Qatar Today August 2014 by Oryx Group of Magazines

inside this issue AUGUST 2014 / VOL. 40/ ISSUE 8

COVER STORY

30 A NATION OF DISCIPLINED LEADERS

The new national service programme, making it mandatory for all Qatari males aged between 18 and 35 to serve in the military for a short period, will not only inculcate patriotism but also add muscle to the country’s armed forces.

22 IN DEFENCE, INFORMATION IS AS VITAL AS WEAPONRY

GCC countries are spending heavily to modernise their armed forces by procuring the atest weaponry but they should also look at another aspect – information superiority – to achieve the desired objective of keeping the enemy at bay.

24 WATER CRISIS: THINK GLOBAL, ACT LOCAL

Unlike fossil fuels, fresh water is a unique natural resource and is essentially non-substitutable – whether for drinking or irrigation – it cannot be replaced.

40 QATARISATION: BEYOND THE NUMBERS

Organisations must focus on filling the pipeline to ensure individuals are adequately experienced and trained to progress up the career ladder.

46 QATAR INC: BEYOND THE HYPE

What will be the quantum of investments that the two Gulf nations – Qatar and the UAE – will attract as they became Emerging Markets (EMs) on par with BRICS (Brazil, Russia, India, South Africa and China) nations? Qatar Today finds out.

50 KA-CHING

Cash registers are ringing and business prospects look upwards. How should businessmen prudently manage their assets to ensure unhindered growth? Qatar Today finds out more about asset management in the country.

56 THE STATE OF STADIUMS

Qatar Today delves into how world stadiums can mature to become landmarks that go much beyond their initial objective of hosting games.

inside this issue AUGUST 2014 / VOL. 40/ ISSUE 8

42 EIGHT TRAITS THAT MAY BE DAMAGING YOUR CAREER

Making or breaking career depends on a employeeâ&#x20AC;&#x2122;s attitude and he or she should avoid eight things at any cost to notch up successes at work.

44 RETIREMENT PLANNING? I AM STILL YOUNG

The majority of expats here tend to adopt a cavalier approach about savings to lead their post-retirement life without any financial worries.

60 TECHNOLOGY VS THE TAXI TRADE

Transportation network companies are seeing brisk business in the Middle East and, for the present at least, are co-existing with and complementing the traditional taxi institutions. But will there come time when e-hailing and ridesharing start to threaten the Karwas and the Dubai Taxis of the region, as has been in the case elsewhere around the world in recent months?

64 WHEN HOTELS GO HI-TECH

With technological advances encompassing every business, Qatar Today, in a chat with the executives of Alcatel-Lucent Enterprise, finds out how the tech-assisted hotels stay of tomorrow would be like.

68 MARKETING 101 FOR THE NEW AGE

Social media is going through exciting times with the latest trends reshaping its landscape dramatically. Smartphone technology is targeting users through multiple messages avenues like email, Facebook, Twitter, WhatsApp, BBM, Line, Instagram, Pinterest and, lately, Snapchat!

and regulars

6 > QATAR TODAY > AUGUST 2014

NEWS BITES

BANK NOTES

O&G OVERVIEW

REALTY CHECK

TECH TALK

AUTO NEWS

MARKET WATCH

DOHA DIARY

from the desk Land is perhaps the most sensitive of all issues that has been the cause of conflicts around the world and throughout history. The nastiest of such wars is playing out between Gaza and Israel, with negotiations for a two-state solution in limbo. While world leaders have condemned the players, no direct intervention has been successful so far with Egypt’s attempt at negotiating a ceasefire proving to be non-effective as Hamas was sidelined in these talks. Qatar’s role in the mediatory efforts is gaining significance and is seen as the last resort for peace. While the toll of death rings loud and clear, bringing down hundreds of civilians and children in the Gaza strip in addition to a few of the Israeli forces and pushing more people in Gaza towards economic decline and dire poverty, the ceasefire efforts is mired in a regional tussle for influence with rival powers competing to take credit for a truce. The latest casualty figures as we go to press show that over 1,200 people (including more than 200 children) have been killed and close to 7,000 injured. This war reflects an era where life and death is measured out by the virtue of where you belong, by a matter of land; a line that divides your state of existence. And peace is also rolled out with a larger intent of not just economic prosperity but trivial conquest in a power tussle.

A Palestinian man holds shrapnel against a scared wall following an Israeli air strike in Beit Hanu. AFP PHOTO / MOHAMMED ABED

Land is not the defining factor behind Qatar’s mandatory military service. While internal and external security is important, as is evident in the conflict that is being played out in close quarters, the reason behind the national service is more for its disciplinary benefits. Qatar Today scouts out the facilities and speaks to the leaders who execute the national service education to the Qatari men. Assets under Management; stadiums and the legacy they leave behind, Uber versus Karwa taxis, emerging markets and their dwindling prospects; the Katara Fan Zone where Qatar’s residents shared their passion for football; all this and more in this issue of Qatar Today will make for an insightful read. Wishing all our readers a prosperous Eid and hoping that there will be no more bloodshed in the name of land. SINDHU NAIR

8 > QATAR TODAY > AUGUST 2014

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 IZDIHAR IBRAHIM ABIGAIL MATHIAS AYSWARYA MURTHY 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 FREDRICK ALPHONSO MANAGER – MARKETING SAKALA A DEBRASS 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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letters

QT POLL

SMS

30059025 TO WIN A NOKIA LUMIA 625

WERE THERE ENOUGH ACTIVITIES IN DOHA TO KEEP YOU ENTERTAINED DURING EID? JULY QATAR TODAY POLL

A FORCE OF GOOD

100 YES

Between the bribery allegations and human rights abuses, we needed a ray of sunshine like Educate a Child to show the world the Qatar has so much to offer. Thanks for bringing focus on this important initiative and I hope the foreign press puts aside their bias and recognises this too. A wonderful Ramadan read.

0NO

Figures in percentages

DO YOU THINK IRAQ IS HEADING TOWARDS A SECTARIAN CIVIL WAR?

THE WINNING ENTRY FOR LAST MONTH'S QT POLL WAS SENT FROM

55374488

FAHAD ABDULLAH

STILL CONFUSED ABOUT BITCOIN POWERED BY

I have read Bitcoin FAQs till my eyes popped and I still can’t clearly explain it to myself. This complexity makes me wonder about its viability. But to think about it, we enthusiastically use and endorse a lot of technological innovations that we don’t completely understand. So you are right, I suppose – it can go either way. ZACHARIAH GEORGE

PRIDE AND FALL The story about the missed trade deal opportunity between the EU and GCC was especially illuminating. It’s sad that pride and stubbornness continue to win over cooperation and progress.

EXPERIENCE A NEW ERA OF READING

RAFAEL SEQUEIRA

BEST OF SOCIAL MEDIA QatarToday: @BrookingsDoha if the U.S.-Islamic forum had happened just a week later, the dynamics would have been massively different (and more interesting) BrookingsDoha: @QatarToday @usislam definitely true!

QATAR TODAY INVITES READERS’ FEEDBACK

Share your views about the magazine or any issue that affects you here in Qatar. One lucky reader will win an exquisite Montblanc writing instrument. WRITE TO: THE EDITOR, QATAR TODAY PO Box 3272, Doha. Fax: (+974) 44550982 e-mail: qtoday@omsqatar.com

QatarToday: UAE-based Indian businessman offers jobs to 46 Indian nurses who returned from Iraq Shaheen Mohammed: Pity. This is not a big deal. I know there are 1000s of nurses looking for jobs in India and abroad. Why can’t these gentlemen help them? This is for cheap publicity.

Qatar Today reserves the right to edit and publish correspondence. Views and opinions expressed in the published letters may not necessarily be the publication’s views and opinions.

12 > QATAR TODAY > AUGUST 2014

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affairs > local PUSHING FOR

PEACE IN PALESTINE

AFP PHOTO/ PPO / THAER GHANEM

Top level meetings concerning the escalating conflict in Gaza were held in Doha, highlighting the State of Qatar’s efforts to bring about a speedy resolution to the deadly siege, a few days after a rare and lowkey political gathering organised at the Embassy of Palestine. A handout picture released by the Palestinian President’s office shows Palestinian President Mahmud Abbas chatting with HH the Emir Sheikh Tamim Bin Hamad Al Thani during a meeting in Doha, on July 20, to discuss a ceasefire for the war raging in Gaza. On the same day, UN Secretary General Ban Ki-Moon and Qatari Foreign Minister HE Sheikh Khalid bin Mohammad Al Attiyah addressed a joint press conference about Israeli military operations in Gaza in Doha. Ki-Moon also met with Abbas who insisted on calling an immediate session of the UN Security Council.

LATE NIGHT EVICTION DRAWS IRE

Internal Security Forces (ISF) forcibly evacuated hundreds of low-income expat workers from Msheireb.

14 > QATAR TODAY > AUGUST 2014

midst global outcry on the treatment of expat workers in the country, the ISF, under the directive of the Ministry of Municipality and Urban Planning, forcibly evacuated residents of the area, leaving them effectively homeless. According to a local new site, the families were allowed to remain on the condition that they would find alternative accommodation within the next few weeks. Reports suggest that evacuation notices were given to the residents but they were either not communicated effectively by the owners of the residences or ignored. The buildings in the area have been marked for demolition to make way for new construction but the ministry wouldn’t comment on the nature of the developments that are meant to come up here. Msheireb Properties confirmed that the area in question is not part of their flagship Msheireb Downtown Doha project.

PLAN TO LINK BUSHEHR AND AL RUWAIS PORTS Plans are afoot to link the upcoming free trade zone (FTZ) in the Iranian port city of Bushehr to Al Ruwais port across the Gulf waters in Qatar.

MOLSA HIGHLIGHTS LABOUR REFORMS The Minister of Labour and Social Affairs, HE Dr Abdullah Saleh Mubarak Al Khulaifi, praised the government’s recent progress on labour law reforms. According to a statement released by the ministry, recent measures introduced by the Government of Qatar include: Approval by the State of Qatar's Cabinet of the Wage Protection System (WPS), which will require that companies pay all wages electronically via bank transfers and within seven days of the due date or else face punitive action Introduction of an electronic complaint system in English, Arabic, Urdu, Hindi, Tamil, Bengali and Nepali for expatriate workers in Qatar Approval by the State of Qatar’s Cabinet of changes to regulations governing workers’ living conditions, including an increase in the space allocated per worker from 4 square meters to 6 square meters, as well as improvements to the requirements for health and safety, such as the provision of a full-time, onsite nurse in every site that houses 100 workers Implementation of summer working hours, which prohibit outdoor work between 11:30 a.m. and 3 p.m., from mid-June through the end of August; with a ban of up to one month for companies found in breach of the rules, as well as a hotline number for whistleblowers, and provision for the public naming and shaming of violators Steps taken to increase the number of safety inspectors from 200 to 243 Increase in inspections of labour accommodations and field visits made (4335 in May, 5083 in June) Closure 33 sites for violations of labour laws Building new facilities for expatriate workers at Industrial City and Barwa City; Companies specialising in property management and leasing will run the two cities, which will eventually accommodate approximately 150,000 workers

The private sectors in Iran and Qatar have been urged to actively invest in Bushehr’s FTZ project as well as its linkage to Qatar’s Al Ruwais port, whose installed capacity is 20,000 tonnes, and in the businesses generated thereafter. The Qatar Chamber has urged the Qatari government to help it set up a QR150 million company that would invest in the above projects. Iran has said it has already created an alliance of private businesses to make investments in the FTZ and its linkage to Al Ruwais port projects and the businesses to be located in the FTZ. The idea is to import canned and fresh food, including vegetables and fruits, construction materials as well as exchange technical services between Iran and Qatar. Iran is ready to provide warehousing facilities on a large scale for agriculture and industrial purposes.

“CATCH THEM YOUNG” With the intention of promoting entrepreneurship among youth, Injaz Qatar is scouting for brilliant minds among high schools and universities and encouraging them to come up with ideas.

peaking on the sidelines of the launch of the new entrepreneurial programme – Start-Up – INJAZ Qatar chairwoman Sheikha Hanadi Al Thani said that students will come up with ideas for different sectors during the Mubadara (INJAZ Qatar’s Young Enterprise of the Year) competition. She also said: “The Start-Up programme, which is being sponsored by Boeing, will offer university winners of Mubadara contest the chance to develop their business ideas with seed funding and will hopefully attract new donors by elevating local entrepreneurs and bringing new start-ups to the global arena.” QATAR TODAY > AUGUST 2014 > 15

affairs > local

QATAR-US ARMS DEAL SIGNED

Qatar and the US have signed an arms deal to the tune of $11 billion (QR40.04 billion) on Qatar’s purchase of US Patriot and Javelin defence systems and Apache helicopters, according to a statement by US State Defense department.

S Defense Secretary Chuck Hagel hosted Qatar’s Minister of State for Defence Affairs HE Major General Hamad bin Ali Al Attiyah at the Pentagon to sign letters of offer and acceptance for the deal on July 14. The weapons deal was the biggest for the United States in 2014 and came as Qatar weighs in proposals from Boeing, BAE Systems and Dassault Aviation. “Today’s signing ceremony

underscores the strong partnership between the US and Qatar in the area of security and defense and will help improve our bilateral cooperation across a range of military operations,” said Pentagon Press Secretary John Kirby. Secretary Hagel also used the meeting to express his appreciation for the support that Qatar provides US forces in the country.

PROTECT WORKERS, QF STUDY SAYS A study commissioned by Qatar Foundation has recommended to the government to employ accredited recruitment agencies to prevent exploitation of migrant workers.

T AFP PHOTO/Prakash MATHEMA

16 > QATAR TODAY > AUGUST 2014

he report entitled “Migrant Labour Recruitment to Qatar” has also suggested that sub agents in local regions, another source of deception and exploitation, should also be regulated, brought under ethical agencies, or not used at all. The report found that recruitment agents in the sending countries are paying “kickback” bribes to personnel of employing companies in Qatar, ranging from $200-$600 (QR728 to QR2184) per worker, to secure the labour supply contracts. The study also says that most migrant workers

do not sign a contract before their departure to Qatar. Those who do are more often given the contract to sign under duress, just before their departure, often at the airport when the impetus to leave has already been established, or on arrival in Qatar, the report adds. The report was compiled by Dr Ray Jureidini, Associate Professor of Sociology at the Institute for Migration Studies at the Lebanese American University, and Director of Research at the Center of Design Innovation at Qatar Foundation.

DOHA BEST AMONG GCC FOR EXPATS

Despite a steady influx of expatriates, Doha is ranked sixth in terms of cost of living among the eight cities in the Gulf Cooperation Council, according to a survey conducted by Mercer for their 2014 Cost of Living Rankings. The survey was conducted in 211 cities worldwide and would help multinational firms and governments determine compensation allowances for employees on international assignments. The survey measures the comparative cost of more than 200 goods and services in each location, including housing, transportation, food, clothing, household goods, and entertainment.

GLOBAL RANKINGS Source: Mercer’s 2014 Cost of Living Survey

DUBAI

ABU DHABI

2013

RIYADH

KUWAIT

MANAMA

DOHA

MUSCAT

2014

JEDDAH

68 79

90 122

111 141 147 154

150 158 162 170

168 175 182

LUSAIL LIGHT RAIL MOVES TOWARDS COMPLETION

inister of Transport HE Jassim Saif Ahmed Al Sulaiti made his visit to the site this month accompanied by Qatar Rail’s CEO Eng Saad Al Muhannadi. Officials said that all of the excavation works for the project have been completed and that 98% of structural works for its network of 10 underground stations (from a total of 37 stations) has been

finished. It has also completed bridge works at a vital bridge crossing which will take the LRT over the Al Khor highway. Qatar Rail’s Managing Director Eng Abdulla Abdulaziz Al Subaie said: “To date, construction of more than 7 km of tunnels have been completed and the main civil works of seven underground stations have also been achieved."

PLANS TO WOO FDI IN EDUCATION SECTOR In tune with the government’s policy to develop the nation’s human resources, Qatar Development Bank (QDB) and the Supreme Education Council (SEC) are planning to offer a 15-year education loan to private investors seeking to set up educational institutes in the pre-primary, primary and secondary segments.

ccording to a report entitled GCC Education Industry 2014 released by Alpen Capital, the loan, made available at a subsidised interest rate of 3-4% per year, will allow investors to finance up to 70% of their overall project cost. The SEC will conduct the feasibility study for the education projects. The private school market in the country stood at QR1.57 billion ($433 million) in 2010, in terms of annual tuition fees, the report says, adding that the government has taken several measures to attract foreign direct investment in the education sector by offering tax concessions and protection of these investments. “With these benefits, student enrollment in foreign schools in Qatar is on a rise,” the report says. QATAR TODAY > AUGUST 2014 > 17

business > bank notes “Winning the ‘Islamic Bank of the Year 2014’ award recognises the progress our bank has been making consistently. We have achieved 15% growth in the Q1 2014 compared with the corresponding period in 2013. We look forward to maintaining our leadership as the first and leading Islamic bank in Qatar by providing innovative financial products and services to our individuals and corporate clients.”

BASSEL GAMAL Group CEO, Qatar Islamic Bank

QATARI BANKS LEAD IN ASSET BASE GROWTH

Qatar-based banks witnessed the strongest growth in total assets – 21.6% YoY to QR794.25 billion ($218.2 billion) – followed by banks in Kuwait (13.6% YoY) in the GCC at the end of March 2014. The expansion in asset base was supported by double-digit growth in loan book.

ccording to Kuwait-based Global Investment House, Commercial Bank of Qatar led the growth rate with 33.2% YoY followed by Doha Bank (22.4%), Kuwait-based Burgan Bank (21.8%), Qatar Islamic Bank (21.1%), and Qatar National Bank (20.6%). While Commercial Bank of Qatar’s asset

growth was propelled by its acquisition of ABank in Turkey, the Doha Bank, Burgan Bank and Qatar Islamic Bank were largely supported by their respective loan book growth. The acquisition of NSGB in Egypt was instrumental for Qatar National Bank’s asset growth.

IMPRESSIVE SHOW BY BANKS IN Q1 2014 2013 (TILL Q1 2013)

2014 (TILL Q1 2014)

TOTAL DEPOSITS

QR486 BILLION

QR580.99 BILLION

DOMESTIC CREDITS

QR533 BILLION

QR547 BILLION

CREDIT TO PUBLIC SECTOR

QR207 BILLION

QR246 BILLION

DOMESTIC INVESTMENTS

QR146 BILLION

QR122.99 BILLION

LOANS TO REAL ESTATE SECTOR

QR86 BILLION

QR85 BILLION

NON RESIDENTS’ DEPOSITS

QR48 BILLION

QR30 BILLION

HAPPY DAYS FOR LOCAL BANKS BANK

NET PROFIT

GROWTH IN % (COMPARED TO H1 2013)

TOTAL ASSETS

GROWTH IN % (COMPARED WITH H1 2013)

QIB

QR725 MILLION

QR89.1 BILLION

QNB

QR5.1 BILLION

QR466 BILLION

7.9

AHLI BANK

QR302.7 MILLION

11.8

QR28.48 BILLION

15.2

DOHA BANK

QR787 MILLION

5.2

QR72 BILLION

21.6

QR904 MILLION

QR7.42 BILLION

15.5

QR402 MILLION

QR36.1 BILLION

14.9

QR411 MILLION

QR35.6 BILLION

MASRAF AL RAYAN QIIB BARWA BANK

18 > QATAR TODAY > AUGUST 2014

QATAR’S REAL GDP 6.2% IN Q1 Qatar’s economy accelerated to 6.2% in the first quarter of 2014, driven by strong growth in construction, financial services and trade, restaurants and hotels, according to the Ministry of Development Planning and Statistics (MDPS).

his was due to the expansion of non-hydrocarbon sector by 11.5% owing to rapid progress with the implementation of major projects. The pickup in growth came despite a 1.2% contraction in hydrocarbon real GDP as a result of falling crude oil production and flat production at LNG facilities. According to QNB Group, real GDP is expected to pick up during 2014 as hydrocarbon production stabilises and non-hydrocarbon growth remains high. Overall, the new GDP data are in line with expectations for real GDP growth of around 6.8% in 2014. In 2015-16, the momentum is expected to continue to gather steam owing to the ongoing implementation of major projects, with growth rising to an average of 7.7%, the QNB Group says.

business > oil&gas QP UNDERLINES ENVIRONMENTAL COMMITMENT

BRAZIL BOUND

Qatar Petroleum has embarked on several important initiatives such as the Jetty Boil-off Gas Recovery (JBOG) Project. This energysaving environmental project is led by Qatargas with an aim to recover gas currently being flared during liquefied natural gas ship loading at Ras Laffan Port.

t is going to be an important constituent of the Common Facilities Projects at Ras Laffan Industrial City, as it will recover and collect boiled-off gas from LNG ships during loading and the gas will then be compressed at a central facility. The development of the JBOG Project was initiated by Qatar Petroleum in 2004. HE Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry, hailed the project as one of the biggest environmental investments for LNG boil-off recovery in the world. He said, “With a capital outlay of $800 million (QR2.9 billion), JBOG is set to become a landmark project for the State of Qatar, underlining its strong commitment

to protecting the environment.” The compressed gas obtained from the JBOG Project is planned to be utilised by existing LNG assets of organisations like Qatargas and RasGas, either as feedstock to LNG trains or as fuel gas. The project, when fully operational, will recover the equivalent of about 0.6 million tonnes of LNG per year, which is sufficient natural gas to power more than 300,000 homes. This utilisation of the erstwhile flared gas will result in a saving of approximately one trillion cubic feet of gas over a period of 30 years. The project is expected to be commissioned in the third quarter of 2014.

LNG EXPORTS BY COUNTRY: 2012 EXPORTS & INCREMENTAL CHANGE RELATIVE TO 2011 (IN MTPA)

5.1

QATAR

77.4

-1.3

“T

RUSSIA

10.9

+1.9

+0.4

NORWAY

3.4

YEMEN

5.1

-1.5

TRINIDAD

14.4

ALGERIA

BRUNEI

UAE

5.6

-1.6

-0.3

+0.5

INDONESIA

MALAYSIA

PERU

3.9

6.8

EQ. GUINEA

3.8

+0.1

NIGERIA

+1.2

23.1

18.1

-3.3

-1.9

-0.1 OMAN

8.1

AUSTRALIA

+0.2

20.8

he agreement was signed by Nasser Al Jaidah, CEO of QPI and Wael Sawan, Managing Director and Chairman of Qatar Shell Companies. The agreement follows QPI’s $1 billion (QR 3.7 billion) purchase of a 23% stake in a major oil production asset offshore Brazil in April 2014 operated by Shell known as BC-10 or Parque das Conchas.

40 AND GOING STRONG

TOP LNG EXPORTING COUNTRIES EGYPT

Qatar Petroleum International (QPI) and Shell signed a Memorandum of Cooperation in the presence of HE Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry and Chairman of Qatar Petroleum, and Ben van Beurden, Chief Executive Officer of Royal Dutch Shell.

+1.6

Source: Waterborne LNG Reports, US DOE, PFC Energy Global LNG Service (From World LNG Report)

he combined assets of Qatar Petroleum (QP) soared by 85 times over the past four decades. The total revenues of QP increased by 40 folds and net profits surged by 300 times during the period,” says HE Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry and Chairman of QP, while addressing a gathering attended by ministers, top government officials, diplomats and energy industry captains in Qatar, to mark the celebration of the 40th anniversary of the issuance of Emiri Decree July 4, 1974, establishing what was then known as the “Qatar General Petroleum Corporation.” “This year also marks the 75th anniversary of the discovery of oil in Qatar. Qatar Petroleum has contributed in building the national economy and forming one of the fastest growing economies in the world, and that the contribution of the oil sector in the GDP last year exceeded 54%,” Dr Al Sada noted. QATAR TODAY > AUGUST 2014 > 19

business > realty check “Real estate is one of the key growth sectors in Qatar. The scale of real estate development under way in Qatar is unprecedented, both related to the FIFA 2022 World Cup and otherwise. The infrastructural development, the demand for over 240,000 residential units by 2017, the inherent potential for new hotels provide a glimpse of the huge opportunity for the sector.”

ABDUL AZIZ AL SERKAL General Manager Dubai Investments

AL MIRQAB PLOT FETCHES QR250 MILLION

Score Change (Inverse)

0.5

A 1,656 sq. m. plot in Al Mirqab was sold for QR250 million at the rate of QR151,000 per sq. m. This is the highest price a property in the country has fetched so far.

0.4 0.3 0.2 0.1

Hungary

Peru

Serbia

Kazakhstan

Ireland

Colombia

Algeria

Mauritius

Zambia

Romania

Nigeria

QATAR IS MORE TRANSPARENT

atar has been ranked second in the world, after Kenya, for its continued progress in transparency for global businesses over the past two years, according to Jones Lang Lasalle’s latest biennial survey report “Global Real Estate Transparency Index 2014.” Qatar has witnessed the most significant improvement in MENA, moving into the “Semi Transparent” category. International interest in Qatar’s successful bid to hold the FIFA 2022 World Cup and working conditions for those involved in the event’s infrastructure

has encouraged a more open and transparent market. Qatar is using improved transparency to strengthen its presence on the global stage as part of the Qatar National Vision 2030, a bid to position itself as a knowledge-based economy. External influences have also further advanced Qatar’s transparency standing, such as a greater involvement from international real estate consultancies and the decision by New York based index MCSI to upgrade the Qatar stock exchange from ‘frontier market’ to ‘emerging market’ status, the survey adds.

MALLS DOMINATE QATAR’S RETAIL SECTOR

RENTALS OF 3 BHK VILLAS GO UP 25,000 21,000

QR/Month

Ghana

Source: JLL, LaSalle Investment Management

he smallest house sold was about 165 sq. m. in Bin Dirham in downtown Doha. It fetched QR2.4 million at the rate of QR15,384 per sq. m. The second largest deal in terms of value involved a 6,000 sq. m. housing complex in New Salata which fetched QR107 million. In Umm Qarn and Al Dhayeen, four plots admeasuring less than 400 sq. m. were sold for under QR1 million. Most plots, houses and villas sold in the week are in Doha, Al Dhayeen, Al Khor, Umm Salal, Al Rayyan and Al Wakra. As many as 94 deals worth QR914.7 million were concluded between June 29 and July 3, according to the details posted on the website of the Ministry of Justice.

Source: ASTECO & Global Research

Qatar

Kenya

0.0

Doha’s retail market continues to be dominated by modern shopping malls such as Villaggio, Lagoona, Landmark and City Centre, which together account for 60% of Doha’s formal (mall) retail supply, according to Colliers International Doha Real Estate Overview Q2 2014 report.

17,000 13,000

While the total existing supply in terms of Gross Leasable Area (GLA) currently stands at approximately 629,000 sq m, Doha City Centre accounts for 20% of this supply, followed by Villaggio (17%) and Porto Arabia representing 15% of cumulative supply.

9,000 5,000

D Al

na Al

aa W

20 > QATAR TODAY > AUGUST 2014

n Ai

4Q, 2013

es W

ay W

on G Al

1Q, 2014

a hr

The report says a delivery of a further 900,000 sq. m. within the next five years can be expected given the volume of planned supply that is due to come online (provided construction timelines are met) and the additional supply is expected to add more competition in the retail landscape.

news bites > regional

22 > QATAR TODAY > AUGUST 2014

BA R BA R I C Palestinians inspect a destroyed building following an Israeli military strike on Beit Lahya, northern Gaza Strip on July 15. An Egyptian ceasefire proposal was accepted by the Israeli security cabinet but rejected by the Hamas, Israeli media reports said. AFP PHOTO/MAHMUD HAMS

QATAR TODAY > AUGUST 2014 > 23

development > viewpoint

IN DEFENCE, INFORMATION IS AS VITAL AS WEAPONRY GCC countries are investing substantial sums in military capabilities, procuring state-of-the-art equipment and enhancing training. These countries have some of the fastest growing defence budgets in the world.

s the GCC countries improve their military skills and capabilities, they must keep in mind that weaponry and tactics alone are not enough. A critical element in today’s military transformation is the use of information technology. This has affected all aspects of defence, from the management of logistics to military operations. Indeed, one of the crucial aspects of mission success is “information superiority”. “Information superiority” is the ability to meet the information requirements of your own forces faster and with greater accuracy and comprehensiveness than your adversary can. Despite the relatively recent

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introduction of digital technology to military operations, IT-enabled information superiority has already made a significant difference on the battlefield. The question is how best to get there. In an effort to keep up with rapid changes in technology, some militaries are rushing to buy large amounts of hardware and software in the hope that they will amount to something. That is the easy and wrong approach. These organisations soon find themselves with multiple systems that do not connect to each other and are redundant in some areas. Such an approach wastes as much as 30% to 40% of total procurement spending, and an equal wastage of manpower (which is spent on

Militaries require an enterprise strategy that can guide the acquisition and management of the necessary software, hardware, and services. This involves taking a holistic view of information, and putting strategy at the forefront.

activities that could be more efficiently handled through automation). Instead, militaries require an enterprise strategy that can guide the acquisition and management of the necessary software, hardware, and services. This involves taking a holistic view of information, and putting strategy at the forefront. Specifically, information superiority requires five imperatives: The first is that information must be treated as a strategic asset. The starting point is a coherent and unifying information strategy, which connects directly to the military strategy. This puts information superiority at the level of other traditional capabilities, such as air defence, maritime control, and ground manoeuvre. For example, the strategy should include the armed forces’ vision of information superiority, supporting roles and responsibilities, key objectives, and the road map to achieve them. The second is that information must be centrally governed. A single leader must have direct responsibility over information. Typically, this is a chief information officer (CIO), who reports directly to the head of the armed forces. The CIO must have the authority to manage this vital asset, to make investment decisions, and to control technical standards and design. This requires a centralised approach with appropriate authority, policies, procedures, and controls.

The third is that culture is critical. Militaries need to shift from a “need to know” model, in which information is tightly controlled, to a “need to share” approach, which encourages information to be distributed to improve performance. A culture of sharing cannot be achieved solely by specialist IT groups or organisational structures, because it is more about mindset than personnel or positions. Instead, achieving this culture calls for a top-down change programme, including communication from leaders on which information sharing is important, and the right level of training for all personnel. The fourth is that cyber security is vital. Just as the advantages of information superiority are considerable, so the threats from cyber security failure can be just as significant. It is not enough to acquire and utilise information; militaries must also protect against attempts by the enemy to attack, access, or exploit critical military information. The right cyber security approach covers the entire organisation – all physical assets – and all personnel. The fifth is that integrated and agile technology is an essential foundation. The information and communications technology (ICT) system that undergirds the strategy should allow the military to gather and disseminate information securely, linking aircraft, ships, land platforms, and headquarters. In some cases, this poses a sizeable challenge, in that organisations cannot start with a blank slate; rather, they operate with existing systems that must be integrated with newer technology. The changing nature of warfare and the rapid advances in IT have made information the critical factor in military performance. By starting with an overarching information strategy and centralising governance, armed forces will achieve information superiority. They will be far more efficient and effective in their procurement spending and manpower utilisation. Their systems will be more interoperable within their own military and with allied forces and they will be better equipped to successfully complete their mission

BY ABDULKADER LAMAA and ANDREW SUDDARDS, Principal and Senior Associate respectively Strategy & (formerly Booz & Company)

ABOUT STRATEGY & Strategy & (formerly 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 Strategy & has over 3,300 people working in more than 60 offices around the world. QATAR TODAY > AUGUST 2014 > 25

development > viewpoint

WATER CRISIS:

THINK GLOBAL, ACT LOCAL

Fresh water is a unique natural resource. Unlike hydrocarbons, it is essentially non-substitutable. Whether for drinking or irrigation – there is no replacement for it. As such, water is a critical resource for human life just as it is for almost all eco-systems.

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nfortunately, only 3% of the total water on the planet is fresh water, while about 97% is salt water from its oceans. Of the fresh water that’s available, approximately 70% is frozen in glaciers and ice caps, leaving less than 1% of the total world water supply readily usable for humans. And even though water – unlike hydrocarbons – is finite but renewable, its renewal and sustainability won’t be ensured if consumption exceeds its renewal rate. At a time of rapidly-rising water usage around the globe, water resources are therefore

coming under significant stress, making already existing shortages more severe. According to the World Bank-sponsored 2030 Water Resources Group, demand for water worldwide may exceed supplies by 40% by 2030 at current growth rates. The Gulf States, including Qatar, which are located in one of the world’s most arid regions with scanty rainfall, high evaporation rates and no rivers, are among the major contributors to this demand growth. Driven by growing populations, the establishment of new industries and socio-economic development, the region’s water supply-demand gap has widened

FRESH WATER

SALT WATER

FRESH WATER THAT’S AVAILABLE, APPROXIMATELY

70% IS FROZEN

dramatically in recent years. As a result, Gulf countries depend to a very high degree on desalination to meet their runaway water requirements. Today, the Gulf region accounts for nearly 50% of the world’s desalinated water capacity. Desalination capacity In the Middle East-North Africa (MENA) region, desalination capacity is expected to grow from 21 million cubic meters a day (cm/d) in 2007 to nearly 110 million cm/d by 2030 – of which 70% is in Saudi Arabia, the United Arab Emirates, Kuwait, Algeria and Libya, according to a joint report by the International Renewable Energy Agency (Irena) and the International Energy Agency’s Energy Technology Systems Analysis Programme (ETSAP). This will contribute to the surge in energy use in the region. The annual electricity demand for desalination in MENA is expected to rise to 122 terawatt hours (TWh) by 2030, a factor of three higher compared with 2007. In the UAE, for example, seawater desalination requires about 10 times more energy than surface fresh water production, and its costs are projected to increase by 300%. Indeed, the world’s water and energy needs are so closely linked that, going forward, they can’t be separated from each other. As a result, water and energy – together with food security and climate change – are the critical issues topping today’s global policy agendas. Energy companies – like other industries – are consumers of fresh water, if at a smaller scale than, for example, the agricultural sector. Still, as global energy demand continues to rise and more water-intensive methods are being applied to extract unconventional hydrocarbons such as oil sands, effectively managing the overall use of the resource through new and advanced recycling and reuse technologies is becoming seminal.

As such, the energy sector at large will have to intensify its efforts to address and prepare for future water challenges in many parts of the world. A stronger focus by the industry on research and development (R&D) into water management, reuse, recycling and desalination – as is already happening at Qatar Science & Technology Park (QSTP), where numerous international energy firms have set up shop – is therefore essential. Qatar’s challenges Qatar’s particular challenges of having access to very limited fresh water reserves while at the same time growing rapidly both in terms of population and industrial development, mean the issue of water is more pressing here than in many other countries. Setting up R&D facilities in the Gulf state therefore is an almost natural choice to tackle the water issue and develop local solutions that can ultimately be applied globally. It is also in line with the country’s own vision of transforming itself into a knowledge economy and reducing its dependence on hydrocarbons. There can be little doubt that R&D will play an important role in meeting the world’s water challenge going forward. But it will only be one element in what needs to be an integrated economic approach to water resource management. Apart from energy companies, other private-sector stakeholders such as agricultural producers, technology providers and industrial water users will have to make critical water management decisions. Governments will have to introduce policies aimed at increasing efficiencies, pricing water according to its real economic value, and reducing economies’ water-intensity, in particular in countries that face scarce and diminishing water resources. In short, it is vital that all stakeholders get together if a water crisis is to be averted

BY SEAN EVERS Managing Partner Gulf Intelligence

ABOUT GULF INTELLIGENCE Gulf Intelligence facilitates knowledge exchange and networking between stakeholders in the Energy, Healthcare and Banking & Finance sectors across the Gulf region. The strategic communications firm, headquartered in Dubai and operating in Qatar and Oman, prepares and positions clients as Thought Leaders in their industry utilising a range of dynamic platforms that ensure a direct and tangible engagement with stakeholders. www.thegulfintelligence.com. QATAR TODAY > AUGUST 2014 > 27

news bites > world view

28 > QATAR TODAY > AUGUST 2014

S H AT T E R E D D R E A M S Flowers and plush toys are left at the site of the crash of a Malaysia Airlines plane carrying 298 people from Amsterdam to Kuala Lumpur in Grabove, in rebel-held eastern Ukraine, on July 19. Ukraine and pro-Russian insurgents agreed on July 19 to set up a security zone around the crash site of a Malaysian jet whose downing in the rebel-held east has drawn global condemnation of the Kremlin. Outraged world leaders have demanded Russia's immediate cooperation in a prompt and independent probe into the shooting down on July 17 of flight MH17 with 298 people on board. AFP PHOTO / DOMINIQUE FAGET

QATAR TODAY > AUGUST 2014 > 29

business > viewpoint

BROADER AND DEEPER

After several years spent somewhat in the doldrums, Qatar’s asset management sector is sparking back to life, with a rash of new moves coinciding with a wave of positive headlines from the country’s capital markets.

hese developments have been welcomed by those seeking to raise Qatar up the global bourse league table, promising as they do to boost international attention and market capitalisation. Indeed, finding ways to deepen and widen the capital markets has long been a challenge – as well as an objective – of Qatar’s financial authorities, along with its brokerages and banks. Much still needs to be done, though, if Qatar is to mount a successful challenge to other regional rivals. Creating bigger funds and offering a wider range of products are two of the main ways this can be done, while keeping the momentum going on privatisation – and the consequent listing of major outfits – is also a key challenge. Market moves One of the most positive pieces of news in recent times from the Qatari capital markets was, of course, the MSCI upgrade that came at the end of May. Moving from the Frontier Markets to Emerging Markets index had been widely anticipated, too, with a major surge in investment into the Qatar Exchange (QE)

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by active foreign funds and local investors noticeable since the start of the year. The also widely-expected immediate effect of the upgrade was, however, a drop in the QE Index immediately, as investors reappraised stocks that had become over-valued in anticipation of the MSCI hike. This too was largely an over-compensation, though, with the market bouncing back at the start of July. The over- and under-correction process was still on-going at the time of writing. In the lead up to MSCI upgrade though, some key announcements had also been made in the asset management (AM) segment. May saw an announcement from the QE that this year would see the bourse list its first Exchange Traded Funds (ETFs). QE CEO Rashid Al Mansoori told OBG that two ETFs are to be listed – the first based on government fixed-income risk from an Asian borrower, and the second based on a representative Qatar-country index. The hope was that these would be listed in the second half of 2014. These two ETFs are also to be some of the largest in the region, according to bourse officials. Their launch comes on the back

of the success of the iShares Qatar ETF, launched just ahead of the MSCI upgrade. News also came in May of plans to increase the limit on foreign ownership of QE listed companies, from a normal current level of around 25% to 49%. While still short of granting possible majority control, the move was widely welcomed for creating more room in the index for foreign investment. Taken together then, recent months have seen some major shifts in the nature of Qatar’s capital markets – all of which should have a positive effect on the AM segment.This has in the past been rather moribund, although since 2012, there have been signs of a potential revival. Back then, Barclays Natural Resource Investments (BNRI) announced it had formed a strategic partnership with the Qatar Asset Management Company (QAMC), with BNRI setting up an office in Doha and QAMC investing $250 million (QR910 million) in BNRI’s current and future portfolio of companies. This was the first strategic partnership for QAMC, itself a collaboration between the Qatar Financial Centre Authority (QFCA) and the Qatar Investment Authority (QIA). Another major foreign/Qatari tie up in the AM field is Aventicum Capital, a joint venture between Credit Suisse and Qatar Holding, which launched its first, $500 million (QR1.8 billion) Qatar-based, Frontier Markets business in July 2012. Aventicum also more recently announced it was launching a second fund, Aventicum Alternative Equities - a long/short European equity operation - from its Geneva office. These two funds are significant because they are both large, posing a challenge to locally-based AM companies. One of the most successful of these is Amwal, whose two Qatar Gate Funds – ‘N’ and ‘Q’ – have been good performers. Qatar National Bank (QNB) has its Al Watani funds and QNB Debt Fund, while Investment House – which launched Qatar’s first Islamic fund – is also in the market, as is Commercial Bank of Qatar, Masraf Al Rayan Bank, Doha Bank, and Barwa Bank. In total there are some 12 local funds currently listed. When it comes to competing with the large, internationally linked funds,

though, local firms have to battle some disadvantages. First, there is the issue of costs. Local fund managers often have to charge higher fees, as they are unable to spread their costs around as widely as international players. Then there is the volatility of local capital markets – as evidenced by the QE’s performance this year. The large numbers of retail investors lies behind much of this, with indexes rising and falling as these players buy or dump equities. This makes AM a less predictable affair. The locals can offer one key advantage, however; their local knowledge and access, with wealth management often involving relationships with a few, often very private, individuals. Indeed, one of the traditional weaknesses of AM in Qatar has been that families, who often run some of the wealthiest businesses, are reluctant to place their investments with outsiders, such as AM companies. Another crucial point in the further development of the AM sector will be the widening of the bourse itself with more listings, particularly of some of the major and attractive businesses still awaiting privatisation. “The privatisation and IPO listing process is on-going,” Fahmi Alghussein, CEO of Amwal, told OBG. “This will provide support to the Investment Banking, Brokerage and Asset management industry locally, increase the breath and depth of the Qatari market and reduce the concentration risk for investors.” More IPOs of big hitters would draw major interest globally, widening the possibilities for AM. Widening the bourse with more products would also assist in AM development, increasing portfolios to include real estate as well as other products. In the meantime, Qatar will be up against stiff competition from other regional markets, most notably those in the UAE which was also upgraded at the same time by MSCI. PwC recently estimated that by 2020, assets under management in the MENA region will be 2.5 times greater than in 2012, at around $1.5 trillion. The prize is therefore a great one – if Qatar can find the means to win it

BY OLIVER CORNOCK The author is the Regional Editor of Oxford Business Group.

QATAR TODAY > AUGUST 2014 > 31

LEADERS

A NATION OF DISCIPLINED COVER STORY

COVER STORY

A NATION OF

DISCIPLINED LEADERS

QATAR WILL SOON HAVE A NEW GENERATION OF COMMITTED, MILITARY-TRAINED YOUTH, THANKS TO ITS NEW NATIONAL SERVICE PROGRAMME. BY IZDIHAR IBRAHIM

QATAR TODAY AUGUST 2014

LEADERS

A NATION OF DISCIPLINED

COVER STORY

"MILITARY TRAINING FOR GRADUATES WILL RESEMBLE THAT GIVEN TO CAREER MILITARY STUDENTS IN AHMED BIN MOHAMED MILITARY COLLEGE BUT WILL INCLUDE RELIGIOUS, CULTURAL AND TECHNICAL LECTURES ON CIVIL DEFENCE, FIRST AID, THE ENVIRONMENT AND PREVENTIVE MEASURES." BRIGADIER MOHAMMED MISFIR AL IYADI COMMANDER STUDENTS’ TRAINING CENTRE

H the Emir Sheikh Tamim bin Hamad Al Thani issued a law in March this year on National Service, which made it mandatory for all Qatari males aged between 18 and 35 to undertake military service for a minimum period. It also went on to say that they will not be employed in the private or public sectors before fulfilling this requirement unless there is a valid exemption or deferral of the requirement. The national service includes training and duty at one of the armed forces units in accordance with the explanatory presentation given by Staff Major General Mubarak Mohammed Al Kumait Al Khiyareen, the commander of the Qatari Emiri Air Force and head of the National Service Committee. The law states that the length of service shall be three months for those who have graduated from a higher learning institute, given that the course requires two

years or more of studies. The service is to be four months for those who have not graduated from institutes of higher learning and for those who have not graduated from secondary schools until the age of 24. Qatar is mulling over making it optional for women to attend a national service programme. Recently in June 2014, at the graduation ceremony of the first batch of military trainees, it was announced that there were plans for special training programmes for women which would be put in place after careful studies. A permanent training centre for the national service is being built, but until this time that it is ready, the training continues to be provided in Al Shamal. Close to 2,000 young Qatari men comprised the first-ever batch, and the second batch, consisting of university and high school students, will begin its training as part of the national service in September and October. This was disclosed by the Minister of State for Defence, Major-General HE Hamad bin Ali Al Attiyah, at a ceremony held to mark the completion of the first batch of national service. Many Qataris applauded this decision with the view that it would engrain the value of self-dependence among Qatari youth. The move also intends to serve the country’s defence objectives and maintain security readiness and stability of the country through a reserve force that can augment the regular one during times of emergency. Abdulaziz Al Mahmoud, a prominent Qatari, approves and encourages the mandatory military training for Qataris, saying, “We need to teach our children commitment, discipline and the fighting spirit. The question is, however, whether this project alone is enough to achieve this?” He also has his reservations. “Our lifestyle, education and culture are full of flaws that have to be fixed before people are taken to military training camps. Our young men do not know anything about the military, except for the uniform and the salute,” he says.

QATAR TODAY AUGUST 2014

TRAINEE TALK

ALI MUHANNA AL RUMAIHI POINTED OUT THAT THERE ARE SPECIALISED MILITARY TRAINING PROGRAMMES FOR OVERWEIGHT PEOPLE THROUGH WHICH THESE STUDENTS CAN FIGHT OBESITY. “THIS IS ONE OF THE OBJECTIVES OF THE NATIONAL SERVICE PROGRAMME,” HE ADDED, SAYING THAT “THERE ARE SOME CONSCRIPTS WHO LOST 25 KILOGRAMS WITHIN TWO MONTHS OF TRAINING AND ARE NEARING THEIR OPTIMAL WEIGHT”. HE SAID THAT EACH CONSCRIPT HAS A PERSONALISED TRAINING PROGRAMME COMMENSURATE WITH THEIR WEIGHTS, AND THAT SPECIALISED TRAINING OFFICERS AND PHYSICAL TRAINING COACHES ARE CONSTANTLY WORKING WITH THE CONSCRIPTS. “WE ALSO HAVE A SPECIAL NUTRITION SYSTEM FOR EACH CONSCRIPT COMPATIBLE WITH THEIR INDIVIDUAL CONDITIONS”.

“These youth have some traits such as laziness that leads to obesity, over-dependence on the tribe, family, acquaintances and servants to get whatever they want, and a belief that money can do anything for them. Trainers will not be able to deal with these youth who, unlike us, have been raised in luxury.” To counter this, Mahmoud feels that military training should be augmented by training in schools. Qatar Today takes a closer look at the national service laws in the region and a few globally, in addition to an in-depth look at

what’s happening in Qatar with a visit to the national service training camp at Al Shamal, in an attempt to throw light on why such disciplinary training is vital for the new generation of leaders. National service around the world The UAE council of ministers has endorsed a federal compulsory national service law for male youth between the ages of 18 to 33. According to this law, the service is optional for females. When the project is implemented, the UAE continued on Page 36

"QATAR IS A COUNTRY THAT APPRECIATES DISTINCTION – A COUNTRY THAT HAS PROVIDED US WITH EVERYTHING. IT HAS A PEOPLE WHO ARE YOUNG AND ENTHUSIASTIC, AND GIFTED LEADERS WHO INVEST THEIR TIME AND EFFORT IN SHAPING THE NEXT GENERATION. THEY DON’T SPARE ANY EFFORT TO PAY BACK SOME OF THE FAVOURS THEIR COUNTRY HAS BESTOWED ON THEM AND MAKE A DIFFERENCE IN BUILDING QATAR." SALEM NASER SAEED AL AIDAH Qatar Stars League Foundation (from the first batch of graduates)

LEADERS

A NATION OF DISCIPLINED

COVER STORY

BETWEEN REALITY AND ASPIRATIONS

he strength of a country has been measured in recent decades by the size of its population. The bigger the population, the bigger the deterrent it provides to any threat from a hostile regional power. This was what countries like Iraq, whose onemillion-strong armed forces which was rated the fourth biggest in the world, used to brag about. Such criteria was current until recently; and it was the reason why countries that lack this advantage, such as the GCC countries, resorted to other means to curb external threats. We found that these countries opt to build up large arsenals of armament and forge coalitions with Arab and international powers to meet their security requirements. Foreign fleets became a common presence in a large number of states along the Arabian Gulf. Some Arab countries like Jordan and Egypt are at the forefront of countries that received economic assistance in return for the security services they provided, while countries like Iraq and Egypt with large populations gained distinguished leverage in the region inspite of their receding economic conditions. The absence of compulsory conscription in the GCC countries inevitably leads to the lack of reserve forces needed to confront external threats. Contrary to this, for instance, is the situation in Iran – the traditional source of threat to these countries – which has a strict compulsory conscription system, and a large base of career reserve forces with wide ranging direct or indirect combat experiences and duties. Depending on an external power for security has its political cost that no Gulf state may wish to continue to pay, especially when there is an agreement between these external powers and the threatening regional side. The recent agreement between

the USA and Iran has contributed to forcing some Gulf States to adopt compulsory conscription for the first time in their history. These countries are seeking – amid regional threats and rapid interactions in the region – to optimise the benefit of their financial and armament-advantage by adding qualified and trained resources to their military capabilities to confront Iran, the neighbour with an ambitious strategy to dominate the Arabian Gulf region. Regional threat could be a major part of the new doctrine of mobilisation in the Gulf region as the GCC couldn’t, throughout decades of its history, meet the security requirements of its members and GCC members were concerned about the wave of the Arab spring revolutions that had struck many large Arab republics. However, they viewed compulsory conscription as a means to “build a generation of disciplined youths”, and to “upgrade and optimise the utilisation of human potential through engraining good values and developing positive behaviour patterns among the youth so that they can support the armed forces in crises and emergencies”. These countries used to recruit immigrant workforce in various units of the armed forces, which poses a long-term threat to the social fabric especially when the population of this workforce exceeds the indigenous population, let alone the problems this may create due to divided loyalty on the part of these recruits. The reasons for introducing the compulsory conscription service (the service of the flag) vary from one country to another. All countries, however, agree that this service contributes to fulfilling the requirements of the society and the country. Jordan, for instance, is planning to reinstate the service, and the law has recently been passed by the parliament. It considers the national service a reform measure and a means to serve

QATAR TODAY AUGUST 2014

society, contain social violence and reconfirm the state deference through upgrading the respect for the state’s institutions and the armed forces and safeguarding the fabric of society amid genuine threats to national unity. Some Gulf countries view the service as a means to develop the potential of the youth. They tend to reinstate the service not for political and security reasons as much as a means to refine the characters of the youth and solve the problems originating from idleness and unemployment, most of which are attributed to the failure of government departments to plan and study the requirements of the work market proactively, and the absence of suitable professional training. As a result, a large portion of immigrant workforce took the place of the national workforce in the work market. For these reasons, rather than security and political ones as in the case of Israel, the governments of the region are introducing the national service. Countries such as Qatar and the UAE consider it important to provide a military training to conscripts or volunteers for a few months in order to refine and shape their characters and integrate them into military life. In addition, the absence of a national culture leads to lost or weakened loyalty or sense of national belonging, which in turn will regenerate the ethnic or sectarian sub-identities responsible for most of the cases of unrest in some Gulf States, like in Bahrain, Saudi Arabia and Iraq. In Jordan we can see this phenomenon in the universities where violence reached unprecedented levels. To enhance a unifying national identity some suggest changing the phrase “the service of the flag” to “the national service”. As a way of combating unemployment, these governments consider that preparing university graduates professionally, technically and technologically even after

RA’ID FOUZI EHMOOD Researcher and General Manager Third World Institute for Researches and Studies, Jordan

completing their military service is required to qualify them for a profession, especially in the most needed jobs, in the work market. Voicing economic aspect as a main reason for rejecting the return of the national service can be bypassed in the societies of the Arabian Gulf States where the returns realised from oil and gas can be used to strengthen and encourage the national service. In the countries that suffer from economic difficulties, financial requirements for compulsory conscription can be secured through partnerships between the armed forces and the private sector to support training with experienced human resources. The current tendency today among the governments that want to reinstate or introduce the national service for the first time is to adopt this new concept so that the service may not be seen as an unnecessary financial burden by governments. At the same time, some governments are thinking about reducing the term

of the service to just six months of training, or start training the students from secondary school and count that period as part of the regular service term that the conscript is ready to start after completing this stage of education. For example the Jordanian government is heading towards reinstating the national service and reducing its term from two years to only six months of military and vocational training. A large number of the officials supporting the return of the service of the flag in Jordan associate it with the Arab-Israeli conflict. Some of them think that as long as no state is established on the other bank of the river (a Palestinian state on the West Bank and Gaza Strip), this subject should not be ignored. The threat is still there and the current strategic environment should be understood in a holistic context. Other governments think the duration should be assigned in accordance with the circumstance of individual countries. The security side should not be ignored when considering serving the society and emphasising productivity as parts of the national service. For example Algeria limited the service of the flag to 18 months, three of which are spent in military training, and one month in driving training. Conscripts after that are grouped in accordance with their specialisations and competence to retrain them vocationally. It, however, raised the term during the 10 years of unrest, terrorism and chaos that Algeria experienced through during the 1990s to 24 months without ignoring vocational training. In light of all this the service of the flag is an important activity. However, we should not look at it only as a military or behavioural training. It is that, and also a vocational and professional preparation. If this notion is not part of the process, the whole activity can be in vain.

LEADERS

A NATION OF DISCIPLINED

COVER STORY THE ROUTINE

FAJR PRAYERS

"THE DURATION OF TRAINING ADOPTED IN MANY COUNTRIES IS TWO YEARS. BUT AFTER CAREFUL STUDY IT WAS FOUND THAT THE THREE TO FOUR MONTHS OF TRAINING IS SUFFICIENT IN LIGHT OF ADVANCEMENTS IN TECHNOLOGY AND STRATEGISING."

SPORTS AND PHYSICAL FITNESS EXERCISE

AFTER ASR PRAYERS, THE GROUPS HEAD OFF TO VARIOUS LECTURES COVERING RELIGIOUS, FAMILY AND CULTURAL MATTERS AND ISSUES SUCH AS WEAPONS OF MASS DESTRUCTION, FIRST AID AND THE ENVIRONMENT UNTIL 9 P.M.

THE CONSCRIPTS DEDICATE THEIR TIME TO ADMINISTRATIVE DUTIES.

BREAKFAST

FIELD ACTIVITIES UNTIL 9:30 A.M.

STUDENTS ARE DIVIDED INTO GROUPS AND EACH GROUP TAKES TURNS ON ARMS TRAINING AND LECTURES, CONTINUING IN THIS WAY UNTIL MIDDAY. AFTER ZUHR PRAYERS, STUDENTS RETIRE TO THE SLEEPING QUARTERS.

AT 10 P.M. CONSCRIPTS RETIRE TO THEIR SLEEPING QUARTERS.

STAFF BRIGADIER NASER ABDULRAHMAN AL JABIR ASSISTANT COMMANDER STUDENTS' TRAINING CENTRE continued from Page 33

will follow the example of the State of Qatar. The Prime Minister Sheikh Mohammed Bin Rashed Al Maktoom announced that compulsory conscription will enhance the protection of the nation and teach the youth the values of loyalty, obedience and sacrifice. Compulsory conscription was implemented in Kuwait and was discontinued; but recently discussion has started within government circles to resume it. In Saudi Arabia, demands have been on the rise to adopt compulsory national service and not without strong logic considering the kingdom’s relatively small population against its vast geographical area, huge natural resources and eminent religious position. Some Arab countries that adopt compulsory conscription include Syria, Iraq, Egypt, Libya and Sudan. Jordan cancelled the national service after signing a peace

QATAR TODAY AUGUST 2014

agreement with Israel. Countries like Egypt depend on the engineering corps of their armed forces and on conscripts in peace times to implement infrastructure and other projects – something that can be viewed as one of the benefits of this policy. The participation of the youth as conscripts in national projects under the supervision of the army provides them with training and a chance to participate actively in building their countries with their own hands and making direct financial gains. We can also look at the experiments in other countries such as Germany which has alternative civil programmes instead of military service for its conscripts. The youth can choose to work in social fields for the duration of their compulsory military service, according to this system. Such programmes can be the core of compulsory conscription, not restricting the objectives to military work per se. In these cases the culture of compulsory conscription is used as a doorway for the youth to serve their country and solve its economic problems. On the other hand there are also countries such as Israel and Singapore that take their reserve forces seriously and maintain large numbers of them. Most countries in the world now are not in a state of continuous war as many of them used to be in the past decades. War has become extremely costly and has serious consequences for all. This is why most countries prefer to use their armies as a deterrent to aggression rather than assault forces. In other words, we have all but forsaken what is called “pure defence”. However many countries, including those in the GCC, have large infrastructure components costing hundreds of billions that need a military defence cover to protect them against any external threats. Naturally compulsory conscription in countries with a limited population such as the UAE and Qatar will not enable them to ensure complete security coverage during external threats. For example, the ratio of the armed forces personnel to the population is 6.80 to 1,000 in Saudi Arabia (source:

Wikipedia). Nevertheless, such a decision to adopt compulsory conscription has many benefits. Ukraine’s interim president Oleksandr Turchynov decided to resume compulsory conscription system due to deteriorating security conditions in his country. Singapore’s population of five million is served by an army of 72,000 highly trained soldiers. During emergencies, this army can swell in numbers, recruiting between 500,000 and 800,000 reserve personnel who are already trained, ready for duty and know their combat missions. From inside Al Shamal camp Qatar Today toured the camp during the training sessions and spoke to many of the trainers working with the very first batch of cadets. Brigadier Mohammed Misfir Al Iyadi, the Commander of the Students’ Training Centre says: “The vision of HH the Emir is to apply the national service system to enhance the potential of the Qatari youths, lead them in the right direction, and engrain qualities to develop positive behaviour.” According to Brigadier Al Iyadi, the idea of the service originated from HH Sheikh Tamim bin Hamad when he was still the Heir Apparent. This was further developed by a committee headed by Air Force Staff Major General Mubarak Mohammed bin Kumait, with the participation of military and academic staff. “The implementation of this idea has been amazingly successful, and will attract more applause when the first batch graduates.” He explained that when employees join the programme they will be allowed to keep their jobs while serving, without losing the increments and promotions to which they are otherwise entitled. Regarding the employees of non-governmental organisations, the Ministry of Defence shall bear their remuneration and shall give them gratuities. Examples of these include pilots working for private companies who receive wages from their employers according to an agreement with the Ministry of Defence. Conscription duration for these pilots is counted as part of their employment ten-

TRAINEE TALK

"THIS DECISION CAME IN THE RIGHT TIME – FIRST OF ALL TO PROTECT THE COUNTRY, SECONDLY TO PROTECT THE SOCIETY, AND THIRDLY TO PROTECT THE YOUTH OF THIS COUNTRY AND PROVIDE THEM WITH THE MEANS TO GIVE BACK TO OUR COUNTRY EVEN A SMALL PART OF WHAT IT HAS GIVEN US. AS THE CIVILISATION OF A COUNTRY IS MEASURED BY THE EXTENT OF AWARENESS, MORALITY AND KNOWLEDGE OF ITS PEOPLE, THIS STEP IS THE BEGINNING OF ACHIEVING ALL THAT." SALEH NASER AL AIDAH Special Engineering Office (from the first batch of graduates)

LEADERS

A NATION OF DISCIPLINED

COVER STORY

TRAINEE TALK

"I WAS HOPING TO JOIN THE MILITARY. NOW THE TIME HAS COME TO MAKE MY WISH COME TRUE. THE UNDERLYING VISION OF THE NATIONAL SERVICE IS TO BUILD A STRONG, YOUNG AND DISCIPLINED GENERATION WHO CAN CONTRIBUTE IN PUSHING THE WHEELS OF DEVELOPMENT IN THE COUNTRY FORWARD AND LEAD TO BUILDING THE CITIZEN AND THE COUNTRY." YOUSEF ABDULLAH ALMEER QAPCO (from the first batch of graduates)

ure when calculating retirement benefits; non-employees are given gratuities. The Commander added that conscription for nominees who are still studying will be delayed until they graduate from their Bachelor’s, Master’s or Doctoral programmes as stipulated by the law. Talking more about the types of training they undergo, Brigadier Al Iyadi says “Military training for graduates will resemble that given to career military students in Ahmed Bin Mohamed Military College but will include religious and cultural lectures on civil defence, first aid, the environment and preventive measures. Military training for the infantry includes field training and arms assembly, and concentrates on physical fitness exercises and the skills needed on the battle field,” The Commander also points out that the training programme is flexible and that students with urgent educational commitments during the training programme can disrupt training and go back to their education either at undergraduate or higher levels; they can rejoin the national service programme when they complete their studies. He also points out that delaying the national service for one year is possible. The delay can be renewed until the student turns 21, on the condition that the student concerned is a graduate of a secondary school, especially regular day time secondary school. For students of under-graduate institutes, training can be postponed until they turn 25. The period is sufficient Staff Brigadier Naser Abdulrahman Al Jabir, Assistant Commander says, “The duration of training adopted in many countries is two years. But after careful study it was found that the three to four months of training, as specified by the law, is sufficient in

light of advancements in technology and strategising. Also these terms ensure that careers and studies are not heavily disrupted.” Training of university graduates will not have wider academic aspects while emphasis will be on upgrading physical fitness and leadership skills to qualify them to fill leading positions in their respective institutions. He says “the first batch of university graduates include 500 students, while secondary school graduates will range from 1,500 to 2,000. This is a large number, considering that secondary school graduates tend to seek employment and some of them prefer to join the national service before starting the university. The difference between the training programmes of these two groups is not only the duration, but also intensity with the secondary school graduates being put through a tougher course. “We started with university graduates because they are ready right now, and are at the appropriate age. Registering secondary school graduates has started already; and their training programme will start next September.” According to the Commander, “The Supreme Education Council provided the national service committee with the names of students who meet the criteria of admission. Those students will then be called to join the national service. Working professionals will be contacted through their establishments.” He added that there is a follow-up committee to work between the Ministry of Interior, Passport Department, Ministry of Public Health, the Education Supreme Council, Ministries of Labour and Economy to track the employees of private businesses. The two programmes, though they start a month apart, will conclude together and the graduation ceremonies will fall on the same day

business > bottom line

QATARISATION:

BEYOND THE NUMBERS Organisations must focus on filling the pipeline to ensure individuals are adequately experienced and trained to progress up the career ladder.

s one of the world’s fastest growing economies, Qatar presents remarkable opportunities for business. Recognising this, organisations in the country have laid impressive plans to capitalise on these opportunities. A key focus for many is the increased nationalisation of their workforce. Much has been written about nationalisation trends and the strategies being used to attract and retain Qatari talent. However before planning where to go, we must first understand where we are and to do that, it’s important to look at the numbers. Our annual research – which in 2013 included over 160 organisations and 91,000 individuals – shows that Qatari nationals form 12.6% of the nation’s total non-government workforce, concentrated within four key sectors: public and not-for-profit (33%), financial services (29%), communications (29%), and oil and gas (23%). Besides a concentration within industries, we

42 > QATAR TODAY > AUGUST 2014

also see a skewed ratio of Qatari representation within organisational hierarchies with higher levels of nationalisation at more senior levels. Tellingly, positions described as ‘Management’ show strong levels of Qatari representation in excess of 45% whereas other more technical roles such as ‘Product Development’ have close to zero. In comparison to other countries in the region, Qatari employees tend to reach these levels at a much younger age. This is partly due to the strength of the education system which continues to produce highly qualified graduates, many of whom are fast tracked into managerial positions. However, despite the focused efforts to further strengthen the education system, progress is not keeping pace with demand from the business community and graduates remain highly sought-after. As seen in the table above, this trend has become somewhat more pronounced since 2009. The trend toward increased Qatarisation within the senior levels, and concurrent tailing off within the middle levels, raises

EMPLOYEE LEVELS

PERCENTAGE OF QATARI NATIONALS: 2009

PERCENTAGE OF QATARI NATIONALS: 2013

10%

Clerical Supervisory

17%

13%

Middle Management

20%

19%

Senior Management

37%

44%

the question of where future leaders will come from. With only 13% of the supervisory positions filled by national talent, organisations must focus on filling the pipeline to ensure individuals are adequately experienced and trained to progress up the career ladder. Similar to strong managerial expertise, technical expertise is also vital to sustainable business growth and it is important that nationals have the opportunity to opt for advancement into such specialised roles, as is seen in the oil and gas sector. Employers have a pivotal role in ensuring these career paths are known amongst graduates and new recruits to attract their curiosity and commitment.

Companies report a shift toward career achievement priorities and a marked improvement in education and knowledge standards amongst Qataris; key building blocks for a strong national workforce and demonstrative of the impressive strength of the Qatari education system.

Women power Strength of note in terms of nationalisation is the ratio of Qatari females to Qatari males in the workforce (42:58). Significantly more balanced than other GCC and indeed many international markets, this ratio indicates that Qatar is successfully drawing on female potential in the market and working toward the National Vision 2030 in terms of bolstering women’s role in society and empowering them to be active community members. Our research allows us a bird’s eye view of the progress of nationalisation programmes. However, to really zoom in on their application, we spoke to selected clients from a cross-section of industries who are in the process of implementing their own nationalisation strategies. They report a shift toward career achievement priorities and a marked improvement in education and knowledge standards amongst Qataris; key building blocks for a strong national workforce and demonstrative of the impressive strength of the Qatari education system. The challenge however lies in the fact that supply of national talent remains lower than demand and that there is a tendency amongst Qataris to be especially influenced by employer branding. As a result the hierarchy imbalance continues to grow and the risk of developing a transactional approach to career advancement – where individuals

job-hop at the expense of their overall development – increases. Meanwhile smaller organisations, as well as those from traditionally less prestigious industries, struggle to attract and retain talent. Looking forward, particularly in anticipation of World Cup 2022, there is a focus on developing sectors including healthcare, retail and hospitality, education, and logistics and transport. With ambitious plans endorsed by the government through the National Vision, Qataris have a pivotal role to play in shaping these nationally important sectors over the years to come. However without the resources to compete on salary with sectors such as banking or oil and gas, what are organisations in these sectors doing to attract and retain national employees? Remuneration is important, but intangible benefits also have a key role to play and can at times be seen to outweigh salary as a determinant of employee satisfaction. In many areas, nationalisation of Qatar’s workforce is progressing well with organisations benefiting from the highly educated pool of national talent. However there are challenges to be faced, especially by smaller organisations and those from outside the key sectors of public service, financial services, oil and gas, and communication. If employers act now to develop a strong employee value proposition, these challenges are by no means insurmountable

BY KRISHNA PANCHAL Krishna Panchal is a consultant with Hay Group Middle East. He works closely with leading local and multinational organisations in Qatar.

BUILDING A STRONG EMPLOYEE VALUE PLAN Organisations seeing success in their nationalisation strategies tend to be focused on building a strong employee value proposition through three key areas: 1. Building robust career plans with in-built promotion planning so that employees have clarity around expectations and exactly how they may develop their careers; 2. Training and development programmes which offer the individual time and opportunity to implement their learnings; and 3. Developing a strong employer brand and reputation. QATAR TODAY > AUGUST 2014 > 43

business > bottom line

EIGHT TRAITS THAT MAY BE

DAMAGING YOUR CAREER

External pressures, obstacles and difficulties aside, how many of us are responsible for unwittingly hampering our chances of career success through our own misplaced and misguided attitudes and behaviour? In this article, the career experts at the Middle Eastern job site Bayt.com present eight characteristics that should be avoided at all cost because they can ruin a career. 1 ABSENTEEISM

According to the Bayt.com ‘Absenteeism in the MENA Workplace’ poll, July 2012, 58.2% of professionals in the Middle East and North Africa (MENA) region believe that employee absenteeism is ‘very harmful’ to an organisation, with a decreased overall productivity as the most costly problem resulting from this phenomenon (according to 26.8%). Absenteeism, missing deadlines, failing to abide by agreed timelines, arriving to meetings late and generally disrespecting approved schedules is a surefire way to lose credibility and professional respect. With over 90% of MENA professionals claiming that their company keeps a close eye on employee absenteeism, try to value each and every minute at work.

BAYT.COM Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 16,250,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www. bayt.com today and access the leading resource for job seekers and employers in the region. 44 > QATAR TODAY > AUGUST 2014

2 FAILURE TO DELIVER ON PROMISES A promise made should be a promise kept if your professional credibility is to remain intact. Avoid making promises you cannot deliver on. Unless you are known as someone who can be strictly depended on to follow through and deliver on-time you are likely to be passed over for promotions and key assignments. When you do need more time or resources for an assignment, communicate the requirement formally and professionally and manage the situation to show you are in control and will not be sacrificing on quality of delivery. According to the Bayt.com ‘Employee Engagement in the MENA’ poll, April 2014, 7 in 10 of MENA professionals feel comfortable enough to voice their concerns and opinions to their manager; so should you.

3 POOR INTERPERSONAL SKILLS All research indicates that emotional intelligence and people skills are essential ingredients for success in life and at work. Indeed, good communication skills, cooperativeness and flexibility have been repeatedly identified as the most sought-after skills by employers in Bayt.com Middle East Job Index surveys throughout the years. If you have a reputation as someone who is difficult to work or interact with, chances are people will start to avoid you and your success at mobilising people or resources to further your goals will be severely diminished.

4 POOR TEAM SKILLS A good team player is able to work cohesively within a team framework and contribute, collaborate, communicate and challenge to meet specific goals within that framework. Inability to see beyond one’s self, work well with everyone, find the good qualities of others in the team, communicate persuasively and effectively, listen actively and attentively, give and welcome input, offer encouragement and assistance where needed and show respect, patience and courtesy inevitably leads to marginalisation and failure to meet personal and professional goals.

5 LACK OF ETHICS OR PROFESSIONALISM Conducting personal business on the job and any other activities that show flagrant disrespect for company time, resources and property are both unethical and unprofessional. Other unethical activities including chatting endlessly on the job, office gossip, wasting office supplies, back-biting the boss, spreading office secrets, routinely bringing personal matters to the workplace all fall under this category. In the MENA, 98% of professionals believe that it is important for their companies to have and promote ethics and integrity at the workplace (as per the Bayt.com ‘Values, Ethics and Integrity in the MENA Workplace’ poll, June 2014).

6 LACK OF INITIATIVE Complacency is a surefire road to professional mediocrity. To succeed it is essential that you continue to show enthusiasm, stretch the limits, be proactive and test the boundaries in the interest of innovation. Take responsibility for your personal and professional growth and continue to build momentum in your training and profession development activities. If you choose to simply lie low and casually bide your time while others race ahead in their careers you will most probably be overlooked for promotions and plum assignments and your skills may well eventually become redundant. According to the Bayt.com ‘Hiring Practices in the MENA’ poll, February 2012, hunger, drive and ambition have been identified as the most important things employers look for when making a hiring decision.

7 INABILITY TO HANDLE PRESSURE Every job entails a certain amount of stress and pressure and failure to recognise and handle the strain may lead to a pronounced and sustained decline in performance. Learn to recognise stress and cope with it professionally and effectively. Take breaks and holidays when needed, learn to manage stress and cope with pressure so that it is not an ongoing problem for you. It may be that the pressures mounting on you are due to poor time management or delegation skills or weakness in a certain area in which case developing your skills in these areas is highly advisable.

8 COMPLACENCY You may well be in your comfort zone and doing very well there but if you don’t challenge yourself in pursuit of further growth and development and continuously move forward and upward you may lose your equilibrium sooner than you expected. Have a vision in mind as pertains to your career and formulate a clear strategy and timeline for getting there which you can regularly benchmark and measure yourself against. Continuous learning, development and self-improvement is a necessity not a luxury for today’s ambitious professional and it is imperative that you keep abreast of the latest trends, tools and technologies in your field and not risk losing ground to the star performers who take personal growth more seriously. QATAR TODAY > AUGUST 2014 > 45

business > viewpoint

RETIREMENT PLANNING?

I AM STILL

YOUNG... When it comes to retirement planning, a significant majority of expats tend to take a rather cavalier disregard about saving for what can seem like a distant, if not imaginary event.

he current population generally is fitter and healthier than ever before and has the potential to work long into their 60s. There is also a widespread disinclination to save for the long term so the problem of retirement provision for international workers inevitably escalates. Hence, it is the sole responsibility of an expat worker to provide for his or her retirement. No-one is going to do it for them. A failure to save during what is probably the most productive and financially rewarding period in any career, means inevitably that a bleak lifestyle awaits you in retirement. In Qatar, it is the norm for expats to earn a tax-free salary and receive an end of service

46 > QATAR TODAY > AUGUST 2014

benefit, equivalent to a lump sum payout of one monthâ&#x20AC;&#x2122;s salary for each year of employment. However, it is extremely unusual for employers to make any sort of provision towards an employeeâ&#x20AC;&#x2122;s pension plan. It is therefore absolutely essential to set aside a portion of income from the very outset of any employment contract â&#x20AC;&#x201C; no matter what your age, no matter what your circumstances. The good news is, that by planning early, you will not necessarily have to forfeit very much and regular and long term saving will not make a noticeable dent in your lifestyle. The key to all of this is to take advantage of the myriad regular savings, pensions and investment products which are specifically designed for the international market.

Assess pension size The obvious first step is to assess the size of pension you think you would require to maintain your desired lifestyle in later years, while at the same time, taking into account taxation and inflation considerations. In order to illustrate this, let’s take the example of a 35-year-old expat who wishes to receive the equivalent of £30,000 (QR186,900) per annum at retirement. He or she should anticipate that this amount will initially require to grow by 3% each year, prior to retirement, in order to at the very least keep pace with inflation, and maintain its purchasing power. If our expat plans to retire at 60, without compounding inflation, he must add 75% to this figure. The equivalent sum he would require would then be £52,500 (QR327,025). Assuming tax of, for example, 20% on this annual income, the gross amount would need to be £63,000 (QR392,490). A typical retirement of 20 years would therefore require a multiplying factor of 20 on the £63,000 (QR392,490), which would then result in a target pension pot of £1,260,000 (QR7,849,800). Pragmatic approach The second step is to work out how this sum can practically be achieved, by saving over the available timeframe (with a realistic annual growth rate of say 6%). It is important that you assess what assets, savings and pensions you currently hold. You may have a number of company schemes already built up from working in your home country, or have a property portfolio which could then be sold or utilised to pay out an income from rents. While these should all be taken into account, do not fall into the trap of basing your hopes for retirement solely on either, as this can be risky and much too speculative. In conjunction with other assets, the most reliable way to take control over future pension provision is to apportion a comfortable amount of any surplus income each month and invest in a flexible, long-term investment plan. This diversifies your savings across a range of geographies and asset classes such as equities, property, alternative investments, bonds and commodities. This method of saving for retirement can not only be managed in line with your own risk profile and changing circumstances, it offers a better way of making sure your savings are not eaten away by inflation. It also helps avoid the need to boost retirement

“By planning early, you will not necessarily have to forfeit very much and regular and long term saving will not make a noticeable dent in your lifestyle. The key to all of this is to take advantage of the myriad regular savings, pensions and investment products which are specifically designed for the international market.”

BY AYCAN RICHARDS Senior Financial Consultant Guardian Wealth Management Qatar

plan shortfalls, often when you can least afford to. Look for options So what type of suitable retirement plans are on offer for today’s expat? One of the most efficient vehicles is a long term investment plan which qualifies as a life assurance policy. These plans offer expats a high degree of control and flexibility. As well as offering a wide range of investment options, in the eyes of the vast majority of tax authorities, they are treated as non-declarable entities for income tax purposes, until such time as what is called a “taxable event” occurs – this is most commonly when the plan holder withdraws funds. It is also worth noting that such plans only incur income tax based on the amount withdrawn each year and in the jurisdiction in which you are tax resident at the time of withdrawal – typically the jurisdiction you retire to. Further considerations include choosing a plan which is flexible. The large majority of investment plans will have an Initial Contribution Period (ICP) which must be paid. After this time, changes can be made to the level of contributions. A “payment holiday” is also favourable. This is advantageous if you are between employment contracts and are thus unburdened by payments during this time. Finally, ensure that your chosen plan is geographically portable, in that you can continue paying in while living and working in various locations and that it is also placed with a custodian based in a safe, secure international jurisdiction, such as the Isle of Man. Most of us will retire at some stage and the earlier we put financial plans in place, the more comfortable that retirement can be made QATAR TODAY > AUGUST 2014 > 47

business > tag this

QATAR INC:

BEYOND THE HYPE

Post-major investment upgrade of Qatar and the UAE as Emerging Markets (EMs) placing them along with BRIC (Brazil, India, Russia and China) nations, all eyes are focused on the two Gulf countries on whether they would attract substantial investments from both domestic and foreign companies in future. BY V L SRINIVASAN

B "Given Qatar’s weight of 0.48% in MSCI EM, the passive inflows would be around QR364 million ($100 million). The active emerging market funds are much larger in number and hence the incremental investment in Qatar is likely to cross QR1.82 billion ($500 million) at least.” BADER AL GHANIM Senior Vice President (GCC Asset Management) Global Investment House 48 > QATAR TODAY > AUGUST 2014

oth countries have introduced reforms in their respective financial sector - increasing the foreign ownership limit and improving corporate governance to lure investors from emerging markets, whose trade value is estimated to be QR80.08 billion ($22 billion) per day compared with QR11.65 billion ($3.2 billion) of the frontier markets. In its latest market report for the month of June, Kuwait Financial Centre (Markaz) says that after the announcement by Morgan Stanley Capital International (MSCI) in May 2013, Qatar’s stock market was up almost 24%, Abu Dhabi Securities Exchange Market and Dubai Financial Market in the UAE were up by 28% and 67% respectively. But a month after joining the league of emerging markets, indices on the three bourses in Qatar and the UAE ended on a negative note, the biggest since November 2008, in June this year. Qatar (-16%) and the UAE (Abu Dhabi -13% and Dubai -23%) indices were the biggest losers, as investors in both markets booked profits. Qatar’s index, which hit an all-time closing high of 13,697 points at the end of May, on the first day after its MSCI upgrade, slid 16% to close June at 11,489 points. The reason for the decline in the three markets is due to the speculative bubbles that deflated

stocks, the Markaz report says. However, since the UAE and Qatari markets are having abundant liquidity due to a fairly well-developed banking system to raise funds, the companies can hope to grow and expect a fair return on their investments. These two countries, put together, are likely to attract investments up to QR5 billion, says the report. Challenges ahead But it will not be an easy task as the investors are averse to risks posed by the markets, the explosive situation in Iraq, political unrest in countries like Syria, Turkey, Egypt and Ukraine, transparency, corporate governance, local laws, structural reforms and above all political stability in the region. The challenge for Qatari Inc, from an investor relations perspective, is the sheer breadth of the investor audience, from a hedge fund on the West Coast of the US to a small retail investor in Doha. The local companies should know how to communicate to a global investor audience as well as to address the needs of investors at home. Most of the companies on the stock markets of Qatar and the UAE are banks and real estate firms and they depend on the wealth generated by the oil and gas sector. Things will be smooth so long as the oil prices hover around QR364 ($100) per barrel but if the prices crash, it may spell

“Some correction as prices for the largest and most liquid stocks will have been driven by demand to some extent. Over the long term, interest in second and third tier stocks increase as investors become more comfortable with Qatar and the UAE.” TOBY WILKINSON Investor Relations specialist

trouble for the investors as the markets would take quite a pounding. According to reports, frontier markets fared better than emerging markets in terms of equity returns during the last 18 months. The MSCI index of the frontier markets rose by more than 50% as against 32% by the emerging markets between January 2013 and June 2014. In its study highlighting risk scenarios for emerging markets, which was released early this year, the World Bank says an abrupt unwinding of Central Bank support for advanced world economies could cause capital flows to emerging markets to contract by as much as 80% inflicting significant economic damage and throwing some countries into the throes of crises. “Capital flows into emerging markets are influenced more by global than domestic forces, leaving them vulnerable to disorderly changes like in the policy by the US Federal Reserve,” the World Bank study says. To some extent this is true as the “less accommodative” US Federal policy and taper tantrum in June last year sent ripples across many emerging markets in the world where the investors have withdrawn billions of dollars. As a result, many countries witnessed currency depreciations, increased borrowing costs and decline in equities. Under these circumstances, can the

UAE and Qatar markets stand up to such external pressures? Minimal impact Risks are always prevalent in any stock market, be it a developed market like Portugal, an emerging market like Russia or a frontier market like Nigeria and it is important for investors to understand the political and economic risks in each country. While the impact on the inflows is ruled out due to the ongoing political instability in the region, they feel that the risk for the firms in investing in the UAE and Qatar will be average. “We believe that Qatar and the UAE are considered average risk when talking about EMs. Turkey is a different case because of its large budget deficit on top of the political unrest and because the Turkish market was one with the highest volatility and systematic risk,” says Erik L van Dijk, Principal of the investment consultants LMG Emerge, which is based in the Netherlands. Dijk says that developments in Syria and Egypt will not have a big impact but far more important is what Saudi Arabia will do. “Will they change the Participatory note (P-note) regime? What will happen when Iran is allowed back in the league of investable nations? If the latter takes place, a kind of reactionary opening up in Saudi Arabia might actually trigger a growing QATAR TODAY > AUGUST 2014 > 49

business > tag this “Equity valuations may matter in the long-term so investors must be disciplined in the stocks they invest in and avoid names that are trading at valuations that exceed their underlying growth prospects.” SEAN WILSON Managing Principal, L R Global

MORE CONCESSIONS TO INVESTORS In another move to attract investments, the Cabinet meeting chaired by HE Prime Minister and Interior Minister Sheikh Abdullah bin Nasser bin Khalifa Al-Thani on July 9 has decided to issue a draft law to exempt income tax on the profit shares of non Qatari investors in the companies and investment funds that are traded in the financial market. Their shares of profit from the trading of all securities including units of investment funds listed in the financial market are to be exempted as well, HE Deputy Prime Minister and Minister of State for Cabinet Affairs Ahmed bin Abdullah Al Mahmoud said in a statement. 50 > QATAR TODAY > AUGUST 2014

interest compared to what is happening now,” he points out. One view is that the instability will not affect companies listed on the bourses in Qatar and the UAE as they were not “markedly exposed” to Syria and Egypt when the US and its allies proposed “limited” military strikes against Syria in August last year. Kuwait-based Global Investment House senior Vice President (GCC Asset Management) Bader Al Ghanim says the political instability in the region does affect the sentiment in neighbouring markets but the Qatar and UAE exchanges have done reasonably well despite the unsteadiness around. He also says that the funds that track the emerging markets passively amount to QR691 billion ($190 billion) alone. “Given Qatar’s weight of 0.48% in MSCI EM, the passive inflows would be around QR364 million ($100 million). The active emerging market funds are much larger in number and hence the incremental investment in Qatar is likely to cross QR1.82 billion ($500 million) at least,” he says. The opportunity Uncertainty can always be a blessing in disguise if it provides better opportunities and rewards for the investors. Managing Principal of the US-based Frontier Market asset management company L R Global Sean Wilson points out that given the political events occurring in Egypt a year ago, no one would have predicted the Egyptian stock market would be up over 60% since then. However, this does not mean that investors should charge right

into the next major political crisis such as the current situation in Ukraine. Instead, risk must be managed with prudent portfolio allocation that matches investor risk appetite with portfolio diversification. “Equity valuations may matter in the long-term so investors must be disciplined in the stocks they invest in and avoid names that are trading at valuations that exceed their underlying growth prospects,” Wilson feels. “We expect domestic spending programmes in both countries to drive secular economic growth over the next decade largely independent of crises faced in other countries in the region,” Wilson adds. “The investors can benefit from having exposure to growing sectors such as real estate and financial which will benefit from important catalysts in the medium term like Expo 2020 and FIFA World Cup 2022,” Al Ghanem says. “This is nothing new,” says Toby Wilkinson, Dubai-based GCC investor relations advisory specialist. Events in other countries clearly have an impact on perception but more important from a political risk perspective are issues around government policy and legislation. The rewards from investing in Qatar and the UAE are clearly from exposure to high yielding stocks in high growth economies,” Wilkinson avers. Corporate governance Investors will expect corporate governance to be of global standards, at least on par with Luxemborg, a role model for Europe in this particular area. There is an enhanced focus on improving the corporate governance environment within the UAE and Qatar and regulators in both countries have recently implemented wide ranging corporate governance reforms for domestic institutions, especially those listed on the stock exchanges. Al Ghanem says these standards are based on international best practices and principles and are aimed at improving the internal control and risk environment of the institutions and enhancing transparency. “The move towards a more robust Corporate Governance regime will set the companies and consequently, the markets, on a trajectory of attracting additional foreign capital, investor participation, better share prices, deeper bond markets and better research coverage among other benefits,” Al Ghanem adds. Wilkinson says corporate governance at

TRENDS IN MENA MARKETS Historical Market

June/14

YTD %

P/E

Price Close

High

% to high

Low

% from low

Oman

2.2

2.5

10.8

7008

12109

73%

4223

66%

Egypt

-0.3

20.8

12.3

816

1024

25%

1583%

Bahrain

-2.2

14.3

11.6

1428

2902

103%

1035

38%

Jordan

-2.5

2.8

14.2

4458

10491

135%

1327

236%

Morocco

-2.8

1.2

16.3

9227

14684

59%

3070

201%

Saudi Arabia

-3.2

11.5

16.7

9513

20634

117%

4130

130%

Kuwait

-4.7

3.7

19.0

470

814

73%

315

49%

Abu Dhabi

-13.4

6.1

11.9

4551

6237

37%

2136

113%

Qatar

-16.1

10.7

14.0

11489

13910

21%

4230

172%

Dubai

-22.5

17.0

14.8

3943

8484

115%

1301

203%

S&P Pan Arab LargeMid Cap

-8.2

12.1

16.7

180

192

107

68%

Source: Reuters, Zawya, Markaz Research, June 2014

a national level is dictated by the capital markets and laws by the stock exchange and securities authorities. EM investors typically look for a higher standard than implied by national rules and will apply a higher risk premium to stocks that don’t actively show they protect the rights of minority shareholders. “This is a key issue and the investors also look for rigour and openness in the way that risk is managed at a Board level,” he says. Reflecting the investors’ mood, Dijk says the region should improve on corporate governance as it is rated “average” compared with other EMs. Scope for market correction The MSCI’s announcement upgrading Qatar and the UAE into EMs sparked a boom but market watchers feel the bubble may burst as there is a scope for market correction in the near future. “Such correction is only normal because prices have gone up so much recently that some investors will start taking profits, especially those that know the region well. There are some indications that those who can be considered “informed” are rebalancing their regional portfolio holdings from Qatar and the UAE into Kuwait or even the likes of Egypt that are laggards after the serious corrections and political turmoil of the last years,” Dijk says. However, Dijk says this will be more than a temporary slowdown of pace which can actually be considered healthy in terms of long term trends. In the long term, there is room for further valuation because still quite a bit of the good performance of the market in 2013 -14 was related to the fall

that was experienced in the global financial and European debt crisis periods of 200809 and beyond. Wilkinson too feels that interest in second and third tier stocks will increase as investors become more comfortable with Qatar and the UAE. But Wilson says it is not possible to pretend to be able to time market corrections, especially to the day as bull markets can persist and form bubbles that can last much longer than a disciplined value investor can tolerate. “A prudent investor should be wary of any market that has experienced a sharp and dramatic rise and always be cognizant of buying over-valued securities. The recent rise in Qatar and the UAE has been impressive so far this year. Part of this can be attributed to improving economic prospects. Part can be attributed to the upgrade to emerging markets status by MSCI, which has attracted forced buyers of equities in these two countries. While certain sectors and stocks in both markets may be overvalued, there still remain a number of stocks that look very attractive,” he adds. When pointed at the better performance of frontier markets during the last 18 months, Wilkinson says EMs are exposed to a different set of exposure risks compared to Frontier Markets. “Specifically, Turkey and Brazil have seen GDP growth decline to single digit figures, much of it funded by borrowing in hard currencies that will have to be repaid, and at the same time China was trying to prevent a credit bubble. These factors have contributed to the slow growth in the overall performance of EM funds,” Wilkinson says

“The region should do more as corporate governance is rated average compared with other EMs.” ERIK L VAN DIJK Principal, LMG Emerge

QATAR TODAY > AUGUST 2014 > 51

business > tag this

KA-CHING Cash registers are ringing and business prospects look upwards. How should businessmen prudently manage their assets to ensure unhindered growth? Qatar Today finds out more about asset management in the country.

BY V L SRINIVASAN 52 > QATAR TODAY > AUGUST 2014

ccording to a report by global firm Arcadis entitled “Global Built Asset Performance Index 2014,” the wealth generated by each member of the population in Singapore was estimated to be $29,500 (QR107.4 million) in 2013, a figure expected to remain broadly the same during 2014. Qatar and the UAE, with estimated wealth generated at $20,500 (QR74,620) and $17,500 (QR63,700) respectively, are ranked second and third in the world after Singapore and it is here that the asset management industry experts play an important role in assisting and advising the companies, banks and the HNWIs about their investment plans (see chart). As far as Sovereign Wealth Funds (SWFs) are concerned, the GCC countries, with more than ten funds and close to QR7.28 trillion ($2 trillion) worth of assets under management, account for 34% of the Global SWFs, which are to the tune of QR19.65 trillion ($5.4 trillion). Across the world, the built asset wealth in 30 countries (including Qatar, the UAE and Saudi Arabia from the GCC region) generated an income of over $27.1 trillion (QR98.64 trillion) in 2013. These countries represent a mix of advanced and emerging economies from all regions of the globe. This figure is expected to rise to $28.1 trillion (QR102.29 trillion) in 2014. In the Middle East, Qatar and the UAE performed better than Saudi Arabia as the share of built assets to their respective GDPs has been more. This is due to lower energy subsidies in these two nations compared with Saudi Arabia. Added to this is the relative low cost of labour which keeps construction costs down, facilitating the rapid formation of built asset wealth. The Arcadis report also says that by 2022, when Qatar hosts FIFA World Cup, the performance of its built assets are expected to grow by over 40%, ahead of countries such as the UK, US, Russia, Canada, Turkey, Australia, Singapore and The Netherlands but behind China, Saudi Arabia, the UAE, Malaysia, Hong Kong and South Korea.

Driving force Qatar’s asset management industry is ramping up on a number of prospective opportunities, particularly driven by the nation’s current mandate to develop a broad and sustainable infrastructure system. Wealth and political stability, progressive policies, and the scale of growth and opportunity are significant factors that, among others, drive the growth of asset management in Qatar. Three key-drivers - a rising per capita income, greater levels of client sophistication and more risk appetite from local investors that are increasingly looking for ways to diversify their portfolios - also have helped in the development of the asset management sector. Qatar’s wealth is stable and proven, underpinned by QR728 trillion ($20 trillion) hydrocarbon reserves and with the absence of political unrest due to the high levels of social investment, the country is currently situated on stable grounds for development and investment, and it is that stability that is appealing to investors and developers.

“Instability in Iraq and Syria has had minimal impact on Qatar in the past. However this is likely if there were any significant military action in one of the GCC countries. The potential loss of the 2022 World Cup is another risk which, if it was to happen, would reduce confidence and have a negative impact even though the actual impact on GDP would be marginal.” DR ATAF AHMED Head of Asset Management Qinvest

QATAR TODAY > AUGUST 2014 > 53

business > tag this Highest value strategic planning Using asset knowledge to secure investment and finance

Minimising environmental impact through innovative science and technology

S E TS

PLA

RED

IN SES

SET

A ALAN RICHELL Partner and Head of Business Advisory EC Harris Middle East

As part of this broader strategic intent, Qatar is looking to become a hub of regional investment for many reasons. Partner and Head of Business Advisory at EC Harris Middle East Alan Richell says Qatar’s key focus is on diversification in asset creation across all physical asset classes including healthcare, infrastructure, commercial, residential, entertainment, education and culture. Changes in many regulations, especially those in reassuring investors that Qatar is a safe place to invest in and also to do banking in the country also helped in the industry’s growth. Some of the modified regulations

“Qatar can attract around QR14.56 billion ($4 billion) in investment after being upgraded as emerging market, and in addition, foreign ownership limits of Qatari corporations has been increased from 25% to 49%.”

Performance driven design and engineering

EA TI

Performance driven lifecycle, operation and facilities management

Business aligned asset strategy and transformation

POSITIVE OUTCOMES DELIVERED

S E TS

Opportunity led regeneration, decommissioning and disposal of legacy assets

G IN

Commercially led programme, project and cost delivery management

include “know your customer,” anti-money laundering rules and increasing of foreign ownership limits of Qatari companies listed on Qatar Exchange. “Resurgent stock markets, a larger fixed income and more institutionalised capital markets, Qatar’s upgrade to emerging market, better depth, breadth and an improving regulatory environment - served to boost trading volumes, investment product offerings and capital inflow to the asset management industry,” says Robert Pramberger, Acting Head of Asset Management and Director of The First Investor (TFI), a shariah-compliant investment company specialised in asset management, investment banking and real estate. In addition to government spending, high levels of disposable income and wealth created by Qataris is expected to drive the sector’s growth, a trend that will be enhanced in the coming years. “Regional asset managers are well positioned to benefit from the increasing appetite in equities which is driven by recent performance, the commitment of policymakers to expand the non-hydrocarbon share of domestic economies as well as a historically low (and prolonged) interest-rate environment, a combination that makes equities one of the most attractive asset classes,” Pramberger avers. Prospects and risks Despite substantial wealth and being one of the natural focal points for investors in the region, development of asset management in the country has not kept up with the rate of GDP growth. This, in turn, has created a significant opportunity for the industry’s growth.

54 > QATAR TODAY > AUGUST 2014

QInvest’s Head of Asset Management Dr Ataf Ahmed says the past few years have seen an increasing level of participation from local investors and this is set to continue with more investment firms looking to move to Qatar. There is also a growing level of interest from foreign investors both local and abroad - as local investments are somewhat isolated from factors that impact developed global markets. As far as risks are concerned, Dr Ahmed says they are primarily centered on a potential loss of confidence in the event of a large exogenous political event in either Qatar or nearby. “Instability in Iraq and Syria has had minimal impact on Qatar in the past. However if there were any significant military action in one of the GCC countries, it is likely. The potential loss of the 2022 World Cup is another risk which, if it was to happen, would reduce confidence and have a negative impact even though the actual impact on GDP would be marginal,” Dr Ahmed says. Richell says that the market is also experiencing a significant amount of risk that requires close monitoring and active management. “Qatar can easily develop at an unsustainable pace where development gets beyond the state’s ability to cope. In addition, there is a need for a robust overall strategic delivery plan that supports the QNV 2030 and the National Development Strategy to avoid ad-hoc, unstructured development, which could further affect Qatar’s ability to deliver a clear and concise message to investors, institutions and individuals alike,” he feels. Another risk is the challenge to attract and retain highly skilled professionals. There is strong competition for the best talent and if Qatar is unable to attract and retain the best then the industry will not achieve its full potential. The key risk, according to Pramberger, resides mainly in the competition especially coming from the large international asset manager selling their funds via third party wealth managers in the region. “The opportunities definitely exist since the per capita earnings are very high and wealth management is an area that is in its infancy. The risks are, of course, like in any industry that one may be too slow to capture the existing opportunities,” says Mohammed Ghiyath Sheikhah, Head of Local and International Investments, Qatar International Islamic Bank.

EM status The upgraded standing of Qatar in the global equity indices is also expected to give a boost to the country’s asset management. This international interest will continue to grow as familiarity of the medium investment case for Qatar improves,” says Akber Khan, Director Asset Management with Al Rayan Investment. He says on the domestic front, the recent fall in Qatari deposit rates is a boon for the industry as it refocuses both individual and corporate investors, towards alternative options to boost returns on cash. Adjusting for inflation, bank depositors have lost money for the last three years. Many corporates are now considering bonds and sukuk as a modestly higher risk, but more lucrative, alternative. “Even Qatar’s high-income expatriate population is an investor category that is rapidly growing in importance. They are experienced mutual fund investors and seek exposure to the economic prospects of their new home via equities and mutual funds,” Khan says. Dr Ahmed also agrees that the upgrade together with increasing the cap on foreign ownership limits - has seen more global groups increasing their exposure to Qatar. This will help to bring in much needed liquidity to the local markets. The upgrade will also encourage more companies to list which will increase the size and depth of the market, he says.

“Even Qatar’s high-income expatriate population is an investor category that is rapidly growing in importance. They are experienced mutual fund investors and seek exposure to the economic prospects of their new home via equities and mutual funds.” AKBER KHAN Director Asset Management Al Rayan Investment

QATAR TODAY > AUGUST 2014 > 55

business > tag this Richells predicts Qatar can attract around QR14.56 billion ($4 billion) in investment after being upgraded as emerging market, and in addition, foreign ownership limits of Qatari corporations has been increased from 25% to 49%.

“The opportunities definitely exist since the per capita earnings are very high and wealth management is an area that is in its infancy. The risks are, of course, like in any industry that one may be too slow to capture the existing opportunities.” MOHAMMED GHIYATH SHEIKHAH Head of Local and International Investments Qatar International Islamic Bank

Regulatory environment Though the government has announced reorganisation of the three regulators under the umbrella of Qatar Central Bank in December 2012, the process is still on an evolving stage in order to make the regulatory environment conducive for the industry’s growth in Qatar. Dr Ahmed opines that more work could be done to streamline the regulatory regime and make it easier for firms to set up and launch services. At present, it can take a long time to establish a firm and set up funds. “Multiple regulators with sometimes overlapping remits can also make it challenging when compared with say the US or within Europe, where there is one central authority in each country and a clear process. An additional issue is that whilst some regulators use English and Arabic, others work primarily in Arabic, which is a real obstacle for many international institutions,” Dr Ahmed says. Qatar is demonstrating a progressive approach to a more accessible market for investors through platforms such as the QFC and a tax regime that benefits investors at

the point of return, feels Richell. An uphill task Qatar still has to go a long way to become the leader of the asset management industry in the GCC region as it has to compete with Saudi Arabia, whose population is 28 million compared with its own 2.2 million. Moreover, Saudi Arabia is home to hundreds of asset managers and institutionalised family offices compared with half a dozen asset managers in Qatar and only a handful of family offices which organise investments on institutional lines. Though Qatar is ranked second in the world in wealth generation per person at present, Saudi Arabia may overtake in the coming years as its assets may start contributing more to the GDP in the coming years. To maintain its current position, Qatar has to make optimum utilisation of its built assets. “Saudi Arabia’s asset management industry assets are estimated to be in excess of $100 billion (QR364 billion), dwarfing the industry in Qatar. There is no reason for Qatar’s asset management industry to be larger than its neighbour unless the Qatari government was to divert substantial funds towards it,” Akber Khan says. Even Dr Ahmed is of the same view. “Saudi has a strong advantage over all of the other GCC countries simply because it has a much larger population and a deeper pool of liquidity and wealth,” he says. The surplus wealth provides an opportunity for Qatar to embark on asset management industry aiming for leadership, Sheikhah points out that the frame work created by the government is very favourable for the industry though risks such as the market entry costs may be on the high side. Richell however differs saying that leading asset management across the GCC is not the core focus for Qatar. “Given its unique set of circumstances, Qatar’s ambition is on improving the community by strengthening health, education and social mobility across the country. Qatar’s key focus is on driving further economic diversification across industries with extensive investment in infrastructure development,” he points out. Prime sectors Which sectors are most sought after by investors in GCC countries? While Sheikhah feels that the energy sector is the most sought after by the investors in which the built assets can expect good

56 > QATAR TODAY > AUGUST 2014

Total return on built assets per person, 2013 and 2014 - US$ (PPP measure) 0

00 5,

0 ,0 10

0 ,0 15

0 ,0 20

0 ,0 25

0 ,0 30

SINGAPORE QATAR UAE USA HONG KONG JAPAN CANADA AUSTRALIA GERMANY FRANCE NETHERLANDS SPAIN SOUTH KOREA UK POLAND ITALY TURKEY MEXICO CHINA MALAYSIA THAILAND SAUDI ARABIA SOUTH AFRICA BRAZIL CHILE EGYPT RUSSIA INDONESIA PHILIPPINES INDIA

Source: Cebr analysis

returns, Pramberger says investors would look at real estate and financials as they tend to dominate domestic economies and invariably constitute more than 50% of local equity market capitalisation. "Both sectors are cyclical by nature, an attractive argument for investment during the current positive economic cycle,” Pramberger says.

2014 2013

“Resurgent stock markets, a larger fixed income and more institutionalised capital markets, Qatar’s upgrade to emerging market, better depth, breadth and an improving regulatory environment – all these served to boost trading volumes, investment product offerings and capital inflow to the asset management industry.” ROBERT PRAMBERGER Acting Head of Asset Management and Director The First Investor (TFI)

Richell echoes the sentiments Dr Ahmed, however, says asset allocation really depends on the investor type though investment is focused on energy, infrastructure, real estate and domestic consumption. “Most retail investors are less focused on sectors and look more at either yield or potential growth rates for their investments. Meanwhile, institutional investors typically take a more sophisticated approach to investing; one which is based on factors such as a particular fund’s mandate and the institution’s current macroeconomic view. For example, QInvest, currently like sectors such as healthcare in Saudi Arabia, consumer discretionary in the UAE and industrial and materials in Qatar,” Dr Ahmed says QATAR TODAY > AUGUST 2014 > 57

development > tag this

THE STATE OF

STADIUMS

World stadiums can mature to become landmarks that go much beyond their initial objective of hosting games. Here we look at how Qatar’s upcoming stadium projects can help achieve that. BY SINDHU NAIR

Al Saad Multipurpose Hall

58 > QATAR TODAY > AUGUST 2014

ith criticism and negative media coverage rife on Qatar and its superfluous “football dreams”, the real picture is often forgotten. That the Gulf population has a passion for the game has become irrelevant; what seems more imperative is its lack of soccer excellence, and that “its record of producing premier athletes in

any sport is sparse”. Does that make football a game to be played and enjoyed only by the West while countries in the Middle East accept their loss and be denied a fair chance at hosting and even dreaming of ever playing the game because its nationals are but a small percentage of its already tiny population? And we all thought that the best global espousals are those that bring countries together in a spirit of sportsmanship. While the question of Qatar hosting the World Cup in 2022 is

still being reassessed, for the bribery allegation that shrouds FIFA’s decision, we go ahead and contemplate on the world stadiums that will be built, the challenges the country has to overcome to finally complete its mammoth infrastructure updates for the games and beyond, wrapping up with the future of stadiums in general. In the World Stadium Congress held in Doha a few weeks back, the CEO of ASTAD Project Management, Ali Bin Nasser Al Khalifa had strongly stated that “the country had a responsibility to fulfil, not just to be accountable but also to send a strong message that we are responsible enough”. He said that stadiums are difficult buildings to construct; large dead investments

to build and maintain when compared to their usage and revenue generation. The challenge for stadiums worldwide was to make it relevant much beyond the event it was hosting. “To have a business plan ahead so that there is sustainability in the usage of the building is vital,” he said. “The FIFA World Cup 2022 is not only an important global event; it also represents an opportunity to provide a long-term legacy within the built environment, the sporting community and

the general population.” The Arena Fonte Nova in Brazil that hosted many matches during the FIFA 2014 World Cup is a public-private joint venture and the complex also houses a panoramic restaurant, museum of football, car parks, shops, hotels and a concert hall; a perfect example of taking the stadium beyond its basic need. Diogo Taddei, Architecture Manager, AECOM Global Sports Group was one of FIFA’s Stadium Technology Consultants for the Brazil 2014 World Cup and he speaks of how legacy was vital to the development of Rio from the outset. “Our vast experience in the Olympics and mega events meant we had a clear understanding of the games’

requirements but were a little less clear on the legacy for the city of Rio,” says Taddei. “Therefore, we began by getting an understanding of the gaps between both the game and legacy modes and trying to provide temporary cost-effective solutions of the actual games.” He feels that Qatar should also seek its legacy planning first in order to understand what else needs to be done for the 2022 Games and the longer-term use for the sites.

Health & Wellness Facility; a World Cup venue at Education City

“We look at the 2030 Vision as a mandate, and the 2022 World Cup has become an accelerating factor to deliver that. We know that Qatar is delivering a huge amount of highly complex projects to a deadline that has never been attempted before.” ALI BIN NASSER AL KHALIFA CEO ASTAD Project Management

QATAR TODAY > AUGUST 2014 > 59

development > tag this

Seating at Al Wakrah stadium by Zaha Hadid will be reduced from 40,000 to 20,000 after the World Cup

“It wasn’t until recently that planners, entrepreneurs, clubs, stadium owners and operators began to think of the stadium as a “player” with an important role in the local community and vicinity.” DIOGO TADDEI Architecture Manager, AECOM Global Sports Group

60 > QATAR TODAY > AUGUST 2014

The ultimate challenge is how to reduce the ecological footprint for the venue as a whole. It is therefore important to take a holistic approach to sustainability when developing the stadium. “This approach should consider not just the design and construction of the venue but also its operations, and incorporate ways to reduce greenhouse gas emissions during a tournament or other event,” says Taddei. Qatar is also giving due consideration to legacy and Taddei points to Al Wakrah stadium currently being designed by AECOM in collaboration with Zaha Hadid Architects. He says, “Throughout the design, its long-term legacy was of the utmost importance,” he says. After the World Cup, the stadium will be reduced from 40,000 to 20,000 spectators seating. The east and west upper stands offer opportunities for additional functional uses such as hospitality or convention facilities to the wider community. A wide range of community facilities will be available with everyday usage in addition to event days at the stadium, these include mosque, school, hotel, wedding hall, vocational training centre and retail space. A range of varied new parks and landscape spaces will be provided as part of the overall master plan. The new parks will provide a range of outdoor recreational spaces for everyday usage. According to Taddei, Qatar has the advantage of starting from scratch so it is able to apply best practice gained from experience in past events to ensure that both the venues and the event itself is a success. While minimising the carbon footprint and energy consumption is certainly in

vogue there is another aspect to which Taddei draws our attention to – the urban role of stadiums. “It wasn’t until recently that planners, entrepreneurs, clubs, stadium owners and operators began to think of the stadium as a “player” with an important role in the local community and vicinity,” he says. Stadia are now being used as a catalyst for urban regeneration of derelict areas and fomenting the development of local economies. “The stadium has therefore taken on other activities outside of its primary purpose by hosting other events, not necessarily sports, and increasing its use year round,” says Taddei. Project management rules ASTAD project management which oversees 163 projects with a combined value of QR126 billion, ($34.6 billion) will be pivotal in managing the construction process of many important stadiums within Qatar. “Looking forward, the Lusail and Al Saad Multipurpose Halls are an exciting challenge for us,” says Al Khalifa, “Qatar will have the honour of holding the International Handball Championship in 2015 in January. For that, Qatar has started the construction of three main sports halls and ASTAD is building the largest and most sophisticated of these halls which are at Lusail and Al Saad.” ASTAD is also currently managing the Health & Wellness Stadium, a World Cup venue at Education City. The stadium will reflect the three pillars of education, science and research, and community development. The stadium is designed to be a lively focal point for staff and students

as well as their main sports facility, housing classrooms, offices, conference rooms, health clubs and spaces catering for a variety of sporting activities. “As a sports facility, it also promotes health in the Education City community. This will contribute to a healthier society and a healthier Qatar,” he says. Challenges are not unique Taddei agrees that the weather conditions in the Middle East are a concern. He says, “If the World Cup is played in summer it will be a challenge for the event. If the World

Cup is played in winter, the challenge is set for legacy. Regardless of the time when the tournament is held, the issue of user and spectator comfort is very important but it’s not a challenge that’s unique to the Middle East. For example, very cold regions must address visitor comfort in the freezing winter months.” Closer to the event, when all the resources come together for the finishing stages of stadiums, roadwork and rail work, the challenges will be multi-fold. Al Khalifa says, “We are not the first emerging nation to hold such a large-scale event and we will be utilising all available resources to enable us to handle the volume of materials and workers. We are committed to doing this in the most efficient way possible for the benefit of our nation.” One fact that the international media gets wrong is that the development and “the more than QR728 billion ($200 billion)” of infrastructure development is all for the 2022 World Cup. Even before the country started dreaming of the World Cup, a group of planners had drafted the QNV 2030 and most of what we see now is part of this larger plan. Al Khalifa continues: “The World Cup is part of a journey for Qatar. Qatar is not just going to stop developing projects after the 2022 tournament ends, it is an important milestone in the journey to the 2030 Vision, which was planned before the country even won the World Cup.”

HOW TO BUILD A SUSTAINABLE STADIUM THE AECOM WAY The way to do this is by energy use reduction, with reduced energy demand against internationally recognised standards; by incorporating renewable energy technology installations, supplying a percentage of tournament energy by on-site renewable sources and through water use reduction with reduced potable water use through conservation and substitution measures. The stadium design should incorporate a wide range of passive and active carbon reduction measures, carefully formulated to minimise the carbon emissions of the tournament. These should include the use of passive design techniques, innovative shading technologies and airflow delivery systems. Computer simulation allows us to minimise cooling loads. High-efficiency plant and equipment, lighting and control strategies must also be incorporated to further reduce emissions, while highefficiency photovoltaic arrays will deliver clean energy generation

Lusail Multipurpose Hall; one of the World Cup 2022 venues QATAR TODAY > AUGUST 2014 > 61

technology > tag this

TECHNOLOGY VS

THE TAXI TRADE

Black Cab drivers in London go on strike against companies like Uber citing unfair advantages and non-compliance to regulatory rules. AFP PHOTO / CARL COURT 62 > QATAR TODAY > AUGUST 2014

f you don’t drive in Doha, the two most frequent experiences you’ll have as you try to navigate your way around the city is either a forlorn vigil under the scorching sun waiting for a glimpse of green or being ambushed by touts offering rides, who often might be operating illegally. After a few days of the former, the latter would start to seem like a blessing. Longterm residents will attest to the fact that the situation has remained unchanged over the years, despite mushrooming private limousine companies and increased numbers of Karwa taxis on the roads. It was reported in January this year that 4,000 Karwa taxis will be in service by the end of 2014 with two new franchisees set to launch 500 taxis each. The burgeoning population is swallowing up the supply and there is never enough to go around. The time is ripe for services like Careem and Uber. Launched in Doha within months of each other, both these companies offer users the ability to hail cabs through their smartphones and make payments online. GPS based tracking, accountability and customer service add up to make these services a valuable little package. “A platform tailored to the underlying realities of the Middle East,” as Mudassir Sheikha, co-founder of Careem puts it. Why would anyone have a problem with this anywhere? With the news of drivers of the iconic London black cabs going on strike to protest against services like Uber, the natural thought was: “here we go again. Another reboot of The Luddite Revolt”. This was, of course, a gross oversimplification and more research on this proved as much. Yes, technology was disrupting their way of life and easily replacing the ‘knowledge’ they had gathered over many years, but their core concerns were unfair competitive advantages and mismanagement by the

government authority, Transport For London, dubbed as Totally Failing London. Though this was the most widely publicised incident, it was by no means an isolated one. Across continents, from Barcelona to Chicago, there were murmurs of discontent in the taxi industry. And Uber, that had come to represent the many transport network companies (TNC) that were becoming ubiquitous and witnessing unparalleled growth, was invariably at the centre of it all. With the rapid expansion of TNCs in the region, should Middle East’s taxicab drivers start preparing for the inevitable? Should Uber and its ilk? Well, no. Not yet, at least. Because the market is far, far from being saturated. The phenomenal growth of both Uber and Careem can stand evidence to this. Since its September 2013 launch in Dubai (which was Uber’s 40th city globally), the company has launched in Abu Dhabi, Doha, Riyadh, Jeddah and Beirut (by which time Uber’s global cities count had risen to 144). In Doha especially, their growth has been faster than in Dubai, because of the lack of public transport options (like the highly popular Dubai Metro) and difficulty of finding taxis in the suburbs, says Majed Abukhater, General Manager for Uber, Middle East. Careem, after raising $1.7 million (QR6.2 million) in investment last summer, is now operational in eight Middle Eastern cities, servicing over 50,000 users through 2,500 plus cars, and is growing at 30% every month, according to Sheikha. It is dwarfed by the sheer volume of taxi usage, though; in Dubai alone, over 100 million taxi trips were taken last year. “The taxi industry in the region is big; people rely on them a lot and will continue to do so,” says Abukhater. “It’s not about us replacing them. The market is large and is set to grow so fast that there’ll always be enough room for all of us. It’s complementary rather than

"It’s not about us replacing them [the taxis]. The market is large and is set to grow so fast that there’ll always be enough room for all of us. It’s complementary rather than competitive at this stage." MAJED ABUKHATER General Manager Uber, Middle East

QATAR TODAY > AUGUST 2014 > 63

technology > tag this

"As long we work with licensed taxi/ limo providers in our markets, we will not have to deal with the kind of strife that you are seeing in Europe and North America. The trouble starts when you start empowering your ordinary Joe to compete with taxis." MUDASSIR SHEIKHA Co-Founder Careem

64 > QATAR TODAY > AUGUST 2014

competitive at this stage. It’s us making the market better together.” Hitherto, Uber has avoided encroaching on the taxicab market as the services they provide here cater to a narrow segment of customers. With Uber Black as their core product, they deal in luxury cars and a higher price bracket and hence don’t see taxis as direct competition. “We launched UberX only in Jeddah and Abu Dhabi. The difference is in the type of cars and the price point, which is slightly lower than Uber Black,” Abukhater explains. UberX however, means different things in different cities and to get to the nub of the issue, it’s important to go behind the scenes first. Uber and Careem have very similar business models with a few differences; for example, the ability to pre-book taxis with Careem which isn’t an option with Uber. “In all markets, we work with licensed limousine operators,” Sheikha says. “Once we sign a contract with a limousine company, we screen and interview their drivers, test them on driving safety, navigation knowledge, communication skills and customer service orientation and only give our devices to drivers that meet the standards. And for providing the technology platform, doing sales and marketing, maintaining the infrastructure and offering customer service, we take about 20% commission from the fare for each ride.” Uber too works solely with limousine companies and not individual drivers, unlike in other cities like Paris where any private car owner with an insured vehicle and a driving licence older than three years can apply to drive for Uber. Ridesharing, as this service is called, has the potential to turn the heat up on taxis, if and when introduced. Much of the gripe around TNCs globally is around this aspect of their service (in addition to other concerns like low fares and licensing). Sheikha believes that as long they work with licensed taxi/ limo providers in their markets, they will not have to deal with the kind of strife that we are seeing in Europe and North America. “The trouble starts when you start empowering your ordinary Joe to compete with taxis,” he says. But ridesharing is currently not on the agenda for either company here. Abukhater says they are not evaluating the introduction of the service at this point because there is still so much to do with their existing product. And what with all the trouble they have faced in various cities during recent months over not following appropriate regulatory and licensing laws, they are being extra careful about compliance. A dicey

proposition when you consider how this may enable the rampant illegal taxi racket to come out of the shadows and pose as a legitimate competition to taxis. An interesting experiment is taking place in Dubai with Carpool Arabia, which launched a beta version of its website in February this year, and Dubai’s Road Transport Authority. How the service works (or doesn’t work) in tandem with the RTA’s Sharekni System, which was put in place to encourage carpooling while clamping down on illegal taxis, would probably set a precedence on how ridesharing is implemented in the region. ANOTHER ISSUE TO CONSIDER IS WHETHER THE GCC POPULATION WOULD BE INTERESTED IN RIDESHARING IN THE FIRST PLACE, NOVEL AND PROFITABLE THOUGH THE EXPERIENCE MAY BE. “THE JURY IS STILL OUT ON RIDESHARING IN THE MIDDLE EAST,” SAYS SHEIKHA. “MOST OF THE GCC COUNTRIES, BARRING SAUDI ARABIA, DO NOT HAVE LOCAL POPULATIONS THAT WILL PARTICIPATE AND IT IS NOT CLEAR IF EXPATRIATES CAN PARTICIPATE LEGALLY. THIS ALSO REQUIRES AN ELEMENT OF TRUST IN STRANGERS WHICH IS MORE PREVALENT IN THE WESTERN WORLD THAN IN THE MIDDLE EAST.”

The taxi industry will, sooner rather than later, get with the times. The RTA has already introduced Smart Taxi, an app that can “e-hail” taxicabs in the vicinity. Part of Dubai’s Smart City initiative, the app will cover over 9,000 of these vehicles currently plying across the city. Across the region, there are a lot of opportunities in this space for tie ups between TNCs and taxis, like London’s UberTaxi which allows users to summon black cabs. Sheikha says this kind of “collaboration with the regulators to make our technology more widely available to other stakeholders in the ground transportation ecosystem” is one way they can help spin any resentment that might arise in the future. “FOR US, COMPETITION IS YOU DRIVING YOUR OWN CAR. AND, ON A NICE DAY, YOU WALKING TO YOUR DESTINATION. COMPETITION IS ALWAYS GOOD, BOTH FOR OUR CUSTOMERS, WHO HAVE MORE CHOICES, AND US, BECAUSE IT COMPELS US TO CONTINUALLY IMPROVE AND INNOVATE,” ABUKHATER SAYS.

In Qatar, its unclear if Mowasalat is working on something similar for the Karwa cabs. But the private sector is already on it. Q-Cab, which is currently being incubated at Qatar Business Incubation Centre, will make getting hold of those notoriously scarce Karwa taxicabs easier, says Tariq Awadallah one of the founding members of of the start-up. With the TNCs that are already operating here and new ones like EasyTaxi rumoured to enter the market soon, Awadallah knows competition is going to be stiff. But either way, the demand is glaringly obvious and someone will have to meet it.

VALUE FOR MONEY KARWA TAXI FARES START AT

QR4

AND THE MINIMUM FARE IS QR10 NEXT CLOSEST OPTION IS CAREEM'S ECONOMY CAR WITH THE FARE STARTING AT

QR10

AND THE MINIMUM AT QR14

“Our plan is to directly sign on Karwa drivers (including those working for the franchisee companies) and select those who already have a smartphone so that they can start using the app to find customers,”

he says. At this stage he is not looking to deal with the legal issues and complications that might arise from entering into contractual agreement with companies. “Eventually, when we manage to sign up enough drivers and capture a good amount of the market, we might approach Karwa for a tie-up that will introduce Q-Cab to 100% of their taxis,” Awadallah says. Right now their focus is on connecting customers and drivers in a simple and user-friendly manner. “People wouldn’t have to wait forever for taxis outside on the streets or be forced to use illegal taxis” [incidentally, when caught both the driver and passenger are penalised] “and the taxi drivers can also maximise their revenue.” In the survey they conducted during their customer validation phase, 17 out of 20 taxi drivers said they would use such an application if available. Even within the GCC, each city is unique in terms of what public transport infrastructure is available to its residents, the quality of such facilities and how TNCs fit into the larger scope of things (a case in point is how the use of New York’s Taxi Medallions as an investment asset is being threatened by TNCs). “Just because these strikes happened in one place, doesn’t mean they’ll happen in another,” Abukhater says while pointing this out. Furthermore, unlikely as it may be for taxi drivers in Doha to come together to protest anything (keeping in mind that trade unions are illegal in the country), many of them are still oblivious to the existence of services such as these that are drawing away customers that they never had in the first place.

"Our plan is to directly sign on Karwa drivers (including those working for the franchisee companies) and select those who already have a smartphone so that they can start using the app to find customers." TARIQ AWADALLAH Co-founder Q-Cab

QATAR TODAY > AUGUST 2014 > 65

development > tag this

WHEN HOTELS GO HI-TECH In a chat with the executives of Alcatel-Lucent Enterprise, Qatar Today finds out what the tech-assisted hotel stay of tomorrow would be like. BY AYSWARYA MURTHY

66 > QATAR TODAY > AUGUST 2014

hile almost every industry has undergone a technological renaissance over the past few years, the front-end of the hospitality sector has stayed pretty much the same. Check in, pop in your key card, baulk at the mini-bar prices, stare in confusion at the shower controls, ring reception for the wifi password, etc. etc. Same cycle, different rooms. But this is set to change and in a hurry. “Hotels have largely been conservative in utilising technology; you’d be surprised but I sometimes see tenders from hotels for data networks with 10-100 MB capacity when everyone has already started dealing in terms of gigabytes. Now they are rethinking on how to meet guest expectations and with that they will invest heavily in wi-fi and data networks,” says Theirry Bonnin, the Vice-President of Sales for Global Accounts & Verticals at Alcatel-Lucent Enterprise. It is his first visit to Qatar and he is joined by Regional Director Najeh Khalil who has quite a stunning report card to present. “In the past four years of direct presence in Qatar, Alcatel-Lucent Enterprise has enjoyed a huge growth, doubling every year for their first three years with clients in government,

hospitality, healthcare and education sectors. We are committed to increasing our investment locally to be part of the success the country is going to have by 2022 and 2030,” Khalil says. With a focus on the integration, management and security of telephony, networking and wi-fi, the company can’t be more thrilled about Qatar’s hyperactivity. “The country is building so much and is keen on implementing the best of cutting-edge technology to take advantage of the very advanced infrastructure in place,” Bonnin says, complimenting Qatar’s high-speed fibre connectivity. “Sometimes you can have great equipment but the provider might let you down. So it’s a shared responsibility.” Their solutions for the hospitality industry have earned them a large client base in an exploding market, with Alcatel-Lucent Enterprise having been commissioned to work with 46 upcoming 4- and 5-star hotels in addition to revamping existing ones like Radisson Blu and Grand Heritage Doha, according to Khalil. “When Radisson Blu upgraded their hotel, they refreshed not just the rooms but also their IT infrastructure which is now an important element in hotels, both business and leisure. Hotels have to adapt to current demands of quality wifi in the rooms and guest areas, enough to support not just one person but the whole

family consuming multimedia content, sometimes from multiple devices,” Bonnin says. “If you think about it, hotels are the early adopters of the Bring Your Own Device,” Khalil says. And it’s doubly tricky because not only can’t you dictate what devices your guests are using but you also can’t enforce any security policies, like companies can do on their employees. “Your users might not always have a sense of security; like if they are children wanting to watch their favourite cartoons on their tablets. So the wi fi has to be robust and flexible to keep up with the demand and network usage while keeping the networks secure.” Another issue to take into consideration is that hotels don’t have a large IT department to support this infrastructure – often it’s just one or two people. “So embedded features like blocking room to room interactions must be implemented without adding to the workload of the team,” Bonnin reminds us. The need of the hour is to provide a strong, secure solution that requires the least amount of administration. For hotels, the possibilities are just starting to open up. “The trend is towards going fully mobile and providing guests more services on their mobile phones,” Bonnin says, proceeding to paint a picture of hotel stays in the immediate future. “When you check in you’ll be able to download an application that associates your smartphone with your room. So now you can use your smartphone as your room key, receive calls to your room on it, order room service from the pool or call housekeeping etc. You can take a photo or video of complaints in your room, like a faulty light or a leaky tap and send it across.” This can be taken a step further when geo-localisation comes into play. “When you are a couple of metres from the bar, the hotel can push a coupon for a welcome drink or restaurant offers. The idea is to generate more cash and keep loyalty of the customer within the hotel. That’s just the beginning. These kind of applications, which we develop at Alcatel-Lucent Enterprise, helps hotels create loyalty by getting to know the guests’ preferences. The more it is used, the richer the database becomes,” he says. Even as we are sitting in Doha and discussing the future of technology in hotels,

Alcatel-Lucent Enterprise is in the process of being sold by the parent company to a Chinese investment firm. Associated Press had reported earlier this year that the deal is expected to be closed by Chinese Huaxin in the third quarter. Bonnin, however, is reluctant to divulge details as the process is “taking more time than expected”. Is it because the Chinese partnership, while opening new markets, might create problems in others? Bonnin says the necessary authorisations in the U.S. will be sought and he won’t be able to comment on these matters until the deals have been finalised. “What I can tell is that Alcatel-Lucent will keep some shares and still be part of the new consortium. The idea is to invest in new technology and make an impact in a new geographical reach. The acquisition will also put us in a better position in cloud and verticals ecosystem.” “The advantage we have here is that we are not being acquired by another IT company which could lead to conflict in products and solutions. The financial institution in question is a long-term partner who have already invested in one of our other ventures – Alcatel-Lucent Shanghai Bell. They know us very well – our skills and capabilities – and they are coming in to spend on this organisation because they see a future, they see great solutions that need a bigger market reach,” Bonnin says

"If you think about it, hotels are the early adopters of the Bring Your Own Device. And it’s doubly tricky because not only can’t you dictate what devices your guests are using but also you can’t enforce any security policies, like companies can do on their employees." NAJEH KHALIL Regional Director Alcatel-Lucent Enterprise

QATAR TODAY > AUGUST 2014 > 67

development > tech talk

SECOND ARAB MOBILE APP CHALLENGE ANNOUNCED

The Arab Mobile App Challenge’s second edition was launched by Ooredoo and Applied Innovation Institute with the promise that it will be bigger and better this year.

OUT WITH THE OLD, IN WITH THE NEW Vodafone Qatar launched its Trade-In Service that allows you to exchange your used phone and use the credit to buy anything available at their retail store.

fter the success of last year (reportedly over 15% of participants who reached the semi-finals in 2013 now have startup businesses) the Arab Mobile App Challenge is back and will include all countries in the pan-Arab world. Any team with two to six members, all over the age of 18, with at least one member a citizen of an Arab country and with seed funding less than $100,000 is eligible to submit their idea for a mobile app that will make an impact on the education, health, entertainment and employability/entrepreneurship sectors. This year the programme will offer on-theground activities in many of the Arab countries in addition to web-based ones. The Arab teams will be competing with teams from North America and South East Asia, and the

Winners of last year's Arab Mobile App Challenge

winning teams will receive financial rewards up to $25,000 (QR91,000) and a chance to compete in the Global App Challenge in the Mobile World Congress in Barcelona. AII’s Dr Paris Del’Etraz, said: “The app market is growing at a speed we never envisioned, changing the way we interact with the world and transforming opportunities around us. “This is the perfect platform to provide spaces for young Arabs to express ideas, launch start-ups, and develop new and authentic Arabic content that is highly demanded.” Participants also benefit from support programmes, including mentorship, partner matching and development training to realise their start-up goals. In Qatar, the programme will be supported by the Qatar Business Incubation Centre.

MASSIVE LAYOFFS AT MICROSOFT

The venerable tech giant announced that over 18,000 of its employees will be let go in the coming year, making this the company’s largest layoff till date. The bulk of the layoffs, which will affect about 14% of the company’s workforce, will be from Nokia’s devices and services business, which was acquired by Microsoft a few months ago. In a memo to his staff, Chief Executive Officer Satya Nadella said that Microsoft found many redundancies between the two companies, including both professional and factory workers. This restructuring is part of the company’s new strategy, he said, which will “focus intently on improving its mobile and cloud productivity software, including Office 365, Windows Phone, Windows Azure, Skype, OneDrive and Bing”. The layoffs are expected to cost the company up to $1.6 billion (QR5.8 billion) over the next year and is only the second mass layoff in Microsoft’s history, after 2009 when the recession forced it to cut over 5,000 jobs. 68 > QATAR TODAY > AUGUST 2014

he “instant value” generated can be used immediately to buy a new device, accessories, prepaid credit or postpaid bill payment, the company said in a statement. Customers can check their mobile’s value online on Vodafone’s website, where the price is evaluated based on age and popularity of make and model and a few basic checks. For example, prices that Vodafone currently offer customers for their used iPhone 5 (16GB) is QR875 and for a Samsung S4 (16GB) is QR 645. Vodafone performs full professional data wiping on the used phone before it is resold or recycled.

YOU CAN BANK ON THIS APP

THE SHARI’AH COMPLIANT BANKING SERVICE PROVIDER, BARWA BANK, HAS LAUNCHED A NEW MOBILE BANKING APPLICATION FOR ITS CUSTOMERS THROUGH WHICH ONE CAN MAKE ACCOUNT AND CARD TRANSACTIONS, TRANSFERS, PAY BILLS AND MORE.

LOOK WHO’S SINGING AT iTUNES FESTIVAL THIS YEAR

Maroon 5's Adam Levine, David Guetta, Kylie Minogue and Pharrell Williams

The popular music festival is back for its eighth edition and features some massive names like Pharrell Williams, Kylie Minogue, David Guetta, Maroon 5 and more.

he annual music extravaganza is back this year for 30 days and nights of live music in September at the Roundhouse in London which can accommodate over 3,000 screaming, cheering fans. This year’s lineup features 60 global artists including Pharrell Williams, Kylie Minogue, David Guetta, Maroon 5, Calvin Harris, Blondie, Chrissie Hynde, Robert Plant, Beck, Jungle, Kasabian, Sam Smith,

5 Seconds of Summer and more. Fans can win free tickets by entering the official ballot through the iTunes store. And those who don’t win can still watch the gigs, available as live streams through iTunes store in more than 100 countries. Apple said in a statement that since the inaugural festival in 2007, over 430 artists have performed in front of more than 430,000 fans and tens of millions more online and on-demand.

iPHONE 6 EXPECTED ON SEPTEMBER 19 A LEAKED PROMOTIONAL FLYER FROM CHINA DECLARES SEPTEMBER 19 AS THE LAUNCH DATE FOR THE UPCOMING APPLE IPHONE 6. THE 4.7” AND A 5.5” PHONES ARE SUPPOSEDLY CHEAPER AS WELL, COSTING $850 (QR3,100) AND $1012 (QR3,700) RESPECTIVELY.

HOW MUCH DOES THE MIDDLE EAST LOVE E-PAYMENT? WHAT DO WE BUY

E-PAYMENT GROWTH

CREDIT CARD CONTRIBUTION TO CONSUMPTION, 2008-2012

CARDS PER CAPITA

Source: PayFort, The State of Payment Report 2014 QATAR TODAY > AUGUST 2014 > 69

development > tech talk

MARKETING 101 FOR THE NEW AGE

The communication experts at Qanect discuss how smartphones affect social media marketing in Qatar?

014 has already been an exciting year for Social Media, with recent trends dramatically reshaping the social media landscape. The rise of the smartphone means consumers are constantly targeted with multiple messages through email, Facebook, Twitter, WhatsApp, BBM, Line, Instagram, Pinterest and, lately, Snapchat! So how do we break through the noise and ensure social media marketing campaigns hit their targets and the messages resonate with audiences? Social media is undoubtedly one of the most efficient and cost effective means to market your brand and engage both current and prospective customers. We have found that the lack of participation in social media leaves you and your business out of important conversations happening all around you in real-time, with or without your input. Social media enables you to increase awareness at a low cost when compared to traditional marketing and serves as a direct and personal line to customers, while also allowing you to target specific demographics. Moreover, social media not only facilitates quick distribution of information to an engaged audience, it also serves as a useful tool for companies and brands to mon-

itor customer feedback and industry news. Through our research and insight into social media trends, we have seen how the rise of many of the latest mobile apps, coupled with the increase of smartphones is rapidly changing how we consume and interact with information online. With these social media trends rapidly permeating the online community of Qatar, we wanted to explore the implications of this type of information overload on Social Media Marketing. Research shows just how impactful social media marketing could be in Qatar. 73% of internet users are online daily and spend approximately two hours per day on social networking sites. Moreover, Qatar has the highest smartphone penetration in the Middle East at 75%. This is one of the top computing devices for surfing the Internet, with 86% of users accessing the Internet via their smartphones. It is also interesting to see that Facebook is on the decline amongst Qatari citizens, with only 36% using the social networking site, while Twitter and Instagram are rising in popularity. This corresponds to the increase in smartphone usage, as people are turning to apps that place emphasis on snappy, concise and image-based content that is suitable for smaller screens and can

WHAT MATTERS IN SOCIAL MEDIA MARKETING...

ABOUT THE CONTRIBUTOR Qanect has quickly become a market leader in Social Media, managing a host of international and local Social Media campaigns. Qanect specialises in the development of Social Media, 24 hour management and analytics. And most importantly we ensure that our strategies are built towards the brandâ&#x20AC;&#x2122;s marketing goals and objectives, delivering on real and measurable results 70 > QATAR TODAY > AUGUST 2014

90% of information transferred to the brain is visual

Average attention span for online users in 2013 was eight seconds. Goldfish have an attention span of nine seconds

Culture of 'NOW'

Demand for instant gratification Keeping posts below 250 characters can get you 60% more engagement

Online users are learning to consume an extensive wealth of information at increasingly faster rates

Photos make up 93% of the most engaging posts on Facebook

Photos get 39% more interaction on Twitter

convey information and emotion at a faster pace. These trends have a huge impact on the success of your Social Media Strategy. Now is the time to take action and revise your strategy to advance your reach and engagement levels. Studies reveal that photographs make up 93% of the most engaging posts on Facebook. Moreover, statistics show that smartphone users share information twice as often as desktop users. So what do these statistics and findings mean for social media marketers? Internet users have learned to consume vast amounts of information at increasingly faster rates, causing the online community to seek a new kind of social experience which is ‘in the moment’. This demand for instant gratification, coupled with smartphone growth, needs to be carefully considered in order to conceive a compelling social media strategy. Firstly, maintaining meaningful customer relationships is key to driving interaction. It is critical to maintain a steady and interactive online presence by monitoring any feedback you get and responding accordingly. Establishing an efficient twoway communication system with real-time responses is critical to strengthen customer loyalty and satisfaction. Secondly, don’t be afraid to embrace the

SOCIAL MEDIA IN QATAR

100 90 80 70 60 50 40 30 20 10 0

IS THERE A CORRELATION BETWEEN THE RISE OF THE SMARTPHONE AND THE DECLINE OF FACEBOOK? Apps such as Twitter and Instagram place emphasis on concise, snappy and image-based content, ideal for smaller screens. The rise of mobile apps like Snapchat and Vine are solidifying these trends and rapidly changing how we consume content online...

Micro-blogging social site 140 character posts 400 MILLION TWEETS DAILLY 500 million users

Photo sharing app with filters 200 million monthly active users AS OF 2014 16 BILLION PHOTOS HAVE BEEN UPLOADED NOW WITH 15 SECOND VIDEOS

% of People who use Facebook Saudi Arabia

UAE

Lebanon

37% % of Qatar Citizens

46%

36% Qatar Citizens are more likely to use Instagram and Twitter than Facebook.

Egypt

Instant photo-sharing app

40 million users since 2013

400 million Snapchats sent daily

5 Vines tweeted every second CREATE AND SHARE SIX SECOND LOOPING VIDEOS

Images selfdestruct after a set amount of seconds SURPASSES PHOTO-SHARING ACTIVITY ON BOTH FACEBOOK AND INSTAGRAM

YOUR SOCIAL MEDIA MARKETING STRATERGY

BE IN THE MOMENT

MEET ALL USER ENGAGEMENT WITH REAL-TIME RESPONSES. TWO-WAY COMMUNICATION IS CRITICAL

EMBRACE MICROVIDEO

STUDIES REVEAL THAT 59% OF QATARI POPULATION DEEM VIDEO CONTENT TO BE AN IMORTANT FORM OF ENTERTAINMENT

Qatar

Micro-video social app

latest trending applications. For example: Vine and Instagram are rapidly popularising micro-video, a gripping and engaging means to sell your brand’s story quickly and effectively. Video is already favoured in Qatar with 59% of the population deeming video content to be the most important form of entertainment. Thirdly, the rise of the smartphone has made it more important than ever to limit your characters. With both the size of screens and user attention spans decreasing, you need to keep your posts short and snappy to keep your customer interested. Statistics reveal that keeping your posts below 250 characters can get you 60% more engagement.

LIMIT YOUR CHARACTERS

APPLY A CHARACTER LIMIT ACROSS ALL PLATFORMS, NOT JUST TWITTER! KEEP YOUR POSTS CONCISE AND SNAPPY TO KEEP THE USER'S ATTENTION

LESS TEXT, MORE IMAGES

IMAGES ARE MORE ATTRACTIVE, EASIER TO CONSUME AND MAKE FOR BETTER 'SHARING' MATERIAL. STUDIES SHOW THAT MOBILE USERS SHARE TWICE AS OFTEN AS DESKTOP USERS

Lastly, and most importantly, prioritise images over text. Ninety percent of information transferred to the brain is visual, making image-based posts more captivating for online audiences and easier to digest. Images also make for better sharing material online. Being present and online is the first step forward, but in today’s digital environment, you need to be ahead of the trends, ensuring that you are listening to your customers and responding to their interests in the moment. Users liking, commenting on and sharing your brand’s content is very valuable for growing a fan base, generating interest, driving engagement and, most importantly, showing ROI for your brand QATAR TODAY > AUGUST 2014 > 71

business > auto news NISSAN MOST EFFECTIVE BRAND IN MENA

Nissan has repeated its top ranking as the most effectively marketed automotive brand in the MENA region (Middle East and North Africa) for the third successive year following the announcement of the influential Effie Awards.

he Effies are the gold standard in marketing communications effectiveness. They reward campaigns, from any discipline, which have achieved success through proven, effective marketing communications. “The Effie Index benchmarks the brands, marketers, agencies and game-changing companies that are doing it right, it’s a great resource,” said Nissan's Middle East Regional Managing Director Samir Cherfan. Nissan achieved record sales of 217,685 vehicles in the Middle East in 2013 – up 20.9% on the previous year’s 180,015 units. Nissan’s sales volume in the GCC for the latest financial year ended at 162,238 units, an increase of 27.2%, or 127,559 sales, on the previous year. The Nissan-Infiniti market share for GCC is currently 9.9%, a hike of 18.7% on financial year 2012.

ROLLS-ROYCE GHOST II ARRIVES Rolls-Royce Motor Cars Doha hosted the first customer launch of Rolls-Royce Ghost II in the Middle East, the latest vehicle by the ultra-luxury British automaker, at an exclusive Ramadan event.

he launch of the Ghost Series II comes in the backdrop of RollsRoyce vehicles growing popularity in the country. The subtle re-design of the popular Ghost family sees understated exterior changes coupled with the latest in industry-leading technology from Rolls-Royce. The result is the ultimate expression of modern

BMW GROUP MIDDLE EAST POSTS RECORD SALES The BMW Group in the Middle East posted a record breaking sales increase of 25% for the first half of 2014. A total of 15,797 BMW and MINI vehicles were delivered to customers in 12 Middle East markets. Based on these outstanding figures, the world’s most successful premium automotive manufacturer is in pole position for yet another successful year in the region.

he UAE remains the biggest market in the region, accounting for around half of BMW and MINI total sales, followed by Saudi Arabia, Kuwait and Qatar. Markets which showed strong individual sales growth included the UAE which grew 40%, Oman 57%, Jordan 39%, Bahrain 33% and Qatar with 13% growth. BMW Group Middle East Managing Director Johannes Seibert says: “The results are testament to the desire our customers have for our brands. The region's

72 > QATAR TODAY > AUGUST 2014

dynamism and luxury, a dramatic yet graceful vehicle that is effortless thanks to cutting-edge technology. Alfardan automotive division COO Mohamed Kandeel said: “The Ghost Series II is designed to harness the power of simplicity. Every detail is precisely engineered to evoke grace and elegance for an effortless driving experience.

premium automotive market is growing approximately 15% so we are delighted to be above this figure.” The BMW 5 Series – the leader in the executive car segment with sales of 3,637 cars, a 33% increase followed by the X5 with 2,526 cars sold, an 11% increase and the X6 with 2,235 cars sold, a 63% increase. The flagship BMW 7 Series also continued to be amongst the top four best-sellers with 1,980 cars sold which accounted for 13% of BMW’s total sales.

BMW AND MINI SALES UP IN H1 2014

he BMW 3 Series was the best-selling model which saw a 184% increase in sales followed by the X5, 7 Series and 5 Series models. Sales for the MINI brand during the first six months of the year were led by the first Sports Activity Coupé in the premium compact segment; the MINI Paceman. The MINI Cabrio and MINI Countryman were also strong contributors with 100% and 35% growth respectively. Alfardan Group-Automotive Division Chief Operating Officer Mohammed

Alfardan Automobiles, the official BMW Group importer in Qatar, has announced a growth of 12% for BMW and 27% for MINI sales during the first half of 2014. The combined growth of both brands equates to a 13% increase in sales compared to the same period in 2013.

Kandeel said: “Testament to the strength of the Qatari market, these figures highlight the desire for BMW Group vehicles and the importance of Alfardan Automobiles’ ongoing focus on exceptional customer service which our customers continue to enjoy. " Overall, BMW Group Middle East sales across the Middle East region increased 25% during the first half of 2014 compared to the same period last year. A total number of 15,797 BMW and MINI vehicles were delivered to customers across 12 Middle East markets.

FERRARI CALIFORNIA T LAUNCHED Alfardan Sports Motors, official importer of Ferrari in Qatar, launched the elegant, sporty, exclusive and versatile Ferrari California T at Katara Hall.

two meter Ferrari prancing horse ice sculpture was positioned at the entrance of the Ballroom to complement the luxurious décor. The car was revealed following a video presentation featuring world renowned sand artist Kseniya Simonova, showing the voyage the Ferrari California T has made from Modena in Italy to Hollywood in California to Doha in Qatar and accompanied by a breathtaking performance from

Domino Blue. Alfardan Sports Motors GM, Charly Dagher said: “The Ferrari California T is an innovative and distinguished addition to the Alfardan Sports Motors family. The California model is a true representation of the history and excellence of the Prancing Horse, with its new model, the California T, modified for superiority yet entrenched in its original values” he added.

The latest model, the California T, has revamped the traditional California model with a host of new solutions, including the fully retractable hard top, and is engineered for power and performance. It boasts an 8-cylinder turbo engine, perfected through meticulous design work and specialist manufacturing techniques, such as the flat-plane crankshaft and the three-piece cast exhaust manifold and turbo housing, for exhilarating sound. QATAR TODAY > AUGUST 2014 > 73

business>marketwatch LUMIA 630 AND LUMIA 635 IN QATAR SOON

VISA JOINS HANDS WITH BORDERFREE

Consolidated Gulf Co. (CGC), the distributor for Microsoft Mobile Devices in Qatar, has announced the local availability of the new Lumia 630 Dual SIM, and the 4G/LTE enabled Lumia 635, within a month.

he most affordable Lumia smartphones powered with the intuitive Windows Phone 8.1 operating system deliver an unrivalled affordable smartphone experience at only QR 600 and QR 699. The Lumia 630 adds award-winning design and experiences found on high-end Lumia smartphones to the leading personalisation brought by Windows Phone 8.1. Integrated features including one swipe notifications from Action Centre, the new Microsoft Enterprise feature pack, Microsoft Office, OneDrive, Camera, and HERE Maps and Drive+, which work seamlessly to make the

Lumia 630 a great tool for work and play. “With high-end technologies and apps, plus the same seamless Windows Phone 8.1 experience that people get with our flagship products, we think the Lumia 630 and Lumia 635 are undoubtedly the best smartphones in its affordable price range,” said Vithesh Reddy, General Manager Lower Gulf, Microsoft Mobile Devices. The Lumia 630 Dual SIM and Lumia 635 come in a range of colours including bright orange, bright yellow, bright green, white and black.

Visa has announced a partnership with Borderfree, a market leader in international cross-border ecommerce solutions, to offer customers in the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Jordan special promotions from retailers in the US. Headquartered in New York City, Borderfree operates a technology and services platform that allows US retailers to transact with customers in more than 100 countries and territories and more than 60 currencies worldwide. Its customer portfolio includes some of the world’s most iconic brands, including Bloomingdale’s, Sears, Macy’s, Gilt, Elie Tahari and Neiman Marcus, among others. Visa’s partnership with Borderfree will commence with an exciting Neiman Marcus promotion which will be rolled out in select markets in the Middle East, including the UAE, Saudi Arabia, Kuwait, Qatar and Bahrain. Visa has partnered with almost 40 banks in the region to exclusively offer cardholders of participating banks duty-free and free international express shipping of goods purchased in excess of $100 (QR364) through August 20.

BACK TO SCHOOL COLLECTION LAUNCHED With a host of fun and colourful character merchandise, Babyshop has introduced its latest Back to School collection featuring over 60 different designs of school essentials from uniforms and bags to water bottles, lunch boxes and stationery pouches.

BABYSHOP CONTEST WINNERS ANNOUNCED

The collection features exclusive ranges from Spiderman, Batman, Transformers and Ferrari for the boys, and Hello Kitty, Lulu Caty, Minnie, Marie, Bratz and Barbie for the girls.

abyshop held an art contest “Expressions,” for children in association with Commercial Bank, and declared the winners recently. The competition was announced through their Qatar Shukran Facebook page. The children were divided into three categories – 3-5, 6-9 and 10-14 years. The topics were "Mother", "Water Conservation/Tree Plantation" and "Road Safety" respectively. Mr. Santosh Pai, COO of Landmark Group, Qatar, said: “We are very happy with the overwhelming response to one of our biggest events in Qatar in providing a platform and encouraging talent among children. A special thanks to the parents, and especially to all the mothers, who have a great influence in spotting and fostering talent.”

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culture>doha diary MEDIA HABITS AND A KNOWLEDGE ECONOMY A team of researchers from Northwestern University in Qatar will share their insights on media usage in the Middle East and how it impacts the growth of the knowledge economy at a global conference in Canada in August.

CLIMB FOR A CAUSE

Sheikh Mohammed Al Thani, the first Qatari to conquer Mount Everest, is set to take eight of his countrymen on an unforgettable journey to the peak of Kilimanjaro.

s part of a charity effort, called Elevate to Educate, Sheikh Mohammed Al Thani is heading a team of eight brave volunteers who will climb the tallest peak in Africa, Mt Kilimanjaro, to raise money to improve education in Palestine. A Reach Out To Asia initiative, the nine-day trek is set to take place between October 2 and 12. The cost of the expedition per person is $3,400 (QR12,380) and additionally, each climber will commit to raising QR50,000 through various fundraising activities, Sheikh Al Thani confirmed over email. He also gave a talk, open to all, on the intricacies of climbing the mountain and how the funds will benefit Palestinian children on July 21 at Aspire Doom Auditorium.

t the Association for Education in Journalism and Mass Communication conference in Montreal, NU-Q researches, led by Everette E Dennis, Dean and CEO of NU-Q and lead principal investigator, along with co-principal investigators Justin Martin, NU-Q Assistant Professor in Residence, and Robb Wood, NU-Q’s Director of Strategic Partnerships, will shed light on an ongoing series of research projects that trace evolving media consumption habits across the region. “Media permeates every aspect of an economy, especially a knowledge economy, since it is developed on the enhancement of information,” says Wood. “Media enterprises are valuable to an economy, but so too is communications in general, because it is not only media companies that benefit from high-level practices.” The project was recently awarded an $850,000 (QR3.01 million) grant, under the National Priorities Research Program (NPRP), to support its continuity until 2017. The team has already published two sets of findings - Middle East Media Use in 2013 and Entertainment Media Use in the Middle East in 2014.

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culture > doha diary

A CALENDAR FOR FUN THIS SUMMER

Qatar Tourism Authority announced that it will host the first ever Qatar Summer Festival, a two-month long entertainment extravaganza that will go on until the end of September.

tarting August 4, Qatar Tourism Authority will host the Qatar Summer Festival at various locations around the city, giving citizens, residents and visitors a myriad of ways of keeping themselves entertained. Rashed Al Qurese, Director of Marketing and Promotions of QTA, said: “Qatar Summer Festival 2014 is part of QTA’s efforts to make Qatar the best tourist destination for families in the region. Through the summer festival we will offer quality performances to present Qatar’s various entertainment options and warm hospitality.” The festival will include evening water fountain shows on the Corniche, an

Entertainment City at the Doha Exhibition Center, an inflatable Aqua Park in Al Wakra, outdoor activities such as bike riding, kayaking and other games in Al Khor and various activities in malls across Qatar including commercial sales and raffles. DEC will feature a Freeze Zone, an Adventure Zone with racing tracks and wall climbing, an Interactive Zone with video games and designated areas for toddlers, stage performances and dining. Young and old alike will enjoy the fabulous Disney on Ice performances that will be held at the Qatar National Convention Centre between September 24 and 27, which will also be the final day of the festival.

THE ART IN ‘ALIF’

At Intercontinental Doha The City, Sahab Arbilli is exhibiting over two dozen works of art – ranging from sculptures and paintings – inspired by Arabic calligraphy and the first letter of the alphabet.

well-known figure in Doha’s art circles, famous for being commissioned by the Ministry of Culture, Arts and Heritage to create a copy of the Quran using his rich, signature calligraphic style and more recently for the unveiling of his sculpture at the Corniche, Sahab Arbilli was in his element at the grand opening of his exhibition at the Intercontinental Doha The City. His collection of artwork is meant to hold special significance during the Holy

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Month due to Arabic calligraphy’s deep and historic connection with the region’s culture, art and spiritual works. Guests at the opening also witnessed the artist create a fresh, new piece on a canvas in the middle of the lobby. HE Dr Hamad Bin Abdulaziz Al Kuwari, Minister of Culture, Arts and Heritage toured the exhibition on a separate day. The exhibition is open to the public until 17 September and all the artworks on display can be purchased.

IN THE SPIRIT OF THE SEASON

The Youth Company launched 7asanat Olympics this Ramadan, bringing together youth between the ages of 14 and 20 to encourage them to participate in the spirit of the season and pay back the community through charity drives and volunteer work.

ospital visits, breaking fast with the elderly, charity drives and Iftar distributions were some of the activities planned over the course of the Holy Month that involved 120 young volunteers and over 500 volunteer hours. The Youth Company partnered with over 14 government organisations, charities, and corporate houses to organise the events. The team distributed iftar boxes at popular intersections or roundabouts during iftar time to help reduce the number of accidents at this time and also celebrated Garangou with the young patients at the pediatric ward of Hamad Medical Corporation as well as helped organise Garangou events

MOLSA DEBUTS AUTOMATED SERVICE TO REGISTER COMPLAINTS

I at Al Riwaq and Katara. The volunteers also collected spare clothing for charity from various compounds in partnership with Sheikh Eid Charity Association.

naugurated by the Minister of Labour and Social Affairs, the automated machine, available in all branches of the Labour Relations Department, allows a person to register a complaint in their native language in three simple steps and also hold on to proof of complaint for future references. The machine recognises six languages: Urdu, Hindu, Nepalese, Tamil, Bengali, English and Arabic.

QATAR PETROLEUM INTERNATIONAL REACHES OUT TO THE MEDIA A media appreciation Suhoor hosted by QPI was attended by the companyâ&#x20AC;&#x2122;s top management including CEO Nasser Al Jaidah, Executive Director of Gas and Power, Sheikh Saoud Al Thani and Chief Financial Officer Abdulaziz Al Kuwari. QATAR TODAY > AUGUST 2014 > 77

INTERCONTINENTAL DOHA THE CITY

A FEAST TO REMEMBER We take a look back at some of the most elaborate and decadent Iftars and Suhoors in town last month. From live cooking stations to buffet tables groaning under the weight of Arabic sweets and traditional live music in luxurious Ramadan tents filling up with exotic Sheesha smoke, here are some of the sights, sounds and smells of the month gone by.

LA CIGALE

RITZ-CARLTON

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W HOTEL

SHARQ VILLAGE & SPA

ST REGIS

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culture>qt take

BROUGHT TOGETHER BY FOOTBALL Cheering crowds, football trivia, stilt walkers and World Cup fever all came together to deliver an unequalled match viewing experience at the Brazil 2014 Fan Zone at Katara. Ayswarya Murthy gets the lowdown.

here was no escaping football in Qatar during the World Cup. Come evening, you couldn’t throw a stick without it hitting an establishment that was screening the matches. But certainly no one was complaining, considering the football hungry population and the myriad of options available for those who wanted to catch some live action – from giant screens at plush football zones in five-star hotels to the slightly slanted 32” television set at a local sheesha bar, each had its own charm. But perhaps the most novel experience of this World Cup summer in Doha was the Brazil 2014 Fan Zone that was raised up at Katara. For several days prior to Ramadan, as the mysterious white structure was going up right opposite St Regis hotel, curiosity and excitement gripped all those who drove past it. It was common knowledge that this was related to the upcoming World Cup and could possibly accommodate hundreds of loud, cheering fans. But would this be our own Copacabana beach? Doha’s version

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of Berlin’s Living Room Stadium? Was it a herald of things to come? All these questions were answered on June 28 when the Supreme Committee for Delivery and Legacy threw open the doors of the Fan Zone to a public that was practically straining at the leash. Watching the match at home held little appeal, restaurants and cafes were only marginally better and those who headed for one of the giant screens at Souq Waqif to bask in the shared excitement of fellow football-lovers found the heat and humidity bearing down upon them with a vengeance. Fan Zone promised an irresistible middle-ground. We set foot in there for the first time on the day that Belgium played against the USA, the last of the Round of 16 matches. Maybe nobody expected the game to throw up much excitement (however, as it turned out, the 30-minutes of extra time was, at the point in the World Cup, one of the most intense moments of football) because the registration space at Doha Exhibition

Centre looked almost forlorn. Getting your wristband for entry was a quick and painless process and we were ushered into the air-conditioned Mowasalat bus that was to ferry us ( just the two of us) to the Fan Zone, three minutes away. We’d later find out that this was not the case for the quarter finals matches onwards. Queue for registration at the DEC stretched on till the parking lot, tickets went fast and the bus ran to and fro packed to the brim. All the 400 seats that were allocated for online booking had been grabbed up within days and first come first serve was a gamble. We barely made it for the Germany vs France match, being the absolute last people to be given the wristbands, and had to watch the first half of the match on our feet, munching on some outrageously expensive hotdogs. The second half went by in relative comfort after we managed to poach some seats. Face painting, football merchandise, foosball tables and mini games dotted around the fan zone served to keep you occupied as you waited

for the kickoff. The kid’s play zone also was a lifesaver as it kept the little ones from getting underfoot. Mascots and performance artists took to the stage to wow the crowd with their acrobatics and crazy costumes. All in all, the experience was anything but dull. Also keeping the spirit up were MCs like the inimitable Hamad Al Amari who pulled up unsuspecting fans to answer questions about the teams they were supporting. Wit and humour flew thick and fast from both sides. One cheeky Belgian fan was certain that they would prevail against the USA. “One of the biggest countries in the world is playing against one of the smallest,” he said. “And today we’ll see that size doesn’t matter.” A red-faced Al Amari, pretending to be scandalised, relieved the gentlemen of the microphone and stomped off, as the audience rolled over laughing (more at Al Amari’s antics than the statement itself ). When he thought things were getting too quiet, he’d challenge opposing fans to an eight-on-eight foosball match. Two snack bars at the Fan Zone, stocked by the W Hotels, keep the crowds fed and watered. During busy days, however, they seem to be coming apart at the seams with wait times that seemed to take forever and the billing clerks accepting cash for items that had already run out (and you had to find that out after having to wait ten more minutes to reach the serving counter).

Few people who had visited the Fan Zone had anything bad to say about the experience and the Supreme Committee for Delivery and Legacy can chalk this one up as a success. The execution was perfect and smooth and a grand time was had by all. Even those who barely had any interest in football (points to self ), couldn’t help but get drawn into the excitement and the spirit of things. By the end, I was

screaming myself hoarse along with the rest of the fans and cursing like a sailor between running a Google search to find out exactly how long the extra time lasted. We didn’t have the chance to check out the Fan Zone at Aspire but reports that reached us were largely positive about this one too. We wonder why that wasn’t as heavily publicised and promoted as the Brazil 2014 Fan Zone in Katara QATAR TODAY > AUGUST 2014 > 81

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.

MY HOME IN QATAR D RAVI KUMAR Managing Editor, Doha Stadium Plus Been in Doha since: December 1995 (19 years)

to l i ke yo u i n o u r d l u d wo a t u re o " be feTake Twle ase " P et at m n? c o l u u s a t we ay d sent Qat arTo @

BEING SPORTY IN DOHA A career journalist, I worked in India till the age of 40. I had reported on sports since 1980 for various Indian newspapers and saw the opportunity to do the same in the Gulf as part of the launch team of the Peninsula in Doha. I also had the opportunity to launch Aspire Zone Foundation’s sports weekly, Doha Stadium Plus in February 2006, the year Doha hosted the Asian Games. Qatar has made huge strides forward in the world of sports, both as a competing nation in various international events and as hosts. Several high-profile sports events are staged here annually (ATP Tennis, WTA Tennis, EPGA Golf, MotoGP, ITTF Pro-Tour table tennis, Tour of Qatar Cycling for men and women etc) and over the years, Qatar has also hosted several big events like the Asian Games (2006), World Indoor Athletics Championship (2010), Asian Cup football (2011), Pan-Arab Games (2011) etc., along with the upcoming 2015 Handball World Championship and the 2022 FIFA World Cup, making it an ideal place to work for a sports journalist. My move to Qatar has helped me fulfil many of my dreams like owning my own home and providing quality education for my children. I’ve no regrets coming here. ONCE UPON ON A TIME, OUR TAXIS WERE YELLOW HH Sheikh Hamad bin Khalifa Al Thani, who took over as the Emir in 1995, launched a series of developmental projects and programmes and the results were visible from 1996 onwards. As a media person I was excited with the launch of

Al Jazeera TV in 1996. There were changes on all fronts – roads, buildings (when I first came to Doha, the Sheraton Hotel was the only big building on the Corniche road), hotels, schools, hospitals, universities (read: Qatar Foundation), shopping malls, various mega oil and gas projects, sports clubs, Aspire Academy for Sports Excellence, golf courses, motorcycling track, tennis stadium and several new sports facilities. I can’t say I miss anything about old Doha. Almost all changes have been positive and an upgrade of the old facilities and services. The old yellow-colour taxis have been replaced with a modern fleet of cars, public bus service launched, Souq Waqif given a facelift, health centres and hospitals upgraded, and several new eating joints have come up. Many new hyper/super markets have been opened, making everything available in Doha for all expatriates. Didn’t someone say “old is gold, but new is Platinum?” MEMORIES AND MORE “Yesterday is but today’s memory, and tomorrow is today’s dream,” said Lebanese artist-poet-writer Khalil Gibran. I am not prepared to wind up my Doha days and go back, carrying memories. Iam still dreaming of witnessing and being a part of better things to come. But I miss some of my close friends, who have retired and gone back to India. But I still have quite a few great friends and wonderful colleagues in Doha and above all my loving family is here with me.

NEW BEGINNINGS JON TAYLOR Head of Exploration & Production Recruitment, Air Energi Been in Doha since: February 2014 (six months) HITTING REFRESH ON OLD CONNECTIONS In my previous jobs, I had handled Middle East recruitments from the UK. I was then offered a fantastic opportunity with one of the world’s leading recruitment agencies and the chance to interact with my clients face-to-face. My father was previously the Senior HSE Manager for QPM so I had also visited Doha several times before. It is great to see the changes in infrastructure and the development of the country;it is an exciting time. Also with the World Cup on the horizon, there has been a lot more input to the social side of Qatar. Being originally from Glasgow, I miss my family and friends a lot. But I am looking forward to being able to play a part in the development of Qatar through the Oil & Gas industry. 82 > QATAR TODAY > AUGUST 2014