Qatar Today December 2014

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inside this issue DECEMBER 2014 / VOL. 40/ ISSUE 12

COVER STORY

44 A YEAR TO REMEMBER

Much mourning, some cheer, 2014 might not go down in history as a relatively happy year but within 365 days the world changed in many unrecognizable ways.

76 OUTSIDE THE TARMAC

40 QATAR BETS ON ASIA

Qatar’s petrochemicals industry has embarked on a long-term expansion plan based on the assumption that demand from emerging markets such as China and India will continue to grow.

80 A FEW BUILDINGS DON’T MAKE A TOURISM STRATEGY

42 IMAX: THE MAN BEHIND THE LIVING SCREEN

70 RESTRUCTURING IN PROGRESS

IMAX’s core philosophy is to ensure that the quality of the consumer experience is second to none and as such, our research and development investments continue to focus on improving quality versus driving lower costs.”

Experts and industry leaders converse with Qatar Today on the issues facing the Islamic insurance sector and also its prospects in the coming years.

Road safety is a wide, all-encompassing effort spread over more than a dozen areas like vehicle standards and engineering, education, response times and trauma care, enforcement, legislation and more, says Simon Labbett, Director for UAE at Transport Research Laboratory.

While Qatar puts the pedal to the metal on its tourism development strategy, there are some fundamental issues that only committed tourism research can solve. Qatar Today takes a look at the extent of industry-academia partnership in this sector and how early research can impact how the industry grows.

92 THE MUSTANG RISES

Ford celebrated the 50th anniversary of the iconic Mustang on the Burj Khalifa in the presence of the current Executive Chairman of the company, William Clay Ford Jr. Qatar Today was invited to be part of this exciting event.






inside this issue DECEMBER 2014 / VOL. 40/ ISSUE 12

26 THINK GLOBAL, ACT LOCAL

The appetite for snapping up assets abroad by Qatari banks is growing every year as they are looking at more mergers and takeovers. Qatar Today finds out whether the decision has benefited them in terms of making profits.

34 REVOLUTIONISE ENERGY SOLUTIONS

The global oil and gas industry should shape post-easy oil era with technological innovation or risk being shaped by It!

38 MICE OPPORTUNITY KNOCKING ON GCC DOORS

Over 10 million business tourists arrive in the GCC every year, yet the region is not currently one of the world’s prime destinations for the most lucrative part of tourism – meetings, incentives, conventions, and exhibitions.

66 PAY HIKES AND MANAGING EXPECTATIONS

and regulars 14

NEWS BITES

25

BANK NOTES

30

REALTY CHECK

32

O&G OVERVIEW

84

TECH TALK

86

AUTO NEWS

96

MARKET WATCH

99

DOHA DIARY

The worst thing an organisation can do is broadcast great increases in revenue and profit margins and, when it comes to pay reviews, start explaining that the difficult economic circumstances did not allow for reasonable increases.

94 THE LOGISTICS STORY

Nour Suliman, CEO of DHL Express MENA, speaks about the courier industry and the rise of e-commerce that has been a catalyst to the growth of the segment.



from the desk All’s well that ends well? Not for Doha. A few days after a senior FIFA official said that an in-depth report failed to find any evidence of corruption regarding to Qatar’s 2022 World Cup bid, it appears that the investigation is set to re-open, with FIFA Ethics Committee Chief Michael Garcia, who authored the investigative report, releasing a statement criticising the decision to close the probe. Meanwhile, there have been no landmark steps initiated by the country regarding to sponsorship and the human rights issue. A recent incident of a labourers’ strike that resulted in deportation of the workers shines light on the fact that the country has huge ambitions but very little action to bolster its moral stand. With the World Cup 2022 games in the future, oil and gas as a definite resource, a multitude of investments in developed countries and a young leader at its helm, Qatar has a huge opportunity to show to the world that a wealthy monarchy can steer the nation towards a sustainable future with a fair and considerate governance and a community that lives harmoniously, even with diverse religious inclinations and wide inequality in terms of wealth. A utopian scenario, we collectively agree, but as we look back at the sacrilegious killings and the unfortunate incidents that marred 2014, we cannot but hope for some miracle in the next year that brings to this developed world a population that is morally bound to exist in peace and unity. Qatar Today looks back at the year that has given us much to be ashamed of and a few incidents that make us still hang on to humanity. Humanity was at the forefront at WISE, with the winner of the 2014 WISE Prize for Education, Ann Cotton, working tirelessly to remove girls from the brutal arms of poverty and inequality by educating them. Qatar Today talks to this inspiring woman. We also celebrate innovation, through the story of the success of IMAX theatres, the celebration of 50 years of the iconic Mustang, and discovering the science behind collisions on roads, all explored in depth in this issue. Happy Reading

SINDHU NAIR

10 > QATAR TODAY > DECEMBER 2014



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

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Your coverage on the Tipu Sultan exhibition was interesting. Do hope a lot of the general public will visit this free exhibition and make the most of it. VINAYAK B R

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AFP PHOTO/HO/SP

affairs > local

GCC RELATIONS IMPROVE A handout picture released by the official Saudi Press Agency, shows (from left to right) Saudi Arabia’s Deputy Prime Minister Prince Muqrin bin Abdulaziz Al Saud; United Arab Emirates ruler of the emirate of Dubai, Sheikh Mohammed bin Rashid Al Maktoum; Qatar’s Emir HE Sheikh Tamim bin Hamad Al Thani; and Emir of Kuwait Sheikh Sabah Al Ahmad Al Sabahan during an extraordinary Gulf Cooperation Council leaders’ summit in Riyadh on November 16 during which they agreed on the return of Saudi, Emirati and Bahraini envoys to Qatar, promising an end to eight months of tense relations.

QATARI COLLECTOR DIES

S

heikh Saud bin Mohammed Al Thani, the former minister of culture and heritage in Qatar, who spent more than QR3.64 billion ($1 billion) of the soverign funds on art, died at the age of 48 last month at his London residence. A cousin of the Emir, HH Sheikh Tamim bin Hamad Al Thani, Sheikh Saud was in charge of developing libraries and museums. According to The Art Newspaper, between 1997 and 2005, he spent more than any other individual on art.

16 > QATAR TODAY > DECEMBER 2014

“QA WOULDN’T MIND BEING PRIVATISED”

“T

he industry has been stunned by the aftermath of how the investigations of MH370 unfolded, and for the sake of the future of the industry’s legacy and integrity, the full case must come to fruition and exact learnings uncovered,” said Akbar Al Baker, Qatar Airways Group Chief Executive and Chairman of the Executive Committee at Arab Air Carriers Organisation's (AACO) 47th Annual Meeting. He was also quoted in another daily as saying, “Once I (QA) have [been credited] as a very established carrier I wouldn’t mind [being privatised],” during a panel discussion at the AACO’S meeting in Dubai.



affairs > local

THREE IN AND ONE OUT IN LUXURY HOSPITALITY

SALARY STRUCTURE TO BE UNIFIED

The new luxurious Banana Island Resort Doha by Anantara, developed by Al Rayyan Hospitality (ARH), will soon open as an idyllic 32-acre holiday retreat with Maldives-style over-water villas.

C

urrently, ARH is planning more resorts including the region’s largest beach resort, a massive new 362-room waterfront destination, the Hilton Salwa Beach Resort & Villas, on 257 acres (or 30 million sq m) of prime coastline in southwest Qatar. In a prime location in central Doha situated within a lush green landscape of 33 acres and a 13-hectare site, ARH is also developing the Al Messila Resort & VIP Spa. Another exclusive international beach resort chain Nikki Beach has confirmed that it is pulling out of Qatar. Doha was supposed to be the company’s first venture in the Gulf, and a site on the Pearl-Qatar had long been earmarked for construction.

CLEAN CHIT FOR DOHA?

ASHGHAL PROJECTS GATHER PACE The Public Works Authority (Ashghal) will execute infrastructure projects involving over QR24.3 billion over the next three months, according to the Annual State Achievement report. Road projects at a cost of over QR12.4 billion, sewage projects at more than QR9.89 billion and building projects at a cost of about QR2 billion will be implemented.

THE TOTAL COST OF PROJECTS AWARDED DURING 2013-14 CROSSED

QR38 QR33 QR276.5 QR4.2

C

ountries of the Gulf Cooperation Council are planning to unify salary structures for jobs occupied by their nationals based in non-native member states. The decision to have unified salary slabs and allowances for GCC citizens employed in non-native member countries was taken by the finance ministers in their meeting in Kuwait last month. Other issues taken up for discussion by the ministers at their meeting included financial stability in the region, job market reforms and how to raise productivity of those in employment.

Q

atar has been cleared to host the 2022 World Cup after a FIFA investigation. Despite finding evidence of “potentially problematic conduct” by some individuals, a report has said the bidding process for the tournament was not compromised. However, the investigation did implicate England over its bid for the 2018 tournament for breaching the rules in its attempts to woo disgraced former FIFA vice-president Jack Warner. However, Chief Investigator Michael J Garcia denounced the way in which his report has been summerised and demanded that the report in its entirity be made available to the FIFA Executive Committee. This will likely be done and the committee will be free to decide if they accept Head Judge Hans-Joachim Eckert's recommendations or take more serious action.

BILLION, INCLUDING ROAD PROJECTS WORTH OVER BILLION,

SEWAGE PROJECTS

AND BUILDING PROJECTS

DIABETES TALK

MILLION

BILLION.

18 > QATAR TODAY > DECEMBER 2014

A

s a disease that is particularly prevalent in the Gulf region, the incidence of diabetes is as high as 12-18% in the Middle East, with Qatar, Saudi Arabia and Oman appearing in the top ten most affected countries, according to the International Diabetes Federation.




QATAR IS A TERROR-FREE NATION

HONOUR FOR QATAR’S ENVOY TO FRANCE Qatar’s Ambassador to France HE Saud bin Abdullah Al Mahmoud was conferred the distinction of “Knight of the Legion of Honour,” the highest decoration in France, in recognition of his outstanding efforts in the development of bilateral relations between the two countries. French Ambassador to Qatar HE Eric Chevallier presented the award to HE Saud Al Mahmoud in Qatar on November 11. Assistant Minister for Foreign Affairs of Qatar HE Mohammed Bin Abdullah Al Rumaihi and other senior officials from the Interior Ministry were present.

VODAFONE QATAR EXPECTS PROFITS IN 2015 VODAFONE QATAR EXPECTS TO TURN PROFITABLE NEXT YEAR, ITS CHIEF FINANCIAL OFFICER STEVE WALTERS SAID AFTER IT REPORTED A NARROWER LOSS FOR THE SECOND QUARTER. VODAFONE QATAR MADE A LOSS OF

QR80.96

MILLION

IN THE SIX MONTHS TO SEPTEMBER 30 COMPARED WITH A LOSS OF

QR159.88

IN THE PRIOR-YEAR PERIOD. THE COMPANY HAD

1.37

MILLION

MOBILE SUBSCRIBERS AS OF SEPTEMBER 30, UP

16%

MILLION

QATAR AND OMAN ARE THE ONLY TWO COUNTRIES IN THE MIDDLE EAST WHICH ARE TERRORISMFREE, ACCORDING TO 2014 GLOBAL TERRORISM INDEX REPORT, AND ARE AMONG 39 COUNTRIES AROUND THE WORLD GIVEN A “0” RATING FOR BEING UNAFFECTED BY TERRORIST ATTACKS. IRAQ HAS THE DUBIOUS DISTINCTION OF TOPPING THE LIST AS THE MOST AFFECTED, AND IT IS FOLLOWED BY SYRIA, YEMEN, EGYPT, LEBANON, LIBYA, TURKEY, SUDAN, ALGERIA AND IRAN WHICH ARE AMONG THE TOP TEN COUNTRIES IN THE REGION.

CHANGE IN LEADERSHIP ROLES

Qatar’s Emir, HH Sheikh Tamim bin Hamad Al Thani, has named two individuals to some of the nation’s most powerful political positions, according to the state news agency.

T

he moves were announced on November 11. For the first time, HH Sheikh Tamim has named a Deputy Emir – his half-brother Sheikh Abdullah bin Hamad Al Thani. Prior to being named Deputy Emir, Sheikh Abdullah was chief of the Emiri Diwan, Qatar’s seat of government. Replacing him is Sheikh Khalid bin Khalifa bin Abdul Aziz Al Thani, who Sheikh Tamim previously named as director of the office of the Emir in June 2013.

IAAF 2019 WILL BE IN DOHA DOHA WON THE BID TO HOST THE PRESTIGIOUS 2019 IAAF WORLD CHAMPIONSHIPS IN ATHLETICS – THE THIRD LARGEST GLOBAL SPORTING EVENT AND ONE OF THE MOST SIGNIFICANT WORLD CHAMPIONSHIP EVENTS THE NATION WILL HOST AS PART OF ITS COMMITMENT TO DEVELOPING SPORT. FOLLOWING FINAL PRESENTATIONS IN MONACO, THE IAAF COUNCIL SELECTED DOHA, BRINGING THE GLOBAL ATHLETICS EVENT TO THE MIDDLE EAST FOR THE FIRST TIME IN ITS LONG HISTORY.

FROM A YEAR AGO. QATAR TODAY > DECEMBER 2014 > 21


affairs > local

A panel during WISE discusses creativity, entrepreneurship and education.

The World Innovation Summit for Education 2014 explored how we can employ creativity in education.

22 > QATAR TODAY > DECEMBER 2014

SPOTLIGHT ON EDUCATION

O

ver 1,600 stakeholders in education from all corners of the world were part of this annual education summit that, this year, sheds light on the importance of creativity in education. Under the theme “Imagine-Create-Learn”, participants will be encouraged to ask new questions and identify new solutions, HE Sheikh Abdulla bin Ali Al Thani, Chairman of WISE and President of Hamad Bin Khalifa University, said during the opening session. HH Sheikha Moza bint Nasser also announced the winner of the WISE award for 2014. This year’s laureate, Ann Cotton, has been working for 30 years in sub-Saharan Africa trying to remove girls from the vicious cycle of poverty and inequality. Her organisation, Camfed (Campaign for Female Education) has helped over three million girls in Zimbabwe, Zambia, Ghana, Tanzania and Malawi. Lord Jim Knight, Managing Director of Online Learning at TSL Education, in the first plenary session,

explained why the education system that we have been perpetuating is fundamentally wrong with learning. “First, we celebrate individual achievement but innovation is a team effort. We compartmentalise knowledge and favour specialisation while there has to be an interdisciplinary approach. There is a culture of passivity in classrooms which has to go. And failure is not the worst thing that can happen; in fact, failure is imperative to learning, taking risks, finding better solutions. And finally, we have to move away from extrinsic incentives like grades and money to intrinsic ones like wanting to make a difference.” For three days, a range of topics like empowering teachers through creativity, personalised education, rural education, assessing creativity, (re)motivating learners, etc was discussed. Laurie Mulvey, one of the directors of the World in Conversation Center in the College of the Liberal Arts at Penn State, spoke about how the centre is bringing


Clockwise from right: A glimpse of the online conversations surrounging WISE; participants try their hand at making a basic circuit at Play, Build, Code; interactions happen on the sidelines; getting creative with a 3D printer; An arts and crafts table that helps attendees blow off steam and also contribute to charitable causes

together young voices from the West and the Middle East for constructive dialogue. LEGO Foundation (which also had an exciting workstation at WISE, where you could learn through storytelling with legos) and Ashoka have announced the 10 winning entries from 630 global applications aimed at transforming the way the world learns. Called “The Re-imagine Learning Challenge”, projects from countries like Haiti, India, Kenya, Afghanistan and South Africa emerged on top, with concepts like education through skateboarding, hygiene awareness through games, using cardboard in creative and interactive exercises, and more. As a primer to the upcoming World Innovation Summit in Health, a special

debate was organised on education and well-being. HH Sheikha Moza impassionedly urged attendees – governments, donors and civil society – to revisit the global promise to educate the 58 million children around the world who are out of school because of poverty and conflict. She advised setting another deadline and committing to make a change. “If we break our promise again, we are putting our dignity at risk,” she said. It was also announced that the organisation founded by her - Education Above All - along with the United National High Commission for Refugees is launching a fouryear education pilot project in the Kakuma Refugee Camp in Kenya which is one of the

largest refugee camps in the world, serving more than 170,000 people who have fled from neighbouring countries. But the biggest take-away from the summit is the awareness that technology doesn’t impede creativity, as commonly thought, but can enhance it. While many activities and stalls at the summit aimed at showcasing this to the participants, it’s important to highlight the ten-day Learning Festival which took place on the sidelines at Katara and invited the public to witness how technology is being used globally to foster creativity in children. Through photo exhibitions, demos, workshops and performances, makers explored how simple analog and digital resources can complement creativity. QATAR TODAY > DECEMBER 2014 > 23


affairs > local

A BEACON OF HOPE

Ann Cotton knows that poverty is the greatest barrier to accessing education in the communities of sub-Saharan Africa.

T

he UK-based activist walked away with the coveted $500,000 (QR1,820,000) ‘WISE Prize this year – a Nobel for Education – for her outstanding Campaign for Female Education (Camfed) that provides millions of underprivileged girls in sub-Saharan Africa access to education. HH Sheikha Moza bint Nasser presented the award to Cotton at the sixth World Innovation Summit for Education (WISE). “I want to dedicate this prize to all those girls in Africa who were able to exercise their right to education and to those girls who, even as we sit here, fetch and carry water and wood and have no idea that the WISE prize is going to change their life,” said Cotton on receiving the award. In the countries in which Campfed works, success wouldn’t have been possible without the passion and energy of the communities, for all of whom “education is such an aspiration”. “No family ever turns down an offer to send their daughters to school,” she says.

“At a personal level it is an incredible honour, and this is such an opportunity for girls’ education and for so many more people, institutions and individuals to know about the cause. We have committed to support one thousand more girls in secondary education over the next five years in Africa. We believe that secondary education is absolutely fundamental," she said. “Just imagine these girls, all of whom are from a background of rural poverty; all who understand the anxiety and the frustrations of poverty. Just imagine them working in the education and health systems, in politics, in journalism, in law, in engineering, in science - just imagine the power of what they can do to transform our world,” she said. In 1991, when Cotton visited Zimbabwe to find out why girls’ school enrolment in rural areas was so low, she found that, contrary to the common assumption that families weren’t sending girls to school for cultural reasons, poverty was the main block. Families couldn’t afford to buy books or

pay school fees for all their children, so they had to choose who would receive an education. Girls were rarely chosen. “I found grandmothers at the age of 35 years, they were given in marriage at an early age due to poverty and they couldn’t continue education,” said Ann. While the resistance to women’s advancement has existed globally and through history, in present day Africa girls’ education is a powerful unifying factor among the communities, according to Cotton. “We never overtly challenge any of the patriarchal traditions. Instead we work inclusively,” she says. In fact, it was a lot tougher to “move a family psychologically from the fear of immediate financials” and get them to invest in their future. She returned home to Cambridge, England, determined to find a way to help girls go to school in Zimbabwe. She approached friends and family and sold baked goods to raise money and awareness about the lack of education for girls in sub Saharan Africa. She began her campaign by helping put

THE BEST ARAB UNIVERSITIES Qatar Today speaks to the team behind Best Arab Region Universities, a ranking which was released for the first time in the region.

T

he inaugural rankings of universities in the Arab region based on academic research performance were unveiled at the World Innovation Summit for Education (WISE 2014). It has ranked Qatar University, which has been at the forefront of research in the country, 29th in position. ‘2015 Best Arab Region Universities’ prepared by US News & World Report, a US-based publisher of education analysis and rankings, has based its rankings on universities’ academic research performance,

24 > QATAR TODAY > DECEMBER 2014

allowing students to compare more than 90 institutions across 16 countries in the Arab region. In addition, there are separate rankings in 16 subject areas, including key ones such as computer science, engineering, medicine, maths and social sciences. The ranking offers a comprehensive assessment of higher education institutions in the region, allowing prospective students and their parents to accurately compare institutions. As per the directory published by US News & World Report, there are about


32 girls through school. In 1993, Ann formally launched Camfed. The girls supported by Camfed stayed in school and did well, demonstrating that girls’ education was valued by families when costs were met. Their work was replicated in more than 3,428 communities in Ghana, Malawi, Tanzania, Zambia and Zimbabwe.

“Unlike when I started the work in 1991, now there is much more understanding among the communities. They know the problem and believe that there is a solution,” said Ann. Camfed provides financial support to overcome the economic barrier in the communities and then works through national and local systems – with parents, teachers,

800 educational institutions in the MENA region. On the overall ranking list, which measures the quality of faculty based on published papers in the last five years, three Saudi Arabia universities – King Saud University, King Abdulaziz University and King Abdullah University of Science and Technology – were ranked first, second and third – respectively, among the 91 institutions. Cairo University in Egypt is ranked fourth, followed by American University of Beirut in Lebanon in fifth place. “The absence of a medical faculty at Qatar University might have pushed it down to 29th position,” said Robert Morse, Chief Data Strategist and Head of Educational Research, US News & World Report. “Generally, much of the research happens at a medical faculty of a university. We recently heard that Qatar University is planning to open a medical faculty, so if the survey is done in a few years, the rankings would change. However, the 29th position among 800 universities is not a bad ranking.”

The rankings - which are based on bibilometric data and research metrics provided by Scopus, part of the Elsevier Research Intelligence portfolio - focus specifically on institutions’ academic research output and performance and not their separate undergraduate or graduate programmes. Scopus is Elsevier’s abstract and citation database of peer-reviewed literature, covering 55 million documents published in more than 21,900 journals, book series and conference proceedings by more than 5,000 publishers. For the Best Arab Region Universities rankings, the Scopus database was aggregated for universities in the Arab region by school and subject. “The methodology used in ranking the universities in the region weighs factors that measure research productivity and performance using a variety of bibliometric indicators such as publications and citations” said Morse. Papers published only in the five-year period from 2009 through 2013 have been analysed. This time period has been

government officials and traditional authorities. Camfed programmes are devised, managed and monitored by the community. The girls that Camfed supports are selected by the community as being the most in need. Camfed helps them throughout their development, from primary school years until adulthood. They allow a girl to get into school, do well academically, and maximise the value of her education after graduation. Cotton shared several success stories of Camfed alumni. Abbigal Muleya grew up in the Binga District of northern Zimbabwe, a remote area that poses many challenges to families trying to rise out of poverty. Today, with the support of Camfed, Abbigal is a Mandela Washington Fellow under President Obama’s Young African Leadership Initiative (YALI). “She excelled in her studies and was the first girl child in the history of her secondary school to have an ‘A’ in mathematics - a subject that many thought only boys could master,” Cotton said. Camfed’s programmes, which are implemented across 5,085 partner schools in 115 rural districts of Zimbabwe, Zambia, Ghana, Tanzania and Malawi, are owned and run by the communities. Camfed is replacing an existing cycle of poverty and despair with a new cycle of prosperity and hope.

ROBERT MORSE Chief Data Strategist and Head of Educational Research US News & World Report

QATAR TODAY > DECEMBER 2014 > 25


affairs > local

UNIVERSITY ATTRIBUTES CONSIDERED RANKING INDICATOR

WEIGHT

Publications

BRIAN KELLY Editor and Chief Content Officer US News & World Report

THE 10 BEST ARAB UNIVERSITIES 1.

KING SAUD UNIVERSITY RIYADH, SAUDI ARABIA

2. KING ABDULAZIZ UNIVERSITY, SAUDI ARABIA 3. KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, SAUDI ARABIA 4. CAIRO UNIVERSITY, EGYPT 5. AMERICAN UNIVERSITY OF LEBANON, BEIRUT 6. MANSURA UNIVERSITY, EGYPT 7. AIN SHAMS UNIVERSITY, EGYPT 8. KING FAHD UNIVERSITY OF PETROLEUM AND MATERIALS, SAUDI ARABIA 9. ALEXANDRIA UNIVERSITY, EGYPT 10. UNITED ARAB EMIRATES UNIVERSITY, UAE 26 > QATAR TODAY > DECEMBER 2014

30%

Cited publications

5%

Percentage of publications cited

5%

Citations

20%

Field-weighted citation impact

10%

Number of highly cited publications in top 10%

5%

Percentage of total publications in top 10%

5%

Number of highly cited publications in top 25%

10%

Percentage of total publications in top 25%

10%

chosen since many Arab region universities have only recently begun emphasising the importance of their faculty publishing journals and engaging in research. As a result of setting the threshold at 400 or more total papers, 91 schools were included in the overall rankings. “There are some universities in which the faculty only teach, they have not done any research, therefore no papers were published,” said Morse. Her Highness Sheikha Moza bint Nasser, chairperson of the Qatar Foundation, initiated the project as a way to add value to higher education in the region. Branch campuses in the Arab region that are operated by a parent university in another country were not considered for these rankings, said Morse, and this would be the reason for excluding the colleges within Education City. “One of the reasons we are interested in working on these rankings is because there isn’t anything like it in this region. If you go to Europe and the US or elsewhere, there is a tremendous amount of data, but in the MENA region, no one has taken such an initiative. It’s a challenging task but we are making good progress,” said Brian Kelly, Editor and Chief Content Officer, US News & World Report. Since it was an inaugural project, finding accurate data about research at universities had been a major challenge for US News. “Asking schools for information and then making sure it’s accurate is a problem. Another challenge is the size of the region. There is also a broad mix of countries here that has some similarities but differences too,” said Kelly.

The 2015 rankings are the beginning of a long-term project by US News to develop surveys and rankings for the region. In subsequent editions of the rankings, US News plans to include other ranking factors, including separate reputation surveys of Arab region academics and employers and statistical, school-level data collected directly from Arab region universities. This year, going until next year, the team will be conducting a survey of people in the region, including business groups and employers, focusing on their impression of the universities. Kelly said in their five-year work they expect to refine what they do and have a very complete ranking product. “In the next five years, we will improve the numbers. We will have some rich data from employers and other educators who will look at the reputation of these schools. We will have specific data from schools themselves that will help us standardise ways to measure. Those are the three big pieces of this work. I think we will have that in place within the next two years,” he said. Papers published by Arab region institutions in the subject area of physics and astronomy were excluded based on input from Elsevier’s bibliometric experts, who determined that their citation characteristics would distort the results of the overall rankings. There is, however, a separate subject ranking for physics and astronomy that is based on papers published exclusively in those fields. Branch campuses in the Arab region that are operated by a parent university in another country were not considered for these rankings


business > bank notes “We believe North Africa and Central Asia are promising markets for Islamic banking. As a bank, we had few visits there. We are considering entering these markets with local partnerships. This is important because local partners have a better feel for their market.” ABDULBASIT AL SHAIBEI CEO, International Islamic

BARWA BANK IS JOINT LEAD MANAGER FOR IFFIm SUKUK

Barwa Bank has been appointed by the International Finance Facility for Immunisation Company (IFFIm) as Joint Lead Manager and book runner for a benchmark medium term sukuk issue.

I

FFIm is backed by nine countries including the United Kingdom and France. The company issues bonds, and now sukuk, designed to upfront future donor pledges into cash-in-hand today to finance its immunisation efforts. The proceeds of the sukuk will be used to provide free vaccines and related health system strengthening support to many of the world’s poorest nations.

QIIB TO OPEN SME BRANCH

Qatar International Islamic Bank will open a dedicated branch for its corporate and SME customers on the Grand Hamad Street next month, according to its CEO Abdulbasit Al Shaibei. “There is huge potential on the corporate side and the retail segment too is promising. We are focusing on the small business as well. Because, this sector (SME) will grow with the bank, he says.

QINVEST ADVISES ON SUKUK ISSUES IN 2014

Investment bank QInvest has advised on seven sukuk transactions thus far in 2014, with a total value of QR12.74 billion ($3.5 billion), representing approximately 20% of the international sukuk market.

D

uring the second half of 2014, QInvest has advised on Hong Kong government’s maiden sukuk, which raised QR3.64 billion ($1 billion). It also advised Goldman Sachs on its QR1.82 billion ($500 million) sukuk and assisted the Grand Duchy of Luxembourg with its debut Euro-denominated Islamic issuance, helping it to raise its first QR912.76 million (€200 million) five-year sukuk.

Al Shaibei said the bank was already active in servicing the SME segment. “We are a top category bank in Qatar Development Bank Al Dhameen programme,” he says.

QATAR IS RMB’S CLEARING HOUSE

Qatar has been designated as the Middle East’s first hub for clearing transactions in the Chinese yuan, a step that could over the long run help Gulf oil exporting countries reduce their dependence on the US dollar.

I

ndustrial and Commercial Bank of China’s Doha branch has been appointed as the clearing bank for yuan deals in Qatar, China’s central bank said, according to a Reuters report. “The signing of the MoU and the appointment of the renminbi clearing bank will increase the strong ties between China and Qatar and position Qatar as the regional centre for renminbi clearing and settlement,” Qatar Central Bank said.

QDB FINANCES 120 SME PROJECTS Qatar Development Bank’s Al Dhameen, indirect lending programme, has reached a new high, financing nearly 120 projects of start-ups and established SMEs, across industries, in the country so far. As many as 25 projects with a total value of QR130 million were financed under the programme in 2014 alone. QATAR TODAY > DECEMBER 2014 > 27


business > bank notes

THINK LOCAL, ACT GLOBAL

28 > QATAR TODAY > DECEMBER 2014


The appetite for snapping up assets abroad by Qatari banks is growing every year as they are looking at more mergers and takeovers. Qatar Today finds out whether the decision has benefited them in terms of making profits. BY V L SRINIVASAN

W

hile saturation of the local market is cited as the prime reason for the cash-rich Qatari banks to expand their operations overseas, seeking access to trade flows for higher growth opportunities across the Middle East region and also in Africa and Asia are said to be other. Commercial Bank of Qatar’s plans to acquire stakes in the Turkish Islamic bank Aysa fell through midway a couple of months ago but Qatar National Bank (QNB) has clinched the deal to buy 23.5% shares in the pan-African lender Ecobank in September. QNB was apparently enthused by the results of the acquisition of the Egyptian assets of two French banks in 2013 which helped the bank post a 13.7% increase in full-year net profit. Commercial Bank has been operating in Oman, the UAE and Turkey through its subsidiaries and associates and all of them have been earning profits. The net profit of Alternatifbank (ABank) in Turkey rose by 29% to QR100.52 million (TL63 million) for the half year ending June 30, 2014 compared with QR76.59 million (TL 48 million) for the same period in 2013. Likewise, the National Bank of Oman registered a growth of 22.8% by earning a net profit of QR217.58 million (OMR23 million) compared with QR177.85 million (OMR18.8 million) the previous year and the United Arab Bank’s net profit stood at QR328.52 million (AED328.3 million) for H1 2014, representing an increase of 26.2% over the same period in 2013. Pan-GCC presence Doha Bank, which has, presence in several countries, has earned a net profit of QR37 million while the net income was QR162 million from its overseas branches during 2013 and the management is planning to expand internationally by opening new branches and representative offices. The

bank is seeking to boost profits from overseas operations to as much as 30% of net income by next year, up from 10% in 2013. Doha Bank’s net interest margins dropped to 3.1% in the second quarter, from 3.8% three years earlier. The bank’s latest acquisition is HSBC Oman’s India operations in October this year while it has secured a licence to commence operations in India in the last quarter of 2013. The licence is expected to enable the bank to cater to the banking needs of not only the Qatari, GCC and Indian corporate sector but also support the global network of Doha Bank. “Our aim is to become a pan-GCC presence, serving the bank’s growing client base across the wider GCC region and leveraging our reputation in trade finance to expand into those countries with which Qatar (and other GCC countries in which the bank already has an established presence - notably Kuwait and the UAE) enjoy significant trade ties and other bilateral ties and synergies, including business flows and other ties such as expatriate accounts,” says Doha Bank Group CEO Dr Raghavan Seetharaman. He says the bank will continue to focus on expansion in India as it has a “huge bilateral trade and development” not only with Qatar or GCC countries but also with most of the global locations such as Japan, China, South Korea, Singapore and Australia, where Doha Bank is already present.

“Our aim is to become a panGCC presence, serving the bank’s growing client base across the wider GCC region and leveraging our reputation in trade finance to expand into those countries with which Qatar (and other GCC countries in which the bank already has an established presence.” DR RAGHAVAN SEETHARAMAN CEO, Doha Bank group

Seizing opportunities Associate Director (CEEMEA Financial Services Ratings) at Standard and Poor’s Timucin Engin says that, in tune with the overall trend for the GCC-based banks, certain Qatari banks have been establishing small branches and representative offices in Asia, to capitalise on the increasing trade flow between the GCC and Asia Pacific region. QATAR TODAY > DECEMBER 2014 > 29


business > bank notes For several years prior to the global economic crisis in late 2008, certain European banks have been acquiring or building up banking assets in emerging markets, including some of the MENA markets such as Egypt and Turkey. “The banks in Europe are facing problems at home and are concentrating more on the domestic market to consolidate their position rather than looking at other countries and within this context they have been selling some of their non-core assets in other markets such as Turkey and Egypt, and bank valuations are visibly lower than the pre-crisis levels,” Timucin says. Timucin also expects the credit growth in Qatar to remain strong over the visible future in line with the large-sized infrastructure investments and, given Standard and Poor’s outlook on credit growth, he says the Qatari banks will remain important issuers of bonds and sukuks in the GCC markets.

“In tune with the overall trend for the GCC-based banks, certain Qatari banks are also establishing small branches and representative offices in Asia, to capitalise on the increasing trade flow between the GCC and Asia Pacific region.”

Islamic banks not far behind On the other hand, Qatar’s Islamic banks too have joined the bandwagon and are looking to further improve their balance sheets by earning profits by opening new branches in other countries. Qatar Islamic Bank (QIB) has acquired an additional 10% of the voting shares of Asian Finance Bank (AFB) for QR61 million which raised the total shareholding to 60% in May this year. AFB is registered as an Islamic bank in Malaysia and regulated by Bank Negara Malaysia, according to the bank’s financial statement released in September this year. The bank also acquired an additional 62.99% of the voting shares of Arab Finance House (AFH) and secured control over the

TIMUCIN ENGIN Associate Director (CEEMEA Financial Services Ratings) Standard and Poor’s

financial and operating activities of AFH with 99.99% of the share capital in December last year. AFH is registered as an Islamic bank in Lebanon and regulated by Banque Du Liban. Another leading Islamic bank - Masraf Al Rayan - has acquired over 98.34% shares of the Islamic Bank of Britain (IBB) in February this year and plans are underway to change the bank’s name and brand to Al Rayan Bank, which is expected to be completed in January 2015. Islamic Bank of Britain has made significant strides towards profitability by reversing monthly losses and is now profitable on a month by month basis since July 2014. The bank expects to end the year on a positive note. Masraf Al Rayan is also planning to open a Knightsbridge branch and registered head office in London where it’s commercial and GCC operations will be based. Its retail banking and operational centre, however, will remain in Birmingham. IBB’s balance sheet growth has also been strong, with retail property finance balances increasing by 61% by end of September. Growth was generated from IBB’s full range of financial products including the Home Purchase Plan, Buy to Let Purchase Plan and Commercial Property Finance. Asset growth of IBB has been funded through an increase of 29% in retail deposits and 20% increase in institutional wholesale deposits over the year to date. A widening of the margin over the total cost of funding has contributed significantly to the bank’s improved financial performance, with net income from Islamic finance transactions increasing by 104%, according to Masraf Al Rayan’s website

TOTAL ASSETS (QR Millions) QNB

443,486

CBQ

113,112

DOHA BANK

66,970

KHALIJI

41,259

AL AHLI

26,177

QIB

77,354

MASRAF AL RAYAN

66,548

QIIB

34,421

7%

475,284

1%

114,271

5%

70,271

17%

48,215 30,402

16% 93,344 77,830

37,890

10%

21% 17%

31 DEC 2013 30 SEPT 2014 % CHANGE Source: www.qe.com.qa

30 > QATAR TODAY > DECEMBER 2014



business > realty check “Despite growing demand, residential real estate development in the GCC is slow with buildable land scarce and expensive, particularly in urban environments.” SAMER BOHSALI Partner Strategy&

QATAR TOPS IN SNAPPING UP UK PROPERTIES

TRANSACTIONS UP BY 15%

Qatar has been top among the world's nations in buying commercial real estate properties in London, according to a report from global data and analytics firm Real Capital Analytics.

O

f the QR32.34 billion ($8.9 billion) worth of cross-border transactions in the UK, Qatar has racked up QR22.93 billion ($6.3 billion) worth of properties in the last three years. Qatar, which owns prime properties including the Olympic village, The Shard and Harrods, is followed closely by Kuwait, China and Norway, the report says. London is by far the leading destination for foreign investors in 2014, accounting for 44% of all YTD global cross-border capital flows originating from sovereign wealth funds. The city’s real estate has attracted four times more capital than New York, whose cross-border transactions are said to be to the tune of QR8.37 billion ($2.3 billion), the report adds.

Qatar’s overall real estate transaction value during the first nine months of 2014 rose by 15.2% to QR37.2 billion, compared with QR32.3 billion for the corresponding period in 2013. The total value of transactions for the third quarter of 2014 was around QR11.3 billion as against QR10.6 billion or up 6.6% year-on-year. Total volume of real estate transactions during the first quarter of 2014 grew by a whopping 35.2% and it was up by 8.5% during the second quarter to QR14 billion for the same period in 2013. In July, the total transaction value was QR6.8 billion, the highest in nine months. The transaction value was QR4.8 billion in January, QR2.9 billion in February and QR4.2 billion in March this year.

1,000 m

DOHA’S STRUCTURE FOURTH AMONG TOP 10 UNFINISHED BUILDINGS

Status: Pilings Started 900 m

The 1,808-ft tall Doha Convention Centre building, whose works began in 2007 but stopped five years later, is placed fourth among the 20 tallest structures which were never completed around the world, according to a report published by the Council on Tall Buildings and Urban Habitat (CTBUH).

800 m Status: Foundation Started 700 m Status: Excavation Started 600 m

Doha’s skyscraper is preceded by Dubai’s Nakheel Tower (3,280+ ft), India Tower in Mumbai (2,296 ft) and Russia Tower in Moscow (2,008 ft) respectively. Doha is followed by Dubai’s Burj Al Alam (1,673 ft), Moscow’s Palace of Soviets (1,624 ft), Dubai’s Lam Tara Tower (1,490 ft) and Lighthouse Tower (1,319 ft), Xiamen’s Fairwell International Tower (1,302 ft) and New York’s Metropolitan Life North Annex (1,280 ft).

Status: Foundation Completed

Status: Pilings Completed

500 m

Status: Framing Started Status: Excavation Started Status: Pilings Completed

400 m

Status: Foundation Started

Status: 31 Floors Built

200 m

100 m

Nakheel Tower India Tower 1,000+ m / 3,280+ ft 700 m / 2,296 ft Dubai Mumbai Started: 2008 Started: 2010 Stopped: 2009 Stopped: 2011

32 > QATAR TODAY > DECEMBER 2014

Russia Tower 612 m / 2,008 ft Moscow Started: 2008 Stopped: 2008

Doha Convention Centre tower 551 m / 1,808 ft Doha Started: 2007 Stopped: 2012

Burj Al Alam 510 m / 1,673 ft Dubai Started: 2009 Stopped: 2009

Palace of Soviets 495 m / 1,624 ft Moscow Started: 1937 Stopped: 1941

Lam Tara Tower 1 454 m / 1,490 ft Dubai Started: 2008 Stopped: 2010

Lighthouse Tower Fairwall International 402 m / 1,319 ft Center Dubai 397 m / 1,302 ft Started: 2009 Xiamen Stopped: 2009 Started: 1997 Stopped: 1997

Metropolitan Life North Annex 390 m / 1,280 ft New York City Started: 1931 Stopped: 1933

© Council on Tall Buildings and Urban Habitat

300 m



AFP PHOTO ERIC PIERMONT

business > oil&gas

DEEP IMPLICATIONS The collapse in oil prices may deter investment in exploration and production projects predicated on $100 crude, according to Suhail Al Mazrouei, Energy Minister of the United Arab Emirates. “What worries us is that some investors will not continue to invest. And in a few years, we’re going to face difficulties finding enough investments in the market.”

CHINA WILL OVERTAKE THE U.S. AS THE WORLD’S BIGGEST OIL CONSUMER WITHIN TWO DECADES, ACCORDING TO THE INTERNATIONAL ENERGY AGENCY.

CARBON FOOTPRINT TO REDUCE

Qatargas announced the safe start-up of the Jetty Boil-off Gas Recovery (JBOG) Project in Ras Laffan Industrial City. This landmark $1 billion (QR3.65 billion) environmental project is designed to eliminate flaring at the LNG Terminal.

T

he main shareholders of the JBOG Project are Qatar Petroleum, ExxonMobil, Total, ConocoPhillips and Shell, while the facilities are operated by Qatargas and RasGas, the two largest LNG producers in the world. The JBOG facilities started up successfully during the first week of October, and have been performing safely and reliably. Around 100 million standard cubic feet per day of natural gas which used to be burnt and wasted during LNG ship loading is now being recovered and utilised in the LNG production plants as fuel. Over a period of

34 > QATAR TODAY > DECEMBER 2014

30 years, the JBOG Project will save nearly one trillion cubic feet of gas for Qatar. The operation of these facilities reduces the greenhouse gas emissions to the atmosphere, and helps in maintaining a clean environment for Qatar. Saad Sherida Al Kaabi, the Managing Director of Qatar Petroleum and Chairman of the Board of Directors of Qatargas, highlighted the significance of the JBOG project as not only one of the largest environmental investments but also the largest LNG Boil-off Recovery Project in the world.

“THE GLOBAL ENERGY SYSTEM IS IN DANGER OF FALLING SHORT OF THE HOPES AND EXPECTATIONS PLACED UPON IT,” THE IEA SAID IN ITS ANNUAL WORLD ENERGY OUTLOOK. “THE SHORT-TERM PICTURE OF A WELLSUPPLIED OIL MARKET SHOULD NOT DISGUISE THE CHALLENGES THAT LIE AHEAD AS RELIANCE GROWS ON A RELATIVELY SMALL NUMBER OF PRODUCERS.”

QATAR IMMUNE TO OIL PRICE DECLINE The recent drop in hydrocarbon prices, if sustained, could have a significant impact on the region’s economic and financial indicators.

B

ahrain and Oman are the most vulnerable to a decline in the hydrocarbon market, while Qatar and the UAE would be largely immune to the impact, Standard & Poor’s said in its “Industry Credit Outlook.” The ratings agency said crude oil spot prices have fallen by more than 25% from their mid-June high. The key drivers for the declines are likely to be the continued supply increase in North America, the Saudi move to cut crude prices to Asia, the strengthening US dollar, and softening demand from European and Asian economies. The resumption of shipments from Libya and continued production from Iraq despite conflicts have also contributed to the decreases. In addition, Saudi Arabia, the most influential member of Opec, has not cut output to support prices.


oil & gas > viewpoint

WAKEUP, NATIONS

Over the last few weeks, risk asset classes have been sold off around the world and flights to safety have driven bond yields down. This has been attributed to a number of underlying anxieties but they all translate into worries about world economic growth. Coincidentally, the price of oil has fallen dramatically over the last month.

T

o put this in context, equity markets have had exceptional appreciation since 2009 with only modest corrections along the way. Despite an evident US recovery, several issues are giving risk allocators pause. Firstly, the Ebola contagion has now reached the US. Everyone is watching to see whether its healthcare system will contain the virus or if it has already been transmitted, but not yet diagnosed, in non-healthcare workers. If we see an expanded set of cases, this will rattle the markets again and selling will be driven by further anxiety about the US consumer withdrawal. Secondly, the war in Iraq is one that frightens consumers, but our sense is that this is more containable than the first issue. Nonetheless it is contributing to consumer hesitation where world economies are still primarily driven by the consumer. Impact on the region First, there is the oil price decline, which is the most material driver of “well-being” for these economies. Many of these countries have wisely used oil profits to finance development and social programs in an effort to diversify away from oil dependence. The issue now is whether the drop in the oil price is at a point where it will have an effect on government spending. Just like Ebola can frighten the consumer, the price drop can lead to a reduction in a government’s propensity to spend. Some countries have a high profit margin on oil production (like the UAE). Other countries like Iraq have much higher costs and are probably selling at a loss. Without substantial government reserves to subsidise this “selling at a loss,” there is a fragile unsustainable economic model. Governments effectively go into deficit spending to close the gap.

Either way, less profitable oil sales are likely to reduce government spending. Countries, like the UAE, have big plans and we expect that these will proceed. Others might consider trimming back their plans. For equity markets that have been dependent on government spending, there is a trimmed growth outlook and hence some potential equity market risk. The second point for the region goes to containing the Ebola virus. There is still significant uncertainty according to health professionals but a uniform goal to eradicate it. The problem is that there are great lapses in the efficacy and speed to accomplish that goal. The virus spreads at its own geometric speed but unfortunately most governments move at “bureaucracy speed.” The industries that are first affected are the travel and the hospitality industries; Ebola anxiety and the Middle East's unrest will certainly impact travel to the region. The magnitude of this hit to confidence will be driven by the efficacy and speed with which the virus and regional conflicts are contained or not. Hopeful for the future Our longer-term outlook for risk assets is still bullish and we do not consider the recent pull back to indicate that we have entered into a “bear market.” The issues facing consumer confidence and or MENA government spending confidence are at this point potential Black Swan events that could get worse before they get better. In all extreme points there are extraordinary buying opportunities. Companies that have survived world wars are likely to continue to succeed and accordingly, one should be prepared to make long term investments in periods of potential extreme market dislocation

BY DAVID PINKERTON Chief Investment Officer Falcon Private Bank (Zurich) QATAR TODAY > DECEMBER 2014 > 35


oil & gas > viewpoint

REVOLUTIONISE

ENERGY SOLUTIONS

The global oil and gas industry should shape post-easy-oil era with technological innovation or risk being shaped by it!

I

t is the fundamental truth of our time that technology is evolving at an accelerating pace, transforming, whether we like it or not, the way companies operate and make decisions every day in order to optimise business. The global oil and gas industry is no exception, and it must decide whether to proactively shape the future or risk being shaped by it. Advances in and the widespread adoption of technologies have triggered a conversion process that’s resonating across the entire industry and along its value chain. The growth in computing power and widespread digital connectivity enables companies to harvest and analyse ever-larger amounts of relevant data in real time, helping make faster and smarter decisions, facilitating equipment maintenance, optimising production, and enhancing safety and compliance.

36 > QATAR TODAY > DECEMBER 2014

Technological advancements in reservoir imaging, drilling and well completion, among others, have truly revolutionised the industry. For decades, technological innovation has helped offset the impact of depletion by introducing smarter and more efficient ways of discovery and production. Thanks to technological progress, the industry has been able to open up evermore challenging frontiers in the quest for new hydrocarbon resources, develop increasingly deep and complex reservoirs, and boost efficiencies in their recovery. And, going forward, more than ever before, innovation – new and improved technologies – will play a crucial role in meeting the rising energy needs of a growing and increasingly urbanised population, and coping with the environmental challenges in the decades ahead. Only 10 years ago, the production of shale


TECHNOLOGY RADAR SURVEY FINDINGS

45%

of those surveyed expect wireless monitoring to have substantial impact on the industry in the medium-term

56%

of respondents describe themselves as “fast followers”, who make changes once others have proved their worth.

59%

have increased their R&D spend in the past two years

oil and gas in North America wouldn’t have been feasible. Although the existence of shale formations in the US was known for many decades, high cost and a myriad of technological challenges stood in the way of development. It was a cocktail of high oil prices and advances in horizontal drilling and hydraulic fracturing technologies combined with a push for greater supply security that brought shale oil and gas developments within the realm of economic feasibility – potentially opening up billions of barrels of oil and trillions cubic feet of gas for extraction and production in the US and in other parts of the world, and with it the potential to lower the price of power generation. As traditional forms of hydrocarbons are becoming harder to find and extract, ongoing technological innovation will be integral to pushing back the much debated

58%

of those surveyed agree that many future breakthroughs will involve bits and bytes, rather than physical hardware.

68%

intend to increase their R&D budgets in the next two years

arrival of ‘peak oil’ – the point at which the world’s oil production is reaching its peak. This also holds true for the Middle East, a region long known for the existence of easily accessible oil and gas reservoirs from such giant fields as Ghawar in Saudi Arabia and Burgan in Kuwait that are now maturing while new ones are more challenging to develop. It therefore doesn’t come as a surprise that improving recovery and extending the life of existing assets are emerging as dominating themes in the oil industry around the globe. As the findings from a Lloyd’s Register Energy survey “Technology Radar” (www.lr.org/technologyradar) carried out among senior industry executives and academics in 17 countries shows, the majority of those polled plan to focus on further innovations in high-impact technologies such as automation, including remote and QATAR TODAY > DECEMBER 2014 > 37


oil & gas > viewpoint

“National Oil Companies (NOCs) in particular are raising the stakes on the innovation front. Since 2005, five of the largest NOCs – PetroChina, Petrobras, Sinopec, Lukoil and Statoil – have grown their research budgets at twice the rate of the super majors and, in 2011, out-invested IOCs at $5.3 billion (QR19.3 billion) versus $4.4 billion (QR16.01 billion); this trend is unlikely to stop.”

BY JOHN WISHART President Lloyd’s Register Energy

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 38 > QATAR TODAY > DECEMBER 2014

subsea operation, and enhanced oil and gas recovery (EOR) in the near and medium term. Enhancing production and operational efficiency is one, but not the only, driver of technology innovation in the industry. Cost reductions as well as safety and environmental improvements are also widely seen as major objectives of innovation, especially related to remote operations. The reason is clear. Safety isn’t just about loss prevention and minimising the cost arising from industry accidents and incidents; it is the industry’s moral obligation to protect the environment and people – both those who work in the sector and those whose lives may be affected by the industry’s actions. As the industry pushes into deeper waters and more hostile environments, and refines existing and develops new technologies, the rising cost of doing so could potentially hamper progress on the innovation front. Finding practical ways to collaborate more closely with other organizations to share development costs for new technologies will therefore be of great significance for the industry at large. International oil companies (IOCs), national oil companies (NOCs), service companies as well as academia and government will all have to play a role in this by coming closer together. NOCs in particular are raising the stakes on the innovation front. Since 2005, five of the largest NOCs – PetroChina, Petrobras, Sinopec, Lukoil and Statoil – have grown their research budgets at twice the rate of the super majors and, in 2011, out-invested IOCs at $5.3 billion (QR19 billion) versus $4.4 billion1 (QR16 billion) – a trend that’s unlikely to stop. At a time when oil prices are declining and the industry’s operational costs remain firmly on an upward trajectory, concerns are that innovation and research and development (R&D) will take a back seat as they did in the low-oil price era of the 1980s/90s. However, while this may have been the case in the past, a look at today’s mature oil industry shows that it has been widely recognised that technology and innovation are business enablers, which – tight times or not – need to be pursued in the sector’s own interest. For in an increasingly globalised world an oil company’s competitive edge will, in

the long term, largely be determined by its ability to gain advantages through innovations. This makes the investment in R&D and technology a necessity, not an option. And we are still all too aware of the dramatic consequences of the 1980s/90s oil price slump, which led to investment cuts across the industry, in turn slowing innovation and leading to an outflow and reduced influx of talent. The industry has never fully recovered from being seen as more unstable and less desirable to work in than others, leaving scores of young people to choose careers in areas such as IT and finance rather than oil and gas. As a result, the flow of new talent into the oil and gas industry hasn’t been able to match the outflows and keep up with rising demand. Today, the single biggest challenge facing technological innovation in the oil and gas industry is arguably the knowledge shortage resulting from the generational gap that can be sourced back to the 1980s, and that’s set to worsen as an entire generation of experienced engineers is reaching retirement age. The question being asked is who will capture this vast knowledge and expertise that is set to exit from the industry amidst this ‘Great Crew Change’? There isn’t a simple answer. Critically, collaboration between all energy stakeholders – industry, academia and government – will have to be expanded and new ways of working will need to be explored and deepened by better utilising existing and establishing new knowledge sharing platforms. The oil and gas industry will have to broaden its search for talent across geographies, backgrounds and genders. The sector also needs to look to adjacent industries, such as nuclear. And it will need to attract talent from more diverse backgrounds ranging from geology to mathematics, IT and analytics in order to drive innovation in future technologies. There can be little doubt that technological innovation will continue to transform the oil and gas sector. But just as the pace of technological advancements is accelerating, so will the need to understand the longterm implications of technology adoption and any potential risks, along with how to pass on the knowledge that’s on the way out before it’s gone forever. That’s another fundamental truth



development > viewpoint

MICE OPPORTUNITY

KNOCKING ON GCC DOORS

Over 10 million business tourists arrive in the GCC every year; yet the region is not currently one of the world’s prime destinations for the most lucrative part of tourism – meetings, incentives, conventions, and exhibitions.

“GCC countries need to look at the attractiveness of hosting conventions or exhibitions around a certain field, considering the number of business tourists who may attend and their likely spending. They need to look at their readiness to host such an event, as measured by their strength in that area of economic activity.” 40 > QATAR TODAY > DECEMBER 2014

T

hese visitors come to meet colleagues based in the region, to make connections, or to prospect for business in a part of the world that has a strong economic base and that is diversifying into new industries. However, not enough of these business travellers come to attend large meetings, such as exhibitions and conventions – a state of affairs that GCC policymakers should be looking to change. The meetings, incentives, conventions, and exhibitions business – called the meetings industry for short – is small in numbers but high in economic reward. Although business people who travel to attend an exhibition or convention represent only around 5% of global tourist arrivals, they make up for their lack of volume with a disproportionate amount of spending.

Anyone who has ever travelled to attend an exhibition, such as Germany’s CeBIT computer show or the Consumer Electronics Show in Las Vegas, has seen firsthand how the money flows. Meetings’ visitors account for roughly QR40.04 ($11) of every QR364 ($100) spent annually by all tourists. They tend to stay at more expensive hotels and dine at better restaurants than the average tourists. At the same time, they also take advantage of local leisure and cultural activities. To date, countries in Europe and North America have dominated the meetings business. Together, they host about 80% of the world’s exhibitions. However, that imbalance is likely to change as developing countries increasingly account for a larger share of world trade. GCC countries in particular have a great opportunity to pick up


a share in the exhibition industry, of which they account at present for only a very small proportion. Meeting point The GCC has a “crossroads of the world” location and is of increasing to business travelers generally. To do so requires three steps. The first step is to gain an understanding of what must be put in place to have an effective meetings industry ecosystem. Countries and cities that successfully host many conventions and exhibitions focus on topics that fit their trade activity. In Thailand, it could be agriculture; in Taiwan, electronic components; and in San Francisco it could the be digital apps. GCC can take advantage of their leading positions in energy. They can also strengthen their moves into newer areas of economic activity, such as health care. Meetings locations also have services that support their events, including destination management companies and exhibition organisers – all of which are part of the meetings-industry ecosystem. Another part of the ecosystem is government organisations that play an enabling role. For instance, these government organizations produce research to show which conventions and exhibitions would have the best chance of succeeding. Or they promote the destination. Singapore and Glasgow both have convention bureaux that play major roles in attracting new exhibitions and large-scale meetings. Indeed, GCC countries benefit from studying the ecosystems of countries that already have a thriving meetings industry. The ecosystem elements that are in place elsewhere will play a vital role in the GCC as well. New strategy The second step is for the country to come up with a strategy to win more meetings business. This is not unlike the analysis that a company would do in deciding whether to enter a new geographic market or introduce a new product. GCC countries need to look at the attractiveness of hosting conventions or exhibitions around a certain field, considering the number of business tourists who may attend and their likely spending. They need to look at their readiness to host such an event, as measured by their strength in that

area of economic activity. They also need to look at the competitive intensity of the space, meaning the likelihood of competition from other Gulf countries. As part of this step, countries should also figure out whether their best bet is to host smaller events or large conventions, whether they should aspire to be a regional or international player. These countries also need to consider whether they should build events organically or seek to have existing licence-holders move their events to the GCC. Governance model The third step is building a governance model. In many developed countries, the meetings industry is in the hands of the private sector. In the GCC, where the meetings industry is nascent, policymakers and the government have a larger role to play. There are four main organisational options. A meetings bureau could be part of a country’s tourism promotion agency, as is the case in Madrid and Vienna. It could be part of a central tourism planning entity, as occurs in Abu Dhabi and Singapore. It could also be a body managed by the Ministry of Tourism or Trade. Or it could be handled as a public-private partnership. The particular circumstances and long-term of the destination country will determine the best structure. Of course, as they seek to grow their share of the meetings industry market, the GCC countries will have to overcome some challenges. They have not yet built high-quality public transportation systems, which makes it harder for people attending conventions to get to and from locations. GCC countries also tend to have restrictive visa policies, which can discourage travelers from outside the region. They also often lack the ancillary leisure products that can sway a business traveler to make a journey abroad, although these are now being developed. None of these challenges is beyond the reach of policy or is insurmountable because of resource constraints. Quite the contrary, the GCC has much to offer as a meetings and conventions destination. If policymakers turn their attention to developing the industry, the number of meetings these countries host can rise substantially

BY RICHARD SHEDIAC is senior partner, ANTOINE NASR principal, and GEORGES ASSY senior associate at Strategy& (formerly Booz & Company).

ABOUT STRATEGY& Strategy& (formerly Booz & Company) is a global management consulting firm involved in helping some of the world’s top businesses, government ministries and organisations. Its founder, Edwin Booz, can be said to have defined the profession when he established the first management consulting firm in 1914. Today Strategy& has over 3,300 people working in more than 60 offices around the world. QATAR TODAY > DECEMBER 2014 > 41


business > viewpoint

QATAR BETS ON ASIA

IN PETROCHEMICALS EXPANSION

Asia remains a key driver of growth for Qatar’s petrochemicals sector, with demand from the region fuelling investment and expansion projects. However, the long-term outlook is less certain after the cancellation of the QR21.84 billion ($6 billion) Al Sejeel petrochemicals plant, one of the megaprojects targeted to come on line by the end of the decade.

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Q

atar, the world’s largest liquefied natural gas producer, is diversifying its exports away from the oil and gas sector and is already the second largest exporter of chemicals in the Gulf, representing 17% of total Gulf Cooperation Council’s (GCC) chemical exports, according to the Gulf Petrochemicals & Chemicals Association. Countries such as Qatar are using their supplies of energy to widen their industrial bases and boost exports of non-energy goods such as chemicals, with petrochemicals and refining activity making up 40% of manufacturing output, according to the Ministry of Development Planning and Statistics. Plans are afoot to invest QR91 billion ($25 billion) in petrochemical capacity to produce 23 million tonnes by 2020 – from 16.8 million tonnes in 2012 – according to the stateowned energy distributor Muntajat, which holds the rights to market, sell and distribute Qatar’s chemical and polymer products globally. As well as raising production capacity, investments are aimed at broadening the range of petrochemical products on offer. However, Industries Qatar (IQ), the state-controlled petrochemicals and steel producer, revealed in September that it was putting on hold the Al Sejeel plant, construction of which was due to start by early next year. The venture, between QAPCO and state energy company Qatar Petroleum, was one of two petrochemical plants scheduled to be constructed before the end of the decad≠e. IQ said it was studying “a new downstream petrochemical project that is expected to yield better economic returns.” According to MEED, the petrochemical complex was one of several high-profile projects to be signed this year, to make up contracts worth an estimated QR145.6 billion ($40 billion). Expansion process Qatar’s petrochemicals industry has embarked on a long-term expansion plan based on the assumption that demand from China and other emerging markets such as India will continue to grow, according to a recent report by corporate consultants Dun & Bradstreet. The second major expansion process is the QR23.66 billion ($6.5 billion) Al Karaana plant, an 80:20 joint venture between stateowned Qatar Petroleum and Shell due to come on line in 2018. The facility will have a 2 million tonne production capacity, which will add 25% to Qatar’s petrochemicals output. Officials have said the bulk of this new production is likely to be directed toward the

Asian market. Offshore production is seen as another route for expansion. Qatar Petroleum International (QPI), a subsidiary of Qatar Petroleum, has struck a series of agreements over the past few years to develop petrochemicals production projects in Vietnam and Singapore, among others. These projects will see Qatar provide feedstock for other offshore developments and help the country expand its profile along the Asian supply chain.

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

“QATAR’S PETROCHEMICALS INDUSTRY HAS EMBARKED ON A LONG-TERM EXPANSION PLAN BASED ON THE ASSUMPTION THAT DEMAND FROM CHINA AND OTHER EMERGING MARKETS SUCH AS INDIA WILL CONTINUE TO GROW.” Positive outlook Khalid Al Subaey, chief coordinator for Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum, says prospects for petrochemicals producers are positive in the medium term, helped by rising demand and the slow pace of new capacity being brought on line in North America. “The rise in demand for high-density polyethylene, the most commonly-used plastic in packaging and bottles, has been consistently above global GDP growth for some time, a trend that is expected to continue,” Al Subaey told OBG. “The strongest demand growth is from Asia, and in particular, China,” he said. “While China’s high-density polyethylene demand growth rate is expected to slow somewhat over the next five years, it is still expected to be above 6%. China’s continued growth coupled with relatively few new capacity additions is expected to drive increasing exports, especially from the Middle East.” As part of the push into Asia, Muntajat announced in mid-October the opening of offices in eight Asian hubs, along with an office in Morocco to serve the North African market. Two of the new Asian offices will be in China – located in the industrial centres of Guangzhou and Shanghai – and one in India’s Mumbai. The others will be in Thailand, Sri Lanka, Philippines, Indonesia, and Pakistan QATAR TODAY > DECEMBER 2014 > 43


business > listening post

IMAX:

THE MAN BEHIND THE LIVING SCREEN BY SINDHU NAIR

Every child remembers their first IMAX experience but seeing their favourite cinematic thrillers on an IMAX screen is a pleasure that doesn’t diminish as we age. 44 > QATAR TODAY > DECEMBER 2014

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MAX has just opened its second theatre in the market and they are currently planning to add a third at the Mall of Qatar in 2016 which will accommodate over 600 patrons. “Once that opens, we will evaluate the market demand based on box office results and look to add additional theatres in conjunction with our partners,” says Richard Gelfond, CEO, IMAX Corporation in an exclusive email interview with Qatar Today. Gelfond goes back in time to bring back his experience in this enterprise that has amazed cinemagoers. “When I came to IMAX, in 1994, I had

been an entrepreneur, a lawyer, and an investment banker. I didn’t know much about the movie business, but I recognised that the movie-going experience IMAX offered had great potential if we could find the right way to grow,” he says. But it has not been an easy journey with a product that is far removed from the conventional cinema. As he explains in detail in Harvard Business Review, “most IMAX movies were nature documentaries shown in the theatres of science museums, and figuring out how to move into mainstream markets proved much more difficult than we’d expected. That was due in part to the technology


“IMAX’S CORE PHILOSOPHY IS TO ENSURE THAT THE QUALITY OF THE CONSUMER EXPERIENCE IS SECOND TO NONE AND AS SUCH, OUR RESEARCH AND DEVELOPMENT INVESTMENTS CONTINUE TO FOCUS ON IMPROVING QUALITY VERSUS DRIVING LOWER COSTS.”

constraints of the predigital era; it took years to find ways to make it easy and cost-effective to show IMAX movies in a large number of multiplexes.” First step Soon after Gelfond and a friend acquired the company, it was made public, which too came with benefits of liquid funds but had other constraints. “Generally it was a good decision because it gave us access to capital and provided the discipline to profitability,” he says. “On the other hand the difficulty is that a business that could be best run by focusing on long-term objectives and public markets often forces you to pay attention to short-term benchmarks.”

But though tough, IMAX cracked the business by “constant innovation” and “adapting our strategy to fit the Hollywood way of doing business” and Gelfond reveals the latest success figures of this innovation. “The demand for IMAX globally has never been stronger with over 100 new signings for screens so far this year. We already operate 880 IMAX theatres in 60 countries across the globe, and our most recent quarter generated $169 million (QR620 million) in global box office – a 28% increase over the previous year. We have been delighted by the success of our international growth strategy which we are continuing to deliver. This has seen revenues outpace the US domestic box office for IMAX in every quarter since 2013,” he says. Future plans Gelfond has a strategy in place for the future with “IMAX continuing to execute our international growth plans and looking to secure a greater footprint in under-penetrated markets in the Middle East. We must ensure that we innovate and adapt to suit the demand and shifts in the industry,” he says. In an era where nano technology is gaining popularity, will the “big is better” screen of IMAX and its live imagery be the future of technological innovations? Gelfond is confident that the digital advancements in entertainment have transformed the way in which we consume entertainment. “The cinematic experience must now supersede the at-home offering in order to attract consumers. IMAX’s immersive cinematic experience offers something consumers cannot create at home and we are confident that we can continue to deliver, with compelling content and state-of-the-art technology,” he says. The Middle East market is the big bet for Gelfond and his team. He says, “We are planning to double the IMAX footprint in the region from 15 to 30 outlets by 2017. We have been expanding cautiously in this area since the turn of the century, growing from two IMAX outlets to 15 today. Already we are set to open outlets in Bahrain and our second theatre in Egypt in 2015. The Middle East is relatively under-penetrated compared to other markets and we are excited to harness this opportunity.” Pay for quality experience But does a premium cost justify an IMAX

ONE LEADER YOU LOOK UP TO? STEVE JOBS. HE MANAGED FIRST TO BE AN ENTREPRENEUR AND SECOND TO ALLOW A MUCH LARGER CULTURE TO BE MORE ACCOUNTABLE BUT TO STILL INNOVATE. FROM MY POINT OF VIEW THE BIGGEST OBSTACLE IN BUSINESS IS HOW YOU EVOLVE YOUR COMPANY SYSTEMICALLY WITHOUT LOSING THE INNOVATIVE SPIRIT.

WHAT MAKES AN ENTREPRENEUR? A PROFESSIONAL EDUCATION AND PROFESSIONAL TRAINING WHICH INCLUDES ANALYTICAL SKILLS AND ATTENTION TO DETAIL SERVE AS A REALLY GOOD BASIS TO MOVE INTO BUSINESS

experience, we ask the man behind the brand and he says: “IMAX’s core philosophy is to ensure that the quality of the consumer experience is second to none and as such, our research and development investments continue to focus on improving quality versus driving lower costs. Our experience over the past decade indicates to us that consumers are willing to pay a premium for a quality experience that they cannot experience anywhere else.” But IMAX went through some of its toughest periods after it had adjusted the business model to cater to the requirement of Hollywood movies and theatre owners. “In the early 2000s most of the major theatre chains in America (and many around the world) filed for bankruptcy, and we were left with big receivables we couldn’t collect. IMAX still carried a lot of debt as a result of the 1994 LBO, and sometimes we doubted whether we would earn enough to meet those obligations,” he says. And it is then that Genfond learnt some important life lessons. “I’ve learned that failure is life’s greatest teaching lesson. I’ve had to learn the hard way myself, whether overcoming unforeseen obstacles, managing an organisation in a downbeat mind set or repositioning and redefining models that didn’t work. Failure helps you find inner strength. It also helps you appreciate success and understand its fragility.” And then came the turning point in the form of Avatar. “The moment I knew we’d make it came in when Avatar opened. The IMAX version was a global phenomenon. In China there were six-hour lines to get in, and scalpers were charging $100 (QR364) a ticket. Avatar did $250 million (QR910 million) globally on IMAX screens; because we shared in that revenue, it was a financial turning point for us,” he says QATAR TODAY > DECEMBER 2014 > 45


affairs > local

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A YEAR TO REMEMBER MUCH MOURNING, SOME CHEER... 2014 MIGHT NOT GO DOWN IN HISTORY AS A RELATIVELY HAPPY YEAR BUT WITHIN 365 DAYS THE WORLD HAS CHANGED IN MANY UNRECOGNISABLE WAYS. A LOOK AT THE PEOPLE AND EVENTS THAT DEFINED THE YEAR.

QATAR TODAY > DECEMBER 2014 > 47


affairs >Alocal YEAR TO

REMEMBER

THE PLAGUE OF AL SHAM The surprise emergence of the Islamic State of Iraq and Syria (ISIS) as a formidable player in the crisis in the Middle East threw a wrench in the world’s plans to let the Syrian crisis run its course. We trace the events that led to ISIS becoming the most feared and hated buzzword of 2014.

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y the end of 2013, ISIS, which had recently been rejected by the Al Qaeda-affiliated Jabhat Al Nusra over incorrigible differences and vicious infighting, was already one of the stronger groups in Syria, according to the Syrian Observatory for Human Rights. It had already started poaching control of Ar Raqqah, the Syrian city which would later start functioning as ISIS’s de facto capital, from the Free Syrian Army and Jabhat Al Nusra. Slowly and steadily, it was preparing itself for the big year ahead. January: ISIS made its first foray into Iraq, starting with the Anbar province where it seized Fallujah, Ramadi and surrounding areas. The population of the Sunni-majority region is assured of protection from and justice against the Shia-led government in Baghdad.

Clockwise from right: Fighters of the Syrian Kurdish People's Protection Units (YPG) prepare to battle the Islamic State in Kobane; A Kurdish man sits at the border area close to the southeastern village of Mursitpinar, opposite the Syrian town of Kobane; Demonstrators at a rally protesting ISIS in front of the White House in Washington, DC; An image grab taken from a YouTube video allegedly showing a member of an ISISaffiliated Jihadist group in Iraq's Anbar province AFP PHOTO / ARIS MESSINIS

June: The months preceding ISIS’s June blitzkrieg was just the calm before the storm. In rapid succession, ISIS captured Mosul and Trikit and it was immediately clear that their numbers and resources had been grossly underestimated. The Iraqi army was forced to retreat and ISIS’s march on Baghdad seemed imminent with only the Kurdish Peshmerga fighters offering some kind of resistance. Many months after the first murmurs of an Islamic State, the group declared a caliphate under the leadership of Abu Bakr Al Baghdadi. This time the message was loud and clear. July: Al Baghdadi made his first public appearance as the self-proclaimed caliph.

Iraqi soldiers were being executed en masse and minorities like the Yazidis and Christian Assyrians are threatened with death unless they convert or flee. By this time, ISIS was reportedly making millions of dollars a day from the oil rigs it had captured both in Syria and Iraq. August: A few days after sending 300 military advisors to Iraq, the United States’ President Barack Obama announced air strikes on ISIS targets. American journalist James Foley, who had been captured in Syria a few months ago, was executed on camera as retaliation; several other such beheadings followed in the next few weeks. September onwards: A coalition of countries is announced to tackle the threat of ISIS through a “comprehensive counter-terrorism strategy”. Belatedly named Inherent Resolve, US-led military airstrikes began in Syria which sees participation from Bahrain, Jordan, Saudi Arabia, Qatar, and the United Arab Emirates. Kurdish and Iraqi forces started to recapture some territories from ISIS. The terror group launched a strategic strike against the border town of Kobane which revealed fractures in the anti-ISIS coalition, with Turkey unwilling to send ground troops to the Kurdish town just across its border (or even allow other Kurdish fighters to join the battle) unless a few of its conditions are met. A stalemate continues over control of the town, under the full view of the world media watching from the Turkish side. Meanwhile, winter is coming. QATAR TODAY > DECEMBER 2014 > 49


affairs >Alocal YEAR TO

REMEMBER Some 10,000 people sporting coloured rain jackets and brandishing umbrellas form a mosaic representing the Scottish and Catalonian flags on San Sebastian's beach in northern Spain. AFP PHOTO / RAFA RIVAS

A S TAT E TO C ALL O U R OWN The Scottish independence referendum which was held on September 18 saw an unprecedented turnout. 84.6% of the population of Scotland had made their way to polling stations to decide whether they wanted to secede from the United Kingdom, a decision that was several years, decades and even centuries in the making. The “No” side won with a comfortable 55.3% of the votes and Scotland did not become the newest country in the world, as many expected. But the referendum is expected to have a lasting impact on the politics of the United Kingdom, with a move to decentralise power away from London. The referendum has since inspired the people of Catalonia who have long been demanding freedom from Spain. They held an informal, non-binding referendum on November 9 after the official referendum schedule for that day was deemed illegal by the Spanish Constitutional Court. A resounding 80% out of the 35% of the population that took the poll favoured the creation of an independent state, an echo of other unofficial independence referendums that took place between 2009 and 2011.

A boy holds a gun under the supervision of Ukrainian serviceman in the town of Soledar in the Donetsk region. AFP PHOTO/ANATOLII BOIKO

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BATTLE LI NE S DRAWN ACROSS E UROP E The demonstration that began at Maidan Nezalezhnosti in Kiev at the end of last year, demanding closer integration with the European Union, spiraled into a full-fledged revolution that led to impeachment of the pro-Russian president Viktor Yanukovych and a call for fresh elections in May, which Petro Poroshenko, running on a pro-EU platform, won. But Ukraine’s troubles were only beginning. Resentment was rife among the pro-Russian populations of the country and armed militias started to emerge in the eastern and southern regions of the country like Donetsk which have traditionally been Russophone, demanding a separatist state. The Ukrainian military has come down on these towns with heavy shelling and gunfire. Overtly backed by Russia, the Crimean parliament declared its intention to hold a referendum to join the Russian Federation on March 16. None of the Western states recognised the referendum because of perceived Russian interference and the presence of Russian forces in the peninsula is being considered an occupation. Russian President Vladimir Putin continues to face flak from world leaders over the situation in Ukraine, most recently in November at the G-20 Summit in Australia, but remains unfazed despite many political commentators calling this the most divisive European situation since the end of the Cold War.


THE CALL IN FOR MEMORIAM FREEDOM

Palestinians flee their destroyed neighbourhood on a horse and cart in the northern Gaza Strip city of Beit Hanun. AFP PHOTO / THOMAS COEX

T HE CRY OF GA ZA A seven-week firing between the Israeli military and Hamas in Gaza resulted in the death of over 2,200 people, the vast majority of them Palestinians. The conflict ensued after the alleged kidnapping and murder of three Israeli teenagers by Hamas on June 12 and the retaliatory attack by the Israeli Defense Forces on the Gaza Strip, called Operation Protective Edge. Though rockets rained down on both sides, Israel, with its superior technology and the Iron Dome missile defense, managed to keep the death toll of its citizens down, while hundreds of children and women were dying in Gaza. The damage on the Palestinian side was disproportionately higher, drawing global condemnation for Israel and its use of arms against innocent civilians. Israel defended its actions by claiming Hamas was using the civilians as cover and that it issued warnings to civilians prior to an attack in accordance with international law. Uneasy peace has returned to the Strip after the announcement of an openended ceasefire on August 26 and rehabilitation efforts are underway with the support of international aid. Qatar alone has donated $1 billion to rebuild Gaza.

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affairs > local THE PEOPLE WHO DEFINED THE YEAR

Indian Prime Minister Narendra Modi speaks at Madison Square Garden in New York. AFP PHOTO/DON EMMERT

A MAN TO LEAD A B I LLIO N PEO PLE In terms of sheer numbers, it doesn’t get any bigger than the Indian elections. With more than 800 million registered voters, the populous country went to the polls over the summer to choose between a party rife with corruption and a hardliner with a tainted human rights record. Ultimately the hunger for development overpowered the fear over communal politics and Narendra Modi emerged the winner by a wide margin. Since his emphatic win, the new prime minister has made several high-profile visits abroad, most notably to New York City for the United Nations General Assembly where thousands of his supporters gathered to cheer him on at Madison Square Garden.

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BEHIND IN THE MEMORIAM SCREENS A NEW ERA King Juan Carlos of Spain abdicated his throne in favour of his 46-year-old son, Crown Prince Felipe, who was coronated on June 19. The once-popular king stepped down after four decades, and ill-health and recent corruption scandals involving close members of the royal family are implied as some of the reasons for his departure from public life. In his address to the nation, he said it was time for a new generation to “move to the front line” and face the country’s challenges, which include a struggling economy, record unemployment, renewed secession calls from Catalonia among others.

TECTONIC SHIFTS IN THE TECH WORLD Facebook’s purchase of Whatsapp for $19 billion, the biggest technology deal of the year that was announced in February just before the Mobile World Congress in Barcelona, was officially concluded in September. The social networking giant began awarding shares and stocks to Whatsapp shareholders and employees to complete the deal. With Facebook’s share prices currently higher than when the deal was announced earlier this year, the deal is now worth close to $22 billion. It remains to be seen how Facebook will choose to monetise this giant investment.

FO R T HE BENE FI T O F HU MANITY This year’s Nobel Prizes threw up few surprises. French economist Jean Tirole was recognised for his work on market power and regulation, and on taming powerful firms. Pakistani teenager and education campaigner Malala Yousafzai shared the Nobel Peace Prize with Kailash Satyarthi, an Indian children’s rights activist. Prolific French author Patrick Modiano won the award for Literature. Stefan Hell of the Max Planck Institute for Biophysical Chemistry in Göttingen, William Moerner of Stanford University in California, and Eric Betzig of the Howard Hughes Medical Institute in Virginia took the grand prize in Chemistry “for the development of super-resolved fluorescence microscopy”. The Nobel Prize in Physics was again shared by Shuji Nakamura of the University of California, Santa Barbara, and Isamu Akasaki and Hiroshi Amano of Japan, for “the invention of efficient blue light-emitting diodes which has enabled bright and energy-saving white light sources”. BritishUS scientist John O’Keefe and married couple May-Britt and Edvard Moser from Norway won the prize for Physiology/ Medicine for discovering the brain’s “inner GPS”.

A TOUCHDOWN TEN YEARS IN THE MAKING The Rosetta space probe (specifically its landing module Philae) successfully landed on the comet 67P/ChuryumovGerasimenko on November 12, almost a decade after it was launched. This is the first spacecraft to land on a comet nucleus and the information it transmits from the surface as it orbits around the sun every seven years will give invaluable insights into the origin and evolution of the solar system and how comets change as they are subjected to increasing intensity of the sun’s radiation. QATAR TODAY > DECEMBER 2014 > 53


affairs > local A YEAR OF DESPAIR

Members of the Dutch expert team supervise the recovery of the wreckage of the Malaysia Airlines Flight MH17 at the crash site, four months after it was shot out of the sky; (right) A Royal New Zealand Airforce aircraft searches off Perth for signs of the missing Malaysia Airlines flight MH370. AFP PHOTO / POOL / Greg WOOD

DO U BLE DI SA STE R I N THE A I R... 2014 was not a good year for flying. Three high-profile aircraft accidents, two involving the ill-fated Malaysian Airlines, prompted International Air Transport Association chief Tony Tyler to come out and assure consumers that safety is the first priority for airline companies and flying was still statistically the most secure mode of transport. On March 8, Malaysian Airlines flight MH370 bound from Kuala Lumpur to Beijing disappeared over the South China Sea with 227 passengers and 12 crew members. Weeks of searching involving the resources of several nations yielded no leads, only conspiracy theories. Even before the airline could move on from the incident, Malaysian Airlines flight MH17 flying from Amsterdam to Kuala Lumpur was shot down by unknown entities whille flying over Eastern Ukraine on July 17. All 238 passengers and 17 crew members have been declared dead and the investigation into the incident has gone nowhere due to continuing violence in the region. Only a few weeks later, Air Algerie flight 5017 crashed en route to Algiers from Burkina Faso, killing all 116 aboard.

. . . AND OVER T HE SE A On April 16, a South Korean ferry carrying 476 people, most of whom were secondary school students, sank en route from Incheon to Jeju. Only 172 of them were picked up by passing fishing boats and commercial vessels while the coast guard and navy were delayed in reaching the site of the shipwreck. A sudden turning of the vessel which dislodged cargo, resulting in its capsizing was ruled as the likely the cause of the accident. On November 11, guilty verdicts were handed down to the captain and the crew for gross negligence. The captain Lee Joon-seok was sentenced to 36 years while many of his crew have to serve up to 20 years in jail for abandoning the ship and violating maritime law. This has displeased many parents who had demanded the death penalty on the charges of homicide. The owner of the ferry operator, Yoo Byung-eun, was never arrested, despite a nationwide manhunt. Instead, his body was found in a field 500 kilometers away from Seoul.

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IN MEMORIAM . . . A N D U NDER T HE G ROUND For two days the underground fire raged in a coal mine in Soma, Turkey, due to an explosion that occurred on May 13. While the cause of the incident is still under investigation, mourning continues for the 301 miners who lost their lives as a result. Sadly, there have been several mining accidents in Turkey before and since, though not on this scale. Unions had been demanding improved safety measures late in 2013 but this issue had been swept under the rug. While then-Prime Minister (now President) Recep Tayyip Erdogan was criticised for the off-handed way in which he dealt with the tragedy, protests erupted across several cities, renewing fears that this would end the uneasy peace after 2013’s massive anti-government clashes.

GABRIEL GARCIA MARQUEZ The prolific Columbian novelist, affectionately known as Gabo throughout Latin America, died of pneumonia-related complications on April 17 in Mexico City. He was 87. Best known for his novel One Hundred Years of Solitude, he was awarded the Nobel Prize for Literature in 1982.

ROBIN WILLIAMS MAYA ANGELOU “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” The American author and poet was respected as a spokesperson for black people and women, and her works, which include seven autobiographies, have been considered a defence of Black culture. She died on May 28, reportedly in the middle of writing another book.

Everyone’s favourite funnyman, actor Robin Williams took his own life at his home on August 11 after having battled clinical depression for most of his adult life. An icon of improvisational comedy, Williams won the Academy Award for Best Supporting Actor for his performance in Good Will Hunting and is fondly remembered for many movies like Aladdin, Mrs Doubtfire, Good Morning Vietnam and more. QATAR TODAY > DECEMBER 2014 > 55


affairs > local FEAR AND LOATHING IN AFRICA

# BRI NGBACK OURGI RLS

“IT S T RIKES LIKE LIG HT NING ” Before the World Health Organization declared an outbreak of Ebola in Guinea in March, health officials in the country were struggling to identify the disease that was relatively new to the region. To them, it was a mysterious hemorrhagic disease that strikes like lightning. Several months later, Ebola continues to wreck havoc in the west African region and is the largest outbreak of the disease in history, with over 15,000 reported cases and close to 5,500 deaths. Isolated cases have been reported outside the continent and a separate, unrelated outbreak in the Democratic Republic of Congo killed another 50 people. However, United Nations Secretary-General Ban Ki-Moon most recently expressed hope that the disease will be contained by mid-2015 and that the “curve is bending in enough places” (Senegal, Nigeria and DRC have since been declared free of Ebola transmission and the number of new cases being reported in Liberia and Guinea is decreasing).

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Boko Haram, whose campaign of terror has been gripping Northern Nigeria since 2009, came under the global spotlight after the kidnapping of 276 girls from a school in the northeastern Borno State on April 14. While some have since escaped, the majority of the girls are still missing and have allegedly been forced to convert to Islam, marry Boko Haram members or sold into slavery inside and across Nigerian borders. Since then the group has launched hundreds of attacks that have killed more than 2,000 civilians in just the first half of the year, according to Human Rights Watch. The Nigerian government, and President Goodluck Jonathan in particular, is under criticism for not effectively dealing with the threat, using heavy-handed tactics indiscriminately against civilians and terrorists, turning a blind eye to human rights abuses and corruption amongst military officials selling weapons to Boko Haram. Recently Boko Haram released a video rejecting the government’s claim that a ceasefire deal has been reached and the girls will be released soon. Also, shockingly, millions of dollars have reportedly been spent on an American public relations firm to help shape the narrative around the kidnapping.


OLD WOUNDS AND NEW ONES

A N I CON RI SE S I N NE W YORK

People take part in a march in Mexico City demanding justice for the 43 missing students.

More than a decade after the September 11 attacks, One World Trade Centre (previously known as Freedom Tower) officially opened on November 3 with many companies moving into their new offices. The 104-storey structure, which is billed as the tallest building in the Western Hemisphere, was built at a cost of $3.9 billion and was designed by architects David Childs and Daniel Libeskind.

M EX I C O RU NS RED W I T H BLO O D The 43 students who went missing in Mexico on September 26 are yet to be found but with every mass grave that is discovered the chances of finding the young men alive diminishes. Recently law enforcement officials announced that a local drug trafficking gang had confessed to killing the group and testing is ongoing at a mass grave that was supposedly used to bury the victims. The students had travelled to the Mexican city of Iguala that day to hold an anti-government protest where they were reportedly intercepted by the police, fired at and, while in custody, handed over to members of the Guerreros Unidos gang. This incident, and the wide spread protests that followed, brought global media attention on the deep ties between crime, politics and law enforcement in Mexico. The mayor of Iguala, JosĂŠ Luis Abarca, and his wife attempted to abscond but have since been arrested. Several police men and cartel members have also been arrested while the police chief Felipe Flores VelĂĄsquez remains at large.

QATAR TODAY > DECEMBER 2014 > 57


affairs >Alocal YEAR TO

REMEMBER

HO NG KO NG RIS ES The announcement that the much-awaited electoral reforms in Hong Kong would not come to pass sparked a city-wide protest in the otherwise peaceful and prosperous Chinese Special Administrative Region. The news that the “elected representatives” of Hong Kong's government will continue to be chosen by the Communist Party and civil nominations will remain disallowed angered pro-democracy thinkers and citizens. On September 28, the Occupy Central movement (dubbed the “Umbrella Revolution”) was announced and the initial numbers ballooned after strong-arm tactics by the police. At one point, there were more than 100,000 people on the streets, blocking major arteries of the city. The use of tear gas, physical attacks on the protestors by alleged Triad members and confrontations with the police have marred what was supposed to be a peaceful movement. Meanwhile, as the city came to a grinding halt, many spoke out against the protestors, calling their methods unconstitutional and asking them to free the streets and restore law and order. The last days of November saw the clearing of a number of sites and the arrest of over 100 protestors, including the student leader Joshua Wang. He was granted bail on the condition that he doesn't enter Mong Kong, one of the most popular sit-in sites of the movement. 58 > QATAR TODAY > DECEMBER 2014


COUNTRIES IN TRANSITION

Thai soldiers deploy on a road leading to Victory Monument, the site of recent anti-coup protests AFP PHOTO/CHRISTOPHE ARCHAMBAULT

TH E CO UP RET U RNS The military junta is back in power in Thailand as of May 22 and under similar circumstances to the coup in 2006. The military which had taken over to oust the populist leader and Prime Minister Thaksin Shinawatra eight years ago returned immediately in the aftermath of the removal of his sister Yingluck Shinawatra, the prime minister who had presided over the six-month-long protests between pro and anti-government forces. With an interim constitution that granted it extra-judicial powers, the junta has said that "sweeping economic, political and social reforms" are needed before the possibility of elections and it is clear that the Commander of the Royal Thai Army, General Prayuth Chan-ocha, with a royal endorsement in his pocket, has no intention of handing back rule to a civilian government any time soon.

BURK I NA BÉ SE I ZE BACK CONTROL After Burkina Faso’s president of 27 years (who had come to power after a coup in 1987) Blaise Compaoré moved to amend the constitution allowing him to stay longer in office, demonstrations and riots erupted in many parts of the country in October. After the parliament was stormed and burned on October 30, Compaoré dissolved the government and declared a state of emergency before eventually fleeing to Ivory Coast. For a while it looked like a military coup with the little-known Lt Col Isaac Yacouba Zida assuming power and dismissing anti-coup protests and the African Union’s ultimatum to return power to the civilians. However, a transitional government has now been put in place with a civilian interim president to tide the country over till elections are held in November next year, and this is seen as good news even though Lt Col Zida remains in the cabinet as the prime minister and many of the key positions in the government are being held by military leaders.

QATAR TODAY > DECEMBER 2014 > 59


affairs > local

HISTORY IN PERSPECTIVE Poppies are placed at the base of a statue in the Armed Forces Memorial in Staffordshire, central England.

A WA L L C O MES DO W N Germany observed the 25th anniversary of the fall of the Berlin Wall on November 9, which for nearly three decades divided the country into East and West Germany, each governed by different political ideologies. Celebrations included the release of 8,000 white balloons, each perched on 3.6 m poles (matching the height of the wall) that stretched for 15 km. The balloons were released one by one to symbolize the breaching of the wall by protesters back in 1989.

A CE NTURY LATE R Europe remembered its fallen from the Great War on November 11. More than 16 million combatants and civilians died during World War 1 which involved much of Europe, the colonies and, later, the United States. Advanced technology and the birth of trench warfare had prolonged the conflict in the continent for over four years, at the end of which Germany was defeated and the Russian, Ottoman and Austria-Hungarian empires ceased to exist. But these turned out to set the stage for another, more disastrous, world war barely two decades later. 2014 was also the 75th anniversary of the Second World War.

Balloons of the light installation "Lichtgrenze" sail into the night from the former route of the Berlin Wall in front of the Brandenburg Gate. AFP PHOTO / ODD ANDERSEN

60 > QATAR TODAY > DECEMBER 2014


FOR THE LOVE OF THE SPORT CHILLS AND T H RILLS T HIS W INT ER Costing an estimated $51 billion, the two-week Winter Olympics in Sochi surpassed the 2008 Summer Olympics in Beijing as the most expensive Olympics in history. A total of 98 events in 15 winter sport disciplines were held, which included a number of new competitions.

VIVA LA FUTBOL For one whole month, the world put aside everything else to enjoy some world-class football. Passions ran high in Brazil which hadn’t hosted the football world cup since 1950. The highly-disciplined and talented German team, of course, deservedly took home the cup. Who could ever forget their 7-1 semifinal victory over the home team which left spectators at the stadium and elsewhere numb with disbelief.

QATAR TODAY > DECEMBER 2014 > 61


affairs >Alocal YEAR TO

REMEMBER

READY FOR TAKEOFF Hamad International Airport, home of the national carrier, became fully functional on May 27 with a capacity to serve 28 million passengers annually during its initial years, growing to 50 million in the future. In another big day for Qatar Airways, the world’s largest aircraft, A380-800, was delivered from Germany on September 18.

An exterior view of the arrivals terminal at the Hamad International Airport. (right) The new and improved Business Class seats on the A380.

ON THE BACKFOOT This year, Qatar has had to field several different sorts of accusations – of being a slave-driving country, winning the FIFA World Cup on the back of corruption and, most recently, covertly supporting ISIS. This last accusation has stung the most, considering the government has played a crucial role in negotiating for the release of several hostages, recently that of American journalist Peter Theo Curtis who had been captured in Syria two years ago.

62 > QATAR TODAY > DECEMBER 2014

THE ROAD TO FIFA 2022 The Under-19 team from Qatar lifted its first-ever Asian Football Confederation Trophy in Myanmar on October 23 after defeating North Korea 0-1. This automatically qualifies the team to compete in the FIFA U-20 to be held in New Zealand next summer.


QATAR IN SPOTLIGHT THE EMIR ABROAD In his first television interview as the Emir of Qatar, HH Sheikh Tamim spoke to CNN’s Christiane Amanpour about Qatar’s foreign policy, laws enacted to protect migrant workers and Qatar’s readiness to host a great World Cup in 2022.

Qatar Museum Authority also got a identity makeover with a new name – Qatar Museums – and an interesting, fun logo.

NEW IDENTITIES

The National Health Insurance Scheme, currently under Phase 2 of its operations, was launched under a new brand – Seha – meaning health in Arabic.

REPORTS AND RIGHTS Faced with a constant stream of criticism on how low-income migrant workers were being treated in the country, Qatar issued a new 50-page workers’ charter on February 11, just before the expiry of FIFA’s deadline before which the country had to submit a concrete plan on how it planned to improve conditions on the ground. A few months later, a study commissioned by Qatar Foundation looked at how exploitation of migrant workers began at home with unscrupulous practices by recruitment agencies. U-19 Team Arrival at Hamad International Airport.

QATAR TODAY > DECEMBER 2014 > 63


affairs >Alocal YEAR TO

REMEMBER

THE SPACE AGE BEGINS Some of the biggest satellite players in the region, along with Es’hailSat’s partners, came together to congratulate the home-grown satellite operator on its success with its first satellite, as the operator celebrated the commencement of operations of Es’hail1 on February 9.

THE LAW OF CHANGE

40-PLUS YEARS OF QP

While residents awaited the long-expected change in the labour laws, all they got was the new Cybercrime Law. Officials from the Ministry of Labor and Social Affairs and the Ministry of Interior held a joint press conference on May 14 to reveal that several crucial changes could be expected in the coming months. No deadline was given and it wasn’t entirely clear how much of the changes mentioned (like transfer of sponsorship from employer to state, a one-time exit permit system, etc) would be incorporated. Several weeks later, a controversial Cyberbrime law with very ambiguous terms that would potentially stifle free speech online was silently ratified.

Qatar celebrated the 40th anniversary of the issuance of an Emiri Decree on July 4, 1974, establishing what was then known as the “Qatar General Petroleum Corportation”. Today it is simply known as Qatar Petroleum. This year also marked the 75th anniversary of the discovery of oil in Qatar.

BOOTS ON THE GROUND The National Service came into force this year, requiring all Qatari men between the ages of 18 and 35 to undertake three months of military training. Several batches of recruits have already completed the programme.

64 > QATAR TODAY > DECEMBER 2014


QATAR IN SPOTLIGHT

FROM COAST TO COAST Sculptor Richard Serra unveiled his iconic public art structure, tucked away in a remote corner of the desert in the Brouq nature reserve. Spanning over a kilometre and comprising four steel plates, each over fourteen metres in height, the sculpture is in perfect alignment with the topography of the land, enhancing the vast, desolate space.

AN IPO AFTER AGES Qatar Petroleum’s Initial Public Offering of shares representing 25.725% (comprising 323,187,677 shares) of the issued share capital of Mesaieed Petrochemical Holding Company Q.S.C. (MPHC) was fully issued on January 22.

Al Bayt Stadum

THE FIRST OF MANY The Supreme Committee of Delivery and Legacy unveiled designs of three stadiums for the FIFA World Cup in 2022. The Zaha Hadid-designed Al Wakrah Stadium which was revealed earlier in the year was followed by the desert-tent shaped Al Bayt Stadum in al Khor and, most recently, the new and improved Khalifa International Stadium at Aspire. Al Wakrah Stadium

Khalifa International Stadium

QATAR TODAY > DECEMBER 2014 > 65


business > bottom line

HOW DIFFERENT ARE MENA’S RECRUITERS? Before we can answer this question, we should agree on what makes a great recruiter. Simply put, great recruiters are those who hire the best people. And yes, there can be no substitute for sophisticated and thorough recruitment processes as the cost of getting the hiring process wrong can be very steep, not only in terms of lost recruitment expenses, but also in terms of training and on-boarding expenses.

Y

et, we would say there is no generic ‘best’ selection system. Many a time, it depends on the company itself. Some companies prefer a candidate who would come and get the job done, instead of worrying about whether he is an introvert or an extrovert, with a GPA of 2.0 or 4.0. Perhaps they would give an assignment to the candidate or run a test, and performance on that test would be their key (sometimes even ‘sole’) selection criteria.

66 > QATAR TODAY > DECEMBER 2014

Meanwhile, other companies might have a company culture that they engrave in the minds of every employee. For them, identifying a candidate who is a cultural fit would be as critical as the job knowledge part. Their process could include a telephonic screening (Human Resources), physical interviews (Direct Manager), Assessment Centres, and/or further tests or interviews depending on the position the candidate is being interviewed for. Based on a Bayt.com poll entitled

“Hiring Practices in the Middle East and North Africa,” most prospective employees in the Middle East and North Africa (MENA) region are likely to be interviewed by one or two people (27.3% and 28.8%, respectively), though it is not uncommon for them to meet with more existing employees in their potential new company; 22.7% of respondents say that their interviewees will meet three people, while 18.2% claim that candidates will be interviewed by more than four. However, no matter


COMPANIES WITH SOPHISTICATED HIRING PRACTICES

61%

ORGANISATIONS TRAINING NEW RECRUITS

58.8%

how many people the candidate meets, the vast majority of employers (70%) say that post-interview follow-ups are essential. On the other hand, almost 61% of employers in the MENA consider the hiring practices in their company to be sophisticated, with 58.1% claiming that their organisation provides training on interview skills for those involved in the hiring process. A good way to streamline the selection system would be to train every person involved in the decision-making process on the corporate recruitment process and have disciplined systems in-house to ensure this. Revisiting the company’s recruitment process at least once a year to see if changes, refinements and updates need to be made is another way to create a robust selection system for the company. According to a poll by Bayt.com entitled “The Importance and Adoption of New Joiner Induction Plans in the Middle East Workplace,” only 45.5% of regional professional respondents were assigned a mentor or trainer to help them settle in their new job. On the other hand, 57.6% of participants said their company supported

COMPANIES SUPPORTING INDUCTION PLANS

57.6

%

FIRMS AGAINST INDUCTION PLANS

25.4%

effective induction plans for new joiners, 25.4% said it did not and 17% said it depended on the position itself. The respondents were then asked if an effective induction plan worked more for the benefit of employers or new joiners. Nearly three quarters (73.1%) said both, 12.6% indicated more to the benefit of the employer and 14.3% said more to the

benefit of new joiners. When asked if an effective induction plan would increase a new joiner’s sense of belonging in the long run, more than half (53%) of respondents said “absolutely,” 24.6% said “yes to a certain extent” and 3.8% said “not really.” Another upcoming trend is creating talent pools within the organisation. For example, creating a talent pool of high-potential employees (through talent assessment centres) helps the company during succession planning. These talent pools also have to be coached, mentored and trained on an ongoing basis.

IMPACT OF INDUCTION PLANS

BENEFITED ONLY EMPLOYERS

12.6%

BENEFITED ONLY NEW COMERS

14.3%

BENEFITED EMPLOYERS AND NEW RECRUITS MORE

“A good way to streamline the selection system would be to train every person involved in the decision-making process on the corporate recruitment process and have disciplined systems inhouse to ensure this.”

73.1%

However, and regardless of the type of selection system in place, the hiring process should have a clear, defined and disciplined structure (complete with skills and competencies assessments, behavioural assessments, ratings, etc.) where every person involved should have a clear idea of which competency is being identified and assessed at every step. In fact, a recruitment process that is not optimized can lead to reduced productivity, reduced employee morale and even potentially lasting negative impact on the brand itself, its clients and suppliers. The good news is that internet penetration today is higher than ever before and makes it much more possible for organisations of all budgets and sizes to benefit from the tremendous reach and choice their vast professional communities afford. Thanks to Bayt.com and other major job sites, accessing large troves of candidate databases is easier now than ever, and companies can worry less about sourcing and more about getting their process right

ABOUT BAYT.COM Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 18,000,000 registered job seekers from across the MENA and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com today and access the leading resource for job seekers and employers in the region.

QATAR TODAY > DECEMBER 2014 > 67


business > bottom line

PAY HIKES AND MANAGING EXPECTATIONS As we enter a new year, employees' thoughts ponder around the possibility of a salary increase. For Qatar, the expected salary increases are 5.2% of basic pay for 2015. However, in light of severe rent increases, and the cost of medical cover and education also on the rise, a 5.2% increase in basic pay barely covers the actual increase in the cost of living.

I

n addition, just because the budget is 5.2% does not mean that all employees will receive a pay rise of 5.2%. So the stage is set for some difficult conversations come the pay review cycle. So how should employers prepare for this? It’s all about managing expectations. In order to avoid disgruntled employees, two things, which go hand in hand, are very important for organisations: Transparency Employees need to understand the process undertaken before determining their final pay increase; this includes the factors considered when finalising the salary increase budget (rate of inflation, the companies’ ability to afford pay increases, forecasted budgets for the market etc.); considerations for deviating from the budget when it comes to setting the individual pay increase (performance, promotions, internal equity etc.) and what the company philosophy is behind the pay increase (alignment to the market vs. cost of living adjustment etc.)

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

ABOUT AON HEWITT Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aonhewitt.com. 68 > QATAR TODAY > DECEMBER 2014

Communication Throughout the process it is important to keep employees in the loop, providing communications from the board/CEO which puts company achievements in perspective with salary increases. The worst thing an organisation can do is broadcast great increases in revenue and profit margins and, when it comes to pay reviews, start explaining that the difficult economic circumstances did not allow for reasonable increases. Employees will always appreciate a line of sight of company targets and pay rises. Employees make companies

successful, especially when they know “what is in it for them.” This all may sound very trivial; however, “communication of pay processes” is the part which typically needs improvement in most of the reward philosophies of organisations. In fact, the majority of the organisations in Qatar claim that their employees often do not understand how the different pay components work and therefore what’s required of them to achieve a pay rise. Educate the employees If all of the above has taken place, it is then up to the HR department to train the people managers, to ensure that the message carried throughout the organisation is consistent. During the one-on-one discussions between managers and subordinates the final pay increase will be communicated, therefore it is important that all managers are well equipped to answer questions which may come up during the meeting. There needs to be a common language amongst the leadership of the organisation to avoid conflicting messages. Overall, education around the salary increase process is vital. The annual pay review can be a key motivator for employees, however, if it is not carried out properly, employers can cause more harm than good. Pay reviews can be a sensitive subject, so a lack of transparency and communication from the top down can leave employees feeling undervalued and disengaged. Provided the process is clear, easy to understand, fair and well documented, expectations on pay rises will become reasonable



business > bottom line

LINKING PEOPLE

It is human nature to aspire for more. A better job and higher status is something that drives most of us. One of the avenues to improve one’s career prospects is the online professional portal, LinkedIn. Head of Talent Solutions, Ali Matar, discusses what the Middle East workforce is lacking and defines its strengths. BY ABIGAIL MATHIAS

E

stablished in 2002 and headquartered in Mountain View, California USA, LinkedIn has grown into the world’s largest professional social network making great leaps into the mobile space. What sets LinkedIn apart from other job portals is that it is a networking haven for leading business companies around the world. It offers an even ground for candidates whose resumes are otherwise lost in cyberspace. It offers direct access to those in authority to hire. This is especially useful for expats in the Middle East who may not have easy access to employers. LinkedIn’s Ali Matar says, “Professionals in the Middle East and elsewhere are finding themselves working in an increasingly connected and networked world. More and more business is done online, and the internet is where most people first look for information on people, products or services.” Matar joined LinkedIn Middle East in 2012 as Director of Hiring Solutions. Based in Dubai, he is responsible for growing an in-house sales team and taking LinkedIn’s suite of Hiring Solutions to clients across the Middle East and North Africa. He believes, “By being present and engaged with us, professionals increase their chances of finding or being found by the next opportunity, whether that’s a new client, business partner, or potential employer.” Roselynn Anne mentioned her first published recipe book on the portal and was soon receiving requests from magazines and newspapers who wanted to document

70 > QATAR TODAY > DECEMBER 2014


her success. Many members on the website already have successful jobs. They aren’t necessarily looking for work. Around 75% of LinkedIn’s members are passive candidates (not actively searching for a job), and 25% are active candidates. “Before LinkedIn there was no place to find both passive and active candidates on this scale in one place. In fact, the most interesting transformation we are seeing now is that professionals who are not looking for a job still go to LinkedIn to update their profile whenever something new happens in their professional lives and careers,” says Matar. We may live in an online world, but when it comes to sharing your personal information, people are still skeptical. One of the strengths of this social network is that references can always be traced back to their original source. Matar says, “The type of information our members share is the information they want to be found: their skills, their experience, and their professional accomplishments.” Professionals are increasingly realising the value of making this information discoverable because of the professional opportunities that can arise. Having other professionals endorse your skills is another feature that makes this website a credible avenue for employers. Of course, this took a negative spin last month when the website offered a premium service to members who could send ‘Inmails’ to a job seeker's past references. Members felt violated when they understood that potential employers can reach a former colleague who may not necessarily offer positive feedback on them or know them well enough. The matter is still in court. “Having a successful career comes down to three things: who you are, who you know, and what you know. By enabling professionals to establish their online professional identity, connect with their network of contacts, and share knowledge, we help them become more successful at the job they have or get the job they want. As a result of this focus, we’ve been able to grow to a membership of 332 million professionals worldwide,” says Matar. The Middle East market doesn’t make it easy for those who might decide to switch jobs, particularly in countries like Qatar where an employee requires a No Objection Certificate to move on. The website has many groups that discuss these issues. “We provide a great source of information and insights for members through the millions

of LinkedIn groups covering a wide spectrum of issues and topics. Moreover, with over 12 million members in MENA, professionals can reach out to each other and to the recruiters representing companies to seek advice and guidance,” confirms Matar, though discussions might not be the end solution in such restrictive climates. People from the MENA region can hope to be sourced by international companies. Matar says, “Our data shows that talent flows in many different ways around the world. We recently published an analysis into the talent migration patterns between several markets worldwide. We found that the UAE was the most popular destination for talent, compared to the other markets we looked at. This reflects the growth in the Middle East, and its attractiveness as a place to work. More than 40% of members relocating to the UAE received a promotion along with the move.” Doha demographics With infrastructure upgrade and high expectancy for the 2022 World Cup, Qatar is in need of a dynamic professional workforce. Matar says, “As with the wider region, Qatar is home to a young population and access to the internet is helping them discover opportunities, seek advice and build relationships with high–quality professionals from across the world. This is partly why we’re seeing strong growth in membership, with more than 12 million professionals on LinkedIn in the MENA region alone. Recent graduates and students are the fastest-growing demographic on LinkedIn, accounting for 39 million members today globally. As a result, more and more companies are turning to us to find talent.” Matar has himself changed career paths from the construction industry to the technological field. He offers his own perspective: “I graduated as a civil engineer and worked in the field for almost two years. After this, I completed my MBA and moved to the IT and Software industries. Both fields helped in shaping the professional I am today. The single most important advice that I can offer other professionals is to follow their passion and once they find it, give it their 100% in terms of energy, focus, and devotion. We all make mistakes but that’s the only way to learn and move forward. At LinkedIn, we encourage our people to take intelligent risks – this is how we can keep transforming ourselves personally and professionally.” QATAR TODAY > DECEMBER 2014 > 71


development > tag this

RESTRUCTURING IN PROGRESS

QATAR’S TAKAFUL (ISLAMIC INSURANCE) MARKET IS SMALL COMPARED WITH NEIGHBOURING COUNTRIES SUCH AS SAUDI ARABIA AND THE UAE BUT HAS BEEN IN FAST FORWARD MOTION IN VIEW OF ITS EXPONENTIAL ECONOMIC GROWTH IN THE LAST FEW YEARS. EXPERTS AND INDUSTRY LEADERS CONVERSE WITH QATAR TODAY ON THE ISSUES FACING THE SECTOR AND ALSO ITS PROSPECTS IN THE COMING YEARS. BY V L SRINIVASAN 72 > QATAR TODAY > DECEMBER 2014


N

otwithstanding the unrest that engulfed many countries such as Egypt, Libya and Syria in the Middle East in the last four years, the growth of the takaful industry continued unhindered in the Gulf Cooperation Council (GCC) as investors and companies expanded their operations in the region. The other reason for the industry’s solid performance is the double digit growth of the GDP of the GCC member states on account of surplus revenues generated by the sale of hydrocarbons in the last six years besides the increased purchasing power among Muslims, who are the main target of the takaful operators. With a strong banking sector as a backup, the GCC governments have introduced Bancatakaful scheme which proved to be the most efficient channel in distributing tailor-made Islamic insurance products like medical takaful, the most sought after sharia-compliant product in the region. The Malaysian Takaful Association has forecast that takaful contributions will increase to QR10.99 billion ($3.02 billion) in 2014 from QR8.88 billion ($2.44 billion) last year, on the back of a market penetration rate of 14%. GCC leads the growth Despite having less than 2% of aggregate Islamic financial assets, the global takaful industry grew by 5% registering total assets of QR101.19 billion ($27.8 billion) in 2013. Saudi Arabia led the growth in terms of actual volume with QR7.64 billion ($2.1 billion) representing a 23.9% increase but it was Indonesia’s show as its takaful assets grew by an astounding 50.5% in 2013. In its report entitled “Global Takaful Insights 2014,” the professional services firm Ernst & Young (EY) said that the gross

takaful contribution of the GCC was around QR32.4 billion ($8.9 billion) in 2014 compared with QR28.76 billion ($7.9 billion) in 2013 and is expected to be around QR72.8 billion ($20 billion) by 2017. Saudi Arabia, which is the core market in the region and commands 48% share in the global market, held the lion’s share of 77%. “With the high potential of the internationalisation of takaful, the urgency to grow and push for regional champions within high growth and stable regions is greater than ever. This will allow the industry to leap to the next level to realise its global market potential and position it as a strong ethical-based alternative to conventional insurance,” says Abid Shakeel, Senior Director of EY’s Global Islamic Banking Centre. According to him, competition, operational issues and dearth of qualified talent continue to impact the sector’s growth in the region. Profitability of takaful firms has been threatened not just by undifferentiated strategies but also the lack of uniform regulations allowing them to operate across different models. “Undifferentiated business strategies mean most operators are competing intensely and this is likely to squeeze out the under-performers. With strong competition from conventional incumbents, takaful operators are likely to continue their struggle in the medium term, although some will look at alternative customer segments and explore merger options,” he says. In striving for scale and profitability, operators are looking at structural transformation around risk, pricing and cost efficiencies. Driving progress amidst intensifying competition, the industry is re-examining its strategies, operations and regulations in order to gear itself up for further growth and a sustainable ecosystem.

“We feel that there is still room in the product development area and we are working on new products this year, including ones like family package, school fee cover, etc., that will be rolled out soon.” MOHAMMED M AL JABARI Assistant CEO for Technical Operations Qatar International Insurance Company

QATAR TODAY > DECEMBER 2014 > 73


development > tag this GCC GROSS TAKAFUL CONTRIBUTIONS BY COUNTRY 2009 - 14 $ million 10,000 8,870

7,097 126 169 319

6,376 6,000

4,000

5,683 4,887 640

87 128 136

818

102 133 260

909

120 139 274

3,896

4,370

2009

2010

1,162

140 188 350

1,314

1,028

5,455

4,934 2,000

155 208 384

7,935

8,000

6,095

6,809

2013e

2014f

0

“These operators have already accepted the growing role of new policymakers in insurance regulation, the growth of consumer protection laws, the latest insurance risk and the International Financial Reporting Standards accounting changes.” MAJED AKEL General Manager General Takaful

Saudi Arabia

2011 UAE

Qatar

Kuwait

Bahrain

Source: World Islamic Insurance Directory's 2014 Middle East Insurance Review; EY Analysis

For instance, General Takaful, one of the leading Islamic insurance companies in Qatar, has fine-tuned itself to the changing situation. The firm has prioritised customer penetration, customer acquisition and profitability, growth in existing coverage and introduction of personal lines of insurance such as householders’ insurance besides expanding traditional distribution channels to stay afloat in the business. Qatar a major hub Although small in terms of absolute market size, Qatar is considered a major hub for Islamic insurance given the large footprint of takaful companies and a progressive framework that supports strong governance and innovation. What has created bountiful opportunities as well as challenges for the local takaf-

“Opportunities for takaful sector in Qatar are massive. This is largely due to the fast-paced economic growth environment in Qatar, where there is a keen interest from policy makers to support a vibrant and sustainable insurance sector.” ADEEL MUSHTAQ Director (Assurance and Advisory) KPMG

74 > QATAR TODAY > DECEMBER 2014

2012

ul operators is that the country has been experiencing organic growth for a couple of years and this trend is expected to continue and gain momentum until the FIFA World Cup in 2022, largely due to high government spending on infrastructure projects. Qatar also has tremendous potential to tap Islamic financial institutions like Islamic banks whose balance registered a growth of 28% between 2009 and 2013. The same has a trickle-down effect on Islamic insurance which insures assets thus created by the Islamic banks. Besides, the takaful firms are offering the unique benefit of paying cash surplus to their customers by virtue of their cooperative operating model. Damaan Islamic Insurance Company (Beema) Deputy CEO Nasser bin Rashid Al Misnad says that the growth opportunities for takaful companies in Qatar are good as the need for sharia-compliant insurance is growing steadily and the increasing numbers of takaful operators are testament to this. While Malaysia and Saudi Arabia have been the global leaders of the takaful industry, Qatar, which holds only 4.7% of Saudi Arabia’s takaful assets and has a handful of takaful and re-takaful operators, has occupied top position in the market’s development in 2013. According to the ICD Thomson Reuters Islamic Finance Development (IFD) report entitled “Harmony on the Horizon,” Qatar’s total Islamic assets stood at QR29.5 billion ($81 billion) and is ranked sixth among the 15 largest Islamic finance countries in the world. The top five positions are


TAKAFUL ASSETS 2013 VS 2012 TOP 10 COUNTRIES IN $ MILLIONS Takaful Assets 2013

$11,045

$8,596 $8,328

23

$5,526 22 $4,206

19

17

$1,905 $1,961

Malaysia

Iran

UAE

15

14

$220 $215

$122 $121

10 $534 $571

Saudi Arabia

Number of Takaful Institutions 2013

44

40 $8,918

Takaful Assets 2012

Bahrain

$517

$472

Qatar

3 $417 $277 Indonesia

Bangladesh

$96 $86

Kuwait

Jordan

Source: ICD Thomson Reuters; Islamic Finance Development Report

occupied by Malaysia, Saudi Arabia, Iran, the UAE and Kuwait, respectively. Of this, the share of Qatar’s takaful assets is QR1.88 billion ($517 million) (see chart). Despite a low asset base within the country, the industry’s performance is varied as Qatar’s takaful operators have ample opportunities to expand their businesses abroad by having tie-ups with their counterparts or opening offices in the developing Islamic financial markets like Sudan and Indonesia. In fact, Sudan is said to be the largest takaful market excluding Malaysia and the GCC region. “Opportunities for the takaful sector in Qatar are massive. This is largely due to the fast-paced economic growth environment in Qatar, where there is a keen interest from policy makers to support a vibrant and sustainable insurance sector - coupled with a supportive tax environment and the emerging high standards of regulations,” says Adeel Mushtaq, Director (Assurance and Advisory) with KPMG. While Qatar is not large in comparison with countries like Saudi Arabia in the region, the industry has the potential for growth, Mushtaq says. Strategic planning helps What has given impetus to Qatar’s takaful industry is the government’s decision to bring it under the guidance of a single regulatory body and also to announce a strategic plan for the growth of the insurance sector. The companies too have been expecting the move and braced themselves to adapt to the changes as they feel that the regulatory changes were fundamentally re-shaping

the insurance industry, creating strategic and operational challenges for insurers. “These operators have already accepted the growing role of new policymakers in insurance regulation, the growth of consumer protection laws, the latest insurance risk and the International Financial Reporting Standards (IFRS) accounting changes,” Majed Akel, General Manager of General Takaful, says. According to him, Qatar’s gross takaful contribution to the region, which stood at 8% in 2012 and is believed to hold at least 12-15% of the stake this year, is expected to increase in view of the government’s decision to make the national health insurance scheme compulsory for all by end of 2016. PricewaterhouseCoopers Deals Partner in the Middle East Raymond Hurley says the growth prospects for takaful in Qatar are very exciting. Takaful follows core Islamic principles of mutual cooperation and risk sharing. Its philosophy of ensuring the well-being of society resonates in Islamic markets. “As awareness of wealth protection, savings and security benefits of takaful increases, families will increasingly demand such products as they broaden their use of Islamic financial services products. Given the existing low insurance penetration levels among GCC Muslim populations, it is plausible that takaful growth will outstrip conventional insurance growth over the next few years in both Qatar and the GCC,” Hurley adds. Product innovation While the government is supportive of the

“With the high potential of the internationalisation of takaful, the urgency to grow and push for regional champions within high growth and stable regions is greater than ever. This will allow the industry to leap to the next level to realise its global market potential and position it as a strong ethical-based alternative to conventional insurance.” ABID SHAKEEL Senior Director Global Islamic Banking Centre Ernst and Young

QATAR TODAY > DECEMBER 2014 > 75


ISLAMIC FINANCE FACT SHEET RANK

COUNTRY Global

ISLAMIC FINANCE ASSETS ($ million)

ISLAMIC FINANCE INSTITUTIONS

ISLAMIC BANKING ASSETS ($ million)

TAKAFUL ASSETS ($million)

1,657,998

993

1,214,274

27,840

1

Malaysia

423,285

76

170,280

8,596

2

Saudi Arabia

338,106

99

264,345

11,045

3

Iran

323,300

54

319,0081

4,206

4

United Arab Emirates

140,289

73

113,102

1,905

5

Kuwait

92,403

92

82,911

122

6

Qatar

81,027

38

59,047

517

7

Bahrain

64,644

57

59,807

534

8

Turkey

51,161

5

44,730

9

Indonesia

35,629

78

19,169

417

10

Bangladesh

18,938

38

18,676

220

11

Pakistan

14,647

54

9,605

94

12

Egypt

12,086

26

11,499

13

Sudan

8,034

44

7,904

14

Jordan

7,430

12

7,052

96

15

Switzerland

6,575

3

-

“As awareness of wealth protection, savings and security benefits of takaful increases, families will increasingly demand such products as they broaden their use of Islamic financial services products.” RAYMOND HURLEY Partner (Deals) PricewaterhouseCoopers

76 > QATAR TODAY > DECEMBER 2014

Islamic financing sector, the operators have been working out new models and products to compete with their conventional peers. The companies have been innovative and offering more sharia-compliant products to attract customers as the industry is becoming customer-centric to a large extent. “In fact, almost all conventional products can be sold as takaful products with a little alteration to suit Islamic values. We also believe that product innovation is the key to a sustainable market growth,” Akel says. Nasser bin Rashid Al Misnad supports the view, and says that, though there are enough sharia-compliant products, the companies cannot remain complacent. Times are changing rapidly and so are the needs of the customers. So the companies need to come up with innovative products from time to time to keep pace with the changes and needs. Recognising the importance of offering new products to their customers to stay in the game, Qatar Islamic Insurance Company (QIIC) says it has accorded priority to innovation, expanding outreach and improving customer experience. QIIC Assistant CEO for Technical Operations Mohammed M Al Jabari says companies have been working to match whatever is being offered by their conventional counterparts till now but this needs to be changed.

“We feel that there is still room in the product development area and we are working on new products, in addition to the ones such as family package, school fee cover, etc. this year, that will be rolled out soon,” he says. “There is definitely a need for family takaful (life and saving) products in Qatar as well as other countries in the region,” Mushtaq points out. His observations are true as the industry is expected to grow at a CAGR of 23% till 2016 to QR4.37 billion ($1.2 billion) and the brisk rate of expansion in the family takaful segment is likely to help in improving the overall life insurance penetration and density in the GCC. The industry has shifted focus to a product-centric approach which left customers unable to distinguish takaful from conventional insurance products and led to price-sensitive competition among takaful companies. “This is the right time for takaful operators to invest in research and talent development to bring in much-needed creativity within the ambit of sharia principles. Furthermore, customers and takaful operators have shared the responsibility for enhancing customer awareness, as in my experience, takaful is the least understood concept of Islamic finance and banking,” he adds

Source: ICD Thomson Reuters; Islamic Finance Development Report

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development > tag this

BY AYSWARYA MURTHY

Road safety is a wide, all-encompassing effort spread over more than a dozen areas like vehicle standards and engineering, education, response times and trauma care, enforcement, legislation and more, says Simon Labbett, Director for UAE at Transport Research Laboratory. 78 > QATAR TODAY > DECEMBER 2014

OUTSIDE THE TARMAC

I

n Qatar, driving is our pet peeve. We bellyache about the traffic in the mornings. Pictures of overturned or smashed up cars are common on our Twitter timeline. And yet life without a personal vehicle is unthinkable. It seems like a cruel joke. While daily gridlocks are something we can grin and bear with, given the promise of development, the fact that road accidents are responsible for over 14% of all fatalities in the country (according to a University of Michigan Transportation Research Institute study earlier this year) is unacceptable. As we are expanding our roads and streamlining traffic, it is also imperative to have a road safety strategy in place. But road safety is not a new animal. Transport Research Laboratory (TRL) was

established in the United Kingdom way back in 1933, even before fatalities on the road had started raising alarm. And now, several decades later, the problem has been exacerbated by faster vehicles and congestion. We are no closer to solving the issue now than when pre-war Bentleys were plying the roads of London. That’s because it’s an endeavour that requires a number of stakeholders to come together. “Delivering effective road safety is complex and just having a strategy document is insufficient; it needs implementing. Many strategies fail as they are challenging and require the active engagement of large numbers of government and non-government stakeholders. No single organisation, no matter how large or influential, can solve the challenge of road safety by working in isolation,” says


Simon Labbett, Director of TRL for the UAE. Have we got the right standards? How are we measuring them? Are we seeing efficient cooperation between the police, road authorities, transport ministries, hospitals, etc.? In the GCC, Labbett thinks the best way to bring about lasting change is “to have a high-level political champion who takes this on as a personal issue”. This will serve to get all the players to work together, hold them to account and also bring in fresh innovation in these fields. “Our goal of ensuring the absolute minimum number of casualties on the road can’t be achieved unless all the components progress simultaneously, both vertically and horizontally,” he says. Setting better standards But the region is lagging behind in some of the more fundamental aspects of road safety, like vehicle standards. The GCC Standardization Organization’s (GSO) requirements for imported vehicles are quite basic and, while each state contributes to these standards, they are not mandated across all the countries, according to Labbett. And since we don’t have our own manufacturing capacity, we have to go with what’s provided by global manufacturers, whose standards differ according to region. “Because the standards in Europe are different from those in North America, the cars you import from these regions (even if they are from the same company) meet different sets of compliance standards,” Labbett says. He gives the example of rear fog lights, which are mandated in Europe but not elsewhere. “During winters in Dubai, the conditions get extremely foggy and we have had catastrophic collisions as a consequence. Every time this happens there is a call for action and talk about fog detection systems but we still haven’t mandated the primary safety measure of rear fog lights which would help drivers see vehicles ahead with greater clarity.” It’s crucial that the governments look at what standards we want of the vehicles in our countries that apply a certain level of safety to address our unique issues. “We can adapt standards from somewhere else; we don’t need to constantly reinvent the wheel,” Labbett says, pointing out that the key, however, is consistency and relevancy to the region. Take tyres. GSO standards stipulate that tyres that have a temperature rating of less than B (out of A, B and C) should be rejected. So there is a standard, but is it the right one, asks Labbett. Shockingly, it turns out that no testing has been

done locally to ensure that these tyres are capable of withstanding the high temperature of the region. “With no one having actually looked into their performance in the real world environment, we don’t know why our tyres are failing. And they are, way more than what’s normal. We see a lot evidence of tyre debris and delamination of tyre fabrics but don’t know if this is happening because of incorrect standards, grey imports, bad maintenance or something else entirely. We can’t solve a problem unless we know what the problem is,” he says, clearly frustrated. Especially because this is exactly the kind of work in which TRL has unique knowledge and capability. Now if only one of the governments, or GSO itself, would wake up and charge TRL or a similar institute to carry out this study. Another drawback of not having stringent standards is that manufacturers take advantage of the loopholes to cut corners. “In most cases, vehicle manufacturers incorporate safety standards only because they are told to do so and not for the benefit of the society,” Labbett says. And this is apparent from the fact that European vehicles that we see driving on the roads here are not necessarily similar to the same models in Europe. “Safety features that would be required in Europe aren’t fitted here. Some minibuses here come with lapbelts instead of the three-point seat belts that are the standard in Europe. Why the discrepancy

Behinds the scences of a collision investigation.

QATAR TODAY > DECEMBER 2014 > 79


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MINUS THE HUMAN ELEMENT “SELF-DRIVEN VEHICLES ARE THE FUTURE AND FROM A SAFETY AND ECONOMIC BENEFIT, THEY ARE A GAME CHANGER. IN THE SYSTEM OF COLLISION CAUSATION IT IS SAD TO REPORT THAT WE HUMANS ARE THE WEAKEST LINK. REMOVE THE ROAD USER AND THERE IS POTENTIAL FOR A DRAMATIC REDUCTION IN COLLISIONS AND CONGESTION. THE TECHNOLOGY IS AVAILABLE AND READY BUT IS SOCIETY? HOW WOULD YOU REACT IF YOU ARRIVED AT A SET OF TRAFFIC LIGHTS AND PULLING UP NEXT TO YOU WAS A VEHICLE WITH NO DRIVER? HOW WOULD THE INSURANCE INDUSTRY ADAPT AND ASSESS THEIR LIABILITIES IN SETTING THE INSURANCE PREMIUMS? WHAT IF THERE WAS AN ACCIDENT? HOW DO YOU INVESTIGATE AND DEAL IF THERE WAS NO DRIVER? HOW DOES OUR LEGISLATION COPE WITH AND ENABLE THE CONCEPT? THE CHALLENGE IS PERHAPS NOT THE TECHNOLOGY BUT THE SOCIETAL ISSUES. WE ARE CURRENTLY DISCUSSING INTRODUCING SOME REAL WORLD TRIALS ON THE ROAD NETWORK IN THE UK. THIS IS VISIONARY AND HAS THE COMMITMENT OF GOVERNMENT. IT WOULD BE GOOD TO DO SOMETHING IN THE GCC. IN THIS REGION WE EMBRACE INNOVATION, WE DON’T NEED TO WAIT AND WATCH WHAT OTHERS ARE DOING. AUTONOMOUS VEHICLES IS A RAPIDLY DEVELOPING AREA AND THE GCC HAS THE POTENTIAL TO LEAD THE WORLD IN THIS FIELD.”

with the same model from the same manufacturer when it’s a known fact that the three-point belt is much safer? I have challenged manufacturers on this point and they simply say, ‘The vehicle complies with the GSO standard’.” Labbett shrugs. And the matter ends there. Even when we buy second-hand vehicles from Europe (with all the required safety requirements in place), we are still not able to take advantage of them because of incompatibility issues. “For example, trucks in Germany are mandated to have at least four mirrors - the regular rear view ones, a wide angle mirror and two mirrors on the side and front facing down - to cover all possible blind spots. But because we manufacture our own trailers which are wider and don’t mandate to adjust the width of the mirrors in the trucks, their usefulness is completely negated,” he points out. So the governments here either haven’t thought this through, or have deliberately chosen not to deliver an effective solution. It is hard to tell which is worse. But Labbett admits it is a time consuming process – to agree on a set of standards and then have them uniformly adopted across the region. “European countries have been grappling with this for nearly three decades and only now have we achieved some sort of harmony across the borders,” he says. “We had to set timetables for countries with lower standards to gradually build these up. It takes many years to get here because there are political and economic factors to consider.” Building on the back of technology And while work should be initiated on a

80 > QATAR TODAY > DECEMBER 2014

more robust set of standards right away, we shouldn’t lose focus of other aspects of road safety. Like, have we invested in the right infrastructure that is forgiving when the road user makes a mistake? “Out of the three causes of crashes – vehicles, environment and road users – the last one accounts for almost 90% of all collisions,” Labbett says. “Humans are not designed to travel at speeds of over 120km/h and though we have adapted well to the concept of road travel, we still make mistakes. But we should not expect to be killed as a consequence. Our environment should and can be built to be forgiving of human error.” This could mean something as simple as ample space to bring the vehicle back into control should it happen to swerve off the road. Or end treatments for concrete barriers instead of the blunt end ones that are deformable, crushable and tested by modern engineering standards to decelerate the vehicle and enable energy transfer over a longer period of time. This dramatically increases survivability. TRL’s laboratories in the UK and Doha (at the QSTP) do pioneering work on the different kinds of materials that can be used for these purposes. “With the help of devices that rapidly wear out roads, we can study the effect on certain mixes in various conditions. Can we dramatically reduce the cost of road building by using less material or a different one to get the same value? Yes, we can. In fact, Dr Khalid Hassan, the General Manager of TRL Qatar, has done some remarkable work on recycling technologies to meet the shortage of road building materials. So instead of rotting in landfills, these old materials can be reused to supply the


Why do our tyres fail more than what's usual.

needs of the country’s development,” Labbett says. TRL’s innovation in road building materials and techniques has led to some of their government clients saving some 30% of their infrastructure budgets while delivering more durable and quality products, according to him. And the less you spend on the road, the more you can invest on road safety itself. “The financial investment in road safety in isolation is in itself a highly cost-effective benefit to society. Investment returns would likely provide QR7 for every QR1 invested because fatal accidents are very expensive for the society.” But how do we know which areas are prone to what types of accidents and what kind of buffer is needed? TRL has a solution for that as well. Currently being used by the Abu Dhabi Department of Transport, iMAAP (Microcomputer Accident Analysis Package) is a collision data system that helps authorities store and analyse crash data and eventually see patterns - cluster sites, types of collisions and the kind of drivers who cause them. “By running the right kind of queries, you learn far more about what is happening in the society than by looking at individual crash records,” Labbett says. But of course the software is only as good as the data, as detailed as possible and without any gaps. The challenge remains how to motivate the police, who are always the lead authority in collecting the data, to do a thorough job on collecting data when they don’t see how exactly it is being used. “What is their motivation? They are historically used to collecting information to apportion blame; not to study the problem and make a change.” Labbett can’t say whether the traffic police in Abu Dhabi

are being trained to collect the right kind of data, only that TRL itself has not been approached to offer any such training. In theory, the emergence of the connected car would mean much of this data can be derived from the car itself. In theory. “In reality it depends on how much of the data is stored in the vehicles and whether the manufacturer allows you to interrogate it after an incident,” Labbett says. “Europe is likely to mandate black box data recorders in a few years but they are still wary about making this data easily available. In America, there came a point where concerns were raised about whom does the data in the car belong to? Does the manufacturer have the right to download your data from your vehicle? Do the police? If you lend your car to a friend who crashes it, then whose data is it? These complexities pose a serious legal challenge.” However, being an extremely litigious society, the United States crafted legislation around it quickly. The manufacturer now grants access to the data store in the vehicle and it is good news for them too because in the significant majority of cases, as we have seen, it’s the user’s fault. Also, with connected cars becoming a reality sooner than we expected, we need to devise health checks (before and after collisions) that confirm that these complex systems, that are increasingly replacing human action, are performing as intended. “How do we know that the algorithm deployed by the vehicle worked, worked correctly and was sufficient? How can we improve on its performance? Is it possible that latent and clearly unintended consequences of system conflicts or programming are going undetected and as a consequence untreat-

ed?,” Labbett questions. These will have to be answered in the very near future if we must avoid the consequences of technology overtaking regulation. But the need of the hour in this region is for regulation to address current issues. Labbett details a shocking incident where TRL discovered that a minibus manufactured by a well-known company had seats that weren’t firmly anchored to the floorboard (their seatbelts were up to code, however). And there was no mechanism for this to be taken forward in the GCC. “We have highlighted it to the authorities concerned but change hasn’t happened because there is no process,” he shrugs. The truly frustrating part is the GCC has the potential to create truly world-class standards, policies and efficient collision investigation systems that can generate change; something which even some of the western countries are struggling with. “The UK has invested in the investigation process for understanding collisions and this is perhaps the best in the world. The shortfall in the UK process is that there is a lack of a connected system that deals with the outputs of the investigation process. The US invests less in the investigation programme, with the exception of the National Transportation Safety Board (NTSB). Their added benefit, however, is their ability to enable a programme for change. If you could combine the investigation model from the UK with the US process for change then you would have created a world best-in-class system. It is probably far easier for one of the GCC States to lead the world in road safety than either the UK or the US by joining up the gaps in the investigation process and providing a world-leading programme. The direction and tools are available but safety will not develop in with siloed stakeholder inputs,” Labbett says, and like him, many of us are hoping the governments in the region, particularly Qatar which prides itself on being forward-thinking, would wake up to the possibilities. It might be too late for the one-year-old baby who was burned to death along with his parents in their car or the young, promising footballer whose bright future was abruptly cut short in a car crash, but how many more lives do we have to needlessly sacrifice before we get down and address this scourge? QATAR TODAY > DECEMBER 2014 > 81


development > tag this

A FEW BUILDINGS DON’T MAKE A

TOURISM STRATEGY

82 > QATAR TODAY > DECEMBER 2014


WHILE QATAR PUTS THE PEDAL TO THE METAL ON ITS TOURISM DEVELOPMENT STRATEGY, THERE ARE SOME FUNDAMENTAL ISSUES THAT ONLY COMMITTED TOURISM RESEARCH CAN SOLVE. QATAR TODAY TAKES A LOOK AT THE EXTENT OF INDUSTRY-ACADEMIA PARTNERSHIP IN THIS SECTOR AND HOW EARLY RESEARCH CAN IMPACT HOW THE INDUSTRY GROWS. BY AYSWARYA MURTHY

QATAR TODAY > DECEMBER 2014 > 83


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"Tourism strategy is not all about money spent on buildings. That’s just a tiny part of the story." CONRAD LASHLEY Senior Researcher Stenden Leeuwarden, the Netherlands

W "When people come to Qatar, they want to meet a Qatari. But there is no contact with a local expert at the immigration counter." DR JOHN AP Associate Dean of the International Tourism Management Program Stenden Qatar

84 > QATAR TODAY > DECEMBER 2014

hen announcing the National Tourism Strategy 2030, Qatar Tourism Authority explained how it was developed after lengthy consultations with various stakeholders, both in the private and public sectors – Ministry of Culture, Arts and Heritage, Qatar Museums, Qatar Airways, Mowasalat, hotels, travel agencies...the list is long. But notably absent are any academic or research institutions. As of yet QTA hasn’t responded when asked whether any such entity was involved in the drafting of the plan. But if there weren’t, as seems to be the case, it would seem like a serious oversight, considering how much academia can contribute towards understanding the direction of tourism and its impact on the society. To understand this relationship – as it stands now and what it could potentially become – we pay a visit to Stenden Qatar, the country’s only institute that offers courses in hospitality management and tourism management. Ali Abdulla is Senior Lecturer and the Acting Programme Leader for tourism management. Stenden demonstrated its eagerness to engage with the industry earlier in February this year with the Tourism in Tomorrow’s World conference, which brought together QTA, QM, Katara Hospitality and many other players. Partly owned by art connoisseur, collector and businessman Sheikha Faisal bin Qassim Al Thani, Stenden, along with its parent university in the Netherlands, has a special interest and a wealth of expertise in this sector. It is watching closely what QTA is doing, albeit from the outside. While not part of the national tourism

strategy, Stenden is developing a parallel strategy that aligns with what the country is planning to do, so that it is able to meet the future human resources needs. “QTA is an important partner for us. With Qatar’s focus on tourism development and us being the only tourism school here, we rely on each other very deeply,” says Abdulla. Already, Abdulla says, their graduates are in high demand, all of them being placed as soon as they complete their course. QTA is an obvious choice and absorbs many of their students. And if a ministry of tourism is established, he expects this number to go even higher. Their students have also gone on to find employment with Qatar Museums and some of the embassies. Stenden recently introduced a short three-month tour guide programme at QTA’s request. “This course, which is offered in both English and Arabic, trains professional guides who can lead tours at many of the country’s popular tourist spots like Souq Waqif, Al Wakra, Banana Island, Al Khor, Zubarah, etc. and demonstrate to visitors what Qatar has to offer,” he says. After witnessing the success of this course, QM has also now approached Stenden to tailor a programme for them. This relationship with the industry is in its nascent stage and is growing slowly, he says. “Qatar’s tourism industry is still developing and new companies are being established every day. Once they start planning their mission and vision, they’ll start seeking us for collaboration,” he says. With the state’s multi-pronged strategy that targets sports, culture, sun-sea-sand and MICE tourism, the potential for partnerships is immense, with Stenden capable of “implementing our learning in whichever field it is needed” but this is not yet on the horizon. “I expect they’ll approach us close to the events for our knowledge and expertise,” Abdulla says when asked if they have a dialogue going with the Supreme Committee of Legacy and Delivery or any of the sporting bodies. “It’s still early and I expect they are currently concentrating on infrastructure rather than brain force.” But these ‘soft issues’ should also be addressed and developed in tandem with infrastructure. “Tourism strategy is not all about money spent on buildings. That’s just a tiny part of the story,” says Conrad Lashley, Senior Researcher at the Stenden home campus in the Netherlands. “Strategy, developed in partnership with one or more universities, should be about giving people a unique experience that reflects the local life of its people,” he says and it’s


immediately clear this is where Qatar hits its first roadblock. Who is going to tell the story of Qatar? The Indian taxi driver? The Filipino hotel receptionist? The European guest relationship officer? The American museum expert? There is a definite need to create a “sense of ‘Qatarness.’” But how can this be done with Qataris conspicuous by their absence in the front line? Given that Qataris represent 15% of the population and that there is a problem with the perception of service among the middle and upper-middle class (not just in Qatar but also globally), this is a problem that requires some serious consideration. Dr John Ap, Associate Dean of the International Tourism Management Programme at Stenden Qatar, says: “When people come to Qatar, they want to meet a Qatari. But there is no contact with a local expert at the immigration counter. We took our students on a field trip to Al Zubarah recently and the tour guide was Polish. Though she was very good, it’s not the same as a Qatari talking about his or her own culture and history.” Professor Conrad made a similar observation during his visit to Qatar: “Qatar needs to start thinking about what they are promoting. The Arab culture is rich and diverse and can be an attractive feature of tourism to the Middle East; it has to be showcased, one way or another.” Imagine you went to Souq Waqif and saw only tourists, asks Dr Ap. How authentic would that be? “But the Qatari government has redeveloped it thoughtfully and appropriately. The restaurants, boutique hotels and sheesha bars appeal to tourists and locals alike, but also there are certain everyday Qatari items that you can get only at the Souq and not in the shopping malls. So when I see a lot of the locals going there, I can tell the government has done this right,” he says. But how can academic research help with some of these problems? Professor Lashley was charged with coming up with a research strategy for the International Hospitality Management School at Stenden Leeuwarden. As a result, they have introduced three professorial posts on hospitality studies, international operations and sustainability. The first is Professor Lashley’s pet subject. “It’s based on the idea I have been promoting that whilst programmes about training and development are needed, there is also a clear need to study about the nature of hospitality and hospitableness. The cultural heritage of hospitableness is international and covers all religions, which all have underlying themes on the morality of

"The tour guide course, which is offered in both English and Arabic, trains professional guides who can lead tours at many of the country’s popular tourist spots." ALI ABDULLA Senior Lecturer and the Acting Programme Leader for Tourism Management Stenden Qatar

hospitality. Be kind to a stranger, welcome him, give him shelter. These are universal. But somewhere along the way the industry has lost sight of this,” he says. Which is why any strategy must account for making sure everyone on the frontline – people at hotels, visitor centres, taxi drivers, waiters at restaurants – all understand the kind of service that is required. “Parallel to that is the need to be well informed through an active research culture about the nature of the guests, why they are coming, what they want and what they think hospitableness is about. This whole package of training and research needs a budget and a strategy,” he says. Stenden Qatar recently started talking about a service management program, Dr Ap says, and this is the best thing that could happen. “We train staff on certain behaviour but do not focus on the rationale behind why it is an important to do what you are told to do. The relation between tourism behaviour and social psychology is interesting aspect but a lot of tourism research focuses on HR, management, operations, sales and marketing, etc, rather than this. For me, understanding the psychology of a guest and the host is much more

rewarding,” he says, talking about his PhD research which looked at residents' perception towards tourism. He is hoping to work on something similar in Qatar. “I have applied for two research projects at Qatar Foundation. One is on the community attitude towards cultural heritage and identity and the related tourism. It proposes to study the impact of tourism and how people perceive it. When you think tourism you generally focus on economic benefits and development of infrastructure. But equally important is the social and cultural impact on the host community. What is going to be the impact of the World Cup 2022 on Qatari and Arabic culture, especially with the questions around alcohol? Are you expecting the Western football fans to go dry during the games? What does this mean for the Muslim population? It’s important to research these topics to understand the problems and concerns likely to arise out of hosting the Games or tourism in general,” he explains. These bigger questions aside, research can benefit even the smallest players in the industry. And with tourism largely dominated by SMEs who don’t have access to academia, it’s important for the state to take the first step. Professor Lashley says, “In the UK there is a fair amount of investment in research funded largely by the public sector or publicsector-supported bodies that represent the industry.” But funding research is just the tip of the iceberg. Implementing the results of the studies is much harder. “There are a number of ways that this can be organised. Setting up some form of quality licensing system which extends star rating to include service quality, etc., is one approach,” he adds. Unfortunately, Qatar has a long way to go. There is very little happening around tourism research here. Even on critical issues like development of the hospitality industry. “My impression is that hotel development is largely driven by people who are investing in property and there is no serious linkage between the likely growth in tourism demand.” Another area that needs attention but is not on the priority list is research about sustainable tourism; for a country like Qatar, it’s important to study what kind of pressure a growing tourism sector will put on its critical resources like food and water. Equally important is to understand the motivations of the Qatari community, what they think about their culture, how they judge the impact of external influences on it and what they want to project to the world outside QATAR TODAY > DECEMBER 2014 > 85


development > tech talk

Scott Olson/Getty Images/AFP

TACKLING DISTRACTED DRIVING

Qatar Mobility Innovations Centre announced the launch of Salamtek – a national initiative dedicated to creating innovative solutions and applications to reduce distracted driving.

DOES MARK ZUCKERBERG OWN ONLY ONE T-SHIRT? The Facebook founder finally answers the question on everyone’s mind – why does he seem to wear the same grey t-shirt every day? It is to spare him the time it takes to pick the right tie to match the suit; time can be dedicated to improving Facebook. “Even though it sounds silly that that’s my reason,” he said. “Steve Jobs did it.”

D

rivers using their mobile phones while driving is one of the leading causes of road accidents in Qatar and globally and the Salamtek initiative aims at tackling the problem by partnering with the Ministry of Municipality and Urban Planning, Traffic Directorate of the Ministry of Interior, Ooredoo, Qatar Insurance Company and Road Safety Studies Centre of Qatar University. One of the first of the applications – Salamtek Personal – is expected to be made available free of charge to Android users by the end of the year and “major enhancements to increase user adoption through introducing national reward mechanisms and gamification” is on the horizon, according to a statement from the company.

THE HOTEL OF THE FUTURE

Starwood Hotels and Resorts announced the rollout of their keyless initiative in ten of their properties globally, with W Doha being one of them.

G

uests staying at the W Doha will now be able to bypass the front desk, go directly to their room and unlock their stay with a simple tap of their smartphone. The Bluetooth-enabled technology is powered by their SPG (Starwood Preferred Guest) app and will be implemented with immediate effect in hotels in Beijing, Hong Kong, New York and Los Angeles, among others. Daniel Kerzner, VP of marketing for Starwood who was present in

86 > QATAR TODAY > DECEMBER 2014

Doha for the event, along with the Regional Director of Starwood Middle East, said that about 50% of their guests currently are SPG members and this new feature might help increase the membership. SPG members must register their phone once through the SPG app and, after booking a reservation

at a keyless hotel and approximately 24 hours before arrival, they will be invited to opt-in to SPG Keyless. Guests will then receive a push notification noting that they are checked in and the SPG app will update with their room number and Bluetooth key when the room is ready.


UBER MIRED IN NEW SCANDAL The transportation network company, which started out as a scrappy young startup, is continuing to attract controversy in the course of its explosive growth.

REVIVING A RELIC New York City came up with an exciting idea to give new life to the old telephone booth – turn them into Wi-Fi hotspots.

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YC’s 6,500-odd pay phones will be replaced with more than 10,000 new-age kiosks that will provide free gigabit Wi-Fi with a range of 150 feet, free calls to anywhere in the country, touchscreen displays with direct access to city services, maps and directions for tourists, and charging stations. The roll-out has been planned with a consortium of advertising, technology and telecom companies and the first machines are set to appear by the end of 2015. A huge portion of the revenue is expected to come from advertising on the large digital screens on either side of the machines and will deliver highly localised ads and offers.

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rom making thousands of fake bookings with rival companies to being at odds with transport regulations in several cities, Uber seems to be at the centre of some or other scandal almost continuously. The latest involves Senior Vice President Emil Michael’s casual remark at a dinner party that Uber should start tracking rides and digging up dirt on journalists, particularly those critical of the company. The news created a huge furor and seems to confirm rumours that employees had easy access to travel logs of users and there were no protections in place, unlike in other industries like banking, retail, hospitality, etc, to safeguard consumer information. CEO Travis Kalanick apologised on Twitter, saying “Emil’s comments were terrible” and showed “lack of leadership, lack of humanity”. Critics, however, are not convinced of Kalanick’s sincerity considering he hasn’t yet fired the errant VP.

DUBAI HOSTS BITCOIN CONFERENCE AGAIN Umbrellab is putting together the Dubai Bitcoin Conference this year between December 11 and 13. This second edition of the conference is scheduled to host a great list of local and international speakers, thought leaders in this space, who will speak on various topics from the basics to the advanced, including Bitcoin Basics, the future of financial services, Bitcoin’s place in the GCC, Bitcoin and Africa, Remittances and Bitcoin, Block Chain technologies, Security and many more. The organisers hope that the presence of people like Roger Ver (Bitcoin angel investor and CEO MemoryDealers), Erik Voorhees (Founder Coinapult), Nicolas Cary (CEO Blockchain), Bruce Fenton (President Bitcoin Association), and many more will drive more attention to Bitcoin in Middle East and help educate the Arab World about Bitcoin.

“THE BEAUTY OF HUMANITY IS THAT THE NEW GENERATION IS DIFFERENT FROM THE EARLIER ONE. THE FUTURE MAY NOT BE CONNECTED TO THE PAST AND TO SURVIVE YOU NEED TO CHANGE,” SAYS ELMAR MOCK, SERIAL INNOVATOR AND WELL KNOWN AS THE INVENTOR OF THE ORIGINAL SWATCH WATCH WHO SPOKE AT A QATAR BUSINESS INCUBATION CENTRE EVENT.

THE NEW CANDY IN TOWN

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he new Android Lollipop 5.0 is believed to be the most impactful design overhaul in recent years. Boasting a flat, minimalist design, the OS adds tonnes of functionality like unlocking through automatic facial recognition, more animations, a battery life analytics tool that tracks consumption, and more. The Nexus 6 smartphone and Nexus 9 tablet will be the first devices to run on this OS and most of the phone manufacturers have promised to release an update before the end of the year. QATAR TODAY > DECEMBER 2014 > 87


business > auto news SONATA MAKES DEBUT

National Car Company, the sole distributor for Hyundai vehicles in Qatar, has launched the mid-sized sedan Sonata.

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onata is expected to continue the popularity of a model that has traditionally been one of Hyundai’s best-selling models in the Middle East since it was first introduced. In 2013, the Sonata sold over 26,000 units across the Middle East - a region that is set to become Hyundai’s biggest market after the US.

Sheikh Ahmad Bin Nasser Al Thani, President Director- National Car Company, said: “The All-New Sonata has gone through rigorous performance tests and quality enhancements especially in the tough conditions in our region and I am confident that it will be a new benchmark inthe mid-size sedan segment in Qatar.”

BMW 2 SERIES ACTIVE TOURER ARRIVES

Alfardan Automobiles has announced the arrival in Qatar of the BMW 2 Series Active Tourer – a vehicle that is set to raise the bar in the premium compact segment.

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he launch of the model sees BMW bringing the functionality of space and comfort, combined with hallmark BMW dynamics, style and elegance, to this segment. Offering generous levels of space within impressively compact dimensions, the BMW 2 Series Active Tourer represents the perfect response to increasingly exacting mobility requirements. Alfardan Group COO Mohammad Kandeel said: “Demand for premium cars in the compact class is on the rise in Qatar. With the BMW 2 Series Active Tourer we want to further extend our appeal to customers who, for family reasons, have a wide range of needs.”

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RENAULT LAUNCHES NEW TRUCKS Renault Trucks has introduced two new trucks C range and K range – in Qatar and the Middle East. Renault Trucks has a strong dealer network in 13 countries in the region and Qatar is one of its key markets, with an expected growth of 30% between 2012 and 2015.

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he C range will enter the market with two options of cabin width, 2.3 m and 2.5 m, both of which are designed for specific jobs. The 2.3 m is built for distribution and deliveries while the 2.5 m cab is for long haul, light construction and heavy distribution. Renault Trucks President Bruno Blin said: “In developing the C and K ranges, we have deployed significant resources to ensure these vehicles deliver maximum reliability. Each range has undergone rigorous quality trials and has also been exhaustively field tested under actual operating conditions.” Also, to commemorate its 40th anniversary, Al Attiya Motors and Trading Co (AMTC) launched its state-of-the-art Renault Trucks workshop in the industrial area. Located on a 4500 sq m area, the QR26 million-facility will help in accommodating the increasing demand for repairs, service, body work and maintenance of the over 2,000 Renault trucks that are currently in operation in Qatar and the more that will come in the future.

PATROL DOMINATES EMIRATES DESERT CHAMPIONSHIP

Lebanese ace Emil Kneisser stamped his victory on the Emirates Desert Championship when he piloted his Nissan Patrol to an emphatic victory recently.

K HARLEY-DAVIDSON LAUNCHES 2015 MODELS Over 1,000 Harley-Davidson aficionados gathered for the Open House Days to celebrate the launch of the iconic brand’s 2015 line up of motorcycles. The new bikes combine world class aerodynamics and superb audio with advanced ergonomic comfort and is propelled by Project RUSHMORE’s customisations and Project LiveWire’s combination of heritage and technology.

neisser spearheaded a great day for Patrols when he won the T2 category as UAE’s Mansour Al Helei powered home in second place, also in a Patrol, to give Nissan a one-two triumph in the punishing event. “This victory is particularly special because I had damage to my vehicle in the opening round of the Desert Championship but this time everything went to plan,” says Kneisser. QATAR TODAY > DECEMBER 2014 > 89


business > auto news

INFINITI IS ME’S FASTEST-GROWING CAR BRAND Infiniti has become the fastestgrowing premium car brand in the Middle East. Between April and September this year, sales grew by 30% culminating in a 6.25% market share. The sales have been boosted by the arrival of the all-new Q50, substantial gains in the Kingdom of Saudi Arabia and UAE, and Infiniti’s popular and strong SUV line-up.

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nfiniti recognises the region as a key strategic market and we are demonstrating our commitment to the region through expansion of the network and product range,” said Juergen Schmitz, Managing Director, Infiniti Middle East. In the next five years, Infiniti’s expansion plan is set to increase its global model range by 60% and more than double the number of its powertrains with the promise to cater to a wider audience of discerning customers.

BMW 6 AND 7 SERIES PEARL RETURNS

NEW CAYENNE LAUNCHED

E BMW Group Middle East has reintroduced its Individual Pearl cars in response to customer demand. These unique models are part of the BMW Individual programme which enables customers to tailor their vehicle to a bespoke design that suits their individual style using a range of premium materials, paints and interior trims. BMW Individual designers transferred the mystery, elegance and beauty of the Pearl to produce a total of 45 BMW 7 Series and 6 Series Gran Coupé models. BMW Group’s Middle East Director Sales & Marketing Alexander Eftimov said: “When we launched these editions last year, we hadn’t anticipated how popular they would be so it is with great pleasure that we can announce that they will be available yet again for our discerning Middle East audience.”

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mbodying more power and greater efficiency, Porsche Centre Doha, Al Boraq Automobiles has welcomed the arrival of the all-new Cayenne, boasting enhanced performance, a sharpened design and more exciting features as standard. The new generation Cayenne will be in five versions: Cayenne S, Cayenne Turbo, Cayenne Diesel and Cayenne S Diesel and for the first time, the Cayenne S E-Hybrid, the first plug-in hybrid in the premium SUV segment. Salman Jassem Al Darwish, Chairman and CEO at Porsche Centre Doha, Al Boraq Automobiles Co said: “The new Porsche Cayenne embodies the ultimate Porsche traits; class-leading performance and outstanding driveability. No matter the road conditions the new Cayenne delivers a unique automotive experience and we expect our local customers to share in the excitement around this thrilling evolution.”



business > auto news

M MEETS X MEETS US BY AYSWARYA MURTHY

At the exciting roadshow organised by Alfardan Automobiles and BMW Middle East, we got up close and personal with the X and M series, with varying results.

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riving for the first time around a world-class race track can be exhilarating in itself, even if you aren’t strapped into a super-car that is screeching around the hairpin bends and burning rubber across the lengths of straight track. Taking turns driving the BMW M4, M4 Coupé, M5 and M6 around the Losail International Circuit was, for lack of a better word, mad fun. I worked my way down from the latest model to the oldest and as the cars got louder (you could hear the M4’s powerful engine in your bones), the experience got more intense. The couple of times I felt I was losing control of the car (one time I went screaming off the track and the instructor had to remind us politely to stay within the white lines) was heart attack-inducing; I remembered thinking what use was my helmet going to be anyways. But the adrenaline refused to settle even several hours after that. The cars were magnificent. Auto experts can, and have, described them in more beautiful detail than I ever could. However, one of the features that struck me the most was how the mirrors automatically configured themselves to the optimal position as soon as you hit the reverse gear. And the gorgeous heads-up display that made me feel all fast-and-furious-like. (As it turns out, for some people, it’s the little things that win you over in the end; more than horse power or turbo technology). The different driving modes – sport, comfort, etc – each lent itself to a different experience behind the wheel. The one thing that perplexed me – both with the M and X series – was the sheer number of buttons. There were billions of them; three just to adjust

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BMW X6 SPECIFICATION HIGHLIGHTS Cylinders/valves

6/4

Capacity in ccm

2,979

Top speed in km/h

240

Acceleration 0-100 km/h in s

6.7

Urban in l/100 km

13.2

Tank capacity, approx. in l

85

BMW M6 SPECIFICATION HIGHLIGHTS Cylinders/valves

8/4

Capacity in ccm

4,395

Top speed in km/h

250

Acceleration 0-100 km/h in s

4.3

Urban in l/100 km

14.4

Tank capacity, approx. in l

80

your car seat in three dimensions. Hasn’t Apple already thought up the power of the one button that can rule them all? Is the reverse of it true in the automobile world where a complicated dashboard can give you the feel of flying an aircraft? Do buttons offer a better sense of reliability than touch screens when you are travelling at 140 km/h? The other segment of the evening got us behind the wheel of the BMW X3, X4 and X5 as we negotiated a complicated course

laid out for us. Well, it wasn’t that complicated but enough of the drivers in our group kept missing the turns and running over cones that we had to do the familiarisation drive all over again. Our German instructor wasn’t impressed; especially after he had had the uneasy realisation earlier that “let’s begin in five minutes” means different things in Doha and Munich. The “quiet dignity’ of the X models was a refreshing change from the M range, which all seemed to be straining at the leash. But as we’d discovered, the BMW X could slalom and negotiate tight corners like the best of them, once you convinced yourself that the vehicles weren’t as delicate as they felt. It was a shame that though the X6, the second generation of this sports activity coupé, was unveiled at the event, we didn’t get the opportunity to drive it. It is hard to imagine how they could have possibly improved on what was already on the course. At the roadshow, customers, fans and media representatives were given a taste of the two model ranges over the course of two days in November. “Many of our customers never get to experience the true power of their BMW M vehicles, and our newest models have several new technology features that we wanted to showcase. So we wanted to provide an opportunity to gain a greater appreciation of the technology and innovations of these powerful cars,” said Mohammed Kandeel, CEO of Alfardan - Automative Operations, during the press briefing prior to the driving sessions. “During the event, our guests will be able to put the vehicles through their paces in a safe and controlled environment, under the careful guidance of experienced driving instructors.”



business > auto news

THE MUSTANG RISES BY AYSWARYA MURTHY

Ford celebrated the 50th anniversary of the iconic Mustang on the Burj Khalifa in the presence of the current Executive Chairman of the company, William Clay Ford Jr. Qatar Today was invited to be part of this exciting event.

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ost of my adult life, I used to worry about selling cars and trucks. Today I worry about what if all we do is sell cars and trucks,” William Clay Ford Jr said, right off the bat. Soft-spoken and extremely approachable, the Executive Chairman of one of the biggest automobile manufacturers in the world was nothing like you would imagine. He is just as impactful on stage talking about the future of mobility as he is during an informal chat in a ballroom, discussing the football team he owns. “Automobiles are my family’s heritage, my life’s work and deep passion,” he said. “I believe in cars and how they can make people’s lives better. I am sure all of us remember the feeling of getting behind the wheel for the first time.” I certainly did. And I certainly remember the feeling not two days ago when I was stuck in a traffic jam for 40 minutes and wished I didn’t own a car. The same freedom of mobility that cars have historically provided us is now threatened. “It’s a numbers problem. There are seven billion people on the planet now. It’ll grow

to nine billion within our lifetimes. The one billion cars on the road now will double and possibly double again in the next 30 years. We’ll live more closely together and will start to gridlock on a scale we have never seen before,” he warns. Americans already spend a week every year in traffic jams. Average Chinese commutes for five hours a day. “Dubai’s road network grew by 50% in the last eight years and already there are warning signs that the highways are reaching their maximum capacity. So it’s clear that we can’t pave our way out of the problem.” What is needed is a leap in thinking, according to Ford Jr. “Smart cars built with powerful microprocessors are already a reality but we also need smart roads, smart parking systems, smart public transportation, all connected with each other through wireless telecommunication. That’s how you attack global gridlock; with an integrated transportation system that allows real-time, high-speed vehicle-to-vehicle and vehicle-to-infrastructure communication on a massive scale.” He spoke about Ford’s Blueprint for Mobility which is a “multiyear strategy involving many stakehold-


WILLIAM CLAY FORD JR at the 50th anniversary celebrations of the Ford Mustang

ers with short-, medium- and long-term solutions.” Redefine car ownership. Another issue that is close to his heart, he says, is environmentalism. And he was acutely aware that the auto industry was constantly cited as a major and unrepentant polluter. His intentions to put the auto industry’s large talent base and global footprint to try and make a difference were “wildly unpopular for many years”, even within the industry. “But now Ford has been named one of the greenest brands in the world and we are always working towards improving fuel economy and reducing green house gas emissions. And I believe that truly clean transport is possible in my lifetime,” he says confidently. He predicts that materials like carbon fibre, which are now only used in race cars and exotic vehicles, will find their way to the mainstream. And he has some other fantastic visions of mobility in the future. “The rise of on-demand and peer-to-peer transportation networks like Uber and Lyft shows that people will find new ways to get where they have to go. Autonomous driving will reduce travel delays and reduce road safety.” He sees a future where, through seamless integration, the consumer will optimise the time he spends on the road. If heavy traffic or road diversion is predicted, the autonomous car will drive you to the nearest train station, just in time for the next train to your destination. If your phone detects a lunch appointment on your calendar, it will automatically order you a cab, knowing that you don’t have your car with you on that day. You believe him when he says this is the best time to be part of the industry. And the future is so imminent and you won’t even know when it’s here, he says.

“A lot of the autonomous tech is coming in right now and in the next 3-4 years; cameras, lane keeping, adaptive cruise control and more are all elements of the equation. So when we get to full autonomous driving it’ll be almost anti-climactic. The last piece of the puzzle will be ensuring reliability in an uncontrolled environment when a sandstorm is obstructing the sensors, for example.” But challenges bring out the best in the automobile industry, he says. “In 1896, after years of experimenting, my great-grandfather Henry Ford finished building his first car. But in his enthusiasm, he didn’t realise that he had made it too big to fit through the workshop. Without a moment’s hesitation, he knocked down the wall with a sledgehammer and took it for a test drive down the streets of Detroit. It’s time for us to knock down more brick walls,” he says solemnly. The sobering conversations of the morning gave way to heady excitement in the

evening. On the 123th floor of the Burj Khalifa, after an exciting few minutes that involved a high-adrenaline video, a mysterious package and helicopters going around us as we stood on the deck of the tallest tower in the world, Ford Jr made a dramatic appearance attaching the famous pony insignia to the 2015 Mustang that was waiting there for the final piece. “The Mustang captured the passion, optimism and youthful energy of its time and continues to do so today, 50 years later. And if someone had told me a few years ago that I’d be celebrating this occasion in Dubai, I wouldn’t have believed it. But today it is the perfect place,” he said smiling. He fondly remembers the time when people had love affairs with their cars. “I’d love to have that again,” he says, admitting that there’ll always be a Mustang in his garage. “I love cars with the latest technology but I will also always drive a manual transmission Mustang for the pure fun of driving it.” QATAR TODAY > DECEMBER 2014 > 95


business > marketwatch

THE

LOGISTICS STORY

across the country with two more to open by the end of this year. “In terms of our operations, we have grown to over 50 dedicated couriers operating a 53-strong vehicle fleet covering the entire country. Our strong air network and connectivity also serve the local market through dedicated daily flights,” recollects Suliman. Currently, DHL Qatar holds over 50% of the country’s market share and is witnessing over 20% year-on-year growth in revenues. “The past decade has seen the country transform into an economic powerhouse with massive investments in infrastructure, hydrocarbon, telecom and logistics. Similarly, the growth of new-age industries such as e-commerce, and more recently m-commerce, and the surge in SMEs have all been a catalyst to DHL’s thriving operations locally, with no signs of this slowing down,” he says confidently.

Nour Suliman, CEO of DHL Express MENA, speaks about the courier industry and how the rise of e-commerce has catalysed the growth of the segment.

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n the last five years, e-commerce in Qatar has witnessed an estimated 40% year-on-year growth with forecasts to reach QR4.6 billion by 2015; this trend is set to continue with the presence of more internet users and the evident rise in SMEs establishing a presence in the market. Nour Suliman, CEO of DHL Express MENA, is banking on this segment as he sets sights on further growth for the courier segment. DHL Qatar started with just one office in 1979 and is now present in 10 locations

Is online shopping or e-commerce the main reason behind this growth in business? Qatar’s booming economy has sparked a rise in the country’s e-commerce segment, which has been one of the most prominent changes witnessed by the logistics industry in the country and DHL has made sure to capitalise on this trend by studying the local market and presenting innovative products and solutions to maximise speed, efficiency and cost-effectiveness. As a result, DHL’s penetration in the Qatari e-commerce segment currently stands at over 80%.


How much of your business growth is attributed to SMEs? DHL’s SME segment in Qatar has witnessed a significant jump in the last five years, and this is a reflection of the rise in smaller enterprises setting up in the local market. Our growth in this sector has experienced double digit numbers year-on-year, with many of our new customers outside the oil and gas industries. We are confident this trend will continue as Qatar moves ahead with its vision to diversify its economy and encourage entrepreneurship. What is your opinion on the SME sector in this market and how do you see this sector growing? Small and medium-sized enterprises are increasingly becoming the backbone of Qatar’s economy; the government is fully aware of the tremendous impact the smaller players can have on national growth and has invested in capital injection and a solid national ecosystem to help SMEs flourish; this comes at a time when focus on diversification is at a high and there is a conscious effort to move away from Qatar’s dependence on oil and gas and embrace a more diverse, sustainable economic model. Qatar is also focused on empowering its youth and building the next generation of private sector leaders to drive the economy forward. The government is continuously tapping into its dynamic, innovative pool of entrepreneurs to encourage start-ups in order to turn SMEs into the pillar of Qatar’s economy of tomorrow. The future for SMEs in Qatar is very bright; with the government’s solid National Strategy 2030 and the huge economic investments currently taking place in the country, the opportunities for SMEs in Qatar are endless. How can logistics help SMEs grow? What are the key challenges and opportunities? In the globalised world, setting up shop locally is no longer enough for smaller players to succeed. International trade has become a vital component to the long-term survival of SMEs. This is where logistics comes into play. Trading across borders can be a time-consuming, complex and risky business; issues such as cultural differences, high

administrative costs and inadequate infrastructure can be daunting for smaller players. Logistics providers present solutions for small businesses and can grant them access to the world’s biggest consumer markets, making it a fundamental part of their service and giving them an edge over the competition. We know that the right logistics partners can provide critical support in overcoming cultural barriers and infrastructure challenges while managing costs in order to compete. With a booming GCC economy and increased trade volumes between the Gulf and key players in Africa and Asia, Qatari SMEs are perfectly situated to ride the wave and take their business beyond home borders. Similarly, foreign companies looking to tap into Qatar also require a helping hand. At DHL we have the localised market knowhow and a global infrastructure in place to help them achieve just that. Our strength as logistics leaders lies in our commitment to find solutions that make our customers’ businesses more successful. What are the next levels of innovation in this field? Our aim is to set industry benchmarks and in order to do that we have to be innovative; innovation plays a big part in our global strategy which filters down to the individual markets; we are always in search of new and improved methods to enhance our operational capabilities and we adopt unique, cutting-edge-technologies to improve our speed and efficiency. Our focus in Qatar is three-pronged; we are introducing new e-commerce tools to make shipping easier for our clients,

especially SMEs; we are looking to develop SME-friendly solutions to help this budding sector flourish; and we are improving our track-and-trace systems to enable greater visibility on shipments. As an example, recently we updated all our facilities with the latest technologies and introduced electronic pods (e-pods) in Qatar and most Middle East markets, enabling customers to receive customised shipment tracking reports straight to their email or phone. All this is further supported by continuous enhancements in our regional and global connectivity through new HUBs, route development and increased dedicated flights into Doha. Qatar is a booming market, therefore we have to be proactive in our approach to innovation – it’s all about monitoring industry trends, anticipating client needs and delivering the best service possible to exceed expectations and give them the best the market can offer. What are your ground rules in leading the team in Doha? Your core values? The ground rules are the same across all of DHL’s markets; we always strive to stay ahead of the game and to do so we need to stay in top form. Our people are our top priority, if they are happy this is reflected in their work. Which is why some of our core values include making sure the team maintains a balance between work and family. ––This is not just a DHL Qatar approach; it’s a corporate approach firmly embedded in the company’s global values. This is what makes DHL the ‘employer of choice’ across the world QATAR TODAY > DECEMBER 2014 > 97


business > marketwatch LUMIA 830 NOW IN QATAR

Microsoft Devices has announced the availability of the flagship Lumia 830 in Qatar for QR1,499. With a premium design, superior PureView imaging and integrated Microsoft services, Lumia 830 makes high-end innovation more affordable.

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acking the very best Lumia innovations including wireless charging, optimised image stabilisation and personal wellness monitoring features such as SensorCore into an ultra-sleek package, the Lumia 830 delivers incredible image and video quality with a 10-megapixel PureView camera with ZEISS optics, rich recording and the thinnest optical image stabilisation system to date. “With PureView imaging, wireless charging and a wealth of other great features, the Lumia 830 delivers the best innovations and experiences from our flagship smartphones at a more affordable price, underscoring Microsoft’s commitment to offer a competitive Windows Phone experience for everyone,” said Jon French, Vice President, Microsoft Devices Middle East. The Lumia 830 is expected to be available in Qatar at all leading electronic retail outlets in a range of colours including bright orange, bright green, white and black.

IKEA OPENS PAPER SHOP Customers can now buy beautiful stationery, decoration items and gift wraps within the IKEA store at Doha Festival City. The Paper shop is IKEA’s effort to add an element of seasonality and vitality to the store. It is designed to offer customers a constant source of inspiration and keep them in tune with global trends of personalised creativity.

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et within a ‘candy shop’ environment, the Paper Shop at IKEA is all things bright and beautiful. With over 100 new products that aiming at be unique as well as inspiring, the shop is going to be refreshed with new inspirational products every season. Across the categories of stationery, decoration and gift wrap, the Paper Shop offers products as diverse as party decorations and lamp shades to gift bags, gift boxes, gift wraps, gift tags, ribbons, decorative tape, tissue paper, adhesive labels, notebooks & notepads, stickers, cards & envelopes, clipboards, paper-clips and self-stick notes. Prices at the Paper Shop follow the overall IKEA promise of low price and value for money, beginning as low as QR 3.

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BANG & OLUFSEN STYLISH HEADPHONES B&O PLAY unveiled Graphite Blush, Bronzed Hazel and Blue Stone – three exciting new special editions of BeoPlay H6 that are perfectly suited for style-conscious urban dwellers.

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raphite Blush pairs a stormy greyish brown with an almost salmon-like red colour, while Bronzed Hazel combines a lush light brown colour with bronzed elegance and, last but not least, Blue Stone gives you a cool and pale grey in unison with a glittering light blue. The special editions are subtle and graceful, perfectly aligned with the B&O Play design excellence inherited from Bang & Olufsen, yet they still bring with them an edge that makes them particularly interest-

ing for youthful, design-affectionate professionals looking for that something special that stands out. “Today’s headphones are just as much fashion accessories as they are products used for music listening and phone conversations,” says Henrik Taudorf Lorensen, VP of B&O PLAY, “and with the special editions of BeoPlay H6 introduced today, we yet again emphasise the importance of both style AND substance, not either/or when it comes to strong design and high performance.”

HOME CENTRE LAUNCHES CATALOGUE Leading home retailer Home Centre released its latest catalogue in a celebratory media event hosted at Qatar’s flagship store in Asmakh Mall. Top officials from Home Centre and Landmark Group, Qatar, attended the event showcasing some of the latest style home accessories and furniture buys for the home. This year’s catalogue features a bigger and better collection than ever before. The 140-page catalogue features several new style buys to give your home the now-factor. “Over the years, Home Centre has become the preferred home shopping destination in Qatar, committed to constantly delivering outstanding value, continuous innovation and exceptional customer experience. This new annual catalogue is a glorious example of the brand’s commitment to bringing international retail standards to the region,” said Santosh Pai, COO, Landmark Group, Qatar. Johan Krieljones, Visual Merchandising Manager for Home Centre, hosted a style walk-through with the audience. Selected rooms from the catalogue were replicated in store for the customers to get a first-hand feel of the latest furniture and accessories. Johan, along with Ryan Basson, took the audience through an informative walk-through giving styling tips and decoration inspirations. QATAR TODAY > DECEMBER 2014 > 99


business > marketwatch

SONY XPERIA C3 LAUNCHED

Fifty One East and Sony Mobile Communications announced the availability of Xperia C3, the ultimate new smartphone for selfies and social sharing thanks to Sony’s leading digital imaging technology and interactive camera apps.

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peria C3 is the world’s best selfie smartphone featuring a powerful new ‘PROselfie cam’ and selfie apps. Its dual sim gives you the flexibility to use two sim cards in the same phone, so you never miss a call. With its super lightweight, slim design and powerful

Quad-Core processor and ultra-fast speeds, the Xperia C3 can go everywhere with you. Xperia C3 will be available in black, white and, for something a bit special, mint colour. Sony Xperia C3 is now available at all Fifty One East outlets located in Al Maha entre, City Centre Doha and Lagoona Mall.

PIAGET SHINES BRIGHT

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he festive spirit of the holidays shines bright in the world of Piaget with exceptional watch and jewellery creations. Whether a special gift to end the year in style or an unforgettable treasure to make the New Year one to remember. The Altiplano collection brings together virtuoso skills to deliver timeless creations. Like a holiday gift elegantly wrapped to conceal the surprise within, the pure modern design of the watch case hides a treasure of great mechanical complexity. Streamlined in their design and enhanced with refined finishes, the Black Tie timepieces follow the tradition of shaped cases in a classical design, housing mechanical movements and complications expertly developed in Piaget’s Manufactures. The masterful combination of round and oval shapes is the very essence of a collection that creates a unique sense of aesthetic balance.

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culture > doha diary 90 FILMS TO BE SCREENED AT THIS YEAR’S AJYAL FILM FESTIVAL

The second edition of the Ajyal Youth Film Festival will be held from December 1 to 6 at the Cultural Village, Katara.

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n array of public screenings, jury screenings, premieres, red carpets, special events, exhibitions and family activities will make up this year’s festival programme, where 21 feature films will screen over six days. Ten of these features are by first and second-time filmmakers including Macondo (Austria, Germany) by Sudabeh Mortezai, Antboy (Denmark)by Ask Hasselbalch, #chicagoGirl: The Social Network Takes On a Dictator (USA, Syria) by Joe Piscatella and the opening night world premiere of Speed Sisters (USA, Qatar) by Amber Fares, underscoring the Doha Film Institute’s year-round support of emerging filmmakers from the MENA region and around the world. Highlights of this year’s feature film lineup include the world premiere of the Palestinian motor racing documentary Speed Sisters, an action-packed and insightful documentary about the Middle East’s first all-female motor racing team, and the

MENA premiere of Kahlil Gibran’s The Prophet (France, Lebanon, Qatar, USA), produced by and starring Salma HayekPinault. The animated feature, which is the festival’s closing night gala presentation, is an adaptation of Gibran’s beloved book directed by Roger Allers (The Lion King) and features sequences by award-winning directors from across the globe, including popular Gulf animator Mohammed Saeed Harib. Special guests confirmed to attend the festival include a delegation from Kahlil Gibran’s The Prophet including producer/actress Salma Hayek-Pinault, director Roger Allers and chapter directors Joan Graetz and Mohammed Saeed Harib. Speed Sisters director Amber Fares will also be in attendance. A number of high-profile MENA features which tackle modern-day social issues will also be showcased at the festival, including #chicagoGirl: The Social Network Takes On a Dictator, which follows the life of a young Syrian woman as she assists the revolution in her home country – from her bedroom in Chicago. Ala’aBasatneh, who acts in the documentary, will be in attendance to speak to audiences and festival jurors. Animation also continues to be a popular theme at the festival this year. An eclectic shorts programme will see more than 40 short films screened during the festival – 20 of these in the Made in Qatar section, which celebrates work by filmmakers who call Qatar home. “We are really proud of the line-up for this year’s Ajyal Youth Film Festival, which has truly become an event for all generations,” said Fatma Al Remaihi, Festival Director and Acting CEO of Doha Film Institute. QATAR TODAY > DECEMBER 2014 > 101


culture > doha diary THE REAL STARS

SECOND EDITION OF QIBS The second edition of the Qatar International Boat Show was held in Qatar’s Lusail Marina between November 11 and 15.

FLYING FANTASY

Mohammed Al Housani, a graduate of Texas A&M Qatar, was named the overall winner of Stars of Science in a thrilling live finale in Doha, Qatar, concluding the sixth season of Qatar Foundation’s “edutainment reality” TV program. Mohammed Al Housani earned a combined score of 49.6 percent from public voting and a jury deliberation to win, taking home the first prize of $300,000 to help develop his efficient solar energy system, Taqatech. Al Housani said: “I am delighted to win first place of Stars of Science Season 6 and proud to represent Qatar. Stars of Science was an incredible experience that was made unforgettable by my fellow candidates as well as the program’s mentors, judges and viewers. I thank Qatar Foundation for making the program possible and continuing to believe in the potential of young Arab innovators like myself. It is my hope that others around the region are encouraged to participate in Stars of Science.” Launched in 2009 by the Qatar Foundation for Education, Science and Community Development, Stars of Science is the region’s first pan-Arab Edutainment TV program dedicated to innovation.

Red Bull Flying Bach put together a spectacular show at the Qatar National Convention Centre, a strangely harmonious blend of break dancing and Johann Sebastian Bach. It was one of those shows that you don’t know what to expect of but that still ends up surprising you. A raised platform with somber pianists on either side, a timid ballerina and a hyperenergetic gang of breakdancing boys whose repertoire of high-intensity moves keep the audience gasping in awe till the end – these are the elements of this unique performance. The music is alternatively mellow and thumping, courtesy of the composer-producer duo Ketan and Vivan Bhatti, that allows the dancers to explore a full range of movements within the breakdance genre. The stage gimmicks make it a visual treat as well; for an entire five minutes, all the dancers hide behind a screen that showcased various breakdancing moves in ultra slow motion, cosmic sparkling and all. If you had been able to shake off the amazement of seeing one of the dancers spinning perpetually on his head, a storyline emerges. A group of young dancers introduce a delicate ballerina to the new and exciting moves of street dancing. After much resistance (and an inexplicable simulated slap) she succumbs to the “coolness” and is transformed by the final act, a fantastic show of control, poise and pure intensity. There were some segments of the 70-minute show that seemed to go on forever, but no matter what you thought of it, it’s unlikely you’d have ever seen something quite like this before. 102 > QATAR TODAY > DECEMBER 2014


culture > qt take

HISTORY

THROUGH ART

BY SINDHU NAIR

Mathaf will never close its doors to art lovers for its permanent collection is now on show. A look through art that spans recent historical times. The museum also introduces Iran’s most prolific artist Shirin Neshat who touches on feminism, oppression and emotions of grief and loss that follow the killings during the Arab Spring.

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ome of the art on display at Mathaf: Arab Museum of Modern Art in Doha is familiar. They had been on display when the Museum opened its collection to the public in 2010. Now the museum has opened a display of its permanent collection that will be exhibited throughout the year at the museum on the first floor. Entitled Mathaf Collection, Summary, Part 1, the exhibition presents over 100 artists and has over 400 works from the museum’s collection of more than 8,000 works that continues to grow with new acquisitions and commissions from Mathaf exhibitions. The exhibition includes works from Qatar and the Arab world, Iran, Turkey and other regions historically connected to the Arab Peninsula, reflecting a multitude of artistic directions and contexts. This exhibition also contributes to developing research into the collection and its interconnections with contemporary cultures that is also present online in the Encyclopedia of Modern Art and the Arab World, developed by Mathaf. While the collection includes some of the most prominent artists in the region, many of whose works are being sold from auction houses at ridiculously high prices

IN FLIGHT Suspended Together by Manal Al Dowayan, part of Mathaf's permanent collection.

hiking up the value of their works of art, it is a revelation to find so many of them housed within Qatar’s own collection houses -- a reflection of how far the country is trying to get the best pieces possible for its budding collection. Historical significance Though for Abdellah Karroum, Director of Mathaf, the collection is, “not about the value of the art that we exhibit,” but about the “historical significance these pieces have on that particular time and place of history.” He says, “Through this exhibition we are seeking to position modern and contemporary art from Mathaf’s collection within the local and global context, and give multiple entry points into the collection, through artistic research, historical moments and aesthetic experimentations on the idea of an Arab modernity.” “In most cases artists were the first and foremost recorders of history and their art is an important documentation that has helped us understand the history of our recent era,” says Karroum. Like the depiction of the return of Mahmal to Cairo by George C Michelet dated 1902. But the most striking exhibits are showQATAR TODAY > DECEMBER 2014 > 103


WORK IN VARIATION: Clockwise from top right: Ali Hassan, a view of the collection; Qatari artist Jassim Zaini's work called The Bicycle Passenger; Door of Infinity by Farid Belkahia, behind is Ahmed Mater's Golden hour; Qatari artist Ali Hassan's Noon.

cased at the entrance of Mathaf, the most eye-catching one being the installation by Farid Belkahia, called the 'Door of Infinity' which was commissioned specifically for Mathaf. Belkahia, sadly, died in September 2014, and hence his work of art is especially valuable for the museum as these are probably some of his last pieces. “Belkahia is famous for working with local materials and traditional techniques,” says Karroum. “The process of work on both copper and leather is an important aspect of creation of Belkahia’s art, and his work typically highlights not just the organic shapes, but the texture and dimensionality of the ma104 > QATAR TODAY > DECEMBER 2014

terials themselves.” Another untitled work by Belkahia, which is also present in the exhibition, is a juxtaposition of different materials, like henna and other dyes, and touches on his fascination with symbolism. Another artist from the neighbouring country of UAE is Hassan Sharif who follows Belkahia’s fascination for natural materials and local languages in his work. His work adds texture to the art installed and was also part of an earlier exhibition at Mathaf. Ahmed Mater’s 'Golden Hour,' one of my personal favourites that depicts the tangible dynamism of holy Mecca and the modern-day construction around it, is also


AFTERWARDS WHILE MATHAF TAKES US THROUGH THESE VARIED YET MOST RELEVANT FORMS OF ART FROM THE REGION IN A COMPLETELY DIFFERENT DIRECTION, THE MUSEUM ALSO SHOWCASES IRANIAN ARTIST SHIRIN NESHAT’S FIRST SOLO EXHIBITION IN THE MIDDLE EAST TITLED AFTERWARDS. THIS MAJOR SHOW INTRODUCES A GROUP OF EXISTING AND NEWLY PRODUCED WORKS BY NESHAT, INCLUDING A PHOTOGRAPHIC SERIES INSPIRED BY 'THE BOOK OF KINGS,' AS WELL AS A SELECTION OF VIDEO INSTALLATIONS COMMENTING ON HISTORICAL, CULTURAL AND POLITICAL REALITIES ON WHICH THE ARTIST HAS FOCUSED FOR THE PAST 30 YEARS. KARROUM, THE CURATOR OF THIS EXHIBITION, EXPLAINS THE BASIS OF THE SELECTION OF WORKS. “HER (NESHAT’S) WORK ENCOMPASSES THE EXISTING ELEMENTS, HER PERSONAL HISTORY AND HER RESPONSE TO ALL THE EXPERIENCES. IT IS NOT A REACTION BUT A RESPONSE TO WHAT IS HAPPENING AROUND HER,” SAYS KARROUM. “IT IS NESHAT’S INNER SELF IN JUXTAPOSITION WITH THE OUTSIDE WORLD; HER STORY IN REFLECTION TO THE WORLD. THIS WILL BE THE GROUNDS WHERE POETRY AND IMAGE MEET TO CREATE A VISUAL TREAT.” Shirin Neshat's earlier work, Women of Allah, is an intense work that portrays women opressing the regime in Iran

exhibited at the entrance. Qatari artists too get quite a lot of museum space in this collection, with two works by Jassim Zaini (said to be Qatar’s oldest artist), one of which is an abstraction of the name Qatar and numerous paintings by Yousef Ahmed, Ali Hassan, Faraj Daham and one by Salman Al-Malki, among others. The works of art are also curiously located but it all makes sense when you look beyond the obvious. Beyond obvious A perfect example being that of the work of Faisal Laibi, an Iraqi artist, titled 'Relationship,' showing a woman bending down to remove her husband’s sandals as he sits

THIS IS ONE INTENSE WORK OF ART THAT MAKES YOU LOOK CLOSELY AT A COUNTRY THAT HAS MOVED FROM ITS ANCIENT HISTORY OF ARTISTIC PROGRESS TO PRESENT DAY REGRESS WITH ISLAMIC FUNDAMENTALISM TAKING A TOLL ON ITS CULTURAL REACTIONS

languorously yet in a stance that depicts his dominance in the relationship; and adjacent to this work is a contemporary art installation by Egyptian artist Ghada Amer. In her work titled 'The Curved Salon' we see a curious representation of a pink living room with blood red threads in shreds on the sofas. Amer through her well-known erotic embroideries rejects oppressive laws set in place to govern women’s attitudes toward their bodies. The juxtaposition of these two is a study of art forms and techniques used in two eras – oil painting and installation using materials found in everyday life; of the role of women – a woman who is suppressed and the work by the contemporary artist is a study of liberated thoughts

ABDELLAH KARROUM Director Mathaf

Afterwards will run till February 15, 2015 while Mathaf Collection, Summary, Part 1, will be on show throughout the year on the first floor of the museum.

QATAR TODAY > DECEMBER 2014 > 105


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

MY HOME IN QATAR DIANA CANONEO Member Services Manager, Fitness First (City Center) Been in Doha since: November 2009 (five years) When I was given an opportunity to work here in Doha I was eager to take it because it was the first time I would have worked abroad and I wanted to learn to be independent. My beginning here was humble - I started as a Front Desk Assistant in one of the outlets of the international chain, Fitness First. After three years I progressed in my career to become the Front House Manager. I am now in my fifth year here and can’t say what the future holds for me.

to l i ke yo u i n o u r d l u Wo atured o" be feTake Twle ase " P et at m n? c o l u u s a t we ay d d o T n se Qatar @

NEW BEGINNINGS TAMARA MILANOVIC IT engineer-turned musician and photographer Been in Doha since: November 2014 (one month)

106 > QATAR TODAY > DECEMBER 2014

The Middle Eastern culture is very different from ours. But I find Qatar to be a pretty laid-back country where you can find pleasure in the simple things, with family and friends. From dhow rides to great food and film festivals to the wonderful night lights on National Day, I have created memories of many special occasions with the friends that I’ve made here. I always say that this country has its own charm. However, currently I find the country is becoming busier as the days go by. You can see construction everywhere. Traffic is at its worst (I hope!). But the country is developing and these are good signs. Qatar still has lots to offer to the world and over the years I feel we can expect much more from the small, oil-rich nation.

My parents have lived here for a while and so it’s not my first time around. I had been here a lot in the past couple of years for my vacations, and would usually hang out at the Souq Waqif having a lemon mint shisha. But this time I plan to stay longer. That’s because I believe Doha is the place that can help me find what I have been looking for. I am looking for a career completely removed from what I have been doing so far. I am an IT engineer and have had some experience in the field back home. But I have come to realise that this wasn’t something I would be good at or that would help me nurture my creativity. I have two hobbies which I’d like to pursue more seriously and eventually make

something in the future of and I believe Doha is the best place to start. I love photography and I am a singer. In fact, I was a runner up in the first season of Serbian X Factor. I am from Belgrade but I don’t miss the place as much as I miss the people, especially my boyfriend, my close friends and my brother. My younger brother and I write our own music and have published our own song recently. He’s an engineer too and we’re both self-taught musicians. He is supposed to come to Doha soon as well which I am looking forward to. But definitely the one thing I do miss about home is not being able to walk around.




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