Qatar Today Jan.-Feb.2019 by Oryx Group of Magazines

IN FOCUS: Qatar’s Top 10 Companies

JANUARY - FEBRUARY 2019

HISTORIC WIN QATAR’S AFC ASIAN CUP 2019 VICTORY BRINGS PRIDE AND HOPE TO THE NATION

CISCO: Banks need to adopt a threat-centric security model OPEC may survive Qatar scare

inside this issue January / February 2019 / Vol. 45 / Issue 10

10 AFC ASIAN CUP 2019

20 OPEC MAY SURVIVE QATAR SCARE

26 QATAR'S TOP 10 COMPANIES

50 QATAR SPREADS ITS WINGS TO THE FAR EAST

Qatar's AFC Asian Cup 2019 victory brings pride and hope to the nation

Both Qatar and the majority of its public and private sector companies suffered in 2017. While the oil price slump continued to hit the economy, the unwarranted sanctions imposed by some Arab states also impacted the Qatar Stock Exchange and the country's businesses.

There is more to it than that meets the eye in Qatar’s decision to quit the Organisation of the Petroleum Exporting Countries (OPEC).

Qatar Airways has been acquiring stakes in many overseas air companies, including last year’s purchase of nearly 10% of Cathay Pacific, Hong Kong’s flag-carrier, that has not been a big surprise for aviation industry insiders.

1 > QATAR TODAY > JANUARY-FEBRUARY 2019

inside this issue

January / February 2019 / Vol. 45 / Issue 10

07 AMIR SHEIKH TAMIM BIN HAMAD AL THANI STARTS FEBRUARY WITH A VISIT TO KUWAIT 08 AMIR SHEIKH TAMIM VISITS JAPAN AND CHINA

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23 BANKS NEED TO ADOPT A THREAT-CENTRIC SECURITY MODEL

and regulars 07

NEWS BITES

BANK NOTES

REALTY CHECK

OIL & GAS REVIEW

AUTO NEWS

MARKET WATCH

DOHA DIARY

Ideas that shape your world start here. Carnegie Mellon University attracts a certain type of student: motivated, inventive and driven to make a difference. Students come to Carnegie Mellon to learn, create and innovate with the very best. They leave with the passion, connections, credentials and lifelong friends who will help them change the world. www.qatar.cmu.edu

Biological Sciences • Business Administration • Computational Biology • Computer Science • Information Systems

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from the desk

Another year has passed and the standoff between Qatar and some Arab states continues despite mediation efforts by common friends, both in the region as well as in the west. Notwithstanding the unjust and unfair economic blockade, Qatar has made rapid strides in achieving its objectives and goals without any hindrance during 2018. Qatar Today highlights the historic win of the Qatar football team in the AFC Asian Cup 2019 that has brought more reasons for the nation to keep their head held high despite the unjust blockade imposed by its neighbour countries. Qatar Today’s annual exercise of evaluating the performance of the 45 companies listed on Qatar Exchange in 2017 showed that the blockade imposed since June 2017 fell flat though it gave some anxious moments to the corporate sector for few a weeks. Beating all odds, most of these firms did well and were exposed to much bigger global markets compared with regional markets. Highlighting the corporate achievements, Qatar Today brought out its eleventh edition of the annual Top 10 in a special issue to acknowledge the best-performing companies on the bourse in 2017. While some companies have slipped down in the rankings, some regained their prominence and in recognition of their contribution in sustaining the country’s economic growth, we have honoured them through our Qatar Today Business Excellence Award. Another important development has been Qatar’s decision to quit the Organisation of the Petroleum Exporting Countries (OPEC) as the government wants to concentrate on the global LNG markets and continue to be the world’s leading exporter of the clean fuel, a position which it has held for about a decade now. While Qatar’s departure from OPEC is unlikely to threaten the future of the Vienna-based oil cartel as more oil producers are keen to join the organisation, reports that some of the big players are also considering to leave OPEC may hurt the cartel’s interests in the coming years. Qatar’s national carrier Qatar Airways has been in the news for many reasons as it has been on a spree of acquiring stakes in overseas airlines to consolidate its position following the embargo imposed by Saudi Arabia and its allies in the region. Qatar Today finds out how Qatar Airways is devising a strategy to regain some of the ground it lost in the GCC markets due to the boycott by the neighbours. Having a place among the top airlines in the world and Hamad International Airport being the best in the region, Qatar Airways deserves accolades for its performance in serving its passengers and customers in the best manner. Qatar Today also presents a report on the much-awaited inauguration of the “Desert Rose” depicting the history and culture of the nation, while other regulars make for interesting reading. Happy Reading

News > local

AMIR SHEIKH TAMIM BIN HAMAD AL THANI STARTS FEBRUARY WITH A VISIT TO KUWAIT

is Highness Amir Sheikh Tamim bin Hamad Al Thani visited Kuwait this February, where he took part in talks with Kuwaiti Emir SheikhÂ Sabah Al Ahmad Al Jaber Al Sabah, as the Gulf

crisis continues to divide the region. The talks led by the powerful leaders revolved around bilateral relations, the latest regional developments and common issues between the two nations. As a sign of gratitude and an immense celebration for Qatar, Amir Tamim Al

Thani presented the Kuwaiti Emir with a Qatari football jersey in recognition of Qatar's historic win in the AFC Asian Cup 2019. SOURCE EPA-EFE/KUNA HANDOUT 7 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > local

AMIR SHEIKH TAMIM

VISITS JAPAN AND CHINA

is Highness Amir of Qatar, Sheikh Tamim bin Hamad Al Thani, and Japanese Prime Minister Shinzo Abe established a good relationship with a signed joint declaration and a number of memoranda of understanding (MoUs) that aim to strengthen the relations and cooperation in all fields of the two countries. During the ceremony, the

8 > QATAR TODAY > JANUARY-FEBRUARY 2019

Amir and the Prime Minister were accompanied by Qatar’s Foreign Minister Mohammed bin Abdulrahman al Thani and Japan’s Foreign Minister Taro Kono as the two parties exchanged signed documents during a signing ceremony at Abe’s official residence in Tokyo, Japan.

In China, President Xi Jinping and Qatar’s Amir also set up a prosperous relationship between the countries

as the two sealed a handshake before proceeding to their meeting at the Great Hall of the People. Furthering the relations between the two nations, Qatar and China also signed several memoranda of understanding that givesa fresh impetus to the bilateral relationship. Source (Japan) EPA-EFE/KIYOSHI OTA / POOL

affairs > local

QATAR’S AFC ASIAN CUP 2019 VICTORY BRINGS PRIDE AND HOPE TO THE NATION THE 17TH EDITION OF THE AFC ASIAN CUP KICKED OFF THIS JANUARY, MARKING THE FIRST MAJOR INTERNATIONAL TOURNAMENT IN 2019. THE VENUE FOR THIS INTERNATIONAL MEN’S FOOTBALL CHAMPIONSHIP OF ASIA WAS THE MOHAMMED BIN ZAYED STADIUM IN THE UNITED ARAB EMIRATES FROM THE 5TH OF JANUARY TO THE 1ST OF FEBRUARY 2019.

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n January 9, Qatar first entered the game with a match against the well-organized team of Lebanon. Led by head coach Felix Sanchez, Qatar emerged as winners with a score of 2-0. The team made a winning start to the continental championship for the first time in almost 40 years. Although the team is under inevitable pressure with their ongoing development in the lead-up to the 2022 FIFA World Cup and the team's due play in the Copa America, the maroons concentrated on finishing the match against the DPR Korea and on moving to the next one, all the way until the World Cup.

In the battle against the DPR Korea, Almoez Ali, coordinating with Akram Afif, helped score four goals and set up a fifth that delivered Qatar’s 6-0 win against the opposing team. The victory allowed the team to move to the top of the Group E standings and into the knockout stage of the AFC Asian Cup UAE 2019. After winning two matches against Lebanon and the DPR Korea, head coach Sanchez has been quick to play down any notion of Qatar being favourites to win the AFC Asian Cup UAE 2019 following after the team’s 2-0 win over Saudi Arabia which saw his side finish top of the Group E standings. Although the victory against Saudi Arabia was tough, Sanchez is adamant that Qatar’s impressive record will count for nothing

come the knockout phase. With the maroons entering the knockout stage, Sanchez has been vocal about his thoughts and said: “This is the knockout stage and it all boils down to one match. One defeat and we go home.” He also stated that the players were extremely mindful of this do–or–die battle and emphasized the concentration that they had in winning. Eventually, the Qatari players still emerged as winners with the score of 1-0 and

immediately progressed through to the quarter-finals. During this round, Qatar was almost at a disadvantage without the suspended Abdelkarim Hassan and Assim Madibo after the key duo picked up their second yellow cards of the campaign during the win over Iraq, but Sanchez remained adamant that his squad has sufficient depth to deal with their absence.

Qatar focused on the game and used their grit to beat the Korea Republic with a stunning second-half strike from Abdelaziz Hatim that allowed the Qatari players to progress to their first-ever AFC Asian Cup semi-final and, in the process, rack up a fifth consecutive victory at the Continental showpiece event. With this, Qatar was set to meet the United Arab Emirates. With the host nation set to face Qatar in the last four, Sanchez was 11 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > local

quick to underline the significance of the result for a side who have become serious title contenders. While Qatar’s presence in the last four undoubtedly underlines the team’s quality, it also represents the realization of a long-term goal to be on a par with Asia’s elite. Sanchez’s stayed true to pursuing his longterm goal to be equal to the best of the best with Qatar's 4-0 semi-final win against the UAE. Although the people of Qatar stayed within the borders of the nation, massive screens were put up to keep everyone in tune with the match. Japan’s 3-0 win against the Islamic Republic of Iran in Al Ain and Qatar’s victory over hosts United Arab Emirates were mouth-watering clashes and the two finalists will meet in the decider for the first time in the competition’s 63-year history. Despite being a tough contender, Qatar eventually brought home the AFC Asian Cup UAE 2019 championship as superb goals from Almoez Ali and Abdelaziz Hatim laid the foundation for a 3-1 win over Japan in a rousing final at the Zayed Sports City Stadium in Abu Dhabi. Miles away from home, Qatar emerged with the title for the first time and the people of 12 > QATAR TODAY > JANUARY-FEBRUARY 2019

Qatar celebrated the triumph in the streets of the nation and all over social media. His Highness Amir Sheikh Tamim bin Hamad Al Thani met the players as they landed to kick-start a second straight night of celebrations in Doha. The players were also greeted by other members of the Royal family, and the head of Qatar Airways, Akbar Al Baker, who supplied the plane for the team to travel back from Oman. Their aircraft was given a fly-past by Mirage jets, there was a military band, and the squad were presented with garlands as they finally disembarked. The team and staff were mobbed by fans, friends and family before getting on a specially decorated open–top bus to begin the long crawl into Doha to meet the huge numbers who had waited patiently for them to arrive. “I am proud to make these people happy. I am proud of this thing and all the players are. For 40 years Qatari people did not celebrate, now we will celebrate for the next four years and not stop.” said Ali Almoez, the tournament’s top scorer. It was Qatar’s first–ever AFC Asian Cup triumph and the undeniable determination of the team to reach such heights gives the world just a glimpse into what else Qatar can achieve despite known limitations. 13 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > local

NO TALKS ON SHARING FIFA WORLD CUP MATCHES Qatar has not held talks with any other countries to share football matches at the 2022 FIFA World Cup, Assistant Secretary General of the Supreme Committee for Delivery & Legacy Nasser Al Khater said.

QATAR SEEKS EU HELP IN RESOLVING GULF CRISIS Qatar’s National Human Rights Committee (NHRC) President Ali Bin Smaikh Al Marri has said the European Union (EU) must do more to end the humanitarian tragedy caused by the ongoing blockade of the country.

IFA President Gianni Infantino said that the number of teams might be increased from 32 to 48, which could mean some matches being played elsewhere in the Middle East. “We haven’t had any discussions of sharing and whatever FIFA decides, any changes would have to be agreed by Qatar. There will be nothing that is forced upon anybody,” Nasser Al Khater said amidst reports that the FIFA governing body was currently carrying out a feasibility study to see whether the first World Cup in the region could be expanded. If agreed, the total number of tournament games would increase from 64 to 80.

peaking in the Austrian capital Vienna, he called on EU countries to take stronger measures to put an end to the ongoing humanitarian tragedy caused by the embargo imposed on Qatar 18 months ago. He pointed out that Austria’s current presidency of the European Union – which rotates between member states every six months – is an opportunity to take a stricter position towards those countries responsible for imposing the blockade, including Saudi Arabia, the United Arab Emirates and Bahrain. Al Marri also stressed that EU countries should not continue to pursue a policy of “negative neutrality” in the face of ongoing violations of the rights of Qatari citizens and residents.

QATAR INTRODUCES “SIN” TAX Qatar has announced the introduction of an excise tax of 100 percent on tobacco and energy drinks, starting from January 1. The government has even applied an excise tax of 50 percent on soft drinks.

he companies who produce or import tobacco, energy drinks, and soft drinks will start to pay the tax to the Qatar’s Ministry of Finance (MoF). The decision is considered a part of the GCC nations’ deal that approved the imposition unified excise tax. According to reports, Qatar has also decided to collect a 100 percent tax on alcohol from Jan.1. The “sin” tax is being introduced a few days after the government disclosed in its annual budget statement that it would introduce a levy on “health-damaging goods.” The policy was announced by the Qatar Distribution Company, the country’s only alcohol store, in a 30-page list of new prices for beer, wines and spirits, citing the introduction of the excise tax.

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LABOUR MINISTRY UNVEILS NEW WEBSITE The Ministry of Administrative Development, Labour and Social Affairs launched its new bilingual website, both in Arabic and English, which is a comprehensive window of the ministry’s various sectors, in order to facilitate transactions, services and information.

s many as 102 electronic services and forms in the administrative development, labour and social affairs sectors, as well as a special window of the Institute of Public Administration are being offered through the website. Even all laws related to the ministry such as labour law, human resources law and social security law are available on the website. It also provides a special window to communicate with the ministry with suggestions and comments. Visitors can also view the news and events of the ministry through the Media Centre window.

QATAR EXECUTIVE RECEIVES TWO G500S

Qatar Executive has become the international launch customer for the Gulfstream G500, following delivery of two of the superlarge-cabin business jets to the VIP charter company on December 17.

he aircraft (registration A7-CGP and A7-CGQ) are from a 2014 order from Qatar for 30 Gulfstream business jets, including its larger, longer-range sister, the G600 – for which Qatar will also be the international launch customer – and the flagship G650ER. Qatar increased its order for the latter in 2015 and has taken delivery of five aircraft to date. The Dohaheadquartered operator plans to add another G650ER and five G500s in 2019. Qatar operates a 15-strong business jet fleet which includes three Bombardier Challenger 605s, four Global 5000s, and a Global XRS.

QATAR TOURISM SECTOR GETS A FILLIP A report by Qatar National Tourism Council said that the number of tourists visiting Qatar will increase by 100 percent in the current 2018-19 season.

s against 22 cruise ships with 65,000 tourists, who visited Qatar during the last year’s season between October 2017 and April 2018, their numbers are expected to cross 140,000 during the present season which began in October 2018 and concludes in April 2019. While 22 cruise ships docked Qatar in the last season, they are expected to double during this season. The report said that the surge in the number of tourists was due to the signing of two separate memoranda of understandings (MoUs) with two of Europe’s leading cruise operators to provide the much-

needed fillip to Qatar’s cruise tourism. While five new ships called at Doha Port for the first time, it also welcomed two mega ships on the same day in 2018. QNTC said in the report that it made significant efforts in diversifying visitor source markets and promoting Qatar as an attractive tourism destination. In 2018, six representative offices were opened in three of the world’s largest visitor source markets like China, India and Russia. 15 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > local

QATAR PAYS WAGES TO CIVIL SERVANTS IN GAZA Qatar paid the salaries of nearly 30,000 Gazan civil servants, delighting the impoverished workers but angering some in the deeply divided Palestinian leadership who balked at the intervention of a foreign power, according to a Reuters report.

he report said thousands queued in the winter cold to get their cash at post offices, one of which was decorated with a large mural of His Highness, The Emir, Sheikh Tamim bin Hamad Al Thani and the message “Thanks Qatar.” Palestinian sources said the payout, thought to be around QR54.6 million ($15 million), was part of a QR327.6 million ($90 million) Qatari donation that began in November and is due to be paid into Gaza over six months, the report added.

QATAR WELCOMES UN RESOLUTION ON YEMEN Qatar has welcomed UN Security Council Resolution No. 2451 on Yemen, calling for a ceasefire and for activating the agreements and commitments reached in the Stockholm negotiations.

n a statement, the Ministry of Foreign Affairs said that this would alleviate the unprecedented human tragedy of the Yemeni people, if all parties are committed to it. Qatar appealed to all parties in the Yemeni conflict to abide by international law and

enable international organisations to play their role. It also called on the parties to assume their responsibility towards civilians by protecting them and to facilitate the means of protection and minimum living rights. The statement further thanked the UK for its effective role in the issuance of this important

CARGO MOVEMENT GROWS IN HAMAD PORT Hamad Port recorded strong growth in cargo movement during November 2018.

he port authorities handled 90,955 tonnes of break bulk cargo in November compared with 76,228 tonnes of cargo in October, thus registering an increase of 20 percent. Qterminals, which manages the port, tweeted that the port received 137 ships in November and handled 107,631 Twenty-Foot Equivalent Unit (TEU) containers last month. The port handled 7,432 vehicles 16 > QATAR TODAY > JANUARY-FEBRUARY 2019

in November compared with 6,730 vehicles in October, increasing by 10 percent, and handled 2,178 heads of cattle in November compared with 1,500 cattle the previous month, registering a growh of 45 percent. Another

notable

achievement

by the port was that it handled one million TEU containers in March 2018.

resolution, and renewed Qatar's position in calling for a political settlement in Yemen since that the continuation of the military option would only bring more suffering and devastation to Yemen and its people.

business > bank notes QCB SELLS QR700 MILLION T-BILLS

Qatar Central Bank (QCB) has sold QR700 million ($192.31 million) of treasury bills with maturities of three, six and nine months in the first week of December.

he federal bank has issued QR400 million of three-month bills with a 2.29% yield, QR200 million of sixmonth bills at 2.43% and QR100 million

of nine-month bills at 2.65%, according to a report. The issuance is part of a series of issues executed by QCB on behalf of the Government

of Qatar and in accordance with the schedule prepared by both QCB and the Ministry of Finance. Treasury bills are issued through auction for banks operating in Qatar.

QIB IS BEST ISLAMIC BANK IN QATAR Qatar Islamic Bank (QIB) has been named “Best Islamic Bank in Qatar” in the 11th edition of the Middle East Banking Awards presented by EMEA Finance, the leading finance magazine in Europe, the Middle East and Africa.

he prestigious award was awarded to QIB for its strong financial performance and successful implementation of business strategy. “We are the proud recipients of this award, which reflects the results of our hard work and dedication to ensure that the banking experience is the most

efficient and comfortable for our customers. QIB received many awards over the past years. We view these awards as a motivation to keep on exercising our best efforts on a daily basis to provide unique Shariah-compliant products and superior service to all our customers", QIB Group CEO Bassel Gamal said on the occasion.

QIIB BAGS BEST ISLAMIC RETAIL BANK IN QATAR AWARD Cambridge IFA has chosen Qatar International Islamic Bank (QIIB) for "The Best Islamic Retail Bank in Qatar" award, which is given annually to leading banks in various Islamic finance sectors. QIIB deputy CEO Jamal Abdullah Al Jamal received the award from Dr Sofiza Azmi, chairman, Islamic Retail Banking Awards.

l Jamal said: “We consider this as recognition of our efforts in developing our retail portfolio and offering the best Shariahcompliant products and services to our valued customers. “QIIB’s excellence and quality of its integrated services have resulted in its customer base growing exponentially. The bank

has opened many branches and introduced alternate channels, which have witnessed enormous development, thus contributing to meeting the requirements of customers in the easiest and most efficient way,” he added.

DOHA BANK SELECTED IN FTSE4 GOOD EMERGING INDEX The selection highlights Doha Bank’s continued leadership in environmental, social and governance (ESG) performance. The FTSE4Good Index Series is a series of benchmark and tradable indexes for ESG investors, which was launched in 2001.

oha Bank was rated above the threshold for companies in emerging markets, as well as that of developed markets, by FTSE Russell. The bank was selected amongst 134 financial services companies

from emerging markets, including China, Brazil, South Africa and the GCC. In his comments, Dr R Seetharaman, CEO of Doha Bank, said: “It is a matter of great institutional pride and is a reflection of our consistent focus

on prioritising Corporate Governance, Risk Management and ESG performance. This selection reiterates Doha Bank’s unmatched commitment to set benchmarks in climate action, community impact, and transparency.” 17 > QATAR TODAY > JANUARY-FEBRUARY 2019

business > Real Estate QIA BUYS LONDON HOTEL The Qatar Investment Authority (QIA) has acquired the Grosvenor House Hotel in London, according to a Reuters report. A source told Reuters that private US real estate investment firm Ashkenazy Acquisition Corp agreed to sell the hotel for an undisclosed price to the state-run Authority via its Katara Hospitality unit.

shkenazy Acquisition acquired the Grosvenor House Hotel from India's Sahara Group last year, also for an undisclosed price. The property was constructed in the 1920s and opened in 1929 as a luxury hotel near Hyde Park, Oxford Street and Buckingham Palace. The eight-story JW Marriott hotel has 420 guestrooms and 76 suites as well as 64,110 square feet of meeting space across 26 rooms. The latest acquisition brings Katara Hospitality’s portfolio of properties in operation or under development to 40.

REAL ESTATE DEAL VALUE SEES 33.2% GROWTH IN OCTOBER Qatar’s real estate market witnessed double-digit growth in October 2018 compared to the value of transactions in the previous month. The combined value of real estate deals signed during the month touched QR1.74 billion, registering a sharp jump of 33.2% compared with QR1.30 billion recorded in the previous month (September).

owever, the October transaction value was down by 73.2% as against QR6.52 billion in the same months last year due to several big-valued transactions signed during the month.

In its November monthly bulletin, the Ministry of Development Planning and Statistics said there were 332 transactions inked during October against 349 deals in September 2018. The total transactions signed in October 2017 stood at 580. The bulletin further said that deals for vacant plots of land, with the combined value of QR352.7 million, accounted for over 20% of the total value in October 2018, up 3.1% compared with QR342.3 million the previous month. The combined value of deals for villa complex and residential houses reached QR628.6 million, accounting for 36%.

number one with QR760 million worth of properties sold in October 2018, registering a sharp growth of 62.8% compared to QR466.9 million for September 2018, followed by Al Rayyan and Al Daayen municipalities (QR469.4 million and QR232.2 million, respectively). However, Al Wakra Municipality recorded the highest growth of 85.5% in terms of the monthly growth in the value of transactions. The value of transactions in Al Wakra area surged to QR111.9 million in October 2018 against QR60.3 million in the previous month.

In terms of the value of transactions, Doha Municipality ranked

PANEL TO REGULATE NON-QATARI OWNERSHIP OF REAL ESTATE The Cabinet has approved a draft decision to form a committee to regulate nonQatari ownership and use of real estate and determine the committee’s work system and remuneration. The Ministry of Justice prepared the draft decision as part 18 > QATAR TODAY > JANUARY-FEBRUARY 2019

of completing the necessary procedures to activate the provisions of Law No. 16 of 2018 to regulate non-Qatari ownership and use of real estate. Headed by a representative of the Ministry of Justice, the committee’s functions include

proposing areas and terms and conditions where non-Qataris are allowed to own and use real estate, propose the benefits, incentives and facilities granted to property owners and nonQatari users and propose fees and services in the areas determined by the Cabinet.

business > oil&gas QP TO BUY 10% IN THREE OF EXXONMOBIL’S BLOCKS IN MOZAMBIQUE

Qatar Petroleum (QP) will acquire a 10% participating interest in three of ExxonMobil’s offshore exploration blocks in Mozambique’s Angoche and Zambezi basins.

t will be part of a consortium made up of affiliates of ExxonMobil with a 50% stake, Empresa Nacional de Hidrocarbonetos with 20%, Rosneft with 20%, and Qatar Petroleum with 10%. Qatar and the United States plan to strengthen “energy partnerships,” Minister of State for Energy Affairs, HE Saad Al Kaabi, said.

Describing the agreement as a milestone in QP’s history as it marked the company’s first foray into Mozambique’s promising offshore basins, the Minister hoped that the exploration efforts, which will commence soon, will be successful and they were looking forward to collaborate with the partner companies to explore the basins. The deal is subject to regulatory approval by Mozambique.

OPEC+ AGREES TO CUT QATAR QUITS OPEC OIL OUTPUT BY 1.2 MBPD One of the founding members of the Organisation of

the Petroleum Exporting Countries (OPEC), Qatar has announced leaving the cartel from January 1, 2019, the Minister of State for Energy Affairs HE Saad Sherida Al Kaabi said.

iting reasons to quit OPEC, he said that Qatar’s strategy was to remain focused on its core business and activities in Qatar and to enhance Qatar’s international standing as the world’s leading natural gas producer.

The Organisation of the Petroleum Exporting Countries (OPEC+) along with non-member states has agreed to cut oil production by 1.2 million barrels per day (BPD) from January 1, 2019. While OPEC will contribute 800,000 BPD, non-OPEC countries will cut by 400,000 BPD.

ountries like Iran and Venezuela were exempted from the deal and Libya has been given a pass due to its chronic production outages. Reports said that these three countries have experienced tough times in 2018 and were expected to see more hard times next year due to various reasons including sanctions from the US. Though Nigeria, which has been facing hardship due to instability in its oil industry, sought similar exemption but it was disallowed.

The global oil market will not be affected by the move, since Qatar is not a high-volume producer of oil. The Minister, according to Qatar News Agency, said the decision was not political but was purely a business decision for Qatar’s future strategy towards the energy sector. In a statement, he said that Qatar has worked diligently during the past few years to develop a future strategy in the oil and gas sector based on growth and expansion, both in its activities in Qatar and internationally. This strategy, he underlined, has driven the expansion of Qatar's international upstream footprint to reach countries like Brazil, Mexico, Argentina, Cyprus, Congo, South Africa and Oman, to name a few. "Moreover, in the next few months we will be announcing several major international partnerships. Our objective in this strategy is to remain focused on our core business and activities in Qatar, and to enhance Qatar’s international standing as the world’s leading natural gas producer.”

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business > oil&gas

OPEC

MAY SURVIVE QATAR SCARE THERE IS MORE TO IT THAN THAT MEETS THE EYE IN QATAR’S DECISION TO QUIT THE ORGANISATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC) AS CONTINUING IN THE ORGANISATION DID NOT SERVE ITS INTERESTS, QATAR HAS ANNOUNCED THAT IT WILL BE LEAVING THE OIL CARTEL FROM JANUARY 2019. QATAR TODAY FINDS OUT HOW THIS WILL IMPACT OPEC AND THE OIL MARKETS AND ALSO LOOKS AT QATAR'S FUTURE PLANS.

W BY V.L SRINIVASAN

hile the newly appointed Minister for Energy Affairs, HE Saad Sherida Al Kaabi, made it very clear the decision was not political but purely business in nature as the government was keen to focus on the efforts to increase LNG production, one gets the impression that Qatar, which is a marginal player in

20 > QATAR TODAY > JANUARY-FEBRUARY 2019

the cartel, has little or no say in the final decision. That has indeed been happening with Saudi Arabia and Russia who account for 26% and 25% of global oil production and exports, respectively, and are trying to control the global oil market. They have jointly engineered the OPEC/nonOPEC production cut agreement in 2016 and have been forcing their policies on

the overwhelming majority of OPEC members ,as was the case in June this year when they forced OPEC to accept a production rise to temper oil prices. These “big brothers” were reported to have agreed to cut production ahead of the OPEC meeting held on December 6 in Vienna and sold it to other OPEC members to prop up oil prices but there was no unanimity on production cuts initially.

However, the meeting agreed later to reduce oil output by 1.2 million barrels per day in the first six months of 2019. While OPEC members will cut production by 800,000 barrels per day, non-OPEC members such as Russia would contribute a 400,000 bpd reduction to ease the glut in oil markets. The next OPEC meeting will be held in June 2019 to review the situation. “Our decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production,” HE Saad Sherida Al Kaabi said in a series of tweets. Another reason that is doing the rounds in Qatar’s decision to leave OPEC is the US government’s plans to move anti-OPEC legislation in Congress which allows the US Attorney General to sue a foreign crude producer for price manipulation under the Sherman Antitrust Act. It is also a well-known fact that OPEC plays no role in the global market for natural gas and another organisation – the Gas Exporting Countries Forum (GECF) – already exists. Qatar, which meets over 30% of global LNG demand, is aware that other countries such as Russia, Australia, the US and Papua New Guinea have been entering the global LNG markets with their production posing a challenge to Qatar’s position as the world’s largest supplier of the clean fuel. “Achieving our ambitious growth strategy will undoubtedly require focused efforts, commitment and dedication to maintain and strengthen Qatar’s position as the leading natural gas producer,” the Minister said. Qatar’s average oil output has been around 609,000 barrels per day, which is around 2% of the total output, compared with giants such as Saudi Arabia (11.1 million bpd), the UAE, Iran and Iraq. The total oil production has been more than 27 million barrels per day from all OPEC members. At times of disagreements and open clashes among members during OPEC meetings in the past, Qatar played a key role in mediation in bringing consensus among them. Qatar was also instrumental in shaping some of the policies as a senior member state in

the organisation. According to reports, after the economic and diplomatic stand-off with some Arab nations since June 2017, Qatar was reportedly isolated and most of the delegates from other countries shunned their Qatari counterparts so as not to incur the wrath of big oil producers. Iran, which is already facing heat on account of the US sanctions, though limited, will be losing one of its supporters, much to the joy of Saudi Arabia, its arch rival in the region. There is the possibility of Saudi Arabia’s friendly countries such as Egypt and others joining the cartel, either putting Iran in a corner or forcing it to leave the organisation. Qatar has proven recoverable oil reserves of 15.2 billion barrels and the offshore Al Shaheen field contributes to most of the crude oil production (300,000 barrels per day) and this field was developed along with Denmark’s Maersk Petroleum. The Al Shaheen oil field is located 80 km north of Ras Laffan with facilities consisting of 33 platforms and more than 300 wells.

No threat to OPEC

One cannot jump to conclusions that OPEC’s future is under threat from Qatar’s decision as three countries have joined the cartel in the last two years and more are expected to join in the near future. While Gabon rejoined OPEC in 2016 after an absence of 20 years, Equatorial Guinea and Congo became new members in successive years respectively. Qatar joined OPEC in 1961 and was followed by Indonesia, Libya, the UAE and Algeria; Nigeria, Ecuador and Gabon in the 1970s, and Angola in 2007. OPEC will reign supreme in the global oil market as long as its members want it to defend their interests. “Saudi Arabia’s partnership with Russia is not an alternative to OPEC,” says Dr Mamdouh G Salameh, International Oil Economist and Visiting Professor of Energy Economics at ESCP Europe Business School in London. According to him, the Saudi ArabiaRussia partnership is tactically used by President Vladimir Putin to enhance his country’s influence over the global oil market. Russia is an energy superpower

“ACHIEVING OUR AMBITIOUS GROWTH STRATEGY WILL UNDOUBTEDLY REQUIRE FOCUSED EFFORTS, COMMITMENT AND DEDICATION TO MAINTAIN AND STRENGTHEN QATAR’S POSITION AS THE LEADING NATURAL GAS PRODUCER,” HE SAAD SHERIDA AL KAABI Minister for Energy Affairs State of Qatar

21 > QATAR TODAY > JANUARY-FEBRUARY 2019

Business > oil&gas

“SAUDI ARABIA AND RUSSIA ARE DIAMETRICALLY OPPOSED TO EACH OTHER IDEOLOGICALLY AND POLITICALLY. RUSSIA, SUPPORTED BY CHINA, IS TRYING TO UNDERMINE THE CURRENT UNIPOLAR ROLE CURRENTLY ENJOYED BY THE UNITED STATES WHILE SAUDI ARABIA WILL DO ANYTHING TO REMAIN IN THE UNITED STATES’ GOOD BOOKS. SO SUCH A PARTNERSHIP WILL BE VERY SHORTLIVED.” DR MAMDOUH G SALAMEH International Oil Economist

22 > QATAR TODAY > JANUARY-FEBRUARY 2019

capable of living with an oil price of $40 or less compared with Saudi Arabia’s need for an oil price above $100 to balance its budget. “Saudi Arabia and Russia are diametrically opposed to each other ideologically and politically. Russia, supported by China, is trying to undermine the current unipolar role currently enjoyed by the United States while Saudi Arabia will do anything to remain in the United States’ good books. So such a partnership will be very short-lived,” Dr Salameh points out. A study by King Abdullah Petroleum Studies and Research Centre claims that Saudi Arabia is mulling over its future membership of OPEC with the realisation that demand for oil will one day peak and it needs to prepare for that day. Saudi Arabia along with Kuwait, Iran, Iraq and Venezuela, is one of the original five founders of OPEC. Although Saudi Arabia is acknowledged as the de facto leader of OPEC, it is not within its power to decide to dissolve the organisation. OPEC will remain an influential organisation whether Saudi Arabia stays a member or not, he says. He further says Saudi Arabia always has the option to leave OPEC but to what advantage? Saudi Arabia draws a lot of political and economic influence from being part of an influential organisation such as OPEC. Were it to decide to withdraw from OPEC, it will certainly lose a lot of influence in the global oil market not dissimilar to Britain’s loss of economic clout in the global economy by its decision to withdraw from the European Union (EU). If the objective of leaving OPEC is to give itself a free hand in its oil policies and increase its production freely, this is not going to happen because Saudi Arabia’s oil production peaked at 9.6 million barrels per day in 2005 and has been in decline since. Even the 400,000 barrels per day, which Saudi Arabia added to the market a month ago under intense pressure from President Trump, did not come from new production but from oil stored in tankers and on land. Saudi Arabia has no spare capacity. Hence Saudi Arabia, speaking on behalf of OPEC, is far more influential

in the global oil market than having the world pondering about the true volume of its proven oil reserves and production capacity, Dr Salameh points out.

No impact on OPEC

To a question, Dr Salameh says Qatar’s decision will have no impact whatsoever on the global oil market or oil prices as it is not a major player in OPEC. Its production in 2017 averaged 600,000 barrels per day of which some 466,000 barrels per day were exported on average, according to the 2018 OPEC Annual Statistical Bulletin. As one of the earliest members of OPEC having joined the organisation 57 years ago, Qatar was able to punch above its weight inside OPEC particularly when its relations were friendly with Saudi Arabia and the UAE. Qatar might have felt isolated inside OPEC as a result of being boycotted by Saudi Arabia and the UAE and also because of the escalating tension between Saudi Arabia and Iran both inside and outside OPEC. “While by leaving OPEC, Qatar may lose some influence in the global oil market, but its strategy to expand its LNG production capacity will not only consolidate its position as the world’s largest producer and exporter of LNG but will more than offset its loss of influence from OPEC and will also enhance its stature as the world leader in the fastgrowing global LNG and natural gas market,” he says. OPEC’s future is assured first because it has proven its worth during the last 58 years in stabilizing the global oil market and prices and also because it accounts for 42.6% of global oil production and 71.8% of global proven oil reserves. A global oil market without OPEC will face a permanent and huge glut of oil supplies leading to continued declines in oil prices, Dr Salameh adds. Market watchers, however, feel that with the shale boom, the US plans to become the biggest oil producer and exporter poses the biggest challenge to OPEC’s authority.

Technology > Listening Post

BANKS NEED TO ADOPT A THREAT-CENTRIC SECURITY MODEL Information security infrastructure has become vital for countries around the world using modern-day technologies and the economic losses on account of piracy is expected to double from QR10.92 trillion ($3 trillion) in 2015 to QR21.84 trillion ($6 trillion) by 2021. In its Data Breach Investigations Report (DBIR) 2018, US telecom giant Verizon says there were 53,308 confirmed incidents including 2,216 confirmed data breaches in 65 countries. “Ransomware attacks are a key cybersecurity threat for global organisations,” the report warns. BY V.L SRINIVASAN

nder such circumstances, what steps the companies and government entities should take?

In an exclusive interview, Cisco Middle East Chief Technology Officer Osama Al Zoubi explains Cisco’s role in accelerating digital transformation and enhancing information security infrastructure not only in Qatar but in other countries in the region, and the threats to cybersecurity in the banking sector and other institutions in both the public and private sectors among others.

What are the major challenges faced by Qatar’s banks, particularly those within and outside the country, as far as information security infrastructure is concerned?

The relationship between banks and their customers is heavily reliant on trust. An external breach of security is an automatic breach of trust between the institution and its customers. The reputational damage can be extremely difficult to recover from. With a growing emphasis on digitisation, banks in Qatar and around the region must embrace a new security model that addresses the full attack continuum: before, during and after an attack. Banks are faced with new challenges such as keeping up with attacks that are different, constant and increasingly sophisticated;

innovating their businesses while maintaining security; and managing the fragmented security elements.

How important is a secure, automated and intelligent network for the digital world in the present scenario?

We are now in a world where technology is doing more than simply enabling businesses. It’s defining business strategy. In order to stay relevant, businesses need to innovate, but they also need to be mindful of external cyber threats and ensure that cybersecurity is given equal priority as digitization and innovation. Networks and devices are both intuitive and secure. Organisations need to possess a secure end-to-end environment in which their critical infrastructure and intellectual property can be protected. Data is inherently sensitive irrespective of industry. With the advent of AI, cloud computing and IoT, cybersecurity must be at the forefront of an organization’s agenda to evolve in today’s rapidly developing digital age.

How is Cisco contributing to the region’s digital transformation? What are some key case studies that you can share?

Cisco has been in the region for over 20 years, helping businesses stay connected and guiding them on their path to digitisation. Our research and technology centre at Qatar Science & Technology 23 > QATAR TODAY > JANUARY-FEBRUARY 2019

Technology > Listening Post

Park (QSTP) was established to help improve human capital and stimulate technological development. As part of our collaboration, we have partnered with Qatar Foundation on a series of initiatives geared at transforming the country into a knowledge-based economy, facilitated by youth employment. We are dedicated to working with local partners to encourage digital transformation, whilst also assisting education reform and job creation both in Qatar and across the region. We also strive to address the needs of SMEs and our Entrepreneur Institute works with local organisations to develop educational content that enables sustainable business growth. Earlier this year, we extended our partnership with Ooredoo to deliver solutions aimed at accelerating advanced connectivity and boosting the competitiveness of organisations in Qatar. As an increasing number of Qatar-based organisations prepare for digitisation, they need to secure their IT infrastructures and we are keen to provide them with the right tools to make this journey smooth and seamless. 24 > QATAR TODAY > JANUARY-FEBRUARY 2019

We are proud to support Qatar’s commitment to digital transformation. Qatar’s National Vision 2030 is a catalyst for innovative change and we are keen to partner with the country to realise its national agenda. With Qatar’s Digital Transformation Program for SMEs, the state’s commitment to enterprise and innovation is already in practice. Cisco has been the strategic partner of various organisations in Qatar, specifically across the banking sector. We are keen to provide intelligent and secure digital solutions across sectors to build Qatar’s infrastructure within a sustainable environment.

In terms of next steps, what will be some of the key tech trends for the region in 2019?

Cybersecurity will lead digital transformation as organisations increasingly need to embrace a threatcentric model. New technologies and processes will integrate cybersecurity from the very outset and cybersecurity expertise will be instituted at all levels of the company. In today’s climate, an organisation can

“CYBERSECURITY WILL LEAD DIGITAL TRANSFORMATION AS ORGANISATIONS INCREASINGLY NEED TO EMBRACE A THREAT-CENTRIC MODEL. NEW TECHNOLOGIES AND PROCESSES WILL INTEGRATE CYBERSECURITY FROM THE VERY OUTSET AND CYBERSECURITY EXPERTISE WILL BE INSTITUTED AT ALL LEVELS OF THE COMPANIES.” no longer simply hope that an attack will not take place. Data breaches are all too common and it’s more important than ever to know how to combat this and manage the impact of an attack. In the past year, 94% of companies in the Middle East and Africa suffered a data breach. Organisations need to secure their data and implement strategies as well as solutions to prevent and contain breaches.

For businesses going online, or already established digitally, this will be a major area of exploration in the coming year and for many to come. We need to educate our customers and empower them with the knowledge and understanding that will .35

With how many organisations, in both the private and public sectors, is Cisco currently collaborating in Qatar? What are your future plans in other countries in the region?

We’re currently collaborating with public and private organisations across various sectors to transform the network and connectivity in Qatar. Through our partnership with Ooredoo’s Qatar Data Centre, we are able to offer cloud-managed solutions to aid the digital strategy of the country's SMEs. By leveraging use of the cloud, organisations can experience increased efficiency and seamless networking to support their development within a secure infrastructure. Looking forward, we’ve already secured a number of partnerships across the Middle East to secure digital outcomes of the future. In Dubai, we have been chosen as Expo2020’s Digital Network Partner, to provide a secure, intelligent foundation for connectivity. Through our intent-based networking solution, we will endeavour to make Expo 2020’s technology infrastructure the most advanced and secure in the event’s history.

Instances of criminals breaching the banking security to steal data have become a major headache to governments. What steps should be taken to prevent them?

According to HE Jassim bin Saif Al Sulaiti, Minister of Transport and Communications, Qatar’s ICT market is expected to grow by 2.3% per annum, reaching QR16.01 billion ($4.4billion) by 2021. Much of this growth will be facilitated by the banking industry. To avoid data breaches, banks need to adopt a threatcentric security model that spans the full attack continuum: before, during and after

an attack. Today, we face advanced malware, targeted attacks, and advanced persistent threats. Motivations and attack tools separate this era from the past, making attacks particularly challenging to detect, understand and stop. The industrialisation of hacking has created a faster, more effective and more efficient criminal economy that profits from IT infrastructure attacks. Today, many hacker groups even follow software development processes, QA or bench testing of their products against security technologies before releasing them in the “wild” to continue evading common protections. Cisco’s threat-centric approach to security delivers superior visibility continuous control and advanced threat protection. Security methods must focus on both detection and the ability to mitigate the impact after an attacker gets in. Businesses need to look at their security model holistically and gain visibility and control not just at the endpoints but across the extended network and the entire attack continuum before an attack happens, during the time it’s in progress, and after it has damaged systems or stolen information. How does one do this? Before an attack, identify what’s on the extended network to implement policies and controls to defend it. During an attack, detect and block malware continuously. After an attack, reduce the impact by identifying the point of entry, determining the scope, containing the threat, eliminating the risk of reinfection, and remediating.

What are Cisco’s latest innovations focused on helping its clients prevent security breaches? Were they showcased at the ISFS exhibition?

At ISFS, we guided visitors through a connected journey based on our secure, intelligent platform for digital businesses. With security as the foundation, we bring digital innovation to fruition through five key pillars and they are: Re-inventing the network: With digitisation of networks coming under

more stress than ever before, Artificial Intelligence (AI) and machine-based learning gives us the ability to analyse vast sums of data, recognising anomalies and calculating optimal network configuration as a result. Our intent-based network learns and adapts as it interacts with data. By understanding this evolution, we aim to equip organisations with secure networking solutions.

Powering a multi-cloud world: We are

unifying networking, security, analytics and management in a multi-cloud world. By simplifying how people connect to and protect their respective clouds, we aspire to deliver a consistent experience them. By learning user preferences, we have created a product that provides a seamless user experience across platforms.

Unlocking the power of data: Visibility

of data is crucial to a business for it to learn and evolve. We give our customers the opportunity to interpret and derive value from their data, to utilise such insights and optimise their infrastructures.

Enabling employee and customer experience: Our collaboration

technologies have the ability to connect people, teams and customers. AI is embedded in our collaboration portfolio and our employee and customer experiences through simplicity, automation and optimisation with full contextual awareness of what is happening on the network.

Embedding security into the fabric of the network: Security is foundational to everything we do… from the cloud, to the endpoint, right through to the network. The more variables we can see, the more we are able to understand relationships in machine learning. This enables us to recognise inconsistencies, investigate and quarantine rogue applications or devices – denying them the opportunity to cause havoc.

25 > QATAR TODAY > JANUARY-FEBRUARY 2019

TOP 10

STABILITY AMIDST SIEGE Both Qatar and the majority of its public and private sector companies suffered in 2017. While the oil price slump continued to hit the economy, the unwarranted sanctions imposed by some Arab states also impacted the Qatar Stock Exchange and the country's businesses.

BY IZDIHAR IBRAHIM V.L SRINIVASAN

26 > QATAR TODAY > JANUARY-FEBRUARY 2019

27 > QATAR TODAY > JANUARY-FEBRUARY 2019

he QSE’s market capitalisation fell by 16.23% and stood at QR472.02 billion at the end of December 2017 compared with QR563.46 billion at the end of the previous year. Most companies suffered losses on account of these factors but withstood the pressure during these testing times, with the combined net profit of all 45 companies increasing by 1.1 % to QR38.56 billion in 2017 from QR38.14 billion compared with the previous year. Reports said that among QSE-listed banks, Qatar National Bank’s annual profit stood at QR13.1 billion, the highest among its peers, and the assets of the banks increased by 9.6 % to QR1.4 trillion. Their operating revenues also grew by 3.7% to QR44.3 billion in 2017 as against QR42.7 billion in the previous year, while cash dividends of the nine banks increased by 38.2 % year-on-year to QR10.6 billion for the same period. Qatar First Bank was the only exception as did not recommend distribution of cash dividends for the year. The assets of listed transportation companies declined by 6.9% to QR48.7 million against QR52.4 million the previous year. Likewise, the assets of the five listed insurance companies rose by 15.04% to QR47.29 billion in 2017 as against QR 41.11 billion the previous year. Even the cash dividends of these five firms increased by 20.4% to QR711.23 million in 2017 compared with QR590.79 million the previous year, the reports added. RANKING METHODOLOGY We at Qatar Today have been performing an annual ranking of Qatar's listed entities for the last 11 years, providing a snapshot of their performance. As in the past, Qatar Today has enlisted the help of its validation partners, Deloitte who has kindly vetted the formulae and parameters in creating the ranking. The ranking was designed to provide a snapshot of share performance from an investor's perspective. Saumya Krishna, Director, Financial Advisory Services at Deloitte in Qatar, said: “The ranking methodology adopted by Qatar Today is broadly aligned with the global best practices such that the financial performance of all the companies listed on the QSE are observed for all of the selected financial ratios, over the last three years (2015 to 2017), and accordingly ranks have been assigned (1 being the highest rank, and 45 being the lowest rank). As such, the ranking measures the performance of listed companies using certain key financial metrics. The underlying financial data has been

QATAR TODAY TOP 10 01

Masraf Al Rayan Financial Services

Barwa Real Estate Consumer Services

Widam Food Company Consumer Services

Qatar International Islamic Bank Financial Services

Doha Bank Financial Services

Qatar Islamic Insurance Co. Financial Services

Al Meera Consumer Goods Consumer Services

Medicare Group Health care

United Development Company Industrial

Qatar Fuel (WOQOD) Utilities

H E Ali Sherif Al Emadi Minister of Finance State of Qatar

“The financial and monetary system has been liquid, hence requiring no interference in the market to buy private debt.” 28 > QATAR TODAY > JANUARY-FEBRUARY 2019

Weighted Average Criteria: Price Growth 20%, Dividend Yield 20%, Liquidity 20%, Return on Equity 15%, Net Margin 15% and Total Revenue Growth 10%.

obtained from Capital IQ database, one of the stock market data vendors operating under Standard & Poor's (S&P Global) and the Qatar Stock Exchange (QSE)." Akash Awasthi, Manager in the Valuations and Modeling Services practice at Deloitte, explained that “Qatar Today has developed a weighted average matrix to arrive at the final (weighted) rankings. Details of financial ratios used and adopted weights are: Share price growth (15%), dividend yield (20%), liquidity (15%), return on equity (15%), revenue growth (10%), Cash from Operations/ Net Profit (15%) and net margin (10%). Liquidity has been derived by having reference to annual number of transactions and volume traded compared with shares outstanding.” Saumya Krishna further clarified that "As validating partner, Deloitte has only checked the mathematical calculations, verified the data from public sources such as Qatar Stock Exchange (for dividend yield) and Capital IQ and validated the adopted methodology. No subjective or qualitative analysis was performed."

BREAKDOWN OF RANKING METHODOLOGY TOP 10: SHARE PRICE GROWTH

3% 01

“The financial and monetary system has been liquid, hence requiring no interference in the market to buy private debt,” the Finance Minister HE Ali Sherif Al Emadi said a few weeks after the boycott came into effect. He further said that the country’s financial sector demonstrated its ability to maintain stability amidst the siege as the ongoing economic diversification programme, growing foreign investments and other factors helped in overcoming the crisis. He also allayed fears about the stability of the country’s capital market, as the 20-stock Qatar Index fell by 7.1% at the start of the crisis.

Qatar Industrial Manufacturing Co.

0% 05

Qatar Electricity and Water Co.

Rashid Ali Al Mansoori Chief Executive Officer Qatar Stock Exchange

“The bourse has strongly challenged the siege, as it has investors from 155 countries as well as hundreds of requests to open accounts in the Qatari market.”

Zad Holding Co.

-5% 08

-5% 09 Ooredoo

Investment Holding Group

-1%

-2% 07 Qatar Islamic Bank

Widam Food Company

NO BUYING OF PRIVATE DEBT According to Qatar Central Bank (QCB), the outflow of deposits was less than QR22 billion ($6 billion) since the crisis began, which was insignificant given the size of the domestic banking sector, but interest evinced by foreign investors ensured that the impact was minimal.

Qatari Investors Group

Masraf Al Rayan

-6% 10

Qatar Gen Insurance and Reinsurance Co.

Share Price Growth = Weighted Average Growth of Share Closing Price over the 2017-2018 period.

29 > QATAR TODAY > JANUARY-FEBRUARY 2019

TOP 10: DIVIDEND YIELD

Barwa Real Estate Group

Vodafone Qatar

Mazaya Qatar Real Estate Development

Gulf International Services

Islamic Holding Group

6.7%

Qatar First Bank LLC

06 Qatar Islamic Insurance Co.

National Leasing Holding Company

Masraf Al Rayan

Investment Holding Group

Medicare Group

10.3

01 Salam International Investment Limited

9.9

02 Doha Bank

8.1% 03

United Development Co.

7.3% 04

7% 05

Qatar International Islamic Bank

6.6% 07 Mannai Corporation

Barwa Real Estate Group

6.3% 08

6.1% 09 Qatar Industrial Manufacturing Co.

Qatar Oman Investment Co.

6.1% 10

Qatar Fuel (WOQOD)

Average Dividend Yield = Weighted Average of the Yearly Cash Dividends over 2017-2018, as reported by Qatar Stock Exchange.

30 > QATAR TODAY > JANUARY-FEBRUARY 2019

TOP 10: LIQUIDITY

Liquidity = Average of daily transactions and daily traded volume as a percentage of outstanding shares.

TOP 10: RETURN ON EQUITY

31% 01 Widam Food Co.

Qatar Islamic Insurance Co.

13% 09

Qatar Water & Electricity Co.

16% Qatar Gas 06 Transport Co. Limited (Nakilat)

16% 07 Masraf Al Rayan

Mannai Corporation

Mesaieed 01 Petrochemical Holding Co.

18%

17% 05 Qatar National Bank

99%

19%

19% 03

TOP 10: REVENUE GROWTH

15% 08

Investment Holding Group

13%

Al Meera Consumer Gulf Warehousing 10 Goods Co. Co.

Average Return on Equity = Yearly Net Profit divided by the Average Yearly Shareholder Equity. Ranking is determined by taking a weighted average ROE for the three-year period from 2013 to 2015.

39% 02

28% 03

Qatar Islamic Insurance Co.

24%

Mannai Dlala Brokerage 04 Corporation and Investment Co.

19% 05 Qatar Insurance

13% 07 Gulf Warehousing Co.

13% 09 Masraf Al Rayan

17% 06

Qatar Fuel (WOQOD)

13% 08 Doha Insurance Co.

12% 10 Qatar Islamic Bank

Total Revenue growth = Weighted Average Net Profit Margin for the period 2017-2018.

31 > QATAR TODAY > JANUARY-FEBRUARY 2019

TOP 10: NET PROFIT MARGIN 01

Mesaieed Petrochemical Holding Co. 99%

Barwa Real Estate Group

Qatar Cinema and Film Distribution Co. 79%

88%

Industries Qatar 71%

Ahli Bank

Qatar Oman Investment Co. 66%

Ezdan Real Estate Co. 64%

Qatar National Bank 64%

Al Khalij Commercial Bank 60%

Qatar Gen Insurance and Reinsurance Co. 58%

67%

Net Profit Margin is the ratio of net profits to revenues for the company that shows how much of each riyal earned by the company is translated into profits. Net profit margins can generally be calculated as Net Profit/Revenue.

32 > QATAR TODAY > JANUARY-FEBRUARY 2019

Saumya Krishna Director of Deloitte Qatar

Saumya is a Director of Deloitte, based in Doha. She has more than 14 years of experience covering investment banking, valuation, feasibility studies and corporate finance advisory. She leads the valuations practice at Deloitte in Qatar and also takes care of commercial advisory services. “It was an understandable reaction but not a cause for concern since the country had all the means in its possession to stave off any threat,” the Minister added. NO DEARTH OF INVESTORS Despite these hiccups, there was no dearth of investors as the family-owned Qatari conglomerate, the Investment Holding Group (IHG), was listed on the Qatar bourse in August 2017, bringing the number of companies listed on Qatar Stock Exchange to 45. IHG is the first family company to be converted into a public shareholding company through an initial public offering. IHG offered 49.8 million shares, or 60 % of its share capital, at a price of QR10.1 per share in its IPO early in January, making the value of the IPO about QR502.32 million ($138 million). The resilience of the Qatari economy has apparently been supported by its strong financial position and solid financial fundamentals, and the banking sector too responded favourably to shocks while the growing demand for credit from different sectors did not face any risk. QSE CEO Rashid Ali Al Mansoori said the bourse has passed the shock of the blockade imposed on Doha by some Arab states and was operating normally. “The bourse has strongly challenged the siege, as it has investors from 155 countries as well as hundreds of requests to open accounts in the Qatari market,” he pointed out. GOVERNMENT SUPPORT Although the index declined at the beginning of the siege due to the exit of some investment portfolios, the QSE CEO said this crisis also eased the entry of foreign investors who were eager to get in due to its robustness, economic diversification, opportunities and attractive valuation, he added. In its recent issue (H2 2018), Marmore Bulletin said that all of Qatar’s sectors with the exception of banking, utilities and commodities witnessed a decline in their earnings during 2017.

The banking, utilities and commodities sector witnessed a gain of 5%, 4 % and 2% respectively, during the year. The ongoing diplomatic crisis appears to have impacted the earnings across the sectors. However, support from the government and recovery of oil prices shielded the banking and commodities sectorsâ&#x20AC;&#x2122; profitability to some extent, the Bulletin said. This was evident from the fact that the deposit levels at commercial banks rose after a mid-year dip as the total deposits stood at QR794.3 billion ($218.2 billion) at the end of October 2017, up from the QR736 billion ($202.2 billion) recorded early in January 2017. Among the Top 10 companies, four belonged to the financial sector (Masraf Al Rayan, Qatar International Islamic Bank, Doha Bank and Qatar Islamic Insurance), three from the consumer services sector (Al Meera Consumer Goods, Barwa Real Estate and Widam Food) and one each from the industrial, health and utilities sectors (United Development Company, Medicare Group and Qatar Fuel (WOQOD), respectively.

Akash Awasthi

Manager in the Valuations and Modeling at Deloitte

Akash is a Manager in the Valuations and Modeling Services practice at Deloitte, based in Doha. Akash has more than nine yearsâ&#x20AC;&#x2122; experience covering investment banking, financial research and valuation.

TOP 10 COMPANIES IN TERMS OF MARKET CAP Qatar National Bank

116,388,236,789

Industries Qatar Co.

58,685,000,000

Ezdan Real Estate Co.

32,042,160,015

Ooredoo Co.

29,069,040,000

Masraf Al Rayan

28,312,500,000

Qatar Islamic Bank

22,920,440,400

Qatar Electricity & Water Co.

19,580,000,000

Mesaieed Petrochemical Holding Co.

15,817,037,325

Qatar Insurance Co.

14,422,867,095

Barwa Real Estate Co.

12,451,988,480

Source: Audited Financial Statements for the past three years (2015-2017) are from Qatar Exchange. The rankings are based on published financial information (sourced from Capital IQ and Qatar Stock Exchange). Neither Qatar Today, nor its validation partner Deloitte, can be held liable for any errors or omissions appearing in the report. This does not constitute an offer or recommendation to invest in any of the listed securities.

The numerical accuracy of the calculations have been verified by Deloitte. 33 > QATAR TODAY > JANUARY-FEBRUARY 2019

In a ruthless and unforgiving economic climate, the following ten companies continued to consistently deliver value to their shareholders. Presenting the annual Qatar Today Top 10 list for 2017.

34 > QATAR TODAY > JANUARY-FEBRUARY 2019

PARAMETER RANKINGS SHARE PRICE GROWTH

REVENUE GROWTH

LIQUIDITY

RETURN ON EQUITY

DIVIDEND YIELD

NET PROFT MARGIN

1 MASRAF AL RAYAN

LEADING THE WAY IN ISLAMIC BANKING Defying the economic and commercial boycott by some neighbouring countries, Masraf Al Rayan’s net profit stood at QR2.02 billion for the year ending 31 December 2017 compared with QR2.07 billion the previous year.

he board of directors even recommended a cash dividend distribution of QR2 per share, representing 20% of the paid-up capital. In his comments over the bank’s performance in 2017, Masraf Al Rayan’s Chairman and Managing Director Dr Hussain Al Abdulla expressed satisfaction with the results achieved, considering them acceptable in light of the situation. He also expressed optimism and confidence in the Qatari economy, which achieved a growth rate of 2.3% in 2017 despite the siege, due to the prudent economic measures taken by the government and supported by the rising energy prices in the second half of 2017. Despite adverse conditions, the bank was successful in implementing the strategy adopted by the board of directors and the action plan regarding the protection of capital and asset quality, maintaining advanced levels of operational efficiency among banks, preserving the low ratio of non-performing loans, and enhancing the value added for shareholders, customers and other stakeholders. Group CEO Adel Mustafawi too expressed similar views, saying that net profit increased by 2.3% if it excluded nonrecurring investment profits realised from associates during 2016. The profits of Masraf Al Rayan realized from its banking operations also exceeded those achieved in the same period last year by 15.8%. In 2017, Masraf Al Rayan unveiled plans for a three-way merger with two other banks – Barwa Bank and International Bank – and formed a committee of the three banks’ administrations that would oversee the merger process according to a preliminary timetable approved by the board of directors. The deal, however, could not take place for various. Had the merger been successful, the merged entity would have been Qatar’s largest Islamic bank and second-largest bank with total assets of around QR173 billion (around $48 billion) and a market share of around 14%. Masraf Al Rayan also opened its new branch in Gulf Mall in May

DR HUSSAIN AL ABDULLA Chairman and Managing Director of Masraf Al Rayan

2017 as part of its strategy to meet the numerous requirements of its growing client base. The opening of the new branch was aimed at moving closer to its customers in line with the bank’s strategy and business plan, and to meet the needs of existing as well as future customers by providing them with innovative products and services within easy reach and convenience. Financials Coming to financials, Masraf Al Rayan’s total assets reached QR102,949 million compared with QR 91,531 million as of 31 December 2016, registering growth of 12.5%. Financing activities too increased to QR72,097 million compared with QR67,635 million as of 31 December 2016, up by 6.6%. While investments reached QR23,944 million as of 31 December 2017, customers’ deposits grew by 7.8% and reached QR62,531 million compared with QR58,024 million as of 31 December 2016. The shareholders’ equity before distribution reached QR13,191 million compared with QR12,705 million as of 31 December 2016, up by 3.8%.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-5%

5.1%

15.6%

51.3%

13% 35 > QATAR TODAY > JANUARY-FEBRUARY 2019

PARAMETER RANKINGS SHARE PRICE GROWTH

13 4

DIVIDEND YIELD

LIQUIDITY RETURN ON EQUITY NET PROFIT MARGIN REVENUE GROWTH

20 2 35

BARWA REAL ESTATE

BUILDING ON REPUTATION If there is any major construction project in Qatar, be it housing or warehouses, it surely has the signature of Barwa Real Estate Group.

ome of them include completion of the operations of phase one of Madinat Al Mawater and Barwa Al Khor – the housing staff project for Shell employees,– and leasing of the entire Mustawdaat Project for 10 .5 years with a total value of QR755 million. The group’s real estate portfolio has grown to include 6,639 housing units, 12,706 worker rooms and 265,000 square metres of shops, showrooms and offices. It has also taken up construction of the affordable housing project for labourers on Salwa Road at a cost of QR1.29 billion with a construction duration of 12 months, Barwa Village extension project, phase two of Madinat Al Mawater, and the warehouses and workshops project in Barwa Al Baraha, with an overall total construction cost of QR1.6 billion. This is in addition to the ongoing progress on the construction of Barwa Village extension project, Dara (A) in Lusail and other projects, which upon completion will add 806 housing units, 25,360 rooms for workers, and 314 thousand sq m as rental space for showrooms, warehouses, workshops, offices and shops. The ongoing work on the master plans and designs for many projects include, Dara B-F project in Lusail, Barwa Al Doha project and Lusail Golf project among others. The efforts put in by the company began to reap the benefits achieved during recent years in which the management, both present and past, has worked on developing, following up and supporting new project development plans, in addition to continuing to enhance the operational efficiency for the current operating projects in order to maximise the benefit of the group’s assets. It has a diversified real estate portfolio of properties including housing units, workers’ housing, warehouses, offices, shops and showrooms. Moreover, the group has over 5.5 million square metres of land plots inside Qatar and the management is currently developing its own investment plans in order to achieve sustainable growth. The group's chairman HE Salah bin Ghanim Al Ali stressed that all efforts were being made to pursue the developmental path of the group and put Barwa in its real position as the largest developer in the Qatari real estate market. He also stressed that the Group’s objective is to achieve the

HE. SALAH BIN GHANIM AL ALI Chairman of Barwa Real Estate

maximum returns to its shareholders without ignoring its role as one of the pillars of the ongoing comprehensive development in the country under the wise leadership and support of His Highness, the Emir, Sheikh Tamim bin Hamad Al Thani. The group's financial results for the year 2017 showed a net profit attributable to the shareholders of the parent company amounting to a little over QR1.70 billion and earnings per share to QR4.38 with an increase of QR100 million, representing 6% increase compared with the previous year. The group has succeeded in enhancing its operating revenues through increasing its net rental income by QR140 million, an increase of 18% compared with 2016 as a result of the increase in occupancy rates of Barwa Al Baraha – Workers Accommodation and the start of operations of several new projects during the year such as Shell’s staff housing project and phase one of Madinat Al Mawater. Also, the net revenue of consultancy and other services increased by QR85 million. The improvement in the group’s operating revenue was reflected in the total equity attributable to the equity holders of the parent company which increased by QR695 million, reaching the balance of QR18.92 billion as of 31 December 2017.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-8%

7.3%

9.7%

88.3%

-11%

36 > QATAR TODAY > JANUARY-FEBRUARY 2019

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WIDAM FOOD COMPANY

ENSURING FOOD SECURITY After the economic blockade by Saudi Arabia and other Arab nations in mid 2017, Qatar’s main objective was to reduce food imports and achieve food security for the country. Widam Food Company has been playing a key role to realise the objectives of the Qatar National Food Security programme, says Widam’s CEO Abdul Rahman bin Mohammed Al Khayarin.

he company has been the key contributor in making the programme a success through its extensive efforts which have been intensified in recent years against the backdrop of the blockade imposed on Qatar. “We have been working to meet the demand of the local market for meat and to prevent shortages, while looking forward to achieving and ensuring food security in Qatar. In light of the unjust blockade imposed on us, we have opened new horizons of economic cooperation with alternative markets, and have also started to secure new sources and routes of supply from all over the world by sea and air,” he says. Over the years, Widam has been a pioneer in the livestock industry and a key player in the march to achieve the objectives of Qatar National Vision 2030. "The sovereignty and pride of our homeland depends on the strength and stability of its economy and local industry," he says. The company’s business plan in the next phase focuses on developing meat and fodder production through enhancement of some of the projects managed and operated by the company in a number of markets both locally as well as abroad. Foremost among these concerns is the implementation, in accordance with the latest specifications and standards and the requirements of the local environment, of the 50,000-head production capacity sheep breeding project in the Arkeh area. He says the plan is also concerned with enhancing competitiveness through diversifying the company’s products, and thus achieving good revenues for the company, especially since the current economic climate and development march that the country is witnessing will help speed up the implementation process, facilitate achieving the company’s goals, and increase consumer confidence in the company as the main and largest supplier of red meat in the local market. "The first phase of the project started by the company has recently been completed, the second phase will be initiated in the next few weeks, and production is expected to start in the near future with full capacity," he says. “Besides increasing our investment in the local market, establishing livestock farms

ABDUL RAHMAN BIN MOHAMMED AL KHAYARIN CEO of Widam

and distribution and sales facilities, and despite all the challenges, and with the support of the wise leadership and the government, we have established the Arkeh project, the first of its kind and the most ambitious in the field of animal production in Qatar,” he says. The logistical aspects of the project have already been completed. Buildings, animal sheds and other installations will be operated soon. “We aim to achieve a national food security strategy by strengthening local livestock production and supporting the local market with the highest level of care and an ideal environment through the services of the best experts in the field of sheep breeding and animal care and animal health. We have also supported local private sheep farms by providing them with an outlet for the sale of thousands of heads of sheep to encourage them to expand and increase their production,” he points out. According to him, Widam covers 85% of the market needs for red meat, and the company pays particular attention to its projects, plans, and the finances to implement these projects after confirming their feasibility and effective contribution to the revenues of the company. “Widam is making every effort to be part of the local food security system by meeting the requirements for meat in the local market,” he avers.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

5.1%

0.4%

31%

20.9%

9% 37 > QATAR TODAY > JANUARY-FEBRUARY 2019

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21 5

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QATAR INTERNATIONAL ISLAMIC BANK

GOING GREAT GUNS Maintaining a steady growth trajectory and achieving “remarkable” growth across various items provided in its budget, Qatar International Islamic Bank (QIIB), one of the leading Islamic banks in the country, posted a net profit of QR832 million in 2017, up by 6% on 2016.

he bank’s total assets increased to QR46.6 billion by end-2017, which represents a growth of 9.6% compared with 2016. Based on the bank’s performance, the management has decided to distribute cash dividends of 40% to the shareholders (QR4 per share). The bank’s remarkable growth is consistent with the strength of the Qatari economy and its ability to face various challenges. The Qatari economy has proven to be rock solid, driven by diligent planning, systems and procedures. For its part, the bank is committed to the Qatari economy and putting all its strengths and resources into the provision of necessary financing for projects, whether they are infrastructure-related or otherwise. QIIB vice-chairman Sheikh Abdullah bin Thani bin Abdullah Al Thani expressed confidence that the bank would maintain profitable in the period ahead as its strategy has demonstrated its ability to anticipate potential challenges, ensured strength and stability in the bank’s financial position and minimised risks. The total revenues amounting to QR1 represent a growth of 8.8% and customer deposits increased to reach QR32.5 billion from QR9 billion in 2017 compared with QR 1.7 billion in 2016, which is QR26.6 billion during the same period. Shareholders equity stood at QR6.8 billion in 2017 while capital adequacy under the Basel III ratio was 17.87%, which indicated the strength of QIIB’s financial position amid various risks. “The 2017 financial results are in perfect alignment with efforts made to implement the plans set by the bank to adapt quickly to the various market factors and challenges in 2017, especially those linked to the unjustified blockade on Qatar,” according to QIIB chief executive officer Dr Abdulbasit Ahmad Al Shaibei. He says the strength of the Qatari economy and its ability to overcome various challenges and obstacles, shielded the country’s banking system from any adverse effects as a result of the blockade. The government’s policies have turned the blockade into an opportunity and the actions taken by the Qatar

SHEIKH ABDULLAH BIN THANI BIN ABDULLAH AL THANI Vice-Chairman of QIIB

Central Bank have contributed to the sector’s financial stability and helped it overcome any effects or consequences of the blockade. During 2017, QIIB maintained its focus and interest on the local market in view of the opportunities provided by the Qatari economy, which witnessed a major revival in terms of projects, whether they were large and related to infrastructure, or small and medium projects, which the government considered very important in the economy and a contributor to national growth. The CEO says: “It is important to mention the effective co-operation and partnership between QIIB and the Qatar Development Bank, which facilitated financing many small and medium projects and entrepreneurial initiatives.” In 2017, QIIB executed many plans and procedures aimed at increasing operational efficiency. The nationwide branch network was restructured in line with new urban developments and the expansion of commercial centres and newer malls in many areas, he says. The bank received the “2017 Banking Excellence Award” for its excellence in straight-through processing from the World Union of Arab Bankers, thus affirming its position in terms of integrated services provided to its clients.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-12%

27%

12.3%

47.6%

10%

38 > QATAR TODAY > JANUARY-FEBRUARY 2019

PARAMETER RANKINGS SHARE PRICE GROWTH

34 2

DIVIDEND YIELD LIQUIDITY

RETURN ON EQUITY

22 3

NET PROFIT MARGIN REVENUE GROWTH

DOHA BANK

UNABATED GROWTH Growth continues unabated for Qatar’s banking sector even as the economic and trade sanctions by Saudi Arabia and its allies failed to impact the country in the last 18 months.

oha Bank, which has the largest international network among Qatari banks, netted a profit of QR1.1 billion for the year 2017 as against QR1.05 billion in the previous year. Further, the bank has also announced cash dividends of QR3 per share to its shareholders. The bank has achieved noticeable growth rates in many financial indicators. The total assets grew by QR3.1 billion from QR90.4 billion in 2016 to QR93.5 billion in 2017, registering a growth rate of 3.5%. The loans and advances also increased by one % from QR59.2 billion to QR59.8 billion during the same period. Likewise, customer deposits grew by 6.7% where the total deposits increased from QR55.7 billion in 2016 to QR59.5 billion in 2017. The total shareholders’ equity reached to QR14.8 billion by year end with an increase of 10.7% compared with the previous year. Elated over the bank’s performance, Doha Bank Chairman Sheikh Fahad bin Mohammad bin Jabor Al Thani declared that as of 31 December 2017, the earnings per share was QR3.02, the return on average shareholders’ equity was 11.9% and the return on average assets was 1.21%. The bank is known for adopting best practices in corporate governance and was recognized for its efforts when it won the “Best Bank Governance – Qatar 2017” at the Capital Finance International (CFI) Awards 2017 during the year in London. In his comments, Doha Bank CEO Dr R Seetharaman said: “The Best Bank Governance award is in recognition of Doha Bank for promoting excellence in corporate governance. It reviews and provides guidance about the alignment of corporate strategy with risk appetite and the internal risk management structure. Doha Bank is recognised as a ‘Domestic Systemically Important Bank’ (DSIB) in Qatar. We are committed to adhere to and promote good corporate governance at every level within Qatar and the other cross-border and international locations where we operate.” Doha Bank was awarded the “Golden Peacock Award for Sustainability in Financial Sector” which was presented by the Institute of Directors (IOD) India in London the same year. Doha Bank has one of the largest international networks among Qatari banks with a presence in 16 countries. In particular, the bank is committed to complying in full with its obligations under the various applicable regulatory

SHEIKH FAHAD BIN MOHAMMAD BIN JABOR AL THANI Chairman of Doha Bank

regimes. The bank has in place a set of formal and rigorous policies designed to promote good corporate governance and prevent, detect and rectify any infringements. The excellence in Corporate Governance has contributed to the sustainable development of Doha Bank. It advocates and practices Green Banking, which is one of the core business philosophies that would support sustainability into the future. Doha Bank had a consistent financial performance in the last decade. It has also conducted and participated in knowledge sharing events relating to climate change mitigation. Doha Bank believes in Sustainable Development Goals (SDGs) which came into force from 2016 after adoption of the same at the United Nations Sustainable Development Summit in September 2015. Doha Bank has consistently produced governance reports and sustainable development reports for many years. Sustainability is the key for long-term growth. As part of its extensive corporate social responsibility (CSR) programme, Doha Bank has been supporting targeted social programmes for different communities in the country. The bank envisions building a world that provides equal opportunities for all, and developing and nurturing skills and capabilities of differently-abled people is a major step towards achieving this goal.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-21%

9.9%

14%

7.9%

50.7%

0% 39 > QATAR TODAY > JANUARY-FEBRUARY 2019

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16 6

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3 14 2

QATAR ISLAMIC INSURANCE COMPANY

A PARAMOUNT GROWTH In spite of the political conditions that the region was passing through, Qatar Islamic Insurance Company (QIIC) managed to maintain strong growth rates during the year 2017.

n the quantitative level, the company was able to distribute cash dividends among the shareholders of the company at a rate of 35% of the nominal value of the share, to achieve total profits of QR61,945 million and raise the total value of subscription to QR316 million, thus maintaining the world’s highest distributed annual insurance surplus. This is equal to 20% of the net surplus payable to policy holders for the ninth year in a row, as a testament to the pioneering role played by QIIC in the world of Islamic Takaful insurance. In the field of organisational achievements, QIIC CEO Ali Ibrahim Al Abdulghani says the company is a leader in the automated organisation of support extended to auto repair workshops to facilitate vehicle compensation, minimise human intervention and computerise insurance services through electronic applications. Other insurance companies followed the example of QIIC in this respect. Abdulghani says that the effect of the blockade on QIIC was “very limited” as the company’s strategy requires accepting medium and small risks which explains the sustained contractual relations with its overall clientele and helps the company maintain its subscription portfolio and customers. The effect was confined to losing deals with insurance and reinsurance companies operating in the blockading countries. The company has very quickly found alternatives in the international market, which were fortunately willing to deal with QIIC whose name symbolises achievement and success in the world of insurance, generally, and Islamic Takaful insurance in particular. About the company’s projects which were not completed in 2017, and which the company intends to complete shortly, he says: “QIIC’s board of directors agreed to transform the company into an entity named Qatar Islamic Insurance Group with an investment arm called Qatar Islamic Real Estate Investment Company entrusted to manage the huge real estate investment portfolio of the group to allow QIIC to dedicate its time

ALI IBRAHIM AL ABDULGHANI CEO of QIIC

and effort to develop its technical operations, focus on developing its business, upgrade its growth rate and facilitate future expansion of the group in strategic activities that the management considers necessary to reach those desired growth rates of the company’s operations. On the other hand, the company continued its efforts to provide the best services to its customers and facilitate communication with the technical teams in all departments whether in subscription or accident reporting operations through computerised programmes and electronic applications. “We have been working for some time on the establishment of a fully equipped centre to serve our customers. Our delay in completing the project was due to our keenness that the centre would have the latest systems to communicate with the customers and provide quick services to them wherever they are through quality remote access services, and without having to come to the offices of the company to solve any problem that they may face,” he says. The Islamic Takaful insurance market in Qatar has been growing steadily for a number of years, to the extent that some shareholding insurance companies have transformed from conventional insurance to Islamic Takaful insurance.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-10%

6.7%

0.1%

18.5%

49.0%

39%

40 > QATAR TODAY > JANUARY-FEBRUARY 2019

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30 2

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AL MEERA

A NEW SHOPPING EXPERIENCE Established in 2005, Al Meera Consumer Goods Company continued its commitment to social and cultural values in Qatar and has taken many steps to bring about a real change in the shopping experience of community members all over the country.

t has developed a number of unique activities that have become an integral part of its annual commitment to various segments of the society. The net profit of the shareholders of the parent company was QR194 million in 2017 compared with to QR199 million for the same period last year. Earnings per share registered QR9.70 for the period ending 31 December 2017 compared with QR9.96 for the same period last year, and a dividend of QR8.5 per share, 85% of the nominal value of the share-is proposed to be distributed. Al Meera’s vice chairman Dr Saif Saeed Al Suwaidi said: “Al Meera has gone a long way in implementing its expansion plan in line with its mission of keeping pace with urban development plans in Qatar, including new areas and other recently populated neighbourhoods. It launched four new shopping centres during the year, bringing to 47 the total number of branches opened to consumers since the company announced its 14-branch expansion plan. The company opened three stores during the year, two of them in two educational institutions – Doha Institute and Hamad Bin Khalifa University (Qatar Foundation) - to enable students to secure their daily needs with ease. The third store is located in the army’s camp in Al Udeid to serve the personnel of the national armed forces. By the end of 2017, the shopping centres chain included 52 branches, 47 in Qatar (with a total area of 71,552 sq m, including its branch in Hayat Plaza Mall) and five in Oman. Moreover, Al Meera launched an initiative in cooperation with Bedaya Center and the Ministry of Economy and Commerce to provide local producers and start-ups in the food industry with exceptional shelf spaces, and Qatari entrepreneurs were provided with a channel through which to introduce their products to the market and sell them to consumers. Al Suwaidi pointed out that 2017 brought great challenges to the local and regional market, especially, the Gulf crisis, which started in June with an economic blockade on Qatar, closure of land borders and the resulting confusion among the population of the region. Al Meera has dealt with these challenges calmly and sensibly, and spread assurance among consumers with the support of the country’s wise leadership. Al Meera also emerged as a stronger

DR SAIF SAEED AL SUWAIDI Vice chairman of Al Meera

national brand, thanks to its loyalist customer base. “With that in mind, our experience in the global market has enabled us to benefit from our relationships, expand to the largest possible extent our international suppliers, and bring in a large number of new products from dozens of supporting countries, including Turkey, Azerbaijan, Brazil, Lebanon, Kuwait, Oman and many more,” he said. The company’s ambitious and steadfast expansion plan not only helps fulfill Al Meera’s growth strategy, but more importantly contributes to the urban development of the country’s various territories as well as its economic progress, in line with the Qatar National Vision (QNV) 2030. Regarding the company’s plans, Dr Al Suwaidi said that Al Meera was currently working on the establishment of nine other stores to provide Al Meera’s distinguished shopping experience and its world-class services to consumers. He said that the company’s upcoming shopping centres include one in Msheireb Downtown, Doha in the heart of the city and one of its kind in Qatar, where half of the foodstuff displayed in the store will be organic. Most of Al Meera’s newly opened and renovated stores also feature a selection of complementary shops, a restaurant area and small food court, as well as a dedicated parking space and other facilities that make for a truly memorable experience for shoppers.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-12%

5.7%

25%

13.5%

88.3%

9% 41 > QATAR TODAY > JANUARY-FEBRUARY 2019

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MEDICARE GROUP

MEDICARE GROUP: A SUCCESSFUL JOURNEY Medicare Group, the only company engaged in healthcare among the listed companies on Qatar Stock Exchange (QSE), has been ranked 8th among the TOP 10 companies in Qatar during 2017.

017 was an exceptional year in the history of Al Ahli Hospital as its management opened Al Ahli Heart Center to achieve the overall strategic objectives of Medicare Group. The new facility is managed by eminent medical staff having extensive international experience in the diagnosis and treatment of cardiovascular diseases and supported by a competent nursing cadre specialised in intensive care. Al Ahli Hospital Chief Executive Officer Khaled Al Emadi said that devices with cutting-edge technology have been added to enable the doctors to accurately diagnose the patients. They include the latest stress testing instruments to verify pressure and oxygen levels in the blood, and ultrasound machines and endoscopes used in the examination of the heart through the esophagus. The, latest medical equipment has also been added to the cardiology department which was moved to Al Ahli Heart Center. The cardiac intensive care unit and cardiac care unit have ten rooms and advanced equipment to monitor the condition of the patients. These devices are connected to central control systems located outside the patients’ rooms so that doctors and nursing staff can closely, simultaneously and continuously follow their condition. In addition, a new laboratory and cardiac catheterisation rooms were added which are fitted with high-quality equipment such as magnetic resonance imaging and ultrasound equipment. Emadi said that the services offered by the cardiac surgery department were not only limited to catheterisation procedures, but also cover open heart and cardio vascular surgery using the latest technologies. “Medicare Group has further expanded the emergency department, added nine beds to the women and children sections, updated the X-ray department and procured new equipment,” he said. According to him, the international Australian patient safety accreditation has been renewed for another four years. A lot of development work has been completed, including updating the laboratory and converting it to a fully electronic unit equipped with the latest international technologies that save time and effort and ensure test precision, and adding neurosurgery, spinal surgery and dialysis

KHALED AL EMADI Chief Executive Officer of Al Ahli Hospital

departments. Within the framework of “Caring for Healthy Living,” the Medicare Group has launched a nutrition company, specialised in healthy food, to address the needs of all segments of the society, especially those wishing to lose or gain weight or to follow a healthy diet, including for the patients. Emadi said: “We are currently expanding the main hospital. A special building for orthopedics and physiotherapy and another for emergency services are being planned. Three underground floors will be built for car parks and support services and the department of obstetrics and gynecology will be fully modernised.” The Al Ahli Hospital has initiated several activities in the field of continuous medical education such as organising events and training workshops approved by the Ministry of Health on various topics such as obesity, esophageal disease and ophthalmology conferences. It has also signed a memorandum of understanding (MoU) with Qatar University to provide continuous medical education for professional development and promote and implement joint research projects in areas of mutual interest besides providing new scientific and practical results that can be applied in Qatar. According to the MoU, the two institutions will also cooperate in providing clinical training to students within the scope of services offered by Al Ahli Hospital and its branches.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-11%

5.2%

0.2%

8.4%

17.5%

-4%

42 > QATAR TODAY > JANUARY-FEBRUARY 2019

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23 3

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UNITED DEVELOPMENT COMPANY

A STEADY PERFORMANCE Unfazed by the uncertain economic conditions, United Development Company, master developer of The Pearl-Qatar, has earned a net profit of QR608 million on revenues of QR2 billion.

he net profit attributable to owners of the company was QR538 million and basic earnings per share were QR1.52. The company is a major real estate player in the Qatari market with a total of QR1.6 billion worth of investments in The Pearl alone. UDC chairman Turki bin Mohammed Al Khater said: “Despite the economic uncertainties that prevailed during the year, the financial results for 2017 were still positive and demonstrated that UDC has a viable business model with the flexibility necessary to access diversified revenue streams as needed to sustain satisfactory financial results even in turbulent times. “The foundation for UDC’s financial stability is drawn from the great variety of attractive properties currently available and the exciting new properties under development at The Pearl-Qatar that are set within a safe, secure and self-sufficient community,” he added. The chairman also highlighted that UDC’s business strategy remained focused on creating opportunities and partnerships, achieving growth, minimising risks and sustaining progress. “The board has astutely directed the company to progress the new opportunities that are being generated on the island so that UDC can continue to profit from the mutually beneficial relationships that businesses at The Pearl-Qatar naturally attract.” According to him, 2017 has been a satisfactory year for UDC, even under less than stellar economic conditions, with the maturation and development of The PearlQatar rounding into form in a most desirable fashion. Major sales of land were concluded in 2017 with developers for the construction of a commercial mall and mixed-use facility. These sales demonstrate that non-UDC developments on the island were commercially viable. Recurring revenue from the leasing of residential and retail units held steady year over year, reaffirming that The Pearl-Qatar is a popular place to live, dine and shop. The Pearl Tower 1 was completed and this world-class office tower was in the process of being leased with 13,132 sq m, equivalent to 24% of total leasable area, currently under contract for 2018. UDC President & CEO Ibrahim Al Othman described 2017 as another productive year for the company with good financial results being achieved under challenging conditions, the pace of

TURKI BIN MOHAMMED AL KHATER Chairman of UDC

development of The Pearl-Qatar accelerating in a cost-effective manner and the customer experience of residents, retailers and visitors at The Pearl-Qatar being further enhanced. In a boost to the company’s activities, the government has announced that The Pearl-Qatar and Lusail projects would be exempted from the procedures of issuing licences and that their managements will be provided with the authority to grant special licences in the fields of construction, completion of construction, electricity and civil defence for real estate developers. In this context, the Ministry of Municipality and Environment along with the Qatar General Electricity and Water Corporation (Kahramaa), Civil Defence and other relevant agencies have been directed to finalise an agreement with the managements of the two projects whereby The Pearl-Qatar and Lusail will assume full responsibility before the State in case of a breach by the development companies of the standards and conditions stipulated in the agreement and the approved urban plan. The new initiatives announced by Prime Minister and Interior Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani at his meeting with representatives of the private and government sectors were aimed at boosting private sector investment and economic growth.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-14%

8.1%

0.1%

28.5%

4% 43 > QATAR TODAY > JANUARY-FEBRUARY 2019

PARAMETER RANKINGS SHARE PRICE GROWTH

DIVIDEND YIELD

LIQUIDITY

RETURN ON EQUITY

NET PROFIT MARGIN

REVENUE GROWTH

WOQOD

MAKING SMOOTH PROGRESS Qatar Fuel Company (WOQOD) announced that the net profit for 2017 (excluding minority interest) was QR964 million compared with QR883 million in 2016, a 9.2% increase of QR81 million.

espite substantial changes and a decrease in its margins of petroleum products distribution during the year, WOQOD’s continued success is attributed to increasing sales and efficiency of its businesses and operations and continuing efforts to reduce expenditure, according to an integrated rationalisation policy which is based on several initiatives and which are under implementation and expected to bear fruit in the near future. WOQOD CEO Eng Saad Rashid Al Muhannadi said that earnings per share reached QR9.7 compared with QR8.9 registered last year, while equity rights increased by 1.1% to reach QR7.4 billion in 2017 compared with QR7.3 billion in 2016. He explained that the board has reviewed and approved the current and future projects that the company intends to implement, and that the company currently operates 58 fuel stations. The year 2017 witnessed the addition of four new fixed stations in Mashaf, Abu Nakhla and Al Khor and two mobile stations in Jalihah and Al Gharafa. “The company has drawn up ambitious plans to double the number of its stations over a period of three years to reach 120 in 2020. It is also expected to complete the construction and operation of about 30 stations over the next 12 months, including 10 mobile stations,” he said. He pointed out that the company planned to increase the number of dispensers (pumps) in the working stations by 59% by the end of 2018 and at the same pace in the subsequent two years to reduce the bottlenecks in the stations resulting from the closure of many private stations. “WOQOD will not hesitate to build stations anywhere and anytime provided that the required land is available (and there is a need for that) in line with the company’s policy to enhance its service role in the state and the society,” he said. About the measures taken by WOQOD to face the negative effects of the blockade and to ensure the continuity of its activities and operations in the field of bitumen, oils and greases imported from abroad, he said that the company has made the required contractual arrangements with alternative source and provided

ENG SAAD RASHID AL MUHANNADI CEO of WOQOD

logistical support including ships and other requirements, and has also coordinated with Qatar Petroleum regarding ship refueling (from ship to ship) from Ras Laffan ship supply facilities. Oils and greases, whose sales expanded during 2017 following the conclusion of several contracts with government agencies and others and several government tenders to supply them, have been procured from alternative sources. He pointed out that WOQOD and its subsidiaries were working to implement several vital projects, including the expansion of bitumen plant facilities, in order to secure the requirements of the government and road projects for asphalt materials in line with the best international standards in terms of road durability and sustainability. The first phase of the enhanced bitumen facility was completed, while the second phase will be completed in the third quarter of 2018. As for the technical inspection centres, Eng. Al Mohannadi explained that their were now seven including one each at Al Khor and Al Wukair which were added in 2017. Detailing the company’s operations during 2017, he referred to the increase in the volume of distributed petroleum products compared with 2016. The sales of various fuel types increased by 6%.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: THREE-YEAR WEIGHTED AVERAGE (2015-2017) Share Price Growth

Dividend Yield

Liquidity

Return on Equity

Net Profit Margin

Revenue Growth

-20%

6.1%

0.0%

13%

17%

44 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > bottom line

CAREER OBJECTIVE HELPS WHEN IT COMES TO YOUR CAREER AND FUTURE, IT IS ALWAYS BEST TO PLAN THINGS OUT AND KEEP YOUR SPONTANEOUS IMPULSES AT BAY FOR THE MOST PART. YOU CANNOT BLINDLY FOLLOW A TRAIL THAT CAN END UP LEADING TO NOWHERE. WHAT A HUGE RISK THAT IS BUT MOST PEOPLE ARE NOT EVEN WILLING TO TAKE IT.

ow, this does not mean that you should not be rambunctious and instinctive as everyone is a free human being at the end of the day. This also does not mean that you should aim to have your whole life planned out, because first of all, that’s impossible; life works in mysterious ways and no one knows what might happen in the distant future. And second of all, does it not just sound so boring to have everything planned out down to the last detail? A lot of people are not in that place yet and they cannot confidently say where they want to be in the future or who they want to become. So, it’s totally normal if you still have not figured out your career objective yet, especially if you are a fresh graduate,

or if you are thinking of changing career paths and need to set a new one. But, you should certainly consider setting yourself a career objective, as it can have numerous advantages, not to mention that employers love it, especially when you include it in your curriculum vitae (CV). Now, experts at Bayt.com have written this article to help shed light on the advantages of having a career objective and emphasise its importance. So, why should you have a career objective?

Map out your career

There are so many things happening in today’s world, so much opportunity within your reach, but which one is the right one? Where do you see yourself in the future? One of the first steps to plan out your career

is starting with a career objective, which can act as some sort of golden compass that you can use to guide you through your career. It also helps you recalibrate whenever you feel like you took a wrong turn and think your career is spiraling into something that you did not have in mind. Having a career objective can help you set certain short and long-term goals for yourself, which you can then focus your efforts and energy towards achieving certain metrics, instead of just going with the flow and following non-meaningful or irrelevant opportunities. Also, when you have a clearly mapped-out career with a solid career objective, you can expect to have higher motivation and productivity at work. Why? When you have strategically sized and placed goals ahead of 45 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > bottom line you, it will make the whole idea of a career objective seem easier to achieve, as it is broken down into smaller pieces. And with time, this can embed your career objective even deeper into your brain, which can certainly increase your motivation to lead and live your career. Combined with the right amount of passion, you will basically be obsessed with your career. What if you already have a set career objective, but do not know which companies have a compatible culture? You have worked so hard to form a solid career objective, so what if you get a job at a company that does not even acknowledge your objective, and then you’re just stuck there? But, not to worry, experts at Bayt.com have thought this through and never want job seekers to be in that situation. That’s why they offer the Bayt.com Company Search tool. This tool literally gives job seekers the ability to stalk companies online, in order for them to get an idea of what the company does, as well as a taste of their culture.

Measure your progress

Who is keeping count of your accomplishments at work? You don’t know? None. How are you supposed to know whether you are actually progressing or not? What about knowing what you are good at and what you need to improve? When you have a paved way leading to a solid career objective with various targets established in order, it makes it much easier and clearer for you to record and measure your progress within a certain time frame. You should certainly consider measuring your progress. So that you can keep tabs on yourself. For example, imagine yourself as a sales executive, and your next goal is to increase your sales by at least 30% within the next six months. You can conduct monthly or even weekly reviews on your progress towards your goal, in order to analyse any trends and identify key areas of improvement. You might find out for example that you are not getting that many sales with upstream clients. By knowing this information you can then develop your strategy and knowledge to better suit that specific kind of client and ultimately increase sales. And remember, when it comes to setting a career objective, it is not what you are. But who you want to become. It is not how good you are, it is how good you want to become. You should always strive to learn as much as possible and whenever possible. You can do this by using Bayt.com’s learning services such as online courses and training courses. Not only will enrolling in training courses help you develop the skills and qualifications you need to reach your career objective, but it will also present 46 > QATAR TODAY > JANUARY-FEBRUARY 2019

you as having a sense of accountability for your own development and growth, which employers will love.

Impress employers

Want to raise employers’ eyebrows? Have a career objective. They love it. Especially if your career path is within the industry they operate in. What better way to portray yourself as mature and in charge of your own development than having a powerful career objective. That’s why you should certainly include a career objective in your CV. A career objective on a CV should basically be an overview of where you currently are in your career and where you aspire to head. It should also include certain points about yourself that project you as fit for the job that you are applying for. When it comes to writing your career objective on your CV, you should aim to make it as clear, concise and direct as possible. You do not want to use the same career objective for two different jobs-the whole point of including one in your CV is to make you look like you know exactly what you are looking for in your next job. Having a generic and untargeted career objective will do just the opposite. You should always stick to the golden rule of CV writing: always tailor your CV to each and every job you apply for. This applies to your career objective! If you find yourself stuck or kind of lost with writing your career objective on your CV or even with writing your CV altogether, you can opt for a professional CV writing service such as the one Bayt.com offers. Also, having a clearly set career objective makes it much easier for you to explain your strengths and aspirations to others including key connections, networking event attendees and potential employers. When you are asked “where do you see yourself in the foreseeable future?” having an already set career objective can certainly help you get the message across in a smoother and more efficient manner. Employers can spot a phoney from a mile away as they are trained to do that. About Bayt.com: Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 34,600,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com today and access the leading resource for job seekers and employers in the region.

ABOUT BAYT.COM Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 30,000,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com today, and access the leading resource for job seekers and employers in the region.

DO YOU NEED A DECISION THEORIST… OR A SHRINK? HUMAN BEINGS ARE NOTORIOUSLY BAD AT MAKING RATIONAL DECISIONS. EVEN THEORETICAL MODELS DESIGNED TO HELP YOU FIND THE “RIGHT” ANSWER ARE LIMITED IN THEIR APPLICATIONS. A TRIO OF RESEARCHERS CALLS FOR A RE-APPRAISAL OF DECISION THEORY, ARGUING THAT BASIC TOOLS CAN IMPROVE DECISION-MAKING BY CHALLENGING UNDERLYING ASSUMPTIONS AND UNCOVERING PSYCHOLOGICAL BIASES. 47 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > bottom line

s it worth insuring my house against hurricane damage? Which route will help me beat traffic? Should I invest in this stock?

Latte, black, cappuccino, mocha or vanilla? Every day, we are faced with hundreds of decisions, some big, some small, some tough, some easy. Sometimes we follow our instinct, sometimes our intellect, sometimes we just go with habit. But more important than how we choose between various options is the question: how should we choose? Decision theory offers a formal approach, often seen as a rational way to handle managerial decisions. While this theoretical framework has not lived up to early expectations, failing to provide the “right” answer in every case, a trio of researchers says not to throw the baby out with the bathwater just yet. Decision-making is useful, but… Decision-making has been formalised since the age of enlightenment. Decision theory and its key concepts (utility, or desirability of an outcome, states of the world, or possible scenarios, etc.) culminated in the mid-20th century with the invention of game theory and the development of mathematical tools of analysis. “In the 1950s there was the idea that mathematical models could automate decisions,” says Prof Itzhak Gilboa. “There has been a measure of success, with applications to logistics, or, for example, to route optimisation with Google Maps.” And yet, today, decision theory is all but dismissed, including in business circles. Prof Olivier Sibony, who worked as a management consultant for 25 years before joining HEC Paris, says he never encountered decision theory in those 25 years, either in words or practice, the exception being within a minority of financial institutions. “It’s shocking,” he muses, “because it is taught in business schools as a sensible way to make decisions.” Decision theory has its limits The textbook model of decision theory, however enticing and elegant it may be, has a number of limitations that prevent it from being widely used by managers. The theoretical model raises some very

48 > QATAR TODAY > JANUARY-FEBRUARY 2019

practical challenges. Probability is often hard to calculate due to lack of data about the same past problems. Similarly, the desirability of an outcome, such as career choice for example, is hard to quantify because of the wealth of criteria by which it is judged: income, prestige, work-life balance... What’s more, behavioural psychology has shown that human beings, far from being the rational agents assumed by economic theory, are hopelessly irrational. Confirmation bias makes us prone to disregard negative data about the option we are considering; overconfidence makes us consistently overestimate our chances of success; mental accounting makes us value equivalent outcomes differently depending on the way they are framed; and so on. The list of psychological biases we suffer from is so long, it’s a miracle that we have not blundered ourselves into extinction as a race. “But we are teetering on the brink of just that!” counters Prof Sibony. And just because the world functions relatively well does not mean we have been good at making decisions, including in business, where success often boils down to sheer luck. “Even a billionaire like Warren Buffet acknowledges the role of luck in his success,” he adds. “We do observe a lot of failures; after all, millions of years of evolution have prepared us to recognise rotten food, but not rotten counterparties,” say the two professors. Not a magic wand Recognising all the limitations of decision theory, the specialists nonetheless believe that certain tools can be helpful. The axioms of rational decision-making are especially important in the context of strategic decisions made by managers and executives, who might need to present and justify decisions to their superiors or boards. Decision theory is not a magic wand for a final answer. It should be used as a conceptual framework, or tool, rather than as a theory that is directly applicable. The researchers outline three different types of decisions and how decision theory can potentially serve in each of those cases: In the first type of decision, outcomes and probabilities are clear and all relevant inputs are known or knowable, which means that finding the best solution is

simply a matter of using mathematical analysis based on classical decision theory. Simple computing power can find the single best solution (optimise a route or, in the case developed in the research article, allocate sales reps to territories according to travel costs). The decision-maker need not even know the details of the algorithm that the software uses. In the second type, the desired outcome is clear but not all relevant inputs are known or knowable. In this case, decision theory cannot provide a single best answer but can test the consistency of the reasoning by formulating the decision maker’s goals, constraints, and so on, to check whether the reasoning makes sense. In the third type of decision, either because data is missing or because the logic of the proposed decision cannot be articulated, even the desired outcome is unclear. In such a case, the problem cannot be described in the language of decision theory. But, while theory cannot provide a “correct” answer, it can still serve to test the intuition and logic of the decision-maker. There may be no objective way to assign precise probabilities to different scenarios, or even to identify all the possibilities, but the theory can still potentially challenge underlying assumptions or processes. “If you want to be in a certain market just for your ego, fine, but it is my job to uncover it” says Prof Gilboa, comparing the process to “sitting down with a shrink before you press the button.” The idea is simply to understand one’s own motivations for a decision and to be comfortable enough with them to explain the rationale to one’s own boss. The researcher likes to think of the approach as a “humanistic project,” improving decisions in a way that will ultimately be useful to society – “even if business decisions are rarely life and death matters.” Practical applications The researchers say the most important idea to retain is that of challenging decision-making. When it comes to the second and third type of decisions, where an algorithm cannot simply identify the best solution for you, the researchers recommend collaborating with someone who has a firm grasp of decision theory – someone who

knows, for example, what a utility function is, or desirability of outcome and so on to challenge your decision-making process. “The best thing you can do to improve the quality of a decision is to ask an outsider to challenge not the decision itself but the process and its logic,” says Prof Sibony. “There are very practical ways of getting theory and practice to dialogue, by setting up routines and methods.” Methodology The paper first reviews the main principles and concepts of decision theory and explores its limitations to explain why it is not currently used in business decisionmaking. The researchers then make a case for decision theory as a conceptual framework whose tools can be used to support and refine intuition, and give examples of applications through three imaginary dialogues with executives faced with three different business decision-making.

PROF OLIVIER SIBONY Affiliate Professor (PHD) of Strategy and Business Policy at HEC Paris.

PROF ITZHAK GILBOA Professor of Economics and Decision Science.

ABOUT HEC PARIS Founded in 1881 by the Paris Chamber of Commerce and Industry, HEC Paris is a founding member of Université Paris-Saclay. In 2010, HEC Paris joined Qatar Foundation and brought Executive Education programmes and research activity to Qatar and the rest of the region. 49 > QATAR TODAY > JANUARY-FEBRUARY 2019

aviation > tag this

QATAR SPREADS

ITS WINGS TO THE FAR EAST IN THE LAST TWO YEARS, QATAR AIRWAYS HAS BEEN ACQUIRING STAKES IN MANY OVERSEAS AIR COMPANIES, INCLUDING LAST YEAR’S PURCHASE OF NEARLY 10% OF CATHAY PACIFIC, HONG KONG’S FLAG-CARRIER, THAT HAS NOT BEEN A BIG SURPRISE FOR AVIATION INDUSTRY INSIDERS. VSO, WHAT LIES BEHIND THESE ACQUISITIONS AND DO THEY MAKE BUSINESS SENSE?

BY SASA ZUZMAHOWSKI

it by a blockade at home, Qatar’s flagship airline is embarking on a strategy of expansion in part to counter losses due to the regional embargo imposed on it in 2017. According to Qatar Airways CEO Akbar Al Baker, “we are focusing everywhere in the world, we’ve been increasing frequencies into Eastern Europe, Southeast Asia, increasing our network into the sub-continent, so we are going all over the place,” he told CNBC earlier this year. Buying stakes in overseas companies is part of this strategy.

50 > QATAR TODAY > JANUARY-FEBRUARY 2019

Breaking the siege

Qatar Airways has been unable to fly to the previously lucrative markets of the UAE and Saudi Arabia because of an airspace rights dispute, so it stepped up its investment elsewhere. According to Frost & Sullivan consultancy, cancellation of 50 daily flights to Gulf countries has cost the airline a $500 million in profit last year. But although troubles at home accelerated recent purchases to a certain point, Qatari investments are part of a preceding and well-calculated strategy. While some deals have not been materialised, such as acquiring stakes in Indian InterGlobe

Aviation Ltd and American Airlines in the summer of 2017, Qatar has been more successful in the Far East. Just recently, Qatar Airways announced the expansion of its codeshare partnership with Malaysia Airlines, where Qatar Airways, code will be placed on 19 of Malaysia Airlines flights, allowing passengers to travel to more destinations in Malaysia, Qatar, Indonesia, Australia and the United States of America. Previously, the Qatari carrier announced last November a $661 million deal to buy a 9.61% stake in Hong Kong’s Cathay Pacific Airways, providing the company greater access to China’s lucrative aviation

Etihad’s vs. Qatar Airways’ investments

At first sight, one could think that the Qataris are trying to apply Etihad’s strategy when it comes to buying stakes in foreign air companies. In the last couple of years, Eithad bought stakes in Air Berlin, Alitalia, Jet Airways and Air Serbia. But in 2017, this strategy has turned questionable after the bankruptcy of Air Berlin and Alitalia. Some sources estimate that Etihad lost as much as $4.5 billion. The initial idea was to use the carriers to feed passenger traffic from Germany, Italy and India via its hub in Abu Dhabi. But after the episode with the Germans and Italians, Etihad will no longer follow this strategy. So will Qatar repeat Etihad’s mistake and are there any differences between Qatar’s Airways’ and Etihad’s investment strategy?

According to Thomas Jaeger, Chief Executive Officer and founder of chaviation GmbH, a Swiss airline intelligence provider, Etihad’s strategy of buying stakes in relatively weak carriers is different from Qatar’s deals. “Qatari investments are more strategic financial investments in relatively strong carrier groups that have already been alliance partners prior to these investments,” he told Qatar Today. The only exception, according to him, could be Qatar Airways' investment in Italy’s Meridiana which sounds a bit similar to what Etihad did with Air Serbia as there are similar ties between Qatar and Sardinia as far as investments are concerned as there are between Abu Dhabi and Serbia. Etihad’s other stakes in Air Berlin, Air Seychelles, Alitalia and Darwin Airline (Etihad Regional) were all investments where Etihad was essentially the saviour that kept weak carriers alive longer by not just buying shares but also providing loans, assistance with financing, management, etc. “ I would sooner compare that strategy to the failed 'Hunter' strategy of Swissair which also felt it needed to invest in weak airlines that would help it grow its Zurich hub similar to how Etihad thought these investments would help artificially grow

the Abu Dhabi hub. With the exception of the Meridiana investment, which I find similarly difficult to understand as Etihad’s investments in these four airlines mentioned above, Qatar is not putting IAG, LATAM or Cathay on life support and none of them depends on Qatar to survive,” he continued.

QATAR AIRWAYS IS THE BEST AIRLINE IN THE WORLD. On the contrary, Qatari investments in overseas carriers are not that much about attracting more passengers to its Doha hub, and according to John Strickland, Director at JLS Consulting, “there is a coherent strategic rationale behind these developments,” as Qatar is increasingly linking with quality airlines around the world operating in important geographical markets. Mr Al Baker just recently explained that Qatar Airways “will not invest in an airline because we need funds. We will invest in an airline which will give us a good return on investment.” The unpredictable security situation in the region and geopolitical instability

SOURCE: AL JAZEERA.

market and potentially allowing the one world alliance member to increase traffic through its Doha hub. Swire Pacific and Air China will continue to hold some 75% of their shares, while Qatar Airways will become Cathay Pacific’s third-largest shareholder. Cathay also owns about 18% of Air China. Air China officials are hoping that all shareholders would work together in finding synergies, although some analysts expressed some doubts about it.

51 > QATAR TODAY > JANUARY-FEBRUARY 2019

aviation > tag this

have much contributed to the limited growth opportunities in the Middle East. In addition, lower fuel prices and the introduction of new fuel-efficient aircraft models such as Boeing’s 787 jetliner have opened the possibility of direct flights between Europe and Asia, skipping the Middle-Eastern pit stop hubs. Geographic location, up till now one of the main advantages of Middle-Eastern carriers,

QATAR AIRWAYS WAS THE FIRST TO OPERATE THE AIRBUS A350. may become quite irrelevant in the near future. From there, buying shares in foreign aviation companies in the oneworld alliance, far away from the troubled Middle East, makes perfect sense.

Gains

So, due to limitations at home, Strickland believes that “a stake in Cathay Pacific provides greater access to important developing Asian markets.” Such a view is supported by basically all leading aircraft manufacturers when saying that the AsiaPacific region will set the pace in terms of demand in the coming decades. Jaeger sees Hong Kong as a key destination in Qatar Airways’ network both for passenger and cargo traffic, and a fairly logical transit point to route traffic from the Middle East to China, Taiwan, South Korea, Japan, the Philippines, Vietnam as well as to Australia and New Zealand. Cathay Pacific and Cathay Dragon have a vast network across these regions that complement Qatar Airways’ own network coverage quite well. In addition, Cathay Pacific has a respectable fleet of 145 aircraft, with further orders for at least 50 planes including Airbus A350

and Boeing 777 aircraft. Finally, both airlines are rated with five stars by AirlineQuality.com and they are also both part of the oneworld alliance. Since Qatar has already invested in IAG (the parent of its alliance partners British Airways and Iberia as well as Aer Lingus and Vueling) and LATAM Airlines Group, the investment in Cathay Pacific has to be seen in this context. Having initially gone it all alone, Qatar Airways then decided to change course and join a Onewordl alliance, which is different from what Emirates and Etihad have done from a strategic perspective. Until recently, Qatar’s strategy has been to strengthen its ties with its key oneworld alliance partners through these equity investments.

Challenges

But this strategy may be put on hold after constant internal squabbling among the alliance’s members. After recent spat with oneworld fellow member Qantas from Australia, Qatar Airways threatened to exit the alliance. Australia’s flag carrier accused the Qatari airline of using its status as a state-owned asset to unfairly expand within the Australian market, which the Qatari side immediately refuted, explaining that Qatar Airways' expansion on Australian routes had been at the invitation of the Australian government. Similar allegations came also from the American partners. An offer to buy 10% of American Airlines in last June has been met with hostility due to an ongoing dispute between US and Middle-

SOURCE: FLIGHTRADAR24.

Finally, Qatar Airways and Etihad, Jaeger

noted, share the joint problems of very small local markets in Abu Dhabi and Doha (even compared to Dubai) and so they rely on transfer traffic quite heavily. A lot of the higher yield transfer traffic comes to Etihad and Qatar Airways from markets in relative proximity with relatively weak national carriers (sub-par product, small network, bad reputation, etc.). Such is the situation with Saudi Arabia, Kuwait, Egypt, Pakistan, etc. Neverheless, Qatar Airways is almost twice as big as Etihad and has a significantly stronger network from/to Doha as a result, as well as more connection opportunities,” Jaeger continued.

52 > QATAR TODAY > JANUARY-FEBRUARY 2019

think that the new Qatari asset offers no clear synergies. Hamilton, for example, pointed out that many of the European cities served by Qatar are also served, nonstop, from Hong Kong by Cathay. Likewise, a couple of US cities served by Qatar are served by Cathay. “I don’t see a lot of services that suggests either carrier needs the other,” he added.

Eastern major carriers and resistance from American’s management, so this plan was dropped. Apart from the ongoing intra-alliance spat, the Cathay Pacific deal may have some flaws, along with many opportunities. Scott Hamilton, Managing Director of the Leeham Co, a globally recognized expert in aerospace issues, told us that the purchase of Cathay’s stake may be fundamentally sound but in recent years the Asian air company has had poor financial results. ”It may be some time before Cathay can make a meaningful contribution to Qatar,” he told Qatar Today. Cathay Pacific is currently struggling to deal with competition from low-cost rivals and last August the company reported an 82% drop in half-year profits. Moreover, its share price has dropped from a 5-year high of around $20 HKD to around $10 HKD at the end of 2016/early 2017. However, according to Jaeger, besides the strategic reasons for the acquisitions as part of the strategy to get closer ties with its alliance partners it was also a relatively cheap opportunity for Qatar Airways to buy a carrier with a long history and strong home market/hub/ reputation with a lot of premium demand. While there is no doubt that Cathay has been facing challenges, Strickland thinks that the company can overcome them by adapting its business model. “There should be scope for synergies on fleet acquisition, engineering and better integration of network links.” But not all share his opinion. Some analysts think that the network connectivity between Qatar and Cathay was not clear because both carriers operate from major hubs that are quite far apart. Some also

DOHA AIRPORT VOTED THE BEST IN THE MIDDLE EAST IN 2017. Jaeger, on the other hand, says the two carriers do not compete that much as Hong Kong is too far north for Doha to be a significant connecting hub for EuropeHong Kong traffic. Unlike in Dubai (Emirates) or Istanbul (Turkish), where there is significantly more origin and destination demand than in Doha or Abu Dhabi, the synergies are somewhat limited from a network perspective simply because the last thing you want to do is sell a lot of double connections (i.e., Rome-Doha-Hong Kong-Wuhan). The yield penalties carriers have to take in such markets when there are attractive non-stop and one-stop options available are significant. Jaeger explained that if, for example, the local demand between Doha and Hong Kong is pretty small and Doha is a small market by itself, the network benefits are also somewhat limited. Qatari passengers now have very attractive connection opportunities via Hong Kong they did not have before. Hong Kong passengers essentially have the same connection opportunities via Doha they had before. But beyond that, you are in double-connection territory.

scale in negotiations on fuel and aircraft purchases while it boosts investment in other airlines, according to its chief executive. Strickland added that “there has already been considerable consolidation in the industry in certain markets such as the USA and Europe and new business models are shaking up the market. The strategy to invest in leading carriers should assist Qatar in remaining an important player.” However, the problems outlined above, along with a weak Doha hub, remain. Jaeger said that “if you compare Doha to London, Madrid, Sao Paulo, Santiago de Chile and Hong Kong to pick the bases of its strategic investments, you will see Qatar’s dilemma as far as its really small home market is concerned, that happens to be in a great location of course.” With troubled relations with its neighbours, this problem becomes even more obvious. Jaeger noted that transfer traffic is never as lucrative as nonstop traffic between two financial centres. That will not change in the near future and with new-generation aircraft making longer non-stop flights more viable, it will make the value proposition of Doha’s great location less important in the long run. So, according to him, it makes sense to diversify by investing in carriers that are well established and financed although the much expected synergies within oneworld are questionable after ever more turbulent relations among its members. Even though it is premature to draw any conclusions, there was much speculation about what Qatar may do if it leaves the alliance including forming its own mini-alliance with companies in which Qatar is a major shareholder including IAG (20% stake), Cathay Pacific (10% stake) and LATAM (10% stake). Regardless of the current spat’s final outcome, we will probably witness more Qatar Airways’ investments in the near future.

Creating a virtual mega carrier?

Despite some bumps down the road, the Cathay Pacific deal is also part of a broader vision, where the long-haul international travel market will be controlled by massive airline groups and Qatar Airways wants to become the leader of one such group. The company wants to create a virtual megacarrier that will benefit from economies of 53 > QATAR TODAY > JANUARY-FEBRUARY 2019

affairs > auto news

SPECIAL OFFER ON MERCEDES-BENZ S-CLASS

Known for establishing solid and longstanding relationships with its customers by offering quality products, Nasser Bin Khaled (NBK) Automobiles has come up with a special offer of a wide package of benefits, in celebration of Qatar National Day.

hese offers include a zero percent down payment, 3-years’ service package or 60,000 km (whichever is sooner) and a QR1,500 voucher from Ziebart. The said offer gets even better with the chance to trade in your old car for the iconic Mercedez-Benz S-Class. Sheikh Faleh bin Nawaf Al Thani, the

Operations Director - Auto, at NBK Holding said: “NBK Automobiles is launching this offer to celebrate Qatar National Day. We offer our customers special benefits that allow them to get more when buying this iconic car.” The S-Class sedan is known to be iconic and one of the most luxurious models

on the market for it embodies flawless sophistication, precision and excellent performance that are trademarks of Mercedes-Benz. The S-Class, a symbol of German engineering, craftsmanship and styling, did not disappoint with its ability to deliver outstanding performance and exhibit power with just one press on the pedal.

VOLVO S60 AND V60 ARE SAFEST CARS The new Volvo S60 sedan and V60 estate continue their fivestar streak in the Euro NCAP safety tests after receiving their results for 2018.

rom the V40 hatchback to the large XC80 SUV, all Volvo Cars models keeps their remarkable reputation for consistently being one of the safest cars on the market by offering five-star-rated safety technology. This year’s Euro NCAP testing regime has been the most difficult given its demanding challenges on safety technology which includes cyclist detection with auto-brake and emergency keep systems. Given this, the V60 and S60 still are among the safest cars under this new regime. Head of the Volvo Cars Safety Centre, Malin Ekholm, said: “The result proves that Volvo

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cars continue to be an industry leader in safety, constantly pushing the envelope in advancing new technology.” Volvo Cars’ own Scalable Product Architecture (SPA) platform and safety technology have been shared with the XC60, the large sibling of the S60 and V60, as well as the top-level 90 series cars. Volvo Cars’ active safety package and city safety with auto brake technology have become standard on all Volvos City Safety now also engages auto braking as a means to avoid oncoming collisions which is a first on the S60 and V60 models.

THE NEW ELEGANTLY SCULPTURED AUDI A6 SEDAN DRIVES TO THE MIDDLE EAST Audi now introduces the new Audi A6. Whether in terms of digitalization, comfort or sportiness, the elegantly sculptured sedan is the all-round talent in its segment.

he new Audi A6 is more versatile than ever with its enhanced comfort, sportiness and elegant design. Audi offers the new A6 with a 3.0 TFSI engine that has an output of 340 hp and is equipped with a mild hybrid system as standard for added comfort and efficiency. Its all-digital MMI touch response system also provides intuitive operation and even more personalization for the driver. The suspension combines smooth ride comfort and unshakable stability with enhanced sportiness. Long journeys are made even more enjoyable with the new Audi 6 as it struts more space, friendly features such as new seat adjustment functions with ventilation and massage feature, as well as less interior noise that can surely pamper both drivers and its

passengers. In terms of craftsmanship, the Audi A6 presents itself as a distinguished ambassador for the new Audi design language. With taut surfaces, clear edges and striking lines, it conveys sporty elegance, cuttingedge technology and premium quality. Its interior focuses consistently on its fully digital operating system and is a trendsetter in the segment. The fun does not end there, for the new model also roars with more legroom in the rear. The wide range of colours and materials which Audi provides for the new A6 lend the interior design very distinct characteristics

– from elegant through contemporary to sporty. Five interior trim lines are available with different colour concepts: basic, sport, design, design selection and the S line sport package with 19-inch wheels and sport suspension. All of which fits to the unique tastes of the customers. Starting prices for the Audi 6 in local currency is QAR 255,700.

ALFARDAN AUTOMOBILES EXTENDS THE HOLIDAY WITH THEIR EXCITING NEW YEAR OFFER ON THE LATEST MINI 3-DOOR MODELS True to its word, the company stays committed to advancing innovation and providing outstanding experience and service offerings to its customers with an exclusive New Year deal.

lfardan Automobiles, the official importer of MINI in Qatar, welcomes 2019 with an irresistible deal on all brand-new MINI 3-door 2019 models. The General Manager of Alfardan Automobiles, Rabih Ataya, said: “Providing our customers with the very best offers, service and care is of the utmost importance to Alfardan Automobiles. As such, we are

delighted to start 2019 with this exclusive offer, which is a wonderful opportunity for our Qatar-based customers to own one of the world’s best-loved automobiles and enjoy a host of great benefits.” With prices starting from QR 109,000, customers can own one of the world’s most iconic automobiles. Driving the brand-new

MINI 3-door 2019 model will certainly feel like driving through a holiday thanks to a 3-year warranty, unlimited mileage and a 3-year or 40,000km service package. The offer just got even better with a bonus two-night stay at the luxurious Kempinski Marsa Malaz Hotel located at The Pearl. The exciting deal ends on February 28, 2019. 55 > QATAR TODAY > JANUARY-FEBRUARY 2019

business > marketwatch FASHION INDUSTRY COULD OPEN A NEW DOOR TO A VARIETY OF BUSINESSES IN QATAR In an exclusive interview with Qatar Today, Ms Meenu Prasad, Dean and Principal of Istituto di Moda Burgo (IMB Qatar) gives her insights on the fashion industry and what it has to offer to the country.

“A MAIN GOAL OF THE ACADEMY IS PROMOTING WOMEN’S EMPOWERMENT IN QATAR, IN ADDITION TO CREATING MORE AWARENESS AMONG PEOPLE ABOUT THE POTENTIALS OF FASHION EDUCATION AND THE INDUSTRY.” 56 > QATAR TODAY > JANUARY-FEBRUARY 2019

atar is in a good place to have its own fashion and clothes-making industry with its own brands as the country enjoys a multinational population celebrating a diversity of culture and trends, especially now that the 2022 FIFA World Cup is going to be held in Doha with its anticipated world focus. Ms Meenu Prasad, Dean and Principal of Istituto di Moda Burgo (IMB Qatar) (International Fashion & Arts Academy), has shared her views with Qatar Today on the fashion and clothes industry in the

country and why it is very important to pay more attention to such a key economic sector. Highly enthusiastic about her profession and industry, she stressed that it’s her passion and love for the job that could further enhance creativity and inspire others to improve their skills and potentials. However, she pointed out that serious study and training are integral parts of success in the industry, whether for personal career development or commercial purposes. Before taking up her post in Qatar,

she obtained a master’s degree from a prestigious college in the field in India. She had also worked for a number of worldrenowned fashion houses. “I have worked as a fashion designer with many luxury brands like Zara, Ted Baker, Debenhams, H&M, Anna Sui and others. I have worked also as a design educator at many international academies and colleges. This has taught me the importance of personalizing students’ programmes to meet the individual needs of each learner in the field of creativity and innovation,” she pointed out. Meenu hopes to help empower women through giving them new high-end career paths in the fashion and dress-making industry. “A main goal of the Academy is to promote women's empowerment in Qatar, in addition to creating more awareness among people about the potentials of fashion education and the industry. This in turn would create more job and investment opportunities by opening new markets and fields of industry to explore,” she stressed. Accordingly, IMB Qatar has a range of fashion programmes starting from short fashion and textile training courses, to a short, diploma and master’s programmes in the same field to equip the trainees with all the necessary skills to be independent designers and clothes makers with their unique styles. All the programmes are conducted at the Academy in the hands of highlyqualified trainers and instructors from various nationalities and backgrounds. The Academy also has a modern and expanding library with many books and catalogues in the field. Besides, trainees are encouraged to create their own innovations and designs, and execute them using the professional machinery there under the supervision of highly experienced professionals in the field. Meenu pointed out that, while the Academy can take trainees from zero experience in the field to professional levels, there is another category of programmes tailored for professional tailors and dressmakers to upgrade and further refine their skills in addition to equipping them with the latest trends in the field. “Many production units and fashion brands could be initiated after acquiring more awareness about such fashion programmes. In addition, highly skilled and trained graduates could get hired

easily by leading fashion houses and related businesses,” she said. Asked about the nature of the Academy’s courses, she pointed out that it aims at equipping trainees with both sophisticated and basic skills in the field and related fields such as embroidery, stitching, fashion entrepreneurship and merchandise, and even display window art arrangement. According to Meenu, the Academy equips its trainees of different categories and backgrounds with skills to make traditional dresses, both Arab and non-Arab, and modern international trends in fashion, with special programmes for children’s clothes. “IMB Qatar will soon come up with a new concept of mini-fashion clubs for the age categories of 12 years old and above in all schools across the country, where there will be a selection of fashion-related activities for students, especially for girls, such as hand embroidery, basic sewing techniques by hand needle/portable sewing machine, accessory making, knitting, crochet, fabric paintings and others. This will enhance schools' extra-curricular activities and bring about a new spirit in school modules,” she said. She further expressed her wish to reach out to more people in the country to expand

“SOME WOMEN COME TO US AIMING TO BE ABLE TO MAKE CLOTHES FOR THEMSELVES AND THEIR KIDS. SIMULTANEOUSLY, PROFESSIONAL TAILORS AND DRESSMAKERS SEEK OTHER HIGHER SKILLS AND WE CATER FOR ALL NEEDS IN THE FIELD.”

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business > marketwatch the industry, and hence create various opportunities in the field, considering it one of the most important and promising economic sectors that would open more doors of business for the private sector, especially for small and medium-size enterprises. “IMB Qatar is happy to announce its partnership with the 14th edition of Heya Fashion Exhibition in Qatar; we gave people the opportunity to see us delivering variety of interesting fashion workshops there,” she said. Meenu said that IMB Qatar offers other activities for kids as well, including Zumba

“Some women come to us aiming to be able to make clothes for themselves and their kids. Simultaneously, professional tailors and dressmakers seek other higher skills and we cater for all needs in the field.”

in 1961. His long and thriving experience in fashion has proven to be successful. His commitment to sharing his knowledge with each and every student interested in fashion is the result of 50 years of experience in the industry. His direction enables the students to be in touch with the fashion world and all opportunities of training and work that the fashion industry has to offer. IMB has many centres all across the world and now in Qatar.

Istituto di Moda Burgo (IMB), Milano, Italy, was founded by Mr Fernando Burgo

The Academy currently has one headquarters at Al Wukair, but Meenu revealed that there are future plans to

dances, various types of instrumental music and creative arts and crafts, so all family members could find benefit and entertainment at one place simultaneously during summer and winter breaks.

58 > QATAR TODAY > JANUARY-FEBRUARY 2019

expand and open more branches across the country due to the considerable demand.

business > marketwatch

HUAWEI’S NEW SMARTPHONE ARRIVES Huawei and Porsche Design joined forces to create a smartphone that defies barriers between performance and design. The highly sophisticated, extremely intelligent and evidently luxurious HUAWEI PORSCHE DESIGN Mate 20 RS has been released to a few selected countries including Qatar.

veryone is on the watch for this limited-edition model that comes in a red-coloured natural leather that envelopes an 8 GB RAM + 512 GB ROM and is priced at QR7,099. It also has new exciting features including the iconic leather design, customized UI, a wide-angle thinking lens, SuperCharge 2.0 battery, wireless charging and cameras built in glass. Its display features boast a 6.39-inch screen size and an OLED type with a resolution of 2K+ 3120 x 1440, 538 PPI. Biometric Security is also an added spec in the PORSCHE DESIGN HUAWEI Mate20 RS with 3D Depth Sensing Camera and In-Display Fingerprint sensor. The combination of the two provides the user with ultimate information security.

With all its innovative features, this phone is perfect for the elites who are on the search for the ultimate craftsmanship and Artificial Intelligence experience. True to its exquisite form, its exterior is intricately designed with its glass cover and the semi-aniline top grain leather that is made from natural cowhide. The phone is encased in red and black that is inspired by a chassis with sophisticatedly sleek sides. Imprinted on the back of the phone is the iconic race car design element Rennsport “RS” as well as the Matrix System camera arrangement that has become the fierce trademark of the Mate20 series.

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business > marketwatch

NBK HOLDING AND KHAYA GLOBAL TO SUPPORT 2022 WORLD CUP NBK Chairman Sheikh Nawaf bin Nasser Al Thani and CEO & Founder of Khaya Volkhard Bauer signed an agreement to partner and support the eagerly anticipated 2022 FIFA World Cup.

he partnership allows their expertise and services to be utilised to support the necessary needs of the World Cup staff and visitors. The partnership takes control of everything from market research, planning, accommodation, flights and comprehensively tailored trip programmes as well as must-try restaurants, top cultural and tourist destinations and other services. The NBK Holding Chairman said that the agreement will allow the regional and international visitors planning to attend the 2022 FIFA World Cup to benefit from their international expertise, coupled with local knowledge and resources. Through this, NBK will provide state-of-the-art services for visitors and staff, ensuring they enjoy the event. “Thanks to the vision of our wise leadership, we are moving forward to contribute effectively in delivering a legacy event that will remain in the memory of all generations, both at home and abroad,” he said. Khaya

Group CEO Volkhard Bauer explained: “As a company specialised in accommodation and travel arrangements, we are pleased to partner with NBK Holding, the leading business group in Qatar, which we believe is

a perfect fit to our business, and will facilitate the provision of world-class services that will ensure an unforgettable experience for the estimated 1.2 million visitors to the World Cup.”

I-LIFE DIGITAL INTRODUCES THREE LAPTOPS

M Kasim, Senior Purchase Manager, Safari Group, and Mohammad Imran, General Manager, Prime Distribution Trading Company, presented the three new devices–Zednote PrimeConvertible, Zedair-Ultra slim and ZedairLite Ultra slim notebook. I-Life’s new range of products allows greater experiences that are also convenient to fit any backpack, desk and most importantly every budget whether you are working or

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I-Life Digital, one of the leading consumer electronics company in the Middle East, CIS and Africa, has announced the launch of its latest notebooks in Qatar. The official distributor partner for Qatar, Prime Distribution Trading Company (a subsidiary of Ali Bin Holding), will distribute the new products in all major retail stores in the country. a student. The latest products also feature a slim, lightweight and stylish design that comes with sufficient storage and a prolonged battery-life that is powered by Intel processor and equipped with Microsoft Windows 10 operating system. Regional Head of I-Life Digital Technology, Pankaj Patil, said: “The new laptop's range performance can handle all the tasks that today’s consumer/student needs or wants from their technology – including long

battery life, lightweight and stylish design that is powered with Microsoft applications and an Intel processor for the ultimate computing experience.” Mohammad Imran said: “We believe in the products we distribute and I-Life products are perfect for the smart consumer. Prime Distribution Trading Company will make sure that the new products are available seamlessly across the market in Qatar.”

city life > doha diary QATAR MUSEUMS JOINED THE NATIONWIDE FLAG RELAY

Qatar Museums joined the nationwide Flag Relay 2018 to celebrate this year’s Qatar National Day which aims to inspire pride and unity and to spark inspiration among people from different walks of life such as athletes, ambassadors and diplomats, school children and various organisations in Qatar.

he event was held beside the iconic Museum of Islamic Art where its CEO Ahmad Musa Al Namlar received the flag from Margarita Zuniga, Historian Officer of Qatar Chapter. The CEO said: “It’s an honour to be part of the Flag Relay 2018 and

Qatar Museums embraces the spirit of unity and diversity, something that is seen across our institutions and supports our programming.”

QUR’ANIC BOTANIC GARDEN SIDRA MEDICINE HOSTS HOSTS TREE-PLANTING EVENT "WOMEN IN SCIENCE" WORKSHOP As part of the Functional Genomics Symposium 2018, Sidra Medicine hosted a workshop on “Women in Science” and Dr Dame Kay Davies, Professor of Genetics from Oxford University, was honoured for her contribution to science and medicine on the occasion.

B As part of its popular "Ghars" campaign, the Qur’anic Botanic Garden (QBG), a member of Qatar Foundation (QF), hosted a tree-planting event in Education City.

epresentatives from the Qatar Financial Centre Regulatory Authority and more than 70 students from various schools in Qatar – including Qatar Leadership Academy, part of QF’s Pre-University Education, Dukhan Primary Preparatory Secondary School for Girls, Omar Bin Al Khattab Secondary School for Boys, and Ali Bin Jassim Bin Mohammed Al Thani Secondary Boys School – took part by planting 30 trees. QBG Manager Fatima Saleh Al Khulaifi said: “The event leaves a green ‘fingerprint’ on Qatar’s journey to hosting the 2022 FIFA World Cup. These activities reflect our efforts to raise environmental awareness in Qatar in order to protect and preserve the natural world. Ultimately, we want to help create solutions to global environmental issues, such as desertification, climate change, and biodiversity.” The "Ghars"-led event aims to raise awareness of the importance of environmental conservation in line with QBG’s overarching goal of cultivating 2,022 trees by the 2022 FIFA World Cup.

esides Prof. Dame Kay Davies, Dr Elizabeth Ross, Professor of Neurology and Neuroscience from Weill Cornell Medicine, New York; Dr Elizabeth Phimister, Deputy Editor of The New England Journal of Medicine. Prof Mariam Al Ali Al Maadeed, Vice President of Research and Graduate Studies, Qatar University; and Dr Souhaila Al Khodor, Research Investigator from Sidra Medicine attended the workshop. The panelists highlighted their main motivation for joining the science and research fields, the challenges they had to overcome and what it took for them to be successful in their careers. Dr Bernice Lo, the Research Investigator at the Sidra Medicine workshop, said, “The workshop aims to empower and encourage young women, especially in Qatar, pursuing careers in science. Awarding Prof. Davies was especially momentous as her contribution to science and genetics will have a key impact on future generations of young scientists.”

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city life > doha diary

QU COLLEGE OF ENGINEERING BAGS AWARD Qatar University stood first for demonstrating its project “Hardening Fingerprint Authentication” using Intel’s SGX Enclave Technology, beating a group of 31 shortlisted projects from nine countries in the Middle East, Turkey and Africa (META) region in 2018.

he event, entitled “Envision the Future,” was hosted by Dell EMC in its annual graduation project competition for the region. The winning team comprised students from the Department of Computer Science and Engineering at Qatar University. With over 329 project submissions by more than 1,450 senior undergraduate students, the results were highly positive as the competition witnessed significant year-onyear growth wherein the competition saw 154% more project submissions than last year. The winning team’s project addresses the imminent issue of security by developing a secure identification system, using the fingerprint as an example of biometrics. The project itself is distinct because of its use of innovative technology including software guard extensions to create a protected area of execution in memory called an enclave, allowing the protection of data even if the machine or operating system is compromised.

The competition provides an opportunity for students to showcase their ability and to drive the next generation of IT leaders to review a wide range of emerging technologies and apply the knowledge acquired from the Dell EMC Academic Alliance programme in their respective universities. This annual competition also gives the students a chance to prepare for their future careers in a transforming industry by equipping them with relevant marketable knowledge and skills.

“WHAT SHE SAID” RETURNS TO DOHA “What She Said,” a global speaker series which aims to encourage women who navigate the challenges and triumphs of work and play to go after their goals despite hurdles, returned to Doha.

his time, the event focused on the realm of education in collaboration with Education Above All (EAA) Foundation, to mark International Human Rights Day held on December 10 each year, in celebration of femininity and women pushing boundaries. More than 150 women attended the event in which a panel discussion was held by four incredible Qatari women who were breaking boundaries in the field of education. The panelists included Hessa Al Noaimi, EAA Youth Advocate, Nawaal Akram, Comedian, Model, Athlete and Disability Rights Advocate, Tahani Al Hajri, Writer and Social Activist, and Reem Al Suwaidi, General Manager of Bedaya, and was moderated by Bianca Brigitte Bonomi, Editor-in-Chief of Grazia Arabia. The participants spoke about their individual journeys and challenges while sharing passionate advice on how to get through obstacles as well as build the key tool in facing adversity which is resilience. The discussion also explore dthe necessity of education in emergency responses, the importance of equitable education for all genders and disabilities, as well as the impact of education on conflict-affected communities. Emerging artist, Hessa Kalla, dominated the stage with an interactive painting activation during the programme.

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“DESERT ROSE”

TO BE OPENED SOON

THE MUCH-AWAITED INAUGURATION OF THE NATIONAL MUSEUM OF QATAR (NMOQ) WILL BE HELD UNDER THE PATRONAGE OF THE AMIR, HIS HIGHNESS SHEIKH TAMIM BIN HAMAD BIN KHALIFA AL THANI, ON 28 MARCH 2019. DESIGNED BY INTERNATIONALLY RENOWNED FRENCH ARCHITECT JEAN NOUVEL, ITS DYNAMIC ARCHITECTURAL DESIGN CLEARLY REFLECTS THE GEOGRAPHY OF QATAR WHILE EVOKING THE HISTORY AND CULTURE OF THE NATION.

atar has a deep rapport with the desert, with its flora and fauna, its nomadic people and its long traditions. To fuse these contrasting stories, I needed a symbolic element. Eventually, I remembered the phenomenon of the desert rose: crystalline forms, like miniature architectural events, that emerge from the ground through the work of wind, salt water and sand. The museum that developed from this idea, with its great curved disks, intersections and cantilevered angles, is a totality, at once architectural, spatial and sensory.”

Three chapters

NMoQ is divided into three chapters depicting the Beginnings, Life in Qatar, and Building the Nation that are presented in 11

galleries. The visitor’s journey starts in the geological period long before the peninsula was inhabited by humans and continues to the present day, down to a succession of impressive, remarkably shaped volumes until it reaches its culmination in the very heart of Qatari national identity, the thoroughly restored palace of Sheikh Abdullah. Each gallery is an all-encompassing environment, which tells its part of the grand story through a creative combination of elements such as music, storytelling, archival images, oral histories and evocative aromas. With each environmental gallery made to have distinct experiences, they also contextualize an impressive array of archaeological and heritage objects, which include the renowned Pearl Carpet of Baroda—embroidered with more than 1.5 million of the highest-quality Gulf pearls and

adorned with emeralds, diamonds, and sapphires—as well as manuscripts, documents, photographs, jewellery, and costumes. Both local and international artists have also been invited to create site-specific commissions in response to the museum’s collection and as an enhancement of the exhibition experience. The immersive and experiential NMoQ tells the story of the people and the land of Qatar from the earliest times to today, giving voice to the country’s rich heritage and culture and expressing a vibrant community’s aspirations for the future. The NMoQ also embraces, as its centre piece, the restored historic palace of Sheikh Abdullah bin Jassim Al Thani (1880-1957), son of the founder of modern Qatar: a building that in former times was both the home 63 > QATAR TODAY > JANUARY-FEBRUARY 2019

city life > doha diary “QATAR IS AN ANCIENT LAND, RICH IN THE TRADITIONS OF THE DESERT AND THE SEA, BUT ALSO A LAND THAT HOSTED MANY PAST CIVILISATIONS. WHILE IT HAS MODERNISED ITS INFRASTRUCTURE, IT HAS STILL REMAINED TRUE TO ITS CORE CULTURAL VALUES. WE LOOK FORWARD TO SHARING NEW MUSEUM EXPERIENCES WITH OUR PROUD AND DIVERSE COMMUNITIES, AS WELL AS WELCOMING INTERNATIONAL GUESTS IN THE SPRING OF NEXT YEAR.” of the Royal Family and the seat of government and was subsequently the site of the original National Museum. The architect’s new 52,000 sq m building incorporates the palace while seamlessly integrating innovative artworks commissioned from Qatari and international artists, rare and precious objects, documentary materials and interactive learning opportunities.

Exciting times

The Chairperson of Qatar Museums, HE Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani, said: “Qatar is an ancient land, rich in the traditions of the desert and the sea, but also a land that hosted many past civilisations. While it has modernised its infrastructure, it has still remained true to its core cultural values. We look forward to sharing new museum experiences with our proud and diverse communities, as well as welcoming international guests in the spring of next year.” The National Museum will give visitors an unprecedented museum experience, with people at the heart of its vision and development. It narrates the story of the people of Qatar and shares it in an innovative, holistic and immersive way. Central to the vision of the museum is intergenerational learning, for school children, for adults, for all, through our multilayered thematic exhibits, interactivity and programming. Director of the National Museum of Qatar, Sheikha Amna bint Abdulaziz bin Jassim Al Thani, said: “At the core of the Museum’s permanent exhibits and accessible to the 64 > QATAR TODAY > JANUARY-FEBRUARY 2019

public is a digital archive of thousands of images, videos and documents from Qatar and abroad. And all these elements will be made accessible to as many people as possible.” NMoQ Deputy Director of Curatorial Affairs Dr Haya Al Thani described how the museum had worked with partners including the Doha Film Institute over five years to record these memories and preserve information about the country. “More than 70 films will be displayed through the museum galleries, bringing the displays of objects to life through shared memories of recent history. More than 300 members of the public participated in the project all in all,” she added.

Community engagement

The 112,000 sq m public park is landscaped exclusively with drought-resistant native vegetation. This surrounds the Museum, featuring family-friendly interactive learning environments, walkways, a lagoon and more. This also creates outdoor areas where children can learn through play and exploration, discovering crucial aspects of life in Qatar, aside from what they learn from the museum itself. A wide range of activities for the entire community will also be offered by the museum. These include spaces that host educational and cultural activities such as workshops, competitions and lessons on arts education, and other activities for a range of ages, especially school students, which can help educate the public about a range of topics related to culture and history and which also complement the national curriculum

as a major focus for the National Museum of Qatar.

The architecture of the Desert Rose

The form of the desert rose has inspired a building composed of large interlocking disks of different diameters and curvatures which together surround the historic palace like a necklace. A central court, the Howsh, serves as a gathering space for outdoor cultural events as it sits in the ring of gallery spaces. The sand-coloured concrete cladding seems to create an illusion and harmony with the local desert environment that makes the building look like it grew out of the ground and be one with it. Shadows cast by the cantilevered disks also help shelter visitors as they stroll around the outside, as it also protects the interior from light and heat. The interior is also a landscape of interlocking disks, in finishes that are neutral and monochromatic. The floors are sand-coloured polished concrete and the “vertical” walls are coated in stuc-pierre, or stone stucco, a traditional gypsum and lime-blended plaster. The varied interior volumes make the experience more breathtaking, surprising and adventurous as they make each different from the one before it. Special Advisor to QM Chairperson Mansoor bin Ebrahim Al Mahmoud, NMoQ Senior Museum Development Specialist Dr Karen Exell, and NMoQ Deputy Director of Operations Saif Al Kuwari were present at the briefing.

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