from the QU community to share their ideas and experiences with a vision of sparking curiosity and new ideas.

FOR MORE INFORMATION LOG INTO WWW.EVENTLY.QA OR FOLLOW @EVENTLYQATAR

PRESENTED BY

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Qatar Today looks at two expatriates from everyday life, one who has lived here for a significant amount of time and another who has just made Doha his home, for their take on life in this city.

GEARING UP FOR THE FUTURE ANDRE REINKE

Project Manager, Gulf Facility Management Here since: 2006 (8 years) EXCITING OPPORTUNITIES I came to Qatar due to a job offer; many other people did. When my boss offered me to go to Qatar, I did not hesitate and said yes. I did not imagine staying that long, but I am in my eighth year now. Doha has already become my new home, the place I like to be. It looks like there is no end in sight, as it impresses me nearly every day. The culture, daily life and work are totally different compared to what I was used to in Germany. What I am proud of is being part of a team keeping The Gate Mall open every day. I was with the project from the very beginning, during construction up to today’s daily shopping experience. And it is still growing, like me. LOADS TO DO Living in Qatar gives you the opportunity to experience different activities that you couldn’t even dream of while living in Europe. When I came here eight years ago I bought myself a 4x4, as it was necessary to go off-road sometimes. The desert is an escape from daily life. I am out there almost every weekend dune riding, be e to u lik ur ld yo o u in o w n? u re d fe at o" colum e Tw e e t y o u r k a T " se tw to Ple a ils d e t a o d ay tarT a Q @

barbequing, swimming and just relaxing in the sun. Whenever it is time for a break, it’s easy to just take a plane and go to Asia, Arabia, Africa and Europe. Qatar is in the centre of so many interesting locations within such a short distance. Distraction is so easy to find – even for a short weekend. WHAT’S IN STORE The most impressive change I have noticed during my past eight years was the architectural development in the West Bay area. My work place was there ever since 2006. At this time, the Sheraton Hotel, Salam Towers, Salam Plaza and City Center were the most impressive buildings, surrounded by construction sites. Have a look at the amazing skyline nowadays. It’s just impressive! Doha and all of Qatar is in a fast change right now. All the construction happening on the road system, Lusail City, Doha Metro and new stadiums for the Qatar 2022 FIFA World Cup are keeping me excited for what else is to come and where Qatar will grow to. I really want to be here in 2022 to see the improvement, feel the development of this country and to say I was part of it.

UNEXPECTED EXPERIENCES SLIM EL MATERI

Beauty Advisor, Blue Salon Here since: March 2013 (13 months) NEW BEGINNINGS I came to Qatar searching for a new opportunity in the fashion and beauty world, as Qatar is one of the fastest-growing countries in the region and money is what fuels fashion. Doha is a rich city with a promising future. Before this I was working in my home, Tunisia, as a model and studying Chinese language and civilisation at university. LEARNING THE ROPES When I came to Doha, I felt like I wasn’t in an Arab country. Everything was like Europe, with all the new technologies. People are so organised, and the streets are so clean. Doha at night is also very nice. I can go to parties with friends in so many wonderful places like hotels, clubs and restaurant lounges. I love Doha. I feel like I want to live only in it. I’m planning to stay in Qatar because workers in the fashion business are rare here, and it is a good place to grow and move ahead. I miss my family, but I wish to bring back my success story to my home. 98 > QATAR TODAY > APRIL 2014




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