inside this issue October 2015 / Vol. 41 / Issue 10
COVER STORY
36 THE MISSING LINK
Qatar Today traces the relationship between researchers and policymakers in Qatar. In the absence of a meaningful civil society, how effectively is the prodigious output of Qatar’s many research organisations being used, if at all? Qatar Today meets some prominent researchers in Qatar to ask one simple question – is the government listening to them?
26 IRAN SWEETENS THE DEAL
Iran will try to attract international oil companies back with promises of riches under a new petroleum contract.
32 SERVING INDIAN HOSPITALITY FROM QATAR
Aiana Hotels & Resorts, an Indian hospitality brand catering to the Middle Eastern palettes, created by the combined passion of two great legacies in hospitality: Sheikh Faisal bin Qassim Al Thani from Qatar and Amruda Nair, the granddaughter of Captain Krishnan Nair of the Leela brand in India.
44 THE NESTING PLAN
What should be the role of Sovereign Wealth Funds in the GCC region when oil prices are falling? Are they taking part in the economic diversification programmes of the six member-states? Qatar Today finds out.
72 A GIANT IN ELECTRONICS RETAIL
Qatar Today talks to Jumbo Electronics CEO and co-founder C V Rappai on how a clean slate and innovative vision led to an inspired business model that today delivers services to over 2,000 customers daily.
inside this issue October 2015 / Vol. 41 / Issue 9
54 THE SPECTATOR EXPERIENCE
24 NO CHILL IN THE COOLING INDUSTRY
The district cooling industry in Qatar is looking to build on several years of robust growth with a wave of fresh investment.
What makes a sporting event truly unforgettable? It’s the effortless walk to the seats; excellent views of the game and the level of interaction with it; communications during the event; and the comfort that is offered within the stadium. The spectator experience is not just the sum of all these – it also depends on the spectators themselves.
28 POST-SANCTIONS TEHRAN 66 “READY FOR EVERYTHING”
The expected reemergence of Iran as an economic force in the region has come at a difficult time for the Middle East’s oil and gas industry.
42 NURTURING LEADERS: IS THE GCC PLAYING CATCH-UP?
Aon Hewitt says their research and their work with top leaders indicate some areas for concern, but also clear ways to build strong leadership pipelines.
The month of September witnessed an inspiring event in the sports schedule: the 9th edition of the GCC Paralympics event.
80 THE HUNT: CELEBRATING THE SPORT OF KINGS
A compelling story behind every artefact, makes you ponder and dig deeper into the pages of history, reliving the yesteryears in all its magnificence in MIA’s latest exhibition, The Hunt.
and regulars 12
NEWS BITES
16
BANK NOTES
18
O&G OVERVIEW
20
REALTY CHECK
60
TECH TALK
68 SPORTS 69
AUTO NEWS
78
MARKET WATCH
82
DOHA DIARY
from the desk Fifty-five serving world leaders from 51 countries – ranging from Antigua to Yemen – have attended British higher education institutions, with Manchester, Oxford and the Royal Military Academy at Sandhurst among the most popular; Qatar’s own Emir, HH Sheikh Tamim bin Hamad Al Thani, is a product of Sandhurst. This statistic, released recently by a UK education think tank, The Higher Education Policy Institute (HEPI), doesn’t do much in isolation except touch on a rich heritage of acountry that has been the breeding ground for most of the world's leaders. The HEPI's research, by being published across the media, has now brought the attention of policymakers to the fact that the country’s education system, which was once (and still is) one of the best, is at risk with its punitive student visa policy. The waves of dissent are rising; Universities UK, which lobbies on behalf of British higher education, has added another dimension to the research by putting a number to the damage caused by the visa restriction – £2.4 billion over the next decade.
A protester during a student march against university fees at Parliament Square in London last year. AFP PHOTO/BEN STANSALL
At a time when Europe is experiencing one of the most significant influxes of migrants and refugees in its history, visa restrictions for foreign students might not be the best legislation to ponder, but then the think tanks have had their say. The game has begun. Now it is up to the players (civil society and media) to dribble the ball (policy) and push it into the basket and bring in change. This game is not so easily played out in the Gulf countries, where think tanks get the ball rolling but it is not taken forward by other players and the final goal is often sidelined and even forgotten. To comprehend this missing link, Qatar Today talked to research institutes in the region who feel that the culture of think tanks isn’t very well established. The Qatar Today cover story highlights the need for an active civil society to ring in change in the country. While other stories in our issue pale in comparison to our cover story, which has revealed facts never expressed, we also look into the SWF of the Gulf countries and wonder why the investments have been in limbo; and wonder about the spectators experience and its influencing factors. Happy Reading.
SINDHU NAIR Managing Editor
PUBLISHER & EDITOR-IN-CHIEF YOUSUF JASSEM AL DARWISH CHIEF EXECUTIVE SANDEEP SEHGAL EXECUTIVE VICE PRESIDENT ALPANA ROY EDITORIAL MANAGING EDITOR SINDHU NAIR DEPUTY EDITOR IZDIHAR IBRAHIM SENIOR CORRESPONDENTS AYSWARYA MURTHY KARIM EMAM CORRESPONDENTS AARTHI MOHAN KEERTANA KODURU 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 ALTAMIRANO MARKETING AND SALES BUSINESS HEAD FREDRICK ALPHONSO MANAGER – MARKETING SAKALA A DEBRASS ASSISTANT MANAGERS – MARKETING HASSAN REKKAB MATHEWS CHERIAN DENZITA SEQUIERA SONY VELLATT A H M IRFAAN ASSISTANT EVENTS MANAGER JASMINE VICTOR MARKETING COORDINATOR REENA LEWIS SENIOR ACCOUNTANT PRATAP CHANDRAN DISTRIBUTION SR. DISTRIBUTION EXECUTIVE BIKRAM SHRESTHA DISTRIBUTION SUPPORT ARJUN TIMILSINA BHIMAL RAI BASANTA POKHREL PRADEEP BHUSAL
PUBLISHED BY ORYX ADVERTISING CO WLL P.O. Box 3272; Doha-Qatar Tel: (+974) 44672139, 44550983, 44671173, 44667584 Fax: (+974) 44550982 Email: qtoday@omsqatar.com website: www.omsqatar.com Printed at: Gulf Publishing and Printing Co WLL Copyright © 2015 Oryx Advertising Co WLL
letters
QT POLL
SMS
33328417
TO WIN A MICROSOFT LUMIA 535
DO YOU THINK YOU’LL BE IN QATAR LONG ENOUGH TO WITNESS THE COMPLETION OF PROJECTS LIKE MSHEIREB, LUSAIL, QATAR RAIL, ETC? SEPTEMBER 2015 QATAR TODAY POLL
THE LOCAL TOUCH It is very rare to get an insight into the lives of the locals who are famous and successful. To read the journey of Hussein Al Fardan has been interesting and also encouraging in a way to dream big indeed.
77 YES
23 NO
Figures in percentages
DOES YOUR COMPANY OFTEN MAKE YOU FEEL DISPENSABLE?
POWERED BY
AG OPTIMISM Oil prices have definitely put a setback in other industries but the country is also experiencing an increase in population contributed by the urgency of the construction sector, after the dry months of the summer and projects coming into the execution stage for the FIFA 2022. It surely looks like the country is moving forward. FEROZ SHAH FREE INFORMATION Employees in the state are more likely in fear of the authorities than being unaware of the labour laws. There should be a way to tackle this issue so that the right information is given to everyone in terms of the places to go to file complaints and the consequences of one’s actions should be clearly explained and understood. ANDREW K
BEST OF ONLINE Qatar Today, @QatarToday: About 10% of Qatar’s GDP is at risk from natural and man-made disasters, according to Lloyd’s City Risk Index Neeshad V S, @ineeshadvs: Above all human induced #climatechange is neglected being in #MiddleEast especially #Qatar is underestimated! Excellent interview with @IPCC_CH climate scientist & chair hopeful Dr Thomas Stocker! Surprised by his visit here, though...
EXPERIENCE A NEW ERA OF READING 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
CHECK OUT ALL ARTICLES OF QATAR TODAY ON WWW.QATARTODAYONLINE.COM www.issuu.com/oryxmags/qatartoday
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.
FOLLOW US ON www.facebook.com/qatartoday www.twitter.com/qatartoday www.qatartoday.tumblr.com
Published by Oryx Advertising Co WLL, All rights reserved. Qatar Today is published monthly by OAC, PO Box 3272, Doha, Qatar. Subscription rate QR180 per year. All subscription correspondence to Qatar Today, Oryx Advertising Co WLL, PO Box 3272, Al Hilal area, Doha, State of Qatar. For single copies call us on + 974 44672139 or e-mail qtoday@omsqatar. com. Material in this publication must not be stored or reproduced in any form without permission. Requests for permission should be directed to qtoday@omsqatar.com. Reprint requests should be directed to info@omsqatar.com. Qatar Today is a registered trademark of Oryx Advertising Co WLL.
Our place in the world
HH Emir Sheikh Tamim bin Hamad Al Thani’s address at the 70th Session of the United Nations General Assembly in New York focused largely on the trouble close to home.
“T
he conflict in the Middle East would continue to pose a constant threat to international peace and security for its direct impact on many of the crises facing the region and the world,” he said. After briefly touching on Palestine (incidentally, the Palestinian flag was raised for the first time outside UN headquarters this year), the Emir spoke about Iraq, Yemen, Syria and Libya and how any solution in these countries “must include ending the existence of militias outside the legitimate institutions of the
MAKING FRIENDS IN EVERY CORNER Handout picture released by the presidential press office shows Venezuelan President Nicolás Maduro talking with HH the Emir in Caracas.
14 > QATAR TODAY >OCTOBER 2015
State”. He also spoke in general terms about the State of Qatar’s “advanced policy in the field of protecting and promoting human rights”. With the launch of post-2015 Sustainable Development Goals, the Assistant Foreign Minister for International Cooperation Affairs, HE Sheikh Mohammed bin Abdulrahman Al Thani, affirmed that Qatar has achieved most of the development goals for 2015 and said that the state is fully committed to achieving the new goals in accordance with its national policies and priorities.
IT’S OFFICIAL FIFA has stated that the 2022 World Cup will be played from November 21 to December 18, with the tournament in Qatar set to last 28 days, instead of the usual 32.
AFP PHOTO/PRESIDENCIA
AFP PHOTO / TIMOTHY A. CLARY
affairs > local
Qatar cautions against Russian action in Syria
I
n a joint statement released by France, Qatar, Saudi Arabia, Turkey, United Kingdom and United States of America, Qatar has said that it expresses “deep concern with regard to the Russian military build-up in Syria and especially the attacks by the Russian Air Force on Hama, Homs and Idlib which led to
civilian casualties and did not target ISIS. These military actions constitute a further escalation and will only fuel more extremism and radicalization. We call on the Russian Federation to immediately cease its attacks on the Syrian opposition and civilians and to focus its efforts on fighting ISIS.”
UPS AND DOWNS Two reports released last month shed light on Qatar’s competitiveness and innovation. While the country leads the region in the former and is steadily improving, there is much left to be desired in its push towards innovation. The Global Innovation Index ranked Qatar in 50th place, behind Saudi Arabia (43) and the United Arab Emirates (47) and mentioned that these countries (in addition to Lebanon, Azerbaijan, Yemen, Algeria, Bahrain, Oman and Kuwait) show below-par performances compared to their income levels. The report listed out some of the countries strengths and weakness as mentioned here (the list is not exhaustive).
GRADUATES IN SCIENCE & ENGINEERING ELECTRICITY OUTPUT
EXPENDITURE ON EDUCATION PISA SCALES IN READING, MATHS, & SCIENCE
LOGISTICS PERFORMANCE
ICTs & BUSINESS MODEL CREATION
EASE OF GETTING CREDIT
UNIVERSITY/ INDUSTRY RESEARCH COLLABORATION
KNOWLEDGE ABSORPTION AND CREATION
Meanwhile, Qatar leads the Middle East and North Africa region in competitiveness, as evidenced by World Economic Forum’s The Global Competitiveness Report 2015-2014. It moved up two places since the last report and ranks 14th in the world. “The country’s main strength is its stable macroeconomic environment, which is driven by public budget surpluses and low government debt,” the report said. However, it also mentioned that the decline in oil prices, which hasn’t been captured in this year’s edition, may undermine the country’s performance in future.
ADDITIONAL STRENGTHS + HIGH EFFICIENCY IN GOODS AND SERVICES MARKETS
+ A VERY HIGH LEVEL OF PHYSICAL SECURITY
QIA pivots to USA
The Qatar Investment Authority is moving on after a tough month for two of its big-ticket investments by announcing a massive investment in the United States.
T
he sovereign fund steps up international expansion with the allocation of $35 billion to be invested in the US markets over the next five years. The QIA also opened an office in New York in September. “With boots on the ground, our presence in New York will anchor our interest in the region,” HE Sheikh Abdullah bin Mohammed bin Saud Al Thani, the head of the QIA, said in a statement. “It is the perfect location to help strengthen our existing relationships and promote new partnerships as we continue to expand geographically, diversify our assets and seek long-term growth.” With a large chunk of its investments hitherto focused on Europe, particularly the UK, QIA is now working on diversifying its portfolio. Last year, the investment authority announced that it would invest $15-20 billion in Asia. September has been a tough month with two of its assets suffering major setbacks. The emissions scandal sent Volkswagen stocks plunging while mining giant Glencore staggers under formidable debt, together wiping $5.8 billion off QIA’s holdings since September 18, according to Thomson Reuters. QATAR TODAY > OCTOBER 2015 > 15
Al Jazeera journalists Mohamed Fahmy and Baher Mohamed walked free after being pardoned along with scores of other prisoners by Egyptian President Abdel Fattah El Sisi.
Two remaining Al Jazeera journalists freed AFP PHOTO / STR
affairs > local
I
n a surprise announcement, the Egyptian President pardoned the journalists who had been sentenced to three years in prison just a few weeks earlier. Al Jazeera Network released a statement saying that it will continue to call on Egyptian authorities to drop convictions against seven of its journalists tried in absentia, including Australian reporter Peter Greste, who was arrested alongside Fahmy and Mohamed. These convictions severely restrict the movement of these journalists who will not be able to enter countries that have an extradition treaty with Egypt.
The women who move mountains
BUDGET ACCOUNTABILITY IN THE INTERNATIONAL BUDGET PARTNERSHIP’S LATEST REPORT, QATAR WAS GIVEN ZERO POINTS ACROSS THE BOARD FOR ITS LACK OF BUDGET TRANSPARENCY. “THE GOVERNMENT OF QATAR PROVIDES THE PUBLIC WITH NO BUDGET INFORMATION OR ANY OPPORTUNITIES TO ENGAGE IN THE BUDGET PROCESS,” THE REPORT SAID, ADDING THAT THERE IS NO OVERSIGHT BY EITHER LEGISLATURE OR A SUPREME AUDIT INSTITUTION.
Four Qatari women were named in the Forbes Middle East’s list of Top 100 Arab Businesswomen and HE Dr Hessa Al Jaber features in its list of Top 10 Women in Government. HE Sheikha Mayassa Al Thani, who heads Qatar Museums, Doha Film Institute and other cultural powerhouses in Qatar, is third on the list of the Top 100. QNB Capital CEO Mira Al Attiyah, Managing Director of Hamad Medical Corporation, Hanan Al Kuwari and HE Sheika Hanadi Al Thani, founder of Amwal and INJAZ, also feature on the list. HE Dr Hessa Al Jaber is credited for spearheading the development of the country’s broadband network, and liberalising Qatar’s telecommunications industry while she served as Secretary General of the Supreme Council of Information and Communication Technology. 16 > QATAR TODAY >OCTOBER 2015
business > bank notes “We are either witnessing a recession or slowdown in certain regional economies, which demands necessary precautions to cope with any potential fallout. The GCC countries should coordinate monetary policy and unify their efforts to stabilise the financial and banking sector in order to equip themselves to serve their higher goals.” HE SHEIKH ABDULLAH BIN SAOUD AL THANI Governor, Qatar Central Bank, during the 62nd annual meeting of the Committee of Governors of GCC Central Banks and Monetary Institutions
QDB goes all in
ISLAMIC FINANCE SELF-REFLECTS The upcoming World Islamic Banking Conference in December in Bahrain is expected to see regulators, CEOs, scholars and other leaders from the Middle East, East Asia, Africa and Europe come together to assess the achievements and challenges in the 40-year-old sector that currently amounts to $2 trillion. They will discuss convergence, financial inclusion, regulation, measuring performance and impact, etc.
Opening up to GCC banks Qatar Development Bank (QDB) announced “Istithmar”, a new line of direct investment designed to support Qatari SMEs, and “SME Equity Fund”, the first product under the new offering.
W
orth QR365 million, the fund is designed to provide valuable investment to innovative start-ups and SMEs, Abdulaziz bin Nasser Al Khalifa, CEO of QDB, said while announcing the new initiatives. All Qatari-owned and managed companies, except those in the energy and real estate sector, are eligible to apply for this fund, which gives QDB a stake of upto 50% in the company in exchange for capital, guidance, support and a seat on the board. The fund is activated over a 10-year period (maximum) after which QDB will divest its interests in the company according to the prior agreements – either through releasing the stocks over the long-expected venture capital market or selling it back to the entrepreneurs to relevant and responsible stakeholders.
S&P’S VERDICT
Standard & Poor’s Ratings Services affirmed its "AA" long-term and "A-1+" short-term foreign and local currency sovereign credit ratings for the State of Qatar. The outlook is stable and the country’s economy will “remain resilient, supported by strong macroeconomic fundamentals, despite the continued institutional weaknesses and limited monetary flexibility over the next two years”. 18 > QATAR TODAY >OCTOBER 2015
Qatar Central Bank is set to provide licences to banks from the rest of the Gulf to open branches in the country.
T
he Supreme Council for Economic Affairs and Investment approved a proposal by QCB in this regard and allowed for licences for new banks to be given according to criteria set out by the regulator. A local daily has reported that ten banks have already applied for this licence including First Gulf Bank (UAE), Mashreq (UAE) and Bank Muscat (Oman). These agreements are reciprocal in nature and part of an initiative to deepen economic cooperation between the region’s banking institutions. In fact, within a week of this announcement, the Saudi Council of Ministers granted a licence for Qatar National Bank to open a branch inside the Kingdom, the first licence awarded to a Qatari lender. The Qatari market is expected to welcome this development as it improves competitiveness of local banks and also might provide some relief from Qatari banks’ strict lending norms, particularly in the real estate sector. Last year QCB noted that local banks faced high risk due to defaults by real estate and infrastructure clients.
business > oil&gas “Different countries are studying this proposal and there will be a response from OPEC, and from outside of OPEC.” HE MOHAMMED AL SADA, Minister of Energy and Industry, on Venezuela’s proposal that OPEC hold a session to arrest the slide of crude prices and invite non-OPEC members as well.
Discussing LNG in Japan The Fourth Liquefied Natural Gas Producer-Consumer Conference in Japan was attended by a number of senior officials from governments and LNG producing and consuming companies around the world, including Minister of Energy and Industry, HE Mohammed Al Sada.
THE POWER OF LIGHT To celebrate UNESCO’s "The International Year of Light 2015", Qatar Shell Research & Technology Centre held a talk series on "Understanding and Using Visible and Invisible Light for Energy Production". As part of Shell's Tech Talk series, the presentation outlined how light is used in fibre optic technology to support the measurement of wells during the production process, and how these technologies will contribute to global 21st century sustainability, reinforcing its significance to Qatar and the region. Attendees were also treated to an art installation by local Qatari artist Ameera Al Aji who showcased how she utilizes light as a source of inspiration for her work.
POWERING GAZA Several media reports suggest that Qatar is in talks with Israel about linking the Gaza Strip with a natural gas pipeline, while there are conflicting reports on how Israel is reacting to this plan. Qatari envoy Muhammad Al Ahmadi is reportedly in talks with Israeli authorities to consider linking Gaza Strip’s sole power station with an LNG pipeline and equipping it to generate enough power to alleviate the situation in Gaza which currently experiences shortages for more than 14 hours a day. Qatar has pledged to fund the infrastructure to build the pipeline which will cost $10 million. Reportedly there are also talks with private Israeli solar power companies to construct solar power fields in Israeli territory to produce 100 megawatts for Gaza’s use.
20 > QATAR TODAY >OCTOBER 2015
I
n a speech at the opening of the conference, HE Al Sada said that the volatile situation in global energy markets along with currently prevailing low oil and gas prices does not encourage producers to invest in the development of the resources that the world needs in the future, a matter which augurs future crises in supply and demand. He expressed Qatar’s readiness to contribute to activate and
intensify constructive dialogue between producers and consumers of energy and work with them in order to stabilize global energy markets for the benefit of all. While pointing out Qatar’s huge investments in this field, he also mentioned environmental projects like JBOG which reduce emissions during gas recovery. The Minister met on the sidelines of the conference with a number of Japanese officials.
Iran to match Qatar’s LNG output Iran’s Oil Minister Bijan Namdar Zanganeh informed the public on live television that all but one of 25 phases of the South Pars gas field will be completed by the end of the next Iranian year in March 2017.
T
he remaining one would be finished in a year or so afterward, he said. He also recounted that after getting four new phases on stream before March 2015, more than 4.23 billion cubic feet were added to the daily production capacity of gas in Iran. The minister noted that while Iran has harvested less gas than Qatar, with
which it shares the South Pars gas field, Iran would match the same daily production rate of Qatar in the next two years.
business > realty check “The world of retail is changing considerably; however, mega malls still can play a central role in the urban communities, and mega mall operators must expand their horizons of what a mall can be. They must envision themselves no longer as real estate brokers, but instead as retailtainers.” RONY MOURANI General Manager, Mall of Qatar.
Where are the bold investors?
Bidding for your space
As global stock markets have been showing uncertainty, real estate investors in Qatar seem to have lost their appetite for risk, according to property expert, Ahmed Al Orouqi, General Manager of Roots Real Estate Company.
“I
think Qatar’s booming real estate market has been affected a little due to what has been going on in China and elsewhere in the world,” said Al Orouqi, adding that it was natural for the otherwise “brave and confident” real estate Qatari investors to have been a little subdued by global activities. Real estate transactions in the last week of August showed a total value of less than QR 595 million, whereas the weekly transactions usually average QR 1billion. However, Al Orouqi stressed that confidence was high and that investors in Qatar have tremendous faith in the real estate market. House rents are stable, since new housing stocks were not coming on the market, he pointed out.
United Development Company (UDC), the master developer of The Pearl-Qatar (TPQ) successfully concluded its first limited auction offering of nine Qanat Quartier townhouses, according to a statement.
T
hrough the envelope bidding method, UDC auctioned some of the finest and most luxurious townhouses in the Venice-like community of Qanat Quartier. In what was considered to be a very competitive process with a set minimum opening price of QR25,000 ($6,865) per square meter, a number of bids exceeded this amount, consequently setting a new benchmark for future sale rates at TPQ, where further real estate investment opportunities are expected to be offered in the fourth quarter this year in what is expected to impact UDC’s outlook and further its growth for the current financial year and beyond.
QATARI ACQUISITION IN ROME Starwood Hotels & Resorts Worldwide has sold The Westin Excelsior Rome to Katara Hospitality for $251 million. The historic hotel will be renovated in the next five years, including a top-to-bottom transformation of all guestrooms, as well as upgrades to the hotel’s public areas, and continues to be operated by Starwood Hotels & Resorts under a new long-term management agreement. Sheikh Nawaf bin Jassim bin Jabor Al Thani, Chairman of Katara Hospitality, signed the agreement for the new property with Michael Wale, President - Europe, Africa, and Middle East Starwood Hotels & Resorts. The signing ceremony was held at The Westin Excelsior Rome and was attended by Hamad Abdulla Al Mulla, Chief Executive Officer of Katara Hospitality; Simon Turner, President, Global Development at Starwood Hotels & Resorts; Robert Koren, VP Regional Director Southern Europe at Starwood Hotels & Resorts; and Abdulaziz bin Ahmad Al Malki Al Jehani, Qatar’s Ambassador to Italy.
22 > QATAR TODAY >OCTOBER 2015
WORK ON QATAR RAIL PROGRESSES CLOSE TO HALF OF THE
113 21
KILOMETER-LONG TUNNELING WORK FOR DOHA METRO COMPLETED WITH
TUNNEL BORING MACHINES.
ABDULLA ABDULAZIZ AL SUBAIE, QATAR RAIL MANAGING DIRECTOR, SAID THE PROJECT IS ADVANCING ACCORDING TO SCHEDULE WITH
QR60
BILLION WORTH OF CONTRACTS AWARDED TO NINE JOINT VENTURES.
affairs > arab snippets
24 > QATAR TODAY >OCTOBER 2015
H O LY S I T E
Muslim pilgrims circle counterclockwise Islam's holiest shrine, the Kaaba, at the Grand Mosque in the Saudi holy city of Mecca, late on September 21. The annual hajj pilgrimage, which began on September 22, has been marred by a twin tragedy this year. A huge crane collapsed on this very site on September 11, crashing through the roof of the iconic mosque that surrounds the Kaaba and killing 117 people. Officials say previously predicted high winds, heavy rain and thunderstorms were responsible for the incident. On September 24, a stampede in the tent city of Mina resulted in the deaths of 769 pilgrims who were on their way to perform the "Stoning of the Devil" ritual. This is the worst tragedy at Mecca since 1990. AFP PHOTO / MOHAMMED AL-SHAIKH QATAR TODAY > OCTOBER 2015 > 25
business > viewpoint
No chill in the cooling industry The district cooling industry in Qatar is looking to build on several years of robust growth with a wave of fresh investment.
D
istrict cooling entails the production and circulation of chilled water to multiple buildings through a network of insulated underground pipes. Water is pumped from a central cooling plant to building connections, known as energy transfer stations, which is then used by the building’s climate control system to lower temperatures. Regarded as more energy efficient than conventional air conditioning, district cooling has become a key component of the state’s drive to reduce energy consumption in line with Qatar National Vision (QNV) 2030, the country’s strategic development plan. Growth market The industry’s cooling capacity - measured in tonnes of refrigeration (TR) – has expanded significantly in recent years, rising from 25,700 TR in 2007 to around 485,000 TR last year, according to the Qatar General Electricity & Water Corporation (KAHRAMAA). The sector’s rapid expansion is due in part to the fact that district cooling is a relative newcomer to Qatar.
26 > QATAR TODAY >OCTOBER 2015
The country’s largest operator, Qatar Cool, was established in 2003 and now operates three plants with a combined capacity of 197,000 TR. Two of its facilities serve the West Bay district, producing a combined 67,000 TR, while the third, which caters to The Pearl-Qatar district, has a capacity of 130,000 TR, making it the largest plant of its kind in the world. Additionally, the company is building a fourth plant, also located in the West Bay district, which is expected to add another 40,000 TR of cooling capacity upon completion. “Due to the increased demand we have seen in West Bay, we are constructing our third plant in the same district, with the first phase expected to be completed early next year and full completion of the plant scheduled for the end of 2016,” Yasser Salah Al Jaidah, CEO of Qatar Cool, told OBG. A second operator, Marafeq Qatar, entered the market in 2012 and now runs a 5,000-TR plant in Lusail City, with the facility expected to increase its capacity to 300,000 TR by 2022. The company also operates a 37,000-TR capacity plant that will serve the 6,000 units of the Barwa City development north of Doha, scheduled for completion later this year.
On the rise Other key sites across the country, including the newly opened Hamad International Airport, operate their own district cooling systems. For its part, the Msheireb Downtown Doha project switched on the first of two plants last year, which will have a combined capacity of 29,250 TR once fully operational. Despite the rising popularity of district cooling, the industry’s capital-intensive nature can present challenges for operators. Contracts are generally 20 years in length, with cost savings projected over the long term. “The capital costs for district cooling are extremely high,” Al Jaidah told OBG. With the comparatively recent introduction of district cooling technology, the regulatory management of the sector may continue to evolve. There are some concerns that having district cooling mandates and/or exclusivity in certain areas could reduce cooling capacity and increase costs, with government ownership of the network seen as an alternative. The government acting as a single buyer could help to overcome legacy issues in the industry, and benefit both producers and consumers in the form of tariff stability and controls. Thinking green District cooling continues to play a significant role in achieving the energy goals laid out in QNV 2030. The plan’s fourth pillar, which covers environmental development, targets the adoption of more environmentally friendly technology. According to figures from KAHRAMAA, for 1 TR hour, district cooling consumes around 0.9 KWh, significantly less than the 1.7 KWh used by air-cooled chillers and the 2 KWh needed for window units. The carbon dioxide emissions from district cooling are also about 50% lower. Energy efficiency is particularly important in the Gulf, where air conditioning accounts for significant seasonal consumption.
“In our region, where temperatures are very high in the summer months, air conditioning accounts for 70% of the total electricity consumption,” Al Jaidah told OBG. “District cooling helps save 4060% of the energy used by conventional cooling systems, such as air-cooled chillers, packaged units, ducted split units, split units and window air conditioners.”
BY OLIVER CORNOCK Regional Editor Oxford Business Group
Water matters While the energy savings from district cooling are significant, it uses much more water than conventional air conditioning – as much as 50-80% more, according to KAHRAMAA. This places a heavy burden on Qatar’s potable water resources, which are already derived entirely from desalination. To address issues like this and implement a governing framework for the growing industry, KAHRAMAA established a District Cooling Services department in May 2012, which is charged with regulating the industry, issuing licences and ensuring compliance with national policy. In 2013 a ministerial directive was issued banning the use of potable water for cooling, requiring plants to submit plans for switching to treated sewage effluent (TSE) in a bid to save on Qatar’s limited desalinated water resources. TSE is seen as an environmentally friendly alternative, with its overall usage per TR identical to potable water. At present, as much as 40-60% of the region’s TSE is discharged into the sea, according to engineering consultancy ARCADIS. The directive, which took effect in January last year, obliges all new plants to connect to TSE networks where possible or prepare for integration where systems are not yet in place. This government initiative has been largely accepted by the industry thus far. For example, Qatar Cool has prepared its West Bay plants for conversion to TSE and is working with the government to secure the necessary volumes QATAR TODAY > OCTOBER 2015 > 27
oil & gas > viewpoint
Iran sweetens the deal
Iran will try to attract international oil companies back with promises of riches under a new petroleum contract.
28 > QATAR TODAY >OCTOBER 2015
T
he need for Iran to invest in its oil and gas sector to maintain and boost output is obvious. In a bid to create an environment more conducive to attracting foreign investment, the oil ministry has started working on a new contract model, which will be unveiled in London in December, for international companies seeking to become involved in domestic oil field developments. The terms of the new Iran Petroleum Contract (IPC), as it has been called, have been leaking out in recent months to whet the appetite of potential investors. It is set to replace the traditional buyback scheme, which was first introduced in the 1990s in an attempt to bridge the gap between the country’s need to attract foreign oil and gas companies, and a ban on private and foreign ownership of natural resources under the Islamic Republic’s constitution. The scope of Iran’s buyback contracts
covers both field exploration and development. They are essentially risk service contracts, under which the contractor is paid back by being allocated a portion of the hydrocarbons produced as a result of providing services. The payback period tends to be short, ranging between five and seven years, after which a developed field will be handed over to the National Iranian Oil Company (NIOC). Buyback schemes are based upon a defined scope of work, a capital cost ceiling, a fixed remuneration fee and a defined cost recovery period. Although Iran has updated the buyback model twice since it was first introduced, the contracts have been widely unpopular with international oil companies (IOCs) due to their inflexibility and limited returns. The IOCs have in the past expressed their concerns about the buyback model as being prone to huge potential losses because it didn’t include many options to put a ceiling
on its capital costs. Additionally, the way that the contracts are structured means that at the time of signing, long-term predefined operating targets are set that do not take account of prevailing market conditions, new drilling plans, reserve estimates, financing costs, etc. The new IPC is expected to do away with many of these criticisms as it varies markedly from the existing buyback schemes in that it proposes the establishment of a joint venture between NIOC (or one of its subsidiaries) and a foreign partner for field exploration, appraisal, development and – for the first time since 1979 – production. There will also be a provision for the IPC to extend into enhanced oil recovery (EOR) phases. According to the US Energy Information Agency, “this modification aims to rectify issues with field decline rates by including the IOC in the production and recovery phases, while optimizing technology and knowledge transfers.” Unlike the short nature of the buybacks, the IPC model will offer extended contract duration of 20-25 years, allowing for much longer cost recovery after first production. On top of this, there will be a risk-reward element linked to the complexity of fields that pays companies higher fees for ‘very high risk’ on- and offshore fields compared with ‘low-risk’ onshore fields. The IPC is also designed to take advantage of foreign companies’ marketing expertise and give Iran access to their supply network to find an export market, in particular at a time when the Islamic Republic has lost some market share. While IOCs won’t be able to book oil and gas reserves on their balance sheet under Iranian law, it is understood that the IPC will make some provisions allowing investors to incorporate revenues generated from Iranian oil and gas resources in their financial reporting,
which for stock market-listed companies in particular would be an important incentive when mulling involvement in the country. Other significant amendments versus the buyback model include an ‘annual work programme and budget’ to be approved by a joint venture development committee (JDC) made up of officials from the partner companies. This is an important change as the fixed-cost approach under the buyback model meant that cost for projects going above budget couldn’t be recovered, thus eroding profitability. Overall, the increased flexibility and improved terms offered under the IPC will provide some incentive for foreign investors to consider a return to Iran’s oil and gas sector if and when sanctions are lifted. However, challenges remain. Continental Energy’s Shoar says, among other issues, IOCs may be concerned over too much interference in operations by the local joint-venture party, in particular when the foreign partner shoulders all project-related risk. There can be little doubt that interest among international firms in developing Iran’s hydrocarbon resources postsanctions is enormous. A reopening of the country’s energy sector would likely lead to a bonanza for oil companies not seen since the opening of Iraq in the postSaddam Hussein era. The difference would be that the Islamic Republic in many ways is a safer bet than Iraq given its politically stable environment and more diversified economy. To be sure, the risks and challenges associated with becoming involved in Iran’s energy sector would still be large - but likely to offer sufficient upside to attract international interest. In some way, Iran’s new contract model resembles the one that has been successfully applied by the Kurdish Regional Government (KRG) in neighbouring Iraq
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 > OCTOBER 2015 > 29
oil & gas > viewpoint
Conducting business in post-sanctions Tehran
T
MEED’s Oil and Gas Editor and co-author of MEED Insight’s Opportunity Iran 2015 report, Mark Watts, provides a preview of the challenges and opportunities of doing business in the new, sanction-free Iran.
IRAN OIL PRODUCTION*, 2003-14 (thousand barrels a day) 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2003 2004 2005 2006 2007 2008 2009 2010 *Includes NGLs. Source: BP 30 > QATAR TODAY >OCTOBER 2015
2011
2012
2013
2014
he expected reemergence of Iran as an economic force in the region has come at a difficult time for the Middle East’s oil and gas industry. Global crude prices have dropped by over 50% in the last twelve months and the projected recovery has failed to take shape as Brent continues to trade below $50 a barrel. Investors and contractors in the Middle East oil and gas sector look to the suspension of sanctions as a source of further downward pressure on oil prices, but also an opportunity as one of the world’s resource powerhouses opens for business. Iran is estimated to have the fourth-biggest oil reserves and the largest gas reserves in the world, but years of isolation from the global market have left its hydrocarbons sector in dire need of modernisation. Along with Iraq, the country represents the biggest frontier sector in the world for conventional upstream production and, unlike the former, has a relatively stable political environment and an experienced domestic industry. The lifting of UN, US and EU sanctions against Iran will create new opportunities for oil and gas companies operating in the Middle East but it will not be without its risks. Overseas companies have largely been locked out of the Iranian oil and gas sector for several years and many will be wary of investing without reliable connections and knowledge of the complex Iranian oil and gas industry, which is dominated by the state-owned Iranian National Oil Company (NIOC) and its many subsidiaries. Although domestic companies have been able to keep the wheels turning since the exit of international companies (IOCs) such as Shell, Total and ENI along with overseas engineering, procurement and construction (EPC) groups, Iran now needs investment as well as technological expertise to modernise and expand its facilities. US-based IOCs have on the whole been hesitant to suggest an intent to return – perhaps given
the political divisiveness of the Iran deal in Washington – but companies based in Europe and East Asia have been more open in their ambition to enter the market. The initial lifting of sanctions will be an immediate upturn in Iranian crude production and exports as legal barriers against shipments are lifted. Iranian officials have estimated the country’s ability to lift production by 1 million barrels a day (b/d) within a year of sanctions relief, but analysts have been more cautious, and a consensus of about 400,000 b/d within 12 months has emerged. This will place further downward pressure on an oversupplied global crude market, which already has the jitters from signs of a slowdown in the Chinese economy. In this sense, the revival of exports from Iran could have a negative impact on investment prospects in the GCC oil and gas sector. Contractors have expressed worries of a slowdown in spending on new projects and governments in the six-country bloc have tightened their purse strings in order to balance national budgets. On the other hand, the opening up of the Iranian market presents opportunities for companies based in the GCC that are willing to take risks. Uncompleted upstream projects in Iran – whether ongoing, delayed or on hold – represent almost 1.2 million b/d of new crude capacity, according to Opportunity Iran, a new 200-plus page report by Middle East business intelligence service MEED. Ongoing developments on onshore fields including Azadegan, Yadaravan, Azar and Jofeir could be prioritised by NIOC and could represent early opportunities for IOCs to re-enter the country, while gas fields such as North Pars, Golshan and Ferdowsi are planned to be put up for investment. Crude production fell to a 22-year low in 2013 before a slight recovery last year. Even
the country’s modern peak production - 4.4 million b/d in 2008 - pales in comparison with the 5-6 million b/d that Iran was reaching in its heyday in the 1970s. But Iran has the resources to push back towards these volumes if it is able to attract the right investment and know-how. NIOC also has several uncompleted phases at its 24-phase South Pars offshore gas development. The total cost of investment in South Pars – a field that Iran shares with Qatar where it is called the North Field – is expected to exceed $100 billion. While Qatar has utilised its offshore gas assets to become a global leader in liquefied natural gas (LNG) exports, Iran has failed to replicate due to its inability to procure liquefaction technology. Iran’s LNG export facilities never got off the ground after IOCs such as Total and Petronas exited the project in 2010 but will now be reconsidered as a way of exporting Iran’s rapidly increasing gas supplies after sanctions are lifted. The UN’s procedure to lift sanctions is expected to coincide roughly with the Iranian Petroleum Ministry’s launch of a new model, the Iranian Petroleum Contract (IPC) to help attract overseas companies to work in its oil fields. The success of this model will be the key to attracting overseas investment in Iran’s oil sector, something NIOC has struggled with in the past – even before sanctions intensified – due to the unpopularity of the buy-back contracts. Iran is set to reveal the terms of the IPC at a conference in London in mid-December that could kick-start investment. Oil companies and contractors in the region are cautiously optimistic about Iran emerging as a major growth market. The opportunity comes at a crucial time when nervousness is creeping in about prospects in countries that have driven investment over recent years such as Saudi Arabia, Iraq and the UAE
BY MARK WATTS Oil and Gas Editor, MEED; and co-author of MEED Insight’s Opportunity Iran 2015
ABOUT THE OPPORTUNITY IRAN 2015 REPORT “Opportunity Iran 2015”, the new intelligence report by MEED Insight, offers a comprehensive assessment of the business landscape for companies looking to understand the opportunities and risks of entering the Iranian market. The report provides a detailed overview of the Iranian market with data and analysis on government, economy, policies, infrastructure needs, client bodies, projects and opportunities, contractors, challenges, key contacts and project drivers for those considering the Iran opportunity. QATAR TODAY > OCTOBER 2015 > 31
affairs > world view
D I S P L AC E D
People stand at a site dubbed the "New Jungle", where some 3,000 people have set up camp – most seeking desperately to get to England – in Calais on September 21. The slum-like migrant camp sprang up after the closure of the notorious Red Cross camp Sangatte in 2002, which had become overcrowded and prone to violent riots. However, migrants and refugees have kept coming and the "New Jungle" has swelled along with the numbers of those making often deadly attempts to smuggle themselves across the English Channel. AFP PHOTO / PHILIPPE HUGUEN 32 > QATAR TODAY >OCTOBER 2015
QATAR TODAY > OCTOBER 2015 > 33
business > listening post
SERVING
INDIAN HOS FROM QATAR
34 > QATAR TODAY >OCTOBER 2015
PITALITY
Aiana Hotels & Resorts, an Indian hospitality brand to cater to the Middle Eastern (and later even Indian and South Asian) palettes, was created by the combined passion of two great legacies in hospitality: Sheikh Faisal bin Qassim Al Thani from Qatar and Amruda Nair, the granddaughter of Captain Krishnan Nair of the Leela brand in India. What are the odds stacked against this hospitality venture in a country that needs more in this sector, asks Sindhu Nair.
B
ring up the name of Leela Properties and it evokes sentiments of entrepreneurship, leadership and the rags-toriches story of its owner, the late Captain CP Krishnan Nair, founder of The Leela Hotel Group; a man who has inspired numerous startups in the Indian hospitality segment. Hence when word gets around that the granddaughter of this entrepreneur is continuing family traditions and making a foray into the hospitality segment in Doha, it makes us want to know more. Amruda Nair is not just a thirdgeneration hotelier, she has been actively involved in business development and project feasibility studies as the Head Asset Management for the Leela Palaces, Hotels & Resorts where she conducted performance reviews for the group’s eight operating properties and reviewed preopening budgets for upcoming projects. This young, engaging woman has all the right credentials but what makes her stand out is her ability to put dreams into actions. Using personal ties, building on relationships and then seeing beyond them to identify a market for an unidentified niche in Indian hospitality, Nair seems to be continuing the legacy of the family, albeit on different turf. What began as a family gathering with Captain Nair and his family entertaining guests from another country, HE Sheikh Faisal bin Qassim Al Thani, Chairman of
Al Sawari Holding and Qatari Business Association, became the harbinger of many more brainstorming sessions that paved way for further associations. Sheikh Faisal seemed to be interested in Nair’s proposal of “starting an Indian hospitality brand in the Middle East”, and that was when tea time conversations turned into business development planning. Right from the concept to the branding and the logo, this venture was finalised through various such informal gatherings with family, with Sheikh Faisal’s daughter getting equally involved in the progression of the venture, Nair reveals. But there was a difference; there is intent and an eye for detail that seems to be prevalent in the seemingly casual talks. Check out Aiana’s website and you’ll see that the brand ethos right down to the interior look and feel has been visualised and is now slowly being put into action. How did Qatar figure in the plan for an entrepreneur who could start within her comfort zone in India, given her family connections? Nair doesn’t view her entrepreneurial foray into an unknown market as stepping away from the family; rather her whole family is rallying around her in Doha now to help or mentor her in this new venture. So finally it was decided: the new joint venture company, registered under the Qatar Financial Centre is Aiana Hotels & Resorts LLC, a hospitality brand whose aim is to be a leading operator of upscale QATAR TODAY > OCTOBER 2015 > 35
business > listening post
THE HIGHS AND LOWS OF BEING AN ENTREPRENEUR
WORK NEVER ENDS; IT BECOMES PART OF YOUR LIFE. BEING AN ENTREPRENEUR IS LIVING YOUR LIFE FOR A PASSION YOU HOLD DEAR.
LESSONS FROM THE LEGACY
NOTHING IS IMPOSSIBLE. ALWAYS HAVE A VISION TO AIM FOR. A RISK-TAKER BY NATURE, THE LATE CAPTAIN NAIR TAUGHT HIS GRANDDAUGHTER THAT HAVING A STRONG SELF-BELIEF IS VITAL FOR ANY VENTURE UNDERTAKEN. REMEMBERING THE FIVE YEARS SHE SPENT WITH THE FAMILY BUSINESS DURING A GREAT GROWTH PHASE AND SPECIFICALLY THE TIME SPENT WITH HER GRANDFATHER, SHE SAYS THAT,
“THE BIGGEST CHALLENGE WAS KEEPING UP WITH HIS ENERGY.”
36 > QATAR TODAY >OCTOBER 2015
hotels, resorts and serviced apartments in the Middle East, Indian Sub-Continent and South East Asia, with Sheikh Faisal as the Qatari partner. “Aiana has two meanings: eternal blossom in Sanskrit and a place of refuge or retreat. This has a connect to hospitality,” says Nair. “The two powerful and evocative images represented as the universal symbol of the mandala in the brand logo come together to represent the unique experience of Aiana.” While the company has already commenced acquiring properties in India, a service apartment complex in the West Bay will be the first completed project. Nair strongly believes that the service apartment segment will work well in the country, given the floating population it welcomes. Being the first Indian brand targeted for tomorrow’s travellers, Aiana’s USP will be its Indian restaurants and the service ethos that is typical of the Indian culture. The Middle East is not Aiana's only country of operation; Nair has worked on a concept that is “universal, yet with a strong
Indian soul,” as the connection between these two regions has been forged ages back when trade relations were much stronger between the Middle East and India. “Aiana is different from the current hospitality luxury players in terms of positioning and signature elements. It is more approachable and the idea is to be able to cater to the upscale segment. It is the entry-level five-star which makes it much more accessible. It’s the kind of place that you can go to without waiting for a special occasion or plan extensively for that muchneeded respite. The appeal is to a younger audience; hence the offerings will be much more experiential, local and activity-based. It is different from what is being offered to an Indian audience too,” explains Nair. “Our distinction will lie in the unique, location-specific, interest-led itineraries that foster connectivity and bonding. This is particularly relevant in our resort destinations that cater to multi-generation family and group travel,” she says. The planning for Aiana started long ago as Nair wanted to have all the boxes ticked before she embarked on a venture. “We might not be so focused on getting the numbers but we will make sure that what we do is sustainable. The infrastructure that we are building is for the long term. Both Sheikh Faisal and I are in this to continue our legacy in hospitality and realestate,” says Nair. Seven hotels in the next five years is Aiana’s plan, with announcements to be made on the properties in South India in 2016. “Phase I will be focused on India and the Middle East while in Phase II we will be venturing out to South East Asia; Thailand, Maldives, Sri Lanka and Singapore. A fourhour flying time radius from the Middle East or India was the intention,” says Nair. Everything down to a five-year and a tenyear plan in place with a clear strategy and positioning, Nair seems to be guided by her legacy in hospitality.
The numbers do matter Nair has had a fascinating phase in her career, when she worked with the corporate advisory team and acted as an Owner’s Representative for a fund, managing three trading assets in Singapore and Shanghai for three different properties. As a consultant she conducted pre-opening budget reviews, management contract negotiations and mystery guest audits for hotels in Bali, Bangkok, Hong Kong and Beijing. “Asset management in the hotel management industry is all about benchmarking. It gave me a lot of data in terms of operational statistics to work with. Since I was working in three different assets in three different countries, I was able to get insights into how different brands operate in different countries,” she says. “Benchmarking – whether it was against industry, against competition or historical figures – is all about analysis and understanding where the variance comes from. It gave me an insight into various operations within the asset,” she adds. “The market conditions were so different in each of these countries that the response of each brand was different in such diverse conditions.” It also taught Nair that anything that cannot be benchmarked is not to be counted. More than the brand ethos, what worked for each of the hospitality names were the people working for each brand. “That brings us to the biggest challenge in the sector in Asia right now,” she says, “finding
the right human capital and keeping them.” With her role as a working partner inside the hospitality sector and as a financial advisor outside it, Nair had a bird’s eye perspective that also taught her that not all decisions are based on numbers but one should know the numbers to make an insightful decision. Using her expertise and after scrutinising Qatar’s Tourism Plan, Nair has also made her own notes to help chart her course in the sector. “The 2030 tourism plan from Qatar Tourism Authority seems to have approached the sector quite intelligently; the matrix caters to all segments, the high-end and the mid-to-low category of hospitality providers. The strategy is well diversified and many programmes are linked back to tourism projects. A strong corporate base with a million leisure outlets across cultural, health, wellness and sports is the outlook planned. A lot of infrastructure is also coming along to support the strategy, preempting the need. There is a lot of potential in the natural landscape, and it is all being put to use.” According to Nair, there is a lot of scope for wellness facilities, especially during the long weekends in Doha, and that is going to be one of Aiana’s strongholds when it commences. “A modern interpretation of Ayurveda that keeps the guiding principles the same but presents it in a modern way so that those who are not exposed to the old methods feel equally comfortable with this.”
AIANA PLANS
The five-year plan for Aiana Hotels & Resorts will commence with a service apartment venture in the West Bay of Doha, followed by a few announcements next quarter about properties in South India. Over the next five years, Aiana plans to open seven new hotel properties in India and in South East Asia.
QATAR TODAY > OCTOBER 2015 > 37
Cover Story Working in a
Vacuum
For a country of its size and political structure, Qatar hosts a surprisingly large number of think tanks and research institutes whose work holds important policy implications. But in the absence of a meaningful civil society, how effectively is the prodigious output of these organisations being used, if at all? Qatar Today meets some prominent researchers in Qatar to ask one simple question – is the government listening to them? BY AYSWARYA MURTHY
38 > QATAR TODAY >OCTOBER 2015
Cover Story Working in a
Vacuum
Q
atar has envisioned an ambitious future for itself – a thriving knowledge economy that is at the forefront of scientific, economic and political ideas; a hub of diplomacy and foreign policy; an oasis of stability; a locus of innovation and the voice of reason in a beleaguered region. Lofty goals that demand thought and implementation. But is something missing from that crucial ecosystem that constitutes academic research, think tanks and government? With the academic year starting and the country shaking off the dust of the Eid downtime, invitations for several public lectures and seminars are starting to trickle in. As the sun goes down, intellectuals and curious general public gather at the halls in Education City, Qatar University, Diplomatic Club, five-star hotels and nondescript little villas to inform and engage on a broad range of political, social and economic issues – Islamic finance and crowd funding, tensions between Iran and Saudi Arabia, the ecological shadow of the Gulf, Lebanon's domestic crisis, Islamic ethics concerning migrants and refugees, foreign manipulation of Gulf stock markets. It’s a cerebral delight, the discovery and immersion into this world, and when you go to enough of these events, you’ll discover a thread of commonality, irrespective of location and subject – the public discourse ends when the microphone goes silent. Hashtags are retired and the chatter dies down. Does the dialogue end there? The missing link Ideally, no. Zahra Babar is currently the Associate Director for Research at the Center for International and Regional Studies (CIRS). Over the past few years, she and her team
have produced scholarly work on a range of issues – nuclear politics, food security, migration, sectarian politics, political economy of the Gulf, innovation in Islam, social change in post-Khomeini Iran, changes in the Gulf family, social currents in the Maghreb, China and the Middle East and more - as evidenced by the row of hardcover books and anthologies that sit on her shelf; each the end-product of several months of work gathering empirical data and providing in-depth, nuanced and critical understanding of the subject matter. Technically, the academic’s job is done. The work itself is supposed to take on new life as it travels through the conduit of civil society into the hands of policymakers. That is the gap that is hard to fill in this region. “The way it would work usually is that after academic research produces this knowledge, intermediaries like NGOs, advocacy groups, journalists and think tanks would use this information to create platforms of advocacy for change and ensure the message gets to policymakers and governance bodies. And it is this group of actors and stakeholders - a lovely, broad, overused word called 'civil society' – that are very absent in the Gulf,” says Babar. She explains with an example of how anti-smoking legislation came to be enacted in the West. “Researchers came up with scientific knowledge on how smoking is severely bad for your health. But those scientists in their laboratories didn’t take those deep academic papers and march to the ministries of health and legislatures. It was other civil society groups who took this knowledge, made it into a social issue and pressed their politicians and governments into action on implementing various smoking deterrents.” When this crucial mechanism doesn’t exist or isn’t as efficacious, the knowledge ends up in limbo and governments, which are traditionally not known
The culture of think tanks isn’t very well established in the region and is seen as a Western tradition. We need to encourage healthy connections between think tanks and policymakers and make sure governments see these institutions as beneficial, rather than looking at them with suspicion. Dr Ezzeddine Abdelmoula Research Manager Al Jazeera Center for Studies
QATAR TODAY > OCTOBER 2015 > 39
Cover Story Working in a
Vacuum
for being proactive, are happy to maintain the status quo. Change remains theoretical. According to Dr Marwan Kabalan, this is a common complaint. He heads the Policy Analysis Unit at Doha-based Arab Center for Research and Policy Studies (ACRPS) which, with two branches in Beirut and Tunis, has a pan-Arab focus. “Research institutions and think tanks all over the world always emphasise that there are not enough avenues with policymakers to convey the findings of their research and recommendations,” he says. “In the Arab world this problem is even more intensified due to the lack of a tradition of independent research centres and the lack of democratic institutions and political liberalisation.” But the absence of democratic systems doesn’t doom this process of transferring knowledge into policy and action. Vibrant civil societies have managed to thrive and be powerful actors in many countries with fractured democracies or complicated political systems. Having one doesn’t assure the other. “We need to understand that societies have ways of governing themselves,” says Dr Abdullah Baabood, Director of the Gulf Studies Program at Qatar University. “In the
Some, by the nature of their associations, are more successful than others. A case in point is the Al Jazeera Center for Studies (AJCS) whose research is managed by Dr Ezzeddine Abdelmoula. Funded by and serving as the research leg of the Al Jazeera Network, AJCS blurs the line between journalism and research. “We complement what the network is doing by providing them with context and in-depth analysis of geopolitical issues, in a form they can use while they operate in the newsroom,” he says. In return, the centre benefits from the network’s international bureaus, their contacts and, also more interestingly, their viewers. “We use the network to share our research and analysis with the public. All our events, like talks and conferences, are broadcast live over AJ Mubasher and we encourage interactions during the events through social media.” In fact, online engagement seems to be the most tangible measure of effectiveness for these organisations, considering the inherent difficulty in judging and quantifying the success of their work. Dr Abdelmoula says they closely monitor interactions on their website and various social media channels and we are not surprised when he says
Our recommendations are based on empirical results of a survey. We say, if you trust the survey methodology, these are the implications of the results from a policy perspective. It’s not our personal point of view and we are not advocating a particular approach to policy. Dr Justin Gengler Research Program Manager Social and Economic Survey Research Institute
Gulf we have developed our own way of governance through traditional tribal systems and royal families. They have understood that they have to develop these systems with time, especially when the young, educated population demands liberalisation and reform. And this is happening with the establishment of efficient governance through municipal and Shura councils.” This is why public engagement is important and not as futile as it seems at first glance. “Reform should not be a top-down approach. You want to build this culture of liberal governance? It can only be achieved by everybody believing in it and working towards it. Ultimately the more educated the public is on these issues, the more efficient they become in articulating their demands and engaging with the government,” Dr Baabood says. An educated public All the research institutes and think tanks (hereafter collectively referred to as “research institutes” for ease) we have spoken to are keen on holding a dialogue with the public.
40 > QATAR TODAY >OCTOBER 2015
that they fare better in this regard than any other regional research institute. Dr Kabalan also factors in readership of their website along with other dimensions like “the increasing number of submissions by Arab researchers and academics to our publications and conferences, references and citations to our work in the media” to get a better picture of their influence. In the absence of structural relationships with civil society organisations in the country or region, these regular discussions, whether public or behind closed doors, and publications are important in disseminating knowledge to individuals, experts and organisations which can, in turn, influence the respective bodies in their capacity. “For the ACRPS, our approach is to widely publish our work and findings, hoping that this would influence the debate on policymaking in the Arab world, especially in issues related to economic development and democratic transition. In addition we make great efforts at our conferences to invite a range of actors and stakeholders, including policymakers,
diplomats, journalists, and activists in order to provide the space for them to interact and exchange knowledge with academics,” Dr Kabalan says. On the other side of the spectrum are centres like the Social and Economic Survey Research Institute (SESRI), with targeted diffusion of analysis and results. They have been conducting surveys and publishing results since 2010, but with the establishment of their in-house policy unit, their work takes a rather interesting turn. Much of their previous surveys have been commissioned by government bodies and they work directly under the office of Qatar University’s Director for Research. All these factors help in favouring positioning SESRI with the government’s decision makers. Dr Justin Gengler is Research Program Manager at SESRI and heads a five-member team of policy analysts. He says, “When we held an event to discuss the findings of the surveys we conducted on the recent local municipal elections, we were able to bring together policymakers from the Ministry of Interior including the officials directly incharge of the elections, the vice president of the Central Municipal Council, council members and members of the general
to gauge. Dr Baabood says, “It is expected that policymakers and advisers will read and communicate with research institutes about their thinking on certain issues. An enlightened decision maker should be able to see all sides of the story and even if the ideas put forth by a certain academic paper are ultimately not accepted, it should ideally be factored in the decision. While there is continued input from our side, it is not easy to measure the impact of our work in helping shape policy.” Considering their expertise in geopolitical issues, AJCS researchers are actively involved with Qatar’s diplomatic corps and work closely with the Diplomatic Institute at the Ministry of Foreign Affairs, training them and briefing them on certain developments in the region. These kinds of relationships aside, Dr Abdelmoula says it’d be hard to find more than a dozen good institutions in the whole Arab region that are able to influence policymakers. “The numbers of such institutes are very limited. And also the culture of think tanks isn’t very well established in the region and is seen as a Western tradition. We need to encourage healthy connections between think tanks and policymakers and make sure
Our food security project had definite policy relevance and we had a meaningful interaction with the Qatar National Food Security Project, which was launched at the same time as our project. Its chairman, Fahad Al Attiyah, was very involved with our work and we learned a lot from each other through constant dialogue. Zahra Babar Associate Director for Research Center for International and Regional Studies
public.” It was a unique and rare opportunity to talk about Qatari nationals’ perceptions about the elections in the presence of important stakeholders. One-way traffic? These kinds of interactions with the government seem to be anomalies rather than the norm. It is very difficult to get an idea of the public policy process and we often only get to see the end results but the little we can gather about government bodies’ consultations with research institutes is not very encouraging. For example, we were hard-pressed to find much evidence of the academic and research partners involved in the drafting of Qatar Tourism Authority’s strategy for 2030, despite local capacity in the area. QTA, of course, wouldn’t comment. And while decision makers often outsource policy analysis work to external research institutes, not many among those we spoke to had been similarly pressed into action. Even the effectiveness of this one-way traffic is difficult
governments see these institutions as beneficial, rather than looking at them with suspicion.” The complex nature of alliances between Arab countries and that of pan-regional issues can’t be viewed in isolation, which means that any external body that is seen to be influencing policy is viewed warily. And current events in the region – conflict, the hindrance of democratic transition, sectarian violence – are imposing serious challenges to the efficacy and influence of Arab research centres, according to Dr Kabalan. While CIRS scholars don’t get involved in making policy recommendations, Babar, in a personal capacity, is happy to revisit her roots in public policy, and says it is only natural, when working on topics like migrant labour in the Persian Gulf or food security in the GCC, to be interested in engaging the policy community. But for Babar, her interaction with the government has been “largely extractive”, i.e. she was given access to certain data for her research but it has been a struggle to find venues to share the results with the other side. “I worked with the Ministry of Labour when I QATAR TODAY > OCTOBER 2015 > 41
Cover Story Working in a
Vacuum
was working on a paper on Arab migrants and I was able to get some excellent information. It takes a while to establish a relationship of mutual trust because of the sensitivity of some of this data around migration. This was, of course, before Qatar started coming under intense scrutiny regarding its labour policies, and as a result, understandably, a lot of researchers experienced an information shutdown from the government. It has especially been a challenge in the past couple of years,” she says. On the other hand, Babar also has instances of successful engagements with policy-focused organisations within the government. “Our food security project had definite policy relevance and we had a meaningful interaction with the Qatar National Food Security Project, which was launched at the same time as our project. Its chairman, Fahad Al Attiyah, was very involved with our work and we learned a lot from each other through constant dialogue,” she says. Although it might seem to come in fits and starts, Dr Baabood believes that these relationships are slowly taking root. “Such research institutes are still new to the region but we are seeing more and more being established now,
input into policymaking and also helps neutralise concerns government bodies might be motivated by external influences. “Our recommendations are based on empirical results of a survey. If you trust the survey methodology, these are the implications of the results from a policy perspective. It’s not our personal point of view and we are not advocating a particular approach to policy,” he says. There has also been a shift in Qatar and other Gulf countries on their view of surveys. “A decade ago Gulf states would have thought that survey research that posed sensitive questions would be counterproductive and in the long run create problems by putting ideas in people’s heads. Now surveys are seen as a tool to ensure policymakers have information about what people are thinking and doing, and what drives their behaviours and attitudes,” he says. Curiously, despite the small size of the Qatari population that is famous for its fierce love for privacy, the survey response among Qatari nationals tends to be around 40-60% which is quite high (European survey response rates are in the single digits) and helps capture an even sharper picture of public mood.
Reform should not be a top-down approach. You want to build this culture of liberal governance? It can only be achieved by everybody believing in it and working towards it. Ultimately the more educated the public is on these issues, the more efficient they become in articulating their demands and engaging with the government. Dr Abdullah Baabood Director Gulf Studies Program, Qatar University
increasingly supported by government. The value of knowledge created by these centres has become apparent and so engagement with governments is growing (as well as with the private sector), with public bodies tasking researchers with certain projects/studies and establishing programmes within these centres to tackle particular issues.” There could always be synergy, of course, but he says this will be built over time with improving confidence between the two sides. The new media is helping to establish an environment for think tanks to play a greater role in the region and become recognised as active players, says Dr Kabalan while talking about the steadily growing influence on policymaking. The curious case of SESRI There was always a plan for SESRI to have a policy component that will help translate the academic results into more policy-oriented goals for decision makers, Dr Gengler says. From the perspective of a policy unit, the survey aspect of their work is a slight compensation for the lack of popular
42 > QATAR TODAY >OCTOBER 2015
SESRI is also unique because of its largely domestic focus. Thematically it has worked on several local issues like migration, Kafala, FIFA World Cup, political attitudes, regional security perceptions, education, health, etc – either of its own accord or on behalf of ministries and government institutions. Now, with a newly staffed policy unit, SESRI can begin more systematically to take previous survey results, reanalyse them or combine them with new surveys, to directly inform government programming and policymaking. The SESRI policy unit’s first product is based on the local municipal elections, based on two surveys – the first one done a month before the elections, which touches on awareness, perceptions and involvement, and a follow-up survey done a month after the elections on how the event has changed their views and knowledge of and engagement with the institution. A full report with both survey results and related policy recommendations is currently being prepared. “The recommendations will be made based on the insights gained from the surveys. For example, we found that satis-
faction with the local municipality council matches closely with their views of the political authority of the council and its influence in decision making. And the people’s view towards these elections was related strongly to their views of the planned Shura council elections. So, potentially, dissatisfaction with the local council could influence people’s views of other institutions. Also, in general, political knowledge is low – only 11% were able to respond correctly to general questions about the council and only 8% said they had any interaction with council members other than during election months. And subsequently the policy recommendations are about engaging certain groups of society who have relatively less knowledge and interaction, sustaining coverage of elections and public engagement beyond the few election months. We are also suggesting identifying cases where the council has contributed to the community, either through signs or media coverage, in order to give a clear sense of their role in delivering public services,” he says. Although the survey was not commissioned by the government, Dr Gengler says the reaction to it has been positive. It remains to be seen whether these suggestions will be
portant when you consider some of the contentious issues that centres like ACRPS study – development of Islamic movements; sectarianism; challenges and opportunities of democratic transition; social integration in the region; social justice; conflicts in Syria and Yemen; the Arab-Israeli conflict and Palestine. How can you get the government to trust and work with you when many of the recommendations you make might put you at odds with the state’s stand on the issue? There is no easy fix. One way is to be transparent about funding sources and ensure they don’t compromise on the integrity of the research. “This is an ongoing challenge not just for think tanks, but also for academic, research and education institutions such as ours. Public scrutiny is one avenue towards the accountability of such institutions, though this has yet to be an established tradition in Arab civil society,” Dr Kabalan says. Then there is also the issue of local think tanks. While the region is home to several prestigious international institutes (aimed largely at advising their own governments and their allies), there is a dearth of local ones that can special-
Research institutions and think tanks all over the world always emphasise that there are not enough avenues with policymakers to convey the findings of their research and recommendations. In the Arab world this problem is even more intensified due to the lack of a tradition of independent research centres and the lack of democratic institutions and political liberalisation. Dr Marwan Kabalan Head of the Policy Analysis Unit Arab Center for Research and Policy Studies
implemented. It is not, however, about “keeping a running tab” on successful recommendations. “The one way we aim at being different is to present a strong link between recommendations and implications, bringing together people who are personally involved in those areas of the government. We’d like to be able to consistently convene workshops and events in which policymakers from relevant institutions and researchers and the public can meet and debate the results of findings.” If SESRI can manage to attract public officials and Qatari nationals to the platform – stakeholders who are often conspicuous by their absence in such events – that’s half the battle won right there. Building trust According to Dr Kabalan, the most important dimensions to the efficacy and influence of these think tanks and research centres are their independence and objectivity. “If research centres insist on these issues, there is greater room to succeed and gain legitimacy,” he says. This is even more im-
ise in research “that assumes a perspective emerging from the region and for the benefit of the region’s people. Ultimately, research centres should be for the public benefit,” Dr Kabalan says. Local think tanks, with local expertise, can also be free of some of the Western bias that is inherent in other international centres. Both foreign and local think tanks are equally needed, says Dr Baabood. “In the beginning there wasn’t much local research capacity. Even now, many colleges are just starting with their postgraduate teaching and research. While more indigenous research centres are necessary and are being established, international ones are important because they bring in different dimensions and take on things that can only enrich decision makers and their advisors. Sometimes there are limits on what local think tanks can say and do and this can be complemented by these foreign ones. But ultimately, I am all for building local capacity in research. They know the country, the local sensitivities and societies better.” QATAR TODAY > OCTOBER 2015 > 43
business > bottomline
Nurturing leaders
Is the GCC playing catch-up?
W
hy is only one out of every two senior GCC leaders engaging the workforce? Considering today’s political and socio-economic developments in the Middle East, do GCC organisations have enough leadership energy and skills to drive and sustain business performance and reinforce wider social prosperity? Aon Hewitt says their research and their work with top leaders indicate some areas of concern, but also clear ways to build strong leadership pipelines. “Confidence in leadership” reflects employees’ faith in senior leadership to make the right decisions. It matters a lot and has clear financial implications: A direct consequence is the cost of implementing processes, organisational structures and compliance mechanisms to overcome organisational inertia or non-compliance. In the Middle East, we often see organisation structures with multiple overlapping layers and slow and convoluted processes that require multiple approvals. The consequences are obvious: higher cost, higher frustration, lower engagement and
44 > QATAR TODAY >OCTOBER 2015
lower trust in senior leadership. Where there is lack of confidence in leadership, organisations struggle to get commitment and experience severe resistance. In reality, GCC organisations are struggling to develop the architecture (structure, process, culture, strategy and skills) that would achieve their vision. Managers in these organisations focus on process rather than outcome while employees at every level are not equipped to achieve the change. When confidence in leadership is high, employee engagement is also high. Excellent leadership is, in fact, the top differentiator between the average organisation and Best Employer(tm) organisations, who not only have more engaged employees, but also achieve stronger business results. Positive sales growth and operating margins are observed when leaders are rated highly on their ability to: make good business decisions; provide clear direction and creative excitement about the future; and be visible and accessible
GCC ORGANISATION LEADERS NEED TO UP THEIR GAME
Visionary, trustworthy and ethical organisational leadership is needed; however, our research suggests there could be challenges ahead:
I
Only 44% of employees express positive confidence in their senior leadership. The majority (56%) are skeptical about their leadership’s ability to steer the organisation and achieve success.
2
The level of confidence is much lower
3
among younger and mid-level professionals (tomorrow’s leaders). The lowest level of confidence is amongst 25- to 44-year olds, where confidence is at an average of 42%, leaving 58 out of every 100 employees at best neutral, at worst highly skeptical of current leadership.
Nationals have lower confidence in senior
leadership than expatriates. This applies to all the countries we studied, but varies in its severity. This has several ramifications as many GCC organisations are characterised by employees from different countries, socio-economic groupings and cultural backgrounds.
to employees – providing open and honest communication. A roadmap for nurturing "engaging leaders" in the organisation Aon Hewitt proposes the following for raising leadership engagement and employees’ confidence in leadership:
LEADER, KNOW THYSELF Change starts and ends with individual leaders, so as a leader, ask yourself: How energised, motivated and engaged are you in your job? What drives you? What were your experiences as a leader that made you grow and become engaged? How can you support others in being exposed to similar experiences? What are your beliefs about the role of the leader? What are your beliefs about people and work? How present are you with others? If not you, then who?
DEVELOP YOUR LEADERSHIP TEAM Regularly check your senior leaders’ engagement In order to engage others, leaders must be engaged themselves. And besides the normal drivers of Pay, Recognition and Career Opportunities, senior leaders are also uniquely engaged by their own leaders, the quality of the senior leaders around them, and the people and work processes that enable them to do their jobs. Challenge your leaders through coaching Rather than relying only on ‘leadership development’ training programmes, effective leaders look for stretch assignments for themselves and their leadership teams. Examples we have seen include involving top talent in less familiar challenges, shadowing senior leaders and creating a ‘junior board’ of high potentials to tackle organisational challenges. Future leaders will demonstrate different strengths and gaps, and it is the role of senior leadership to develop the awareness of where they stand on the experiences, beliefs and actions that define engaging leaders. Deal with disengaged leaders Not taking action on disengaged leaders opens up the risk of cascading disengagement and dents employees’ confidence in leaders making the right
business decisions. So in spite of the difficulties this may present, intervene to limit or eliminate the problem.
ALIGN ORGANISATIONAL PRACTICES Review organisational architecture What does your organisational structure and culture say about your leadership approach? Does it reflect a good balance between managing risk and making things happen? Does it promote individual and team performance? Are accountabilities and processes clear? What can be improved to make your organisation a good place to work for your employees and a good service/ product provider for your customers?
BY DR MARKUS WIESNER Chief Executive Officer Aon Hewitt Middle East and Africa
Align HR policies Key areas to review are: selection, rewards, performance management, succession planning and internal mobility (e.g. promotions, transfers). Are these policies addressing your leadership needs or working against you in developing a pipeline of strong and effective leaders? Implement an organisational communication strategy Organisational communication is often carried out haphazardly and many senior leaders find reasons not to communicate regularly and openly. Your approach to organisation communication should consider your organisation’s culture, the communication competence of key leaders and the mechanisms and tools for ongoing communication. It is not just about releasing circulars and undertaking grand campaigns; it needs to be ingrained in the everyday life of the organisation. Embed change management capabilities Organisations that want to thrive need to embed a change-ready mindset in their organisational architecture. Organisations that are committed to effective change are embedding change management capabilities by promoting a culture that is open to change, ensuring that leaders at all levels are provided with support for managing change, and apply change management processes, tools and units. Good leadership has never been easy and senior leaders in the Middle East organisations face increasing complexity and challenge to deliver results. Confidence in leadership is the foundation that all leaders need to attain for their vision to bear fruit
ABOUT AON HEWITT Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aon.com/middle-east
QATAR TODAY > OCTOBER 2015 > 45
investment > tag this
THE NESTING PLAN BY
46 > QATAR TODAY >OCTOBER 2015
V L SRINIVASAN
WHAT SHOULD BE THE ROLE OF SOVEREIGN WEALTH FUNDS IN THE GCC REGION WHEN OIL PRICES ARE FALLING? ARE THEY TAKING PART IN THE ECONOMIC DIVERSIFICATION PROGRAMMES OF THE SIX MEMBER STATES? QATAR TODAY FINDS OUT.
M
ost of the oil economies in the Middle East suffered revenue losses on account of fluctuation in global oil prices in the past as they
continue to do so now. As part of their long-term investment strategies, many countries in the region, including those in the GCC like Qatar, have set up Sovereign Wealth Funds (SWFs) to negate any impact caused by turbulence in global markets and their efforts paid off when the income generated by these funds provided a cushion to absorb the shocks. Following the windfall from hydrocarbon revenues over the years, these countries have diversified their asset portfolios by investing the surplus reserves through
SWFs (said to be more than 10% of the budgets of countries such as Qatar, Kuwait and the UAE), in buying and investing in assets of banks, financial institutions, hedge funds, private equity and other sectors like real estate, agriculture and even retail markets, which resulted in accumulation of more revenues. In fact, the GCC countries have been transformed into financial centres in the last few decades, and put in place some sophisticated financial investment strategies to sustain economic development. The GCC SWFs have accumulated over $2.5 trillion (QR9.1 trillion) at the beginning of 2015, more than a third of SWFs in the world, which has come in handy to absorb the loss of revenues due to oil prices plunging by over 60% since June 2014. In the past, these SWFs were looking at QATAR TODAY > OCTOBER 2015 > 47
investment > tag this
“GCC SWFs are already playing a key role in the economic diversification programmes as their investment focus is typically outside their host country and their creation has led to extensive diversification within GCC economies.” DR ATAF AHMED Head of Asset Management QInvest
low risk and low yielding assets but things have changed over the years. They have now shifted to riskier asset classes and have been allocating money to hedge funds and other alternative investments such as private equities to create new sources of income for their countries. However, a decisive move towards the high end of the risk spectrum requires a thorough risk management system, awareness of risk tolerance, internal competencies and sophisticated vision. In particular, higher returns can be achieved in areas that require highly skilled human capital especially in turn-around operations, mergers and acquisitions that foster synergies or in venture capital.
“Portfolios are global in nature, well diversified and cover all the major asset classes and recent trends have included greater investments in alternative type asset classes, private equity and infrastructure.” GEORGE TRIPLOW Executive Director MENA Wealth & Asset Management Ernst & Young 48 > QATAR TODAY >OCTOBER 2015
Asset allocation is on the agenda As far as Qatar is concerned, the stateowned Qatar Investment Authority (QIA), which is said to have over QR910 billion ($250 billion), is reportedly keen to introduce asset allocation targets for the first time. It is reportedly planning a wideranging overhaul of its portfolio, according to Reuters. Qatar has invested around QR236 billion ($65 billion) in several ventures in Europe like The Shard, Heathrow Airport, Chelsea Barracks and Harrods departmental store in London, besides Siemens and Volkswagen in Germany and Le Brant and Le Tanneur leather industries in France. It has also purchased shares valued at QR9.83 billion ($2.7 billion) in Agriculture Bank of China and plans to invest about QR54.6 billion ($15 billion) in Asia in the next five years. Helping diversify economies With oil prices showing no signs of recovery at least for a year and half, it has become imperative on the part of the GCC governments to diversify their economies and the SWFs have been playing a critical role in the process. “Most of these funds were established to invest abroad to avoid inflation and diversify the national economy away from hydrocarbons, and many of them have done a good job,” says David Evans, Senior Writer and Editor of Institutional Investor’s Sovereign Wealth Centre . According to him, some funds may have been invested at home to help build up nonenergy sectors. “In Oman, for example, the state-owned State General Reserve
Fund (SGRF) and the Oman Oil Company recently signed an agreement that will see them work together on initiatives to diversify the Omani economy away from its reliance on hydrocarbons. To do this they will finance small and medium-sized companies that are active in other industry sectors,” Evans says. Diverse asset classes The SWFs have a long-term investment horizon when compared with other investors and have diversified across asset classes. Short-term volatility, for example, may present a buying opportunity for some of these funds as there is the potential for a considerable saving. Head of Asset Management with QInvest, Dr Ataf Ahmed says that the GCC SWFs are already playing a key role in the economic diversification programmes as their investment focus is typically outside their host country and has led to extensive diversification within GCC economies. “However, we have witnessed some changes. For example, there is a trend which has seen some SWFs moving from indirect to direct investments. There is also a trend of larger mandates being managed in-house and SWFs taking direct stakes in more developments,” Dr Ahmed says. Oman Investment Fund’s Chief Economist Dr Fabio Scacciavillani too says that the oil price drop has induced most SWFs to emphasise capital preservation over a more aggressive asset allocation and, specifically, the current volatile market conditions warrant a retrenchment from bullish strategies towards defensive plays because the macroeconomic outlook is fraught with substantial downwards risks. “Asset valuations are overstretched and crucially dependent on the massive liquidity injections provided by all major central banks. Furthermore, high debt and leverage remain a sinister threat to the global financial architecture, still fragile even after eight years of global financial crisis,” Scacciavillani points out. He also feels that the SWFs could play a pivotal role in the transformation of the region into a hub for innovation and hi-tech deployment. “I strongly believe that they could very effectively pursue a cash-forknow-how strategy: specifically they could inject equity capital in the most innovative global companies in exchange for locating their international activities and research centres in the region,” he says. Citing an example, Scacciavillani says
that Singapore successfully implemented a similar strategy since the 1980s and is now one of the most advanced economies in the world. The GCC, and Qatar in particular, have the potential to become a “Singapore on steroids,” he adds. Global in nature Ernst & Young Executive Director of MENA’s Wealth & Asset Management, George Triplow points out that GCC SWFs are institutional in size and quality and have had significant capital to deploy. “Portfolios are global in nature, well diversified and cover all the major asset classes and recent trends have included greater investments in alternative type asset classes, private equity and infrastructure,” Triplow says. Even the asset mix has changed over recent years with GCC funds increasingly looking to diversify away from domestic investments. “SWFs have become more embracing of passive type investments, especially to gain geographical and sector exposure. There has been significant ongoing investment in real estate, private equity and infrastructure projects,” Triplow says. However, one expert differs on SWFs’ role in the economic diversification process and says that they should safeguard national wealth, store oil earnings abroad to avoid excessive exchange rate appreciation, provide a source of revenue for the future, and smooth out the government budget as oil prices rise and fall. “If the government wants to have a separate investment fund for investment in the domestic economy, that is fine but it is a different role,” says Robin Mills, Head of Consulting at Manaar Energy (Dubai).
“Each SWF has its own strategy. Saudi Arabia is looking at more active investments rather than SAMA’s passive and low-risk holdings. But all SWFs are under pressure as low oil prices mean governments are making withdrawals, not paying into the funds.” ROBIN MILLS Head of Consulting Manaar Energy (Dubai)
QATAR TODAY > OCTOBER 2015 > 49
investment > tag this rely on oil revenue for ongoing funding streams). “I don’t think they will take on more risk – if anything, they are likely to respond by doing the opposite, keeping more of their capital in liquid assets so that it is readily accessible in emergencies,” he says. One trend noticed among the more adventurous funds, though, is a willingness to move quickly to take advantage of the new dynamics of the energy sector. For example, QIA spent around QR8.37 billion ($2.3 billion) on shares in BG Group and Shell following the announcement of their merger earlier this year, Evans says.
“Asset valuations are overstretched and crucially dependent on the massive liquidity injections provided by all major central banks. Furthermore, high debt and leverage remain a sinister threat to the global financial architecture, still fragile even after eight years of global financial crisis.” DR FABIO SCACCIAVILLANI Chief Economist Oman Investment Fund
With regard to a pattern of investments, Mills says: “Each SWF has its own strategy. Saudi Arabia is looking at more active investments rather than Saudi Arabiab Monetary Agency’s (SAMA) passive and low-risk holdings. But all SWFs are under pressure as low oil prices mean governments are making withdrawals, not paying into the funds.” No impact David Evans says that it is unlikely that the drop in oil prices will have much of an effect on these funds’ strategies unless prices stayed very low for several years. Most SWFs already have diversified portfolios and most are self-sufficient (they don’t
Emulate Norway? Norway stands out as far as oil wealth management is concerned and many opine that the GCC SWFs either have gained or can benefit from its experiences. Dr Ahmed says that the GCC has already benefited from the establishment of a host of domestic SWFs by following the example set by Norway. “Numerous specific vehicles have been established, both internationally and domestically focused, to ensure the management and growth of surplus capital for future generations in the GCC,” he says. Evans says that the Middle East has some of the world’s biggest sovereign wealth funds and many of them are active and nimble investors with well-diversified portfolios. If they have anything to learn from Norway, it would be in the spheres of governance and transparency. “But the Middle Eastern funds are improving in this regard: The State General Reserve Fund of Oman and the Investment Corp. of Dubai, for instance, have started
Sovereign Wealth Fund Rankings (as of September 2015) COUNTRY
SWF
INCEPTION
Norway
Government Pension Fund-Global
$873
1990
UAE-Abu Dhabi
Abu Dhabi Investment Authority
$773
1976 2007
China
China Investment Corporation
$746.7
Saudi Arabia
SAMA Foreign Holdings
$671.8
n/a
Kuwait
Kuwait Investment Authority
$592
1953
China
SAFE Investment Company
China-Hong Kong
HK Monetary Authority Investment Portfolio
Singapore
Government of Singapore Investment Corporation
Qatar
Qatar Investment Authority
$256
2005
China
National Social Security Fund
$236
2000
Singapore
Temasek Holdings
$193.6
1974
Source: Sovereign Wealth Fund Institute Total figures are rounded to nearest tenth and updated up to September2015. 50 > QATAR TODAY >OCTOBER 2015
ASSETS (in billion)
$547
1997
$400.2
1993
$344
1981
to disclose much more information about their investments over the past couple of years,” says Evans. Triplow too feels that for the region’s SWFs, which operate within a unique macro and socioeconomic environment, policy-making decisions in other parts of the world are of interest and they can continually benefit from the experiences of other organisations. However, Scacciavillani holds the view that the SWFs in the region will not benefit at all as the Norwegian Pension Fund has achieved paltry results over the years and sticks to rather ineffective strategies and is too big to be managed effectively. More generally, the Norwegian citizens would be better off if, instead of piling up humongous amounts of money to be invested in foreign countries, the government slashed corporate and income taxes (and bureaucracy). “It would foster the creation of companies, attract talent, and boost innovation, ultimately transforming Norway into a knowledge-based economy rather than a sclerotic rentiers’ society,” Scacciavillani adds. Robin Mills too says that Norway has strong rules for withdrawing funds from its SWF, does not pursue politicised investments and the fund management is independent. It has high levels of transparency which make host governments comfortable with their investments, he says. Sectors and continents All these years, a booming real estate market in cities like London proved to be a safe haven for the SWFs seeking to invest their reserves. Asia too is emerging as a hot destination for countries like Qatar to invest their funds. Evans says that the region’s SWFs have plowed money into European real estate and infrastructure over the past 12 months because they like the stable, long-term cash flows such assets offer. The China stock market slump is unlikely to unduly concern the Middle Eastern SWFs, which invested over generations, and short-term volatility probably won’t dissuade them from allocating capital in the region. Several unnamed Middle Eastern funds contributed to Global Logistics Properties’ new $7 billion (QR25.48 billion) Chinafocused infrastructure fund in June and the QIA has committed to invest in Asia over the next few years, he says.
This year, QIA closed a massive deal for Canary Wharf and the Abu Dhabi Investment Authority teamed up with other institutions to buy Germany’s motorway service station group Tank & Rast for QR12.74 billion ($3.5 billion). Fierce competition is pushing up prices, but we expect SWFs’ appetite for these hard assets to continue for now, Evans adds. Scacciavillani says that, though emerging markets have lost their shine, there are some pockets of resilience, for example in the better managed Asian countries or in Eastern Europe. Some look with interest to India and await the implementation of a more ambitious reform agenda by Prime Minister Narendra Modi. However, at present India remains a challenging environment for outsiders, he says. “With regards to sectors, I think real estate in top locations remains an evergreen. Additionally, in Europe, there are wonderful opportunities in the private equity space, especially in those countries where, despite the ECB quantitative easing, companies are still experiencing a severe credit crunch,” he says. Scacciavillani has analysed extremely enticing instances of leading multinationals or family-owned businesses which would benefit from a robust injection of equity capital and a more modern management approach. Finally, the US continues to drive innovation worldwide and a canny investor should be able to detect the great opportunities available in areas such as cyber security or cutting-edge healthcare. Africa has finally emerged from decades of crisis, but, like India, is a challenging environment where few dare to venture, Scacciavillani adds. Dr Ahmed also feels that it would not be possible to generalise as each SWF’s philosophy, investment objectives and geographic focus is designed to align with the needs of the specific country in which it is created.
“Most of these funds were established to invest abroad to avoid inflation and diversify the national economy away from hydrocarbons, and many of them have done a good job.” DAVID EVANS Senior Writer and Editor Sovereign Wealth Center
New strategies Robin Mills says that most SWFs are not keen on heavy investments in oil, as their countries’ main income comes from oil. “The energy sector is attractive for investment now, however, given low valuations. Most of the SWFs (but not SAMA) have funds for higher-risk investments such as private equity. And they are all looking for yield given the very low rate of return currently on US Treasuries and cash,” he adds QATAR TODAY > OCTOBER 2015 > 51
affairs > regional
Yemen:
A “good” intervention? The war in Yemen has reached a crucial phase, with the Arab coalition countries sending military reinforcements on the ground in preparation for the big battle to regain Sana’a and the north of the country from the Houthi rebels. Our Qatar Alyom correspondent brings us upto-date on the war at our doorstep. By Izdihar Ibrahim
52 > QATAR TODAY >OCTOBER 2015
F
orces loyal to Yemeni President Abedrabbo Mansur Hadi announced that they have prepared their ranks for a decisive battle at Sana’a and this includes 10,000 soldiers in the northern Al Jawf province adjacent to Saudi Arabia, some parts of which are controlled by the Houthis. Meanwhile, Al Jazeera reports that the number of coalition soldiers that entered Yemen from the southern part of Saudi Arabia has risen to 10,000. A senior Qatari official confirmed to AFP that Qatar has sent 1,000 soldiers to Yemen, “ready to fight” alongside the Saudi-led coalition forces against the Houthi insurgents. Qatar had already sent 1,000 soldiers earlier to Yemen along with 200 armoured vehicles and, according to Al Jazeera, the second batch of Qatari forces entered Yemen through Al Wadiah Yemen-Saudi Border Crossing. In addition, the coalition added 30 Apache helicopters, armoured vehicles and rocket launchers to its assault force, Qatar sent a unit of “mechanised infantry and armored vehicles”, and Sudan has committed to send 6,000 soldiers. Not many experts were surprised that the end of Operation Decisive Storm and the start of Operation Restoration of Hope didn’t mean a political solution but a ground invasion, saying the air strikes were only meant to weaken the militias and destroy
AN UNCERTAIN FUTURE An armed Yemeni tribesmen from the Popular Resistance Committees, loyal to Yemen’s President Abedrabbo Mansour Hadi. AFP PHOTO / ABDULLAH HASSAN
their weapons stores in order to avoid too many losses among coalition forces and civilians in the upcoming ground assault. So the end of Operation Decisive Storm wasn’t an end at all but rather a replacement that was meant to include a larger humanitarian relief element alongside the military endeavours in response to US pressure to stop the war based on humanitarian grounds. Limited ground intervention However, experts think that the Saudis’ ground intervention is limited to taking control of the city of Aden, hoping it will serve as a springboard for the liberation of the rest of the provinces from the Houthi militias and forces of former President Abdullah Saleh. They also believe that Saudi Arabia does not want to get involved extensively in Yemen as the coalition army is
not accustomed to fighting in the country’s mountainous terrain. In this regard, researcher and Head of Policy Analysis Unit at the Arab Center for Research and Policy Studies in Doha, Dr Marwan Kabalan, says, “When the Saudi-led GCC states decided to intervene militarily in Yemen to prevent the Iran-backed Houthi rebels from taking over the reins of power in the country, there was a perception that an air campaign alone would not be able to achieve its goals of forcing the rebels to withdraw from the cities and regions they had controlled between September 2014 and March 2015 (i.e., between their occupation of Sana’a and takeover of most of Aden). Therefore, in conjunction with the air operation, a process of preparing, training and equipping Yemeni prolegitimacy forces, represented by President Hadi, started. These forces, which were effectively able to keep out the rebels and insurgents from the south, appeared to be in need of GCC ground support to restore control over areas of the north, especially Sana’a and Taiz. That’s why the GCC ground intervention started and I expect it to remain at the current low level (10,000 fighters) to support the Yemeni forces.” This is also evidenced by the decision of coalition forces to enter Yemen from the south rather than the north, according to Dr Kabalan. Retaking Aden meant supporting Yemeni loyalists and a proxy war, but attempting to recapture Sana’a would mean that the Saudis were undertaking a fullscale invasion of the Yemeni territories and were committed to complete military involvement. Former Dean of Islamic Law at Qatar University, Dr Abd Al Hamid Al Ansari, believes that only the military and political leaders know how the war will be played out. “However, on the face of it, things foreshadow that the war will be far-reaching and comprehensive and will not end until Yemen is fully liberated and legitimacy is restored,” he maintains. Some believe that Saudi Arabia has led itself into a quagmire in Yemen similar to the one in which the US found itself in Afghanistan, especially because of the similarities in geographical terrain between the two countries. Dr Kabalan said the danger resulting from the direct intervention in Yemen is that it may actually lead to more involvement, especially because Yemen is a large country with difficult terrain which historically no foreign force could overpower (Yemen had successfully resisted the the Ottomans and
Experts think that the Saudis’ ground intervention is limited to taking control of the city of Aden, hoping it will serve as a springboard for the liberation of the rest of the provinces from the Houthi militias and forces of former President Abdullah Saleh. QATAR TODAY > OCTOBER 2015 > 53
affairs > regional forces know that a military intervention in Yemen will not lead to the end of the conflict. It was clear from the outset that the aim of the intervention was first to prevent the rebels from controlling Yemen and converting it to an Iranian thorn in the side of the GCC countries, especially Saudi Arabia. The next step is to change the balance of power on the ground in favour of President Mansour Hadi, and finally to push the rebels and forces loyal to the former president to sit at the negotiating table to reach a political solution that satisfies all parties. This is the military and political strategy of the coalition forces in Yemen, which clearly underscores the desire to find a political solution to the conflict because the military solution cannot lead to the desired stability and peace, but rather will trap the Yemenis in a long civil war and will also force the Gulf countries into an exhausting war, something that Iran craves.”
GROUND ZERO Saudi forces take part in military exercises at the coalition military base in Aden. AFP PHOTO / AHMED FARWAN
even the British could only control its coast). “This is probably why Saudi Arabia decided to rely on its Yemeni allies and restore its relationships with Yemeni tribes and other political forces, which had long enjoyed strong ties with Riyadh. It is only in this way that Saudi Arabia can achieve its objectives in the establishment of a stable Yemen, far from the Iranian hegemony and without getting involved in a long and costly war.” A plan long time in the making According to Western sources, the land intervention of the Saudi plan was to be implemented a month earlier, but the differences between the coalition parties led by Saudia Arabia and some international forces, primarily France and America as well as the countries of the Horn of Africa closest to Yemen, led to the postponement. The US exerted pressure from the start to stop the military operation because it didn’t consider this an alternative to a political solution, but the main goal was not to upset Iran in the midst of the delicate negotiations over its nuclear programme, according to Dr Kabalan. “Of course, Saudi Arabia and the other GCC countries resisted this pressure and decided to defend their direct strategic and security interests, which were not aligned with the US position.” While the ultimate goal is to end the infighting in Yemen, experts are divided on whether this intervention will achieve that objective. While Dr Ansari believes that a land war is the solution, Dr Kabalan says, “The leadership of the Saudi-led coalition
54 > QATAR TODAY >OCTOBER 2015
Legitimacy of the ground intervention Security Council Resolution 2216 adopted under Chapter VII of the Charter of the United Nations on 14 April 2015 left no room for confusion among the existing alliance (consisting of Saudi Arabia, Bahrain, Kuwait, Qatar, UAE, Egypt, Jordan, Morocco, Sudan, and supported by Pakistan and USA) about the future of this war. Dr Kabalan believes that the Security Council resolution gave legitimacy to the Arab intervention in Yemen, and exerted maximum pressure on the rebels and former President Saleh and their Iranian allies. The decision supported the legitimacy of President Hadi and imposed an arms embargo on the rebels, which allowed Saudi Arabia to enforce a naval blockade on Yemen and prevent all Iranian forms of aid from reaching them.” But what is striking is the complete absence of some GCC countries, which points to a huge rift in regional geopolitics. But Dr Kabalan believes that there is a GCC agreement on the issue of intervention in Yemen to prevent Iran from controlling it through the Houthis, with the exception of the Sultanate of Oman, which, of course, has a different point of view. In terms of participation, he feels that Kuwait did not participate due to the sensitivity of its domestic and regional position, but it supported the military operation from the start. While the rest of the GCC countries participated according to their capabilities and potential, it is natural that Saudi Arabia’s participation was the largest. Dr Ansari believes that, while Saudi Arabia’s size and contribution has afforded it a position of leadership, the participation and efforts of all countries of the coalition are appreciated
sports > tag this
56 > QATAR TODAY >OCTOBER 2015
THE SPECTATOR EXPERIENCE
What makes a sporting event truly unforgettable? it's An effortless walk to the seat; excellent views of the game and the level of interaction with it; communications during the event and the comfort that is offered within the stadium. The spectator experience is not just the sum of all these; it also depends on the spectators themselves. QATAR TODAY > OCTOBER 2015 > 57
sports > tag this
I
f you were a spectator at the 24th Men’s Handball World Championship held in January 2015 in Qatar, it is highly probable that you were cheering yourself hoarse for the team you supported. Guided by cheerleaders in segments, each spectator went through an experience that made it seem as if the game played was their favourite sporting game and the teams, their fellow countrymen. Surprisingly, none of this was by accident. The process of getting the best spectator experience started long before the event, according to Tariq Kamal Hamed, Head of Workforce, 24th Men’s World Handball Championship - Qatar 2015 and Specialist - Events Management Committee at the Qatar Olympic Committee. The spectator experience was created through a careful collaboration with embassies and communities. “Community Outreach Team from the organising committee reached out to the embassies and also to the school representatives of that community and started an interactive programme long before the event,” says Hamed, a seasoned sports events professional who is also managing the workforce at both the International Paralympic Committee Athletics World Championships Doha 2015 and the AIBA World Boxing Championships - Doha 2015. Hamed believes that understanding the psychology of the spectator is important to tailoring an experience that is close to their imagination. “You have to understand the purpose
“We were in touch with officials from Iceland, France and many more and through partnerships with Qatar Airways Holidays, so that we could transport spectators and sporting enthusiasts to the country to support their team when they played here in Qatar.” TARIQ KAMAL HAMED Specialist - Events Management Committee Qatar Olympic Committee
58 > QATAR TODAY >OCTOBER 2015
behind the spectator’s interest in the event; is it for the love of the sports, or to support the country he or she represents or is it just to participate in any sporting event as a spectator?” he says. Citing the example of the recent Men’s Handball World Handball Championship, Hamed recalls how communities from France and Spain were contacted and involved in the process of building spectator support when their respective countries played. Interestingly, the committee also communicated with countries that had a small diaspora community in Qatar, and transported sporting enthusiasts and veterans of these countries to the event. “We were in touch with officials from Iceland, France and many more and through partnerships with Qatar Airways Holidays, who worked on holiday packages, so that we could transport spectators and sporting enthusiasts to the country to support their team when they played here in Qatar,” Hamed says. Qatar has become one of the sporting hubs of the world with its success in holding events like the 2012 Qatar 3×3 Basketball Championship, the 12th FINA World Swimming Championships and the IAAF Diamond League Championships. The country has slowly but surely learnt from an earlier not-so-perfect experience, many years back, hosting one of its first mega sporting events, the 15th Doha Asian Games held in 2006. According to Hamed, the seeds have been planted and “we are benefiting from that early investment in sports management. Since then there has
been a constant learning that has helped the organisers acquire the knowledge and then put it into practice in later events.” But it has not always been such an effortless experience for spectators in Qatar. The friendly match between Brazil and Argentina held at the Khalifa International Stadium in 2010 did not give some spectators the experience they craved, with paid tickets for seats that were no longer available. In 2013, ticketholders lamented being locked out of the Emir Cup finals, more than an hour before the match started. Also that year, fans at the Spain vs. Uruguay match complained about slow security checks impeding their ability to get into the stadium. The Handball Championship also had similar issues on the final day, with the stadium filled to capacity long before the matches, with ticket holders waiting outside to enter. Such singular incidents mar many sporting events but they are not detrimental to the success of the event, Hamed says. According to Andy Young, an expert in Spectator Management and Senior Consultant at Josoor Institute and Consultant at New Resolution, strong leadership from the decision-making authorities, stewards communicating well with the spectators and the authorities mitigates this crisis. Young feels that the first step to be taken by countries like Qatar preparing to host one of the biggest sporting events in the world is to get the population to understand why it is important that they change their behaviour sets to adhere to rules and regulations put in place by the organisers. “To be successful, Qatar needs more people to come to the country, to experience it,” he says. “More people coming back to the country aids tourism, which is what the Qatar National Vision 2030 is also about. The virtual positive cycle will make sure that the success story can be played over and over again. The onus lies on the population of the country as well and they need to understand this.” The volunteer steers the event Hamed throws light on the importance of volunteers in such events. “Volunteers form the backbone of the event,” he says. He refers to the 2006 Asian Games, in which a record 15,000 volunteers participated from around the world “The level of commitment before, during and even after the event was very high,” says
“While in the UK, things are regulated and tightly organised, it is not the same in other countries. People do not expect to queue up here, to sit in the seats allocated for them; conflicts then arise.” ANDY YOUNG Senior Consultant, Josoor Institute Consultant, New Resolution
Hamed. “The volunteers took ownership of the events and helped out in areas outside their responsibility.” Since then volunteer management has steadily improved. Hamed reveals that the number of Qatari volunteers was the highest among all volunteers representing 30% of the total volunteers during the Handball Championship. “It was very inspiring to find an increased number of Qataris manning the events as volunteers,” he says. “The Qatari volunteers felt that they were ambassadors of the country and their behaviour and code of conduct impacted the success of the event and congruently the reputation of the country as well.” The Handball Championship had close to 1,500 volunteers and, though they received more media attention due to the popularity of the sport, Hamed was equally impressed by the FINA swimming championship
ANDY YOUNG’S THREE POWER POINTS FOR EXCELLENT SPECTATOR EXPERIENCE Understanding the scale of the event is primary to the success of sporting events. Planning for accidents make sure that you are ready to face the worst of situations. Document what you can do well and then the legacy of the success carries on
QATAR TODAY > OCTOBER 2015 > 59
sports > tag this
“Today spectator management has evolved into more of a customer services role, quite similar to the role of an airline's staff services.” MARTIN GIRVAN Inspector Sports Grounds Safety Authority
60 > QATAR TODAY >OCTOBER 2015
which was a large-scale event with close to 950 swimming stars from 172 nations. The Diamond League was another sporting event held successfully in Qatar, with the stadium on one day filled to its 11,000-seat capacity.” Spectator services Inspector at Sports Grounds Safety Authority, Martin Girvan, who takes responsibility for training and education and development of standards for safety management, tells us about the evolution of the role of spectator stewardship. “If you have good spectator services, worthy stewarding and excellent safety management in place, it makes way for a welcoming environment for the spectator and then they will enjoy the event more,” he says. He draws our attention to an evolution of training of stewards. “Initially it had been more of controlling the crowd but now it has evolved into spectator management, more of a customer services role, quite similar to the role of an airline's staff services,” says Girvan. The challenge is always there, with the transition of safety from being handled by the police or security officers to being managed by stewards – heavy policing to low policing with an emphasis on customer services. “We encourage the latter because if strong policing is followed, the spectator feels oppressed, while a lighter touch always yields the best results,” says Garvin. Another revelation is that ladies are considered the best stewards as they remain calm during any hostile situations. “This is also because a man would never
argue with a woman in situations like this and hence they respond to female stewarding well,” Garvin explains. The worst “situation” that Garvin has experienced is that of a steward getting so involved in the football game being played that “he became a spectator himself”. “Organisers of events must be extremely careful while choosing their stewards. Spectator servicing stewards must have empathy, they must be divorced from their personal affiliations and needs, and the spectator need must be vital for them,” he says. An example of an unforgettable spectator experience for Garvin was the London Olympics 2012. “Earlier steward selection was based on personal interests; like a football fan being a steward for a football match,” he says. “But for the London Olympics, the volunteers chosen were all professionals: doctors, teachers and medical students. The volunteers were highly educated, motivated and very eloquent. And that made all the difference.” “And the challenge comes to the fore during antisocial/unexpected behaviour. Clarity in decision making and indicating authority is critical. A polite but firm decision and conveying it in the right tone is vital,” he says. “You get the best volunteers, train them and give them confidence. Get them to understand their role. If they are confident enough to be seen around the venue then you can be sure of a successful event.” The biggest concern in a huge sporting event is not the stewards but the spectator according to Young. Conflicts arise when the expectations of the spectators are not met. “While in the UK, things are regulated and tightly organised, it is not the same in other countries. People do not expect to queue up here, to sit in the seats allocated for them; conflicts then arise.” “Spectators are one of the most important players in the success of such events. But because of the power of social media, communication is equally important. When you have read some positive comments on the social media, you can be sure of a wider audience being aware of the success of the event. That being said, the same attention to a negative comment can be equally harmful,” says Young. The opposite of this would be when spectators leave disappointed, when they have problems that are not sorted out. This does not bring back repeat spectators to the events and, in Qatar’s case, to the country too
affairs > tech talk
New-gen computing
The future of personal computing is tangible in the iPad Pro with 850,000 apps specifically designed in the App Store.
I
t features a 12.9-inch Retina display with 5.6 million pixels, the most ever in an iOS device, and groundbreaking performance with the new 64-bit A9X chip, rivaling most portable PCs. In addition to this, Apple also introduced the Apple Pencil for iPad Pro, a precision input device available for purchase separately. The touch subsystem of the Multi-Touch display in iPad Pro has been redesigned to work with the Apple Pencil to reduce latency and deliver accuracy for activities like fine art illustration and detailed 3D design.
PANORAMIC Virtual reality and Sony
Sony revealed the official name of its virtual reality headset which was being developed under the codename Project Morpheus. PS4 just got cooler!
T
he newly named PlayStation VR, or PSVR, has a head-mounted display with 1080p HD resolution and a 90-degree field of view, while sensors built into the headset track head movements. More recently, Sony unveiled an updated version of the prototype which redistributes weight toward the back of the user’s head. It also features a screen that slides back and forth to accommo-
62 > QATAR TODAY >OCTOBER 2015
date eyeglasses. In addition to seeing the view on the headset, a user’s virtual perspectives are simultaneously broadcast on a TV screen. The new prototype also features a larger 5.7-inch OLED screen that displays nearly a 100-degree field of view and is capable of rendering imagery at up to 120 frames per second. There are nine LED lights on the headset’s exterior used to track movement.
An easy way to connect, contribute and see pictures of every street and around the state. Click on the red dot to see collections from around the world. Click a photosphere with the built-in camera following the yellow dot that takes a 180-degree photo and stitches it to post online. This app is now available on the Play Store and the App Store for Apple and Android products.
Quantum launched in MEA
Mobile devices brand Quantum has launched the Titano smartphone and five other feature phones in the Middle East and Africa (MEA) market in September ahead of GITEX Shopper, to be held in Dubai from October 3 to October 10.
QBIC AND AJMN SIGN MOU
Corporate Incubator to create new wave of new media startups. Qatar Business Incubation Center (QBIC) and the Al Jazeera Media Network (AJMN) have signed a memorandum of understanding at Qatar Development Bank’s main branch, for the creation of a Corporate Incubator for Media and Technology businesses that aims at building on the parties’ successful work in entrepreneurship and digital media through collaborative innovation and knowledge sharing. Al Jazeera’s Innovation and Incubation team will provide strategic media expertise to companies working within QBIC and in turn QBIC will provide new business expertise to strategic digital projects for AJMN, allowing technological innovations to be assessed for new business opportunities and startup companies given the necessary support to grow into global market leaders.
Mars: water equals life, maybe?
NASA scientists confirmed flowing water on the "Red Planet", boosting hopes for life.
R
evealing a potential breakthrough in research, NASA scientists confirmed that there was water flowing from time to time on the "Red Planet". This could be proof of the existence of life in the form of microbes at the least. It remains unclear where the water comes from. Theories include deliquescence, melting subsurface ice or even a liquid-water aquifer that feeds the process. Discovering what precisely is causing the phenomenon is a mystery for the next round of investigations, said Michael Meyer, lead scientist for NASA’s Mars Exploration Program. John Grunsfeld, associate administrator for the Science Mission Directorate at NASA said, “The existence of liquid water, even if it is super salty briny water, gives the possibility that if there’s life on Mars, that we have a way to describe how it might survive.” NASA researchers using an imager aboard the Mars Reconnaissance Orbiter confirmed the watery flows by looking at light waves returned from seasonal dark streaks on the surface, long suspected to be associated with liquid water. The chemicals allow the water to remain liquid at lower temperatures but also help keep it from boiling off in the thin atmosphere of Mars, the researchers said.
VODAFONE QATAR LAUNCHES SMART ULTRA 6
The highest-performing handset in its popular Smart series was launched by the telecom company in September. The 13 MP rear-facing Sony camera is the highestspecification camera ever in a Vodafone device. There is also a 5 MP front-facing camera for high-resolution selfies. You can also shoot 1080p video with the rear camera and 720p with the front. The Smart ultra 6 is now available in all Vodafone’s retail stores and the online store. QATAR TODAY > OCTOBER 2015 > 63
tech talk > viewpoint
Food on the go
Why drive to the restaurant when you can order with just a click, asks Kapil Bhatia.
T
echnology has transformed the way we order food now. We used to do it by calling the restaurant directly. Today, it can be done online on a website or a smartphone app that aggregates all the restaurants based on cuisine, location, price, etc. Online food ordering service websites are growing by the day in the region. Some of these websites feature interactive menus allowing customers to place orders with local restaurants while others allow you to make a table reservation in advance. These websites encourage customers to create their profile online with details like location and food preference to make their ordering process more convenient next time they log in. Online food aggregators function as a virtual intermediary – ferrying food orders from hungry online customers to the restaurants of their choice. Scale is important – online menus with the greater number of options will get more hungry consumers clicking through. If you have made up your mind to step out and have food at a restaurant and can’t make up your mind about the cuisine and location. We have restaurant review websites like Zomato and Timeout to make those decisions. The market is booming across the Middle East, with first movers across the region successfully educating customers and
64 > QATAR TODAY >OCTOBER 2015
restaurants about the benefits of using online ordering services. For consumers, single-click convenience is a big draw. For restaurants, it’s a new revenue stream - an alternative to opening a new branch in a busy mall. While incredibly convenient for consumers, online food businesses cannot control food preparation and delivery, which is handled by the restaurant. This presents its own challenges. While online food ordering is spreading like wildfire through the region, competition in the sector is expected to stiffen and lead to a wave of consolidations, according to research by global online food delivery marketplace hellofood. Earlier this year global online food delivery company foodpanda fully acquired food delivery business 24h.ae and Talabat. com in the Middle East, targeting the region as the next high-growth market in the food delivery sector. OpenTable, the US-based company that allows users to book a table online, was recently acquired for $2.6 billion. RoundMenu in the UAE and ReserveOut in Jordan are the local equivalents of OpenTable. ReserveOut provides the food and beverage industry with a full reservation, table and customer relationship management solution, which allows venues to accept reservations from online and offline sources. In proprietary
various other recipes and restaurants, and make use of the forum to exchange ideas around food.
research and data released earlier this year by ReserveOut, records showed the number of restaurants adopting its online reservations grew by 130% last year, while total restaurant revenue through its online reservations reached $8.4 million and user adoption of the company’s services grew by 60%. Other business models The food industry is not restricted only to ordering online. The food services are extended to booking tables in the restaurants, to sharing recipes and writing restaurant reviews. Shahiya.com is a food portal that provides an Arabic and English platform which offers a range of exclusive recipes from different cuisines, ranging among American, Chinese, Egyptian, French, Gulf, Indian, Iranian, Iraqi, Italian, Jordanian, Lebanese, Moroccan, Palestinian, and Syrian. Besides being a food portal, Shahiya.com allows one to share the different interests of food with family and friends, add signature recipes, review
Potential for growth in Qatar Most of the popular online food-ordering websites like Zomato, foodonclick and Talabat have extended their services to Qatar. Q-Foody claims to be the first ever online food-ordering website in the country; however, they are currently not operational. Doha Delivery is another local food-ordering website that still continues to function. You can place online orders and the restaurant would get an email/SMS notification. The restaurants can be sorted by cuisines and locations and the menus are neatly done. This is just the beginning of the revolution in the online food industry in the region. As global models become more local, and as many people realise the need to save time in ordering food or manage their dining schedules, this industry will keep growing steadily
BY KAPIL BHATIA
ABOUT THE AUTHOR
Screenshot of Zomato Qatar displaying details of a local restaurant
Kapil is a digital professional in the Financial Services Industry. He is an expert in Digital Channels, Payments, e-Business, Cross Sell and development of Digital Marketing strategies, with a sound Information Technology base. He is also a founder of a digital/tech blog called Tfour.me that is focused on the Middle East
QATAR TODAY > OCTOBER 2015 > 65
affairs > sports
“Ready for everything” The month of September witnessed an inspiring event in Qatar's sports schedule: the 9th edition of the GCC Paralympics event which was held at the Qatar Sports club from September 12 to September 17.
68 > QATAR TODAY >OCTOBER 2015
W
ith over 200 of the best para athletes from the region, the GCC Para-Athletics Championships wakened a sense of confidence and aspiration among the participants for the next big event and later on for Rio 2016. The six countries that participated in this event, including the host nation Qatar, were the UAE, Saudi Arabia, Oman, Kuwait and Bahrain. Organised by the GCC Organizing Committee for Sports of the Disabled, the championships aimed at creating a new platform for regional athletes through which they experienced high-level competition and gained top-class training which can be transferred to the world stage. The GCC Para-Athletics Championships served as a test event for the upcoming Doha 2015 IPC Athletics World Championships and as an opportunity for the local organizing committee to test operational procedures and functions ahead of the world-class para-sport event in October. Speaking about Doha’s hosting of the World Championships, HE Dr Thani Abdulrahman Al Kuwari, President of the Local Organising Committee and Director General of the Qatar Olympic Committee, said: “The motto of the Doha 2015 IPC Athletics World Championships is ‘Beyond Incredible’. We want to use the World Championships to show the incredible stories behind some of the athletes that are competing in order to raise awareness of para-sport and people with a disability.” Speaking at the opening ceremony of the event, Khalid Al Mohannadi, Chairman of the GCC Para-Athletics Championships Organizing Committee, said: “We hope the performances of these athletes will help to break down barriers and change perceptions across the whole region.” Qatari athletes achieved accolades for the nation, setting new records. Qatar’s own London 2012 Paralympian, Abdelrahman Abdelqader, set a new record of 10.68 meters in the shot put this season and has
MEDAL TABLE
developed tremendously as an athlete at the young age of 27. A fierce competitor and dedicated athlete, Abdelqader is currently ranked second place worldwide in the shot put for this season. “It will be a dream come true for me to compete in the IPC Athletics World Championships in front of a home crowd, with friends and family cheering me on – this will surely be the highlight of my career to date. I cannot wait to compete in October and I really hope that I will make the nation proud and inspire a new generation of athletes,” Abdelqader said in a press conference held prior to the event. Shareefa Al Haddad won the gold medal in a fierce 200m race. “It is an indescribable feeling to win gold for Qatar. My gold came as a result of my dedication and willpower, as well as the invaluable support of my coaches. I look forward to a great edition of the IPC Athletics World Championships in Doha in October where I hope to emulate my success today,” she said. Mohamed Al Khubaisi claimed bronze in the men’s 100m T33/34. Following the race, he said: “It was a great race and I am pleased with my performance. I was up against the world champion and the Asian champion so the competition was incredibly tough. I hope I can bring more medals to Team Qatar in the remaining days of the competition.” QATAR TODAY > OCTOBER 2015 > 69
affairs > sports Triumphs on clay
Novak Djokovic won his third Grand Slam title of 2015 and 10th career major with a triumph over sentimental favourite Roger Federer in the US Open final on Sunday. “What I was actually doing was trying to play a mind game with myself. They would scream, ‘Roger!’ and I would imagine they were screaming, ‘Novak! I came out on the court knowing what to expect,” he said. “I was ready for it mentally, and I think that has helped me keep my cool in the toughest moments.” Martina Hingis and Sania Mirza claimed their second Grand Slam title by winning the women’s doubles final at the US Open 2015. Hingis said: “We have our strategies and when she puts some volleys in it’s a bonus; when I hit some winners from the baseline or I win some points that’s like even extra bonus.” “We started playing in March in America and we won three out of three. That rarely happens,” the Indian ace said. “We trust each other on and off the court. We try to help each other out if the other one is struggling. If both of us are not struggling then we win tournaments!”
Football fever
GLORY FOR UNITED AND MARTIAL Anthony Martial, Manchester United’s new striker made his debut against Liverpool with United winning 3-1. The 19-year-old, who completed a £36 million move to Old Trafford from Monaco, made an instant impact for United. The world’s most expensive teenager, as he is now called, is definitely proving to be in the right place at the right time – centre forward it is.
QSL KICKSTARTS Xavi Hernandez made his Qatar Stars League debut with Al Sadd Club, It was a perfect start to the season, winning 4-0 away in a onesided clash against newly promoted Mesaimeer, emphasizing their determination to go one better than second place last season. “It was positive to win,” said Xavi. “We had a lot of chances, we have a good team and play good football.”
70 > QATAR TODAY >OCTOBER 2015
FIFA HEAT IS ON! Qatar won 3-2 against hosts Hongkong in the 2018 FIFA World Cup qualifier on September 8th. The team brutally beat Bhutan 15-0 recently.
business > auto news Hyundai Motor Company celebrated the sale of its three millionth vehicle in the Middle East last month, 39 years after it began operations in the region and to mark the occasion, the company is offering a new 5 year/100,000km warranty across all models.
Three million Hyundai cars sold
I
n terms of bestselling markets, Saudi Arabia has taken pole position for Hyundai, benefiting from the brand’s approach of working with three different distributor partners across the Kingdom. The Qatar market also has significantly contributed to the growth of Hyundai brand in the region. Having sold
over 667,000 units to date, the company's Elantra is by far its most popular Middle East model. The Sonata, which saw its seventh generation version launched in the region just last year, has recorded sales of over 321,000 units, while the Tucson took the honours in third place with sales exceeding 242,000 units.
MASERATI PREPARES FOR 2016 ON A HIGH NOTE Following the launches of the 6th-generation Quattroporte and the Ghibli, 2015 marks a year of consolidation for Maserati.
T
he Italian luxury car brand reports a solid 6.1% sales increase across the Middle East, India and Africa region for the first half of 2015 compared to the same period of 2014. During this period of consolidation Maserati has entered new markets across the region including South Africa and India. The company further expanded its network infrastructure with new showroom facilities in Qatar as well as new service facilities in the UAE. 2016 is set to become another milestone year for Maserati as it expects to launch its first ever luxury SUV, the Levante. Vehicle testing has recently taken place at an undisclosed area in the UAE. Managing Director of Maserati Middle East, India & Africa, Umberto Cini explains: “We expect significant demand for the Levante, given the SUV affinity of this region, but at the same time we must maintain the utmost level of service and exclusivity our clients expect from Maserati.” QATAR TODAY > OCTOBER 2015 > 71
business > auto news
A NEW DAWN FOR ROLLS-ROYCE Fresh from the hugely successful Digital Dawn online launch earlier this month and following its world premiere at the Frankfurt Motor Show, the Rolls-Royce Dawn has made its regional debut in the Middle East. Rolls-Royce Motor Cars revealed their newest luxury convertible to Middle Eastern media and customers assembled at the Armani Hotel in Dubai, UAE
INFINITI Q30: REDEFINING THE PREMIUM COMPACT CAR Making its world premiere at the 2015 Frankfurt Motor Show, the Infiniti Q30 is a new type of premium compact vehicle for a new type of consumer.
R
epresenting Infiniti’s first global entry into the fast-growing premium compact segment, the Q30 will play an important role in helping the company realise its plans for global growth. The car stays true to the signature design cues from the original 2013 concept and exemplifies Infiniti’s design-led, human-centric approach to product development. The development teams behind the Q30 have taken a "holistic approach to its engineering", presenting a car
72 > QATAR TODAY >OCTOBER 2015
that offers exceptional ride and handling. It feels comfortable yet "ready to go anywhere" thanks to the versatile dimensions, confident dynamics and intuitive technologies. Roland Kruger, President of Infiniti, said: “Q30 makes a daring visual statement through its sculpted, concept-car exterior, unconventional stance and asymmetric cabin design. The car has been engineered to exacting standards to deliver a driving experience that is unmistakably Infiniti.
Q30 will accelerate the company’s strategy to become a leading global manufacturer of premium cars.” In addition to the base model, two bespoke versions of the Q30 will be available – Premium and Sport. Each derivative will have its own unique personality with design, dimensions and driving performance, offering premium compact buyers a choice that is specific to their personal needs and preferences.
The debut of the latest redesigned Audi Q3
An exclusive service
Alfardan Premier Motors customers can now take advantage of the quick-service facility recently unveiled at Al Markhiya.
Q-Auto, the official dealer for Audi in Qatar, has announced the launch of the latest Audi Q3, the youngest member of Audi’s Q range series. The new design incorporates coupe-like lines up front and in the rear underscore, giving the SUV its crossover appeal.
T
he Q3 has been specifically built for comfort, evident in its carefully structured chassis that combines agile handling with safety. The redesigned Audi Q3 makes a striking impression with its characteristic sculpted Singleframe grille at the front, illuminated by energy-efficient headlights with xenon plus technology and LED daytime running lights. The Audi drive select technology, including the hill-descent assist, further aids the driver to efficiently maneuver key technology modules. The cargo compartment boasts a capacity of 460 liters that can be easily upgraded to 1,365 liters by folding down the split rear seatbacks. The Q3 engines produce between 150hp and 220hp - a 10hp increase in power from its predecessors. The compact SUV holds a top speed of 233 km/h and can sprint from 0-100 km/h in 6.4 seconds. The Audi Q3 is available at the main Audi Showroom on Salwa Road, at a starting price of QR121,400. The Audi dealership gives customers a number of options to purchase the Audi Q3, including in-house financing.
T
he company, which is the exclusive retailer partner in the country for Jaguar Land Rover, recently announced the launch of its new Jaguar Land Rover Quick Service facility. Upon arrival at the centre, a team of expert Jaguar Land Rover certified staff will be available to receive customer vehicles for inspection and repairs. Courtesy cars along with collection and delivery options will also be provided to customers at their convenience in order to accommodate their needs while their vehicles are being service. Commenting on the new Jaguar Land Rover facility opening, Omar Alfardan, President and CEO of Alfardan Group, stated: “Having heavily invested in this new facility to provide customers with the latest in car repairing technologies and services, we are confident it will allow our team of specialists to better support the brands’ loyal customer base.”
QATAR TODAY > OCTOBER 2015 > 73
business > market watch
A giant in electronics retail Qatar Today talks to Jumbo Electronics CEO and co-founder C V Rappai about how innovative vision led to an inspired business model that today delivers services to over 2,000 customers daily. By Keertana Koduru
B
eing a junior officer at a multi-national bank back in the 80s didn’t satisfy C V Rappai’s thirst for innovation; he instead focused on a startup business in electronics. What started out as a small store in Msheireb with three employees has now expanded to over 15 retail outlets and 1,000 employees in a span of 30 years. The journey has been exciting, tiring and extremely satisfying, he says. There have been countless challenges to bring as many as 30 brands under one umbrella, but the passion for innovation prevailed. “We believe in offering personalised service and retaining customers,” he says. Customer satisfaction Innovation, service, growth and customer satisfaction are the four important pillars of success, according to Rappai. At a time when trade exhibitions were the only way to communicate with other businesses, Jumbo Electronics made a name for itself in this niche market by being the only
74 > QATAR TODAY >OCTOBER 2015
store to provide customised solutions to households and become a one-stop shop for Qataris and expats alike. The first brand to be retailed at their stores was the Italian brand Indesit. “Once you have a distributorship of a brand, it literally means ownership,” says Rappai. The store then added LG (Goldstar at the time) to their portfolio in 1986; today the group holds a major market share in consumer electronics. Other major brands associated with the group being their sole distributors are JBL, Harman Kardon, Brother, Kenwood and Ariston. With emphasis on making the store a destination for every household, it became even more important to retain customers. “Once a customer, always our customer,” is the motto of personalised shopping that all employees at the group's retail stores follow. Showroom visits, home delivery, service calls, installations and retail outlets all add up to the 2,000 customers who are served
on a daily basis. When it comes to handling customer grievances, everyone from top level management to the salespeople in the outlets are involved, according to Rappai. The group also owns warehouses and logistic facilities which spread to over 20,000 sqm with a fleet of 150 vehicles for delivery, distribution and after-sales services. The estimated turnover for the year 2014-15 was QR 635 million and the projected turnover could rise up to QR 750 million for the current year of 2015-16. ”Our goal is to become a billion dollar company by 2017-18,” he says.
Spark Qatar. The online store gives shoppers the complete experience of purchasing and comparing their favourite brands from the comfort of their home. The website and social media platforms have been engaging customers to seek a solution-based response and ensure a smooth flow in their communication channels. With the culture of retail moving towards providing the younger generation with more variety, Spark Qatar is the group's concept store that includes all international brands under one roof. The test outlet that opened in Dar Al Salam Mall proved successful, giving the group an impetus to open a second branch in Barwa Village by the end of 2015. Jumbo Electronics and Spark Qatar differ in only one way - the brands on offer under each roof. The former has specific brands that cater to the needs of their daily customers (LG, JBL ,etc.) whereas the latter deals with other popular brands. The hypermarket trend is here to stay. “Because of all the construction and reduced parking spaces, people prefer personalised services at their doorstep. If I can change even 10 showroom-visiting customers into online shoppers, there will be a gradual shift towards this online retail business we have,” believes Rappai. Providing total solutions to the customer paved the way for the group's engineering wing to grow beyond barriers. Jumbo ElectroMech is the MEP line that has recently set its sights on turnkey projects. This line is involved in CCTV and security systems, audio visual solutions, firefighting and fire alarm systems, plumbing contracts and also HVAC design, fabrication and installation works. The Jumbo group of companies has also crossed the 1,000 project milestone by providing their services to many sectors such as residential, corporate highrise towers, hotels, resorts and schools. Their clients include some of the biggest names in the state such as Ooredoo, Al Fardan, Ezdan, Msheireb properties and many more.
Shift to online retail For a business to run in perfect harmony, growth and innovation go hand in hand. Retail is the lifeblood of the business, Rappai says. Talking about milestones for the previous year, he says the three major achievements for the electronics chain have been the online portal, the Mechanical, Electrical and Plumbing (MEP) wing and
Technological insights Restricted by market stipulations and challenges from competitors has been the biggest difficulty for the group's retail and distribution stores. Segregation of services, brands and products, and delivering in-depth knowledge of the products to customers have helped the group's growth. The uncertainty in technology that QATAR TODAY > OCTOBER 2015 > 75
business > market watch
"The fate of traditional retail stores is being monopolised by malls. With 25 malls in the coming years, customers will prefer to go to a mall where they can purchase other goods as well." C V RAPPAI CEO and co-founder Jumbo Electronics
comes with many products being merged into a few poses a threat to the electronics community. Citing an example, Rappai says the digital camera has been replaced by the high resolution cameras in Samsung smartphones and iPhones. But these constant innovations, seizing market share through technological and engineering advancements, is also what brings out marketing innovations in the group's line of business. “The fate of traditional retail stores is being monopolised by malls. With 25 malls in the coming years, customers will prefer to go to a mall where they can purchase other goods as well. It may look like progress for a business but with bustling activity in the stores, there will not be time or the element of personalised service for the customer which we are delighted to engage in and provide,” explains Rappai. Services such as doorstep delivery and customer care will then play an important role in uplifting the market situation in the future. Innovation is diversification Innovation is redefined in terms of diversification at the Jumbo group with two verticals: creation of new verticals and modification of the existing services. Oscar, the company’s private brand that is making its way into the market, consists of low-end and mid-range products and services that cater to the masses. Home appliances, kitchen utilities, portable air conditioners and water dispensers, etc., form a big portion of this brand’s product offering. “A brand should innovate in a way that it becomes young every day. Presentation
76 > QATAR TODAY >OCTOBER 2015
plays a huge role in visibility of quality products. Placing a product on a stand-out counter in any hypermarket will attract more attention from consumers and in turn be beneficial to the product/business. We are constantly working on creative ways of promoting our brands and the quality of our products and services,” says Rappai. In comparison to their personalised and after-sales services for larger products, special offers and discounts play an equally important role. It’s not just about buying a brand or product from them, but also joining their family as an insider to avail their loyalty card incentives. Electronics is a complicated business at present, he says. Market dynamics are constantly changing with the presentation of the product and its visibility in the market. For bigger household or electronics items, the traditional approach of touch and feel is still present amongst users which will gradually transform into the modern techniques of show and tell through virtual reality. Being in the race from the beginning is much better than entering it at a later stage when there is no market left to conquer, he says. With the Qatari community slowly grasping the power of online shopping, it will bridge the gap between businessmen and customers, reducing the former’s cost in terms of space utilised and maximising the customer’s convenience. Even after being in the business for 35 years, Rappai is still humbled by calls and visits from his regular customers and takes pride in using his green ink to give back something special to his community from time to time
business > market watch
Communications re-invented
The world of marketing is evolving from snappy slogans and bombastic sales pitches to interactive, sophisticated contact with consumers. Avantgarde Communications talks about navigating this dramatically changing landscape.
78 > QATAR TODAY >OCTOBER 2015
F
rom their roots in the fashion industry, the four-year-old marketing firm in Doha is a new archetype for the modern marketing agency. Started in 1985 by Martin Schnaak and his contemporaries with an idea to escape the cliquey and conservative attitudes of the fashion industry with a personable event, more in-touch with its clientele, Avantgarde Communications has become a hub for ingenuity and a cosmopolitan hotspot and has crafted some of modern marketing’s most creative campaigns. The year 2014 saw them in collaboration with Toyota to shape Qatar’s record-breaking achievement, the world’s largest desert convoy for off-road vehicles. Their portfolio is very diverse, from managing David Bowie’s “Is” tour to the world’s first "car-vending machine" with Mercedes; Avantgarde emulates versatility and creative characteristics of the modern sales machine. This new ethos of striking originality in the industry has prompted a remodelling of their corporate image. The new website has a stylish and approachable feel; as close to the homepage of an art exhibition series as to that of a marketing agency. The blog is very insightful and covers topics such as the “future of selfie-mania”
MARTIN SCHNAAK Founder of Avantgarde Group
MARKUS HOFMEISTER Managing Director, Avantgarde Qatar
and “how to market to millennials”. Along with the blog, Avantgarde’s eye on the upcoming "Trendbüro", tracks the innovation of the marketing industry from exciting projects such as Red Bull’s “gift shop experience” to Patagonia’s mobile repair shop. The vibrant image of the agency resonates strongly with the current condition of consumerism. Avantgarde’s CEO Martin Schnaak sees the update as a reflection of a well-known passion for turning consumers into fans and the exciting changes in society in general and in marketing in particular. Managing Director of Avantgarde Qatar, Markus Hofmeister, says, “For our Doha office, the Avantgarde rebranding reflects our growing portfolio and it highlights our truly international nature. Whatever the client’s brief, we can draw from the expertise of our international specialists in digital, architecture, design, and strategy and add our unique understanding of the local market.” With the changing elements of the corporate social media presence and the decreasing influence of classical marketing methods of print and bill boarding, Avantgarde represents a particular marketing breed which is an example of connected and contemporary work.
business > market watch
MAKE A STYLE STATEMENT The new watch collection for Fall 2015 from the Rivoli Group is rooted in a palette of colours that can be worn portraying effortless sophistication and taste across men's and women’s fashion. This season displays an umbrella of timepieces by Blancpain, Glashutte and Jaquet Droz with earthy and bold colour statements, experimental new forms and patterns, and a timeless appreciation for warmth and love of nature.
The Qureshi Brothers at Banana Island CASIO UNVEILS The Banana Island Resort Doha by Anantara will play host to the awardwinning Masterchefs, Mohammed Irfan Qureshi and Mohammed Ashfaque Qureshi, from the celebrated Imtiaz Qureshi family to create a special dining experience for food connoisseurs in Qatar.
TWO NEW ADDITIONS
Doha Marketing Services Company (DOMASCO) has announced the release of new additions to Casio’s flagship, the G-Shock MT-G and MR-G Series and the Edifice Mobile Link Analog line of watches.
D
istinguished for serving traditional with a twist, the Qureshi brothers are regarded as the taste makers of modern Indian cuisine, and will be celebrating their heritage between October 1 and 11 at the Q Lounge and Restaurant with ancient recipes and culinary secrets that have been passed down from generation to generation, as well as their award-winning delicacies that have won them global acclaim. The Qureshi’s are famous for their "Heritage" cuisine which includes the "Frontier" and "Dum Pukht". The "Frontier" cuisine is considered the legacy of the Grand Master, Chef Imtiaz Qureshi, who was responsible for introducing the concept of the "stand-up tandoor" and for adding a touch of perfection to the recipes served at restaurants as well as creating recipes that are now on the menus of tandoori restaurants all over the world.
80 > QATAR TODAY >OCTOBER 2015
The new EQB-510 and ECB-500 watches feature simple watch faces that enable the wearer to read the time at a glance. They also link with smart phones, making it easy to check the time of more than 300 cities worldwide in 40 time zones through the sub dial. These new watches expand the line-up of watches based on the “Global Time Sync” concept, making it even easier to set the time in both the analog-style EQB-510 and digital-analog style ECB-500. Designed for business users, they feature multidimensional, high-contrast watch faces. Users can also easily switch the time displayed on the inset dial to the main dial and vice versa, either from the watch or a smartphone, to view the local time on the main hour and minute hands while traveling and the home time on the inset dial.
Qatar is introduced to the Hayes range
Caparo Middle East and Dallas Group are broadening their working relationship in the UAE and Oman by teaming up to promote the HAYES range of cable management products in Qatar.
Q
atar’s economy has grown significantly in the last few years, making it one of the most important markets in the Middle East. Caparo Middle East, an associate of the Caparo Group, brings more than 30 years of supplies to the construction and hydrocarbon sectors, market intelligence and a proven track record for excellent product and service quality. The Dallas Group has been operating for the last 20 years in the construction industry and has been known as a supplier of reputable electrical products sourced from various parts of the world. This strategic tie-up between the two companies will go a long way in servicing construction projects in the near future. A seminar was recently held to introduce this collaboration with special emphasis on the current safety features which have been incorporated in the construction of various prestigious projects in Qatar.
The scent of luxury
Guerlain Spa, Alfardan has launched a unique Guerlain fragrance collection called L’Art et la Matière, exclusively in Qatar.
The fragrance collection consists of seven fragrances that are a celebration of favoured ingredients. Each L’Art et la Matière is a unique and feminine scent, bold and rich, combining exotic floral, spice, leather and amber scents, creating unforgettable and distinctive fragrances. The collection consists of Cruel Gardénia, Rose Barbare, Angélique Noire, Spiritueuse Double Vanille, Tonka Impériale, Cuir Beluga and Bois D’Armenie. All products are now available at the Guerlain Spa, Alfardan.
QATAR TODAY > OCTOBER 2015 > 81
culture > qt take
FROZEN IN TIME An oil painting by Henri Emilien Rousseau (1926) which beautifully captures a hunting scene from rural life in North Africa.
THE HUNT:
CELEBRATING THE SPORT OF KINGS
A compelling story behind every artefact, makes you ponder and dig deeper into the pages of history, reliving the past in all its magnificence. By Keertana Koduru
82 > QATAR TODAY >OCTOBER 2015
I
n the early 1500s one could see mounted falconers, lions and cheetahs in their magnificence and it made hunting an art with its triumphs celebrated nationwide. Hunting displayed courage and strength and was considered to be a way of demonstrating authority. The new exhibit at the Museum of Islamic Art showcases their autumn collection, The Hunt: Princely Pursuits in Islamic Lands which highlights the royal iconography throughout the Islamic world from Spain to China. According to Mirzah Namah (the Book of the Perfect Gentlemen, composed around 1660 CE), among other qualities,
the true gentlemen should have an eye for horses and falcons, play polo and be trained in archery. The portrayal of hunting scenes in Islamic art over time bears testament to the importance placed not only on the sport itself, but also on the animals involved. It features imagery of humans and animals hunting, both as teammates and enemies. Hunting served as a means for rulers to show their valour in times of peace, displaying their skills both as experts and leaders. Royal hunts were impressive sights and often enormous in size, offering the King’s men the occasion to strengthen social ties while improving their skills as horsemen.
Artistic bowls, antique rings worn by rulers, paintings drawn out of the poetry of the Persians, portraits from the Mughal era and the hunting horn from Italy are some of the objects exhibited in the show that come from the 11th to the 20th-century era. The pen box lid from the Mamluk Sultanate of Egypt is made of brass, gold, silver, black and red compound. It features the image of an eagle, taking the position reserved for a seated ruler. It also shows a mounted falconer and a rider using a straight double-edged sword to fend off an attacking lion. The Egyptian figurine of the deer is intriguing and poses an interesting question of where it has come from, either as a piece from a bigger sculpture or from a leg of the royal throne. The deer is realistic and vigorous; its streamlined shape depicts the motion of a leap to escape from a predator or hunter. The three-dimensional woodcarving survives from the 11th century. The four exquisitely portrayed archer’s rings in the exhibit were commonly worn by sultans on the inside of the thumb so as not to interfere in the art of archery while the string of the bow was being drawn. Elaborated jewels were not worn during wars but worn otherwise as a symbol of stature and elegance. The candlestick from Turkey in the mid13th century, made of copper alloy, silver and gold with a convex body and decoration featuring hunters and enthroned rulers, is originally attributed to historical Azerbaijan. The image of the mounted dragon slayer appears to be derived from St. George, a popular figure in Christian Anatolia, who was incorporated into the Truco-Islamic imagery of the Seljuqs of Rum. With reference to the Persian miniature painting, Flower Storm, an animation directed by Ali Akbar Sadegh from Iran in 1972 and produced by the Institute for the Intellectual Development of Children and young in Tehran, tells the story of two towns in the Middle Ages living in peace and harmony until their kings fight over a bird whilst hunting. War broke out, but during the night the children of the town replaced the cannon balls with flowers. A story that pulls us back into the present age, away from the other stories celebrating valour and also giving the visitor food for thought, figuratively. The wall-size portrait of a king and his cheetah on horseback is a painting placed in its full glory. It is said that the cheetahs
THE CALL OF THE HUNT A fragment from the central base of a bowl depicts a mounted falconer in the middle of a hunt. 12th Century, Iran; below: An Oliphant or hunting horn that is one of 80 such pieces known to have survived. It was made from an entire elephant tusk, hollowed out and decorated by carving. Mid-12th Century, Sicily or Souther Italy.
were blindfolded till they reached their destination of the hunt and were then let loose to capture their prey; this was done to heighten their senses of hearing and smell till visibility came into the picture. The Jar stand from the Ayyubid dynasty of Egypt dates back to the 12th century and is made of carved marble. With a mounted falconer on one side and an equestrian spearman on the other, the artwork on the Kilja illustrates the princely pursuits enjoyed by medieval Muslim courts. Another interesting artefact is the bowl base from Iran, dated back to the same era which depicts a mounted falconer in the middle of a hunt. Falconry was considered to be a popular sport and a status symbol among nobles and princes and is still practiced in the Middle Eastern world. The exhibit displays the various falcon hoods which describe the importance and stature of the falcons who wore them. Delicately intricate with gold wire, this metal head would be used to capture complete focus of the bird and its prey. A video describing the art of falconry in Qatar is also on show at the MIA. Falconers say that it is a tradition passed down by their ancestors. The live prey could be a
pigeon or a rabbit; the falcon is then let loose to capture its prey and left alone in the desert to satisfy its hunger. The hunt forms a part of the Qatar Turkey 2015 Year of Culture, aiming at creating a platform for collaboration and cultural exchange between the two countries. MIA will be organizing workshops for school students including A King and his Falcon, which is inspired by The Hunt and allows children to discover the importance and symbolism of the falcon in Islamic Art. The learning process begins with exploring one’s imagination and talent which is encouraged by the educators at MIA. Homeschoolers are encouraged to take part in printmaking and painting activities where children can make prints of the falcon design using styrofoam and ink to create unique artwork. They could also become mini curators creating their own virtual exhibition by finding a theme, choosing the objects, writing an introduction to the exhibition and preparing labels with the help of the in-house curators and educators. The exhibition runs until January 9 2016, at Museum of Islamic Art (MIA), Doha, Special Exhibitions Gallery. Entry is free of charge QATAR TODAY > OCTOBER 2015 > 83
city life > doha diary
EID AL ADHA IN DOHA
The festivities of Eid Al Adha, promoted by Qatar Tourism Authority, began from the Hamad International Airport with eidiya gifts, to tourist hot spots such as Souq Waqif, Katara and Aspire Zone with live music concerts.
T
he festival offered family entertainment shows in malls, bringing together some of the most loved animated characters for kids and the traditional ardha dances as well. In addition to roaming circus parades, balloon benders and flying carpets, malls put on exclusive shows such as Aladdin (City Centre), Bob the Builder (Dar Al Salam), Dora the Explorer (Ezdan Mall), Cinderella (Lagoona), Play ‘Doh (Hyatt Plaza) and Kids Circus (Al Khor Mall). A special highlight this Eid was the Frozen
sing-a-long, where household names Elsa and Anna, accompanied by the snowman Olaf, sang well-known tunes from the Disney movie along with the crowd, young and old. Through the Eid Al Adha Festival theme, “Capture Joy”, QTA also launched a campaign inviting visitors and residents to capture the joyful memories associated with Eid and share their experiences of Eid in Qatar through images and words on various online platforms.
QATAR’S VERY OWN At the signing ceremony of Ali Abdul Sattar’s new album, Les Voyages 2, in the presence of fans, media and guests, the singer stated, “I am honoured to present my latest album at FNAC, the leading platform for promoting art, culture and creativity. It is an ideal opportunity for me to reconnect with my fans and admirers, and I hope the new album meets their expectations. I feel privileged to be the first artist selected to showcase my new work at FNAC. I would like to thank the team at FNAC and Darwish Holding for honouring me and my music, and congratulate them for further strengthening our nation’s cultural fabric by introducing such innovative platforms.” 84 > QATAR TODAY >OCTOBER 2015
FOCUS ON QATAR
D
oha Film Institute hosted the inaugural "Focus on Qatar" showcase from September 30 to October 2 at the Museum of Islamic Art, to highlight the achievements of the Qatari film industry over the past five years. The showcase launched with a special screening of Qatar’s first feature-length film Clockwise by Khalifa Al Muraikhi to celebrate its fifth anniversary and was preceded by an overview on the history of cinema in Qatar. Commenting on the initiative, Fatma Al Remaihi, CEO of the Doha Film Institute, said, “Filmmaking in Qatar has become a reality due to our country’s visionary leadership and the combined efforts of individuals and organisations, committed to supporting local talent, and promoting Qatar on the world stage. We look forward to welcoming the community in our celebration of our nation’s cinema and the people who make it possible.”
Splish-splash fun at Lusail
CELEBRATING FOOTBALL
"Football Legends", a one-ofa-kind football memorabilia exhibition of rare and exclusive collections that have defined sports over the years, was held at Lagoona Mall from September 17 to October 3. The specially curated exhibition presented an incredible collection of jerseys, signed boots, original footballs used during World Cup games, special stories on some of the greatest footballers. The event also aimed at raising awareness on the growth and evolution of football and its acceptance as the world’s leading spectator sport. The exhibition included a 5x2-meter screen where visitors were able to participate in a gaming competition to win a jersey signed by Cristiano Ronaldo. In addition, they also had a chance to try the world-renowned FIFA 16 launched on September 24 this year.
B
lue Marine, a marine company offering water sports activities, was welcomed by Mourjan Marinas, Lusail City this September to offer a full line-up of water sports activities in a bid to make water-based sports more accessible to the local community. Visitors to the marina will be able to try a variety of water sports including wake boarding, fly boarding, jet skiing, jet packing, hover boarding, kite surfing, water skiing, kayaking, yacht charter, dhow trips and fishing trips. Hashim Alaitah, Head of Operations of Blue Marine added: “Blue Marine provides the best water sport opportunities with outstanding value, competence and high-quality equipment. Mourjan Marinas - Lusail City provides the perfect platform for us to introduce more people to water sports in a safe, easy and friendly environment.” QATAR TODAY > OCTOBER 2015 > 85
There is no man or woman who isn’t a slave to their e-mail. D’Souza is no exception. While desk work isn’t exciting by any stretch of the imagination, it’s the centre of D’Souza’s professional world. It’s an island of sanctuary during a day of whirlwind activity. It’s a creative corner where you will words to tell stories. For D’Souza, who also happens to be involved in the design work for BQ in addition to writing and editing articles, this is a second home.
A day in the life of... Shereen D’Souza, Assistant Editor, BQ magazine
Qatar Today follows the daily routines of professionals around Qatar from all walks of life. By Ayswarya Murthy JOURNALISM IS ONE OF THOSE ASPIRATIONAL PROFESSIONS (EVEN IF WE DO SAY SO OURSELVES) IN WHICH THERE IS NO SUCH THING AS A TYPICAL DAY. THE NEWS NEVER SLEEPS, AS THEY SAY. WE TRY TO MAKE SOME SENSE OF THIS YOUNG EDITOR’S DAILY ROUTINE.
D’Souza is also deeply involved in the practical side of the magazine business. So every end of the month, this means coordinating with the printers and ensuring the magazine comes off the press hot, and perfect in every way. “After we receive the final files from the designer, we take it to the press and check the dummy with the graphic designers there to ensure everything is ready for printing. Once the plates are made, the printers do a sample print run from which we choose the one that looks closest to the colours on the screen. After signing off on the final print run, the printing starts and a few days later the magazines are delivered, ready for distribution", she says.
With chef Sanjeev Kapoor
While D’Souza is a versatile writer, she particularly loves to write about travel, retail, hospitality and, of course, business. A job hazard of being a journalist in Doha is that you are continually bumping into inspirational and famous people who are drawn to the city. One day you are interviewing a venerable TV chef, the next day you are sitting down with an iconic architect. One of D’Souza’s more interesting interviews was with fashion designer Wendell Rodricks. “It was such a casual and candid conversation. Every journalist’s dream. The interview that started as we walked out of the restaurant and towards my car, continued as I drove him around the city and back to his hotel,” she says. The gang at BQ is a fun-loving lot, she says. Some or the other celebration is always around the corner. Birthdays, weddings or just gathering around the conference table for lunch. Basically any excuse to make memories and bond over good food and interesting conversations.
While technically work ends at five, it never really ends at five. Many media events only begin after the sun goes down. Every week is a blur of press conferences, product launches, boutique openings, media dinners, and brand parties. It’s a hard life indeed. Next time you meet a journalist, be nice to them. At a blind tasting
86 > QATAR TODAY >OCTOBER 2015