Progress qatar '13 '14

PROGRESS 2013-2014

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2013-2014 SLUG NAME

HH THE EMIR SHEIKH TAMIM BIN HAMAD AL THANI

HH THE FATHER EMIR SHEIKH HAMAD BIN KHALIFA AL THANI

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PRESENTATION

foreword

9 PROGRESS 2013-2014

Many research projects from Qatar also saw the light of dawn with the GTL jet fuel used to fly one of its own planes, a MicroMapper programme, the first ever set of micro tasking apps specifically customised for digital humanitarian response, from QCRI, the Qatari genome mapping project which leads the way in prevention of inherited diseases and the launch of a carbon storage and research project which is currently underway.

Infrastructure projects have taken off. The new Hamad International Airport will soon see passengers using its facilities while the next stages of airport development are already being planned and executed; the road projects are in full swing, disrupting the commuters but promising effortless road travel soon; the Qatar Rail’s projects and new Doha Port are also under construction.

These activities, with the many cranes forming the backdrop of the Doha skyline, are representative of the country in 2014 and beyond.

Social development has had its moment too, with the new health strategy announced last year that mandates that the health of the population, from Qataris to labourers’, will be under the sponsor’s responsibility, making insurance cards mandatory for everyone.

While reforms are being seen in most quarters, labourers’ woes are still echoing inside and outside the country, with Amnesty International’s report highlighting their concerns.

Progress 2013 brings you all the major stories from Qatar that mapped the year gone by.

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2013 was a year when Qatar scored another first in the Arab world with the transfer of power to the younger generation. The abdication by the Father Emir was just one of the events that marked the year in which Qatar moved from concept to execution on many of its projects. The launch of LDPE 3 in the end of 2012, along with further plans to develop other petrochemical plants, had made sure that Qatar will hold its place in the exclusive club of major petrochemical producers and exporters.

Contents 17

OVERVIEW 12 Qatar is the world’s GTL capital

2013 was a year that saw Qatar become the GTL (gas to liquids) capital of the world, trumped tourism figures with an influx of regional visitors and also launched a progressive health strategy for all citizens.

17 Power to the youth

Qatar wrote history with a peaceful power transition. Progress Qatar looks at the watershed moments of the period when Qatar was ruled by the Father Emir, HH Sheikh Hamad bin Khalifa Al Thani.

21 A new generation at the helm

Progress introduces the faces that make up the new government announced by the Emir, HH Sheikh Tamim bin Khalifa Al Thani.

ECONOMY 26 GTL, the growth driver

Following Qatar’s huge success in monetising the revolutionary GTL technology, the green fuel is now recognised as a viable alternative to oil.

37 A geographical shift in portfolio

From high-profile European assets, Qatar is gradually shifting attention to assets that further its economic interests.

40 Neighbour’s envy, Owner’s pride

Despite economic slowdown in different countries, Qatari banks have been performing well on the domestic front for the last few years and are looking at global expansion.

Qatar is surely a paradise for bankers, as the banking sector has been robust as far as its strong balance sheets underpinned by a strong capital base, prudent risk management, high liquidity and low non-performing assets are concerned during 2013.

49 Insuring for the future

The insurance business, though at its nascent stage, is undergoing a transformation in Qatar with an increase in insurance penetration.

51 On a high pedestal

The MSCI and Standard and Poor’s upgraded Qatar from frontier to emerging market for its financial stability in May 2013, with effect from May 2014.

Qatar Exchange CEO Rashid bin Ali Al-Mansoori explains the achievements of the bourse, expectations for the coming year and the services being rendered to investors both local and foreign.

Contents INFRASTRUCTURE 57 ‘Power’ing Qatar

40

The ongoing infrastructure projects and a burgeoning population need adequate electricity and water in the coming years, and Kahramaa has taken up the task of meeting the twin demands.

60 The future is here, in Qatar

The nation is hosting the FIFA World Cup in 2022, and Ashghal (The Public Works Authority) is spending QR364 billion on further improving civic amenities by that time.

63 The face of Qatar‘s Aviation Sector

Progress Qatar speaks to the Qatar Civil Aviation Authority (QCAA) Chairman, HE Abdul Aziz Al Noaimi who details some glorious moments in the aviation sector.

65 “HIA is unique because it is in Qatar”

Hamad International Airport will soon be functional and it will be a reflection of what the country wants to be, unique and impeccable in every aspect.

63

69 Taking transportation to new levels

Qatar’s transportation sector will witness change when Qatar Rail completes the Doha Metro project in 2019.

ICT AND TELECOMMUNICATIONS 82 Opening a new world of possibilities

Qatar has been climbing the ladder at a faster pace than ever before in the ICT and Telecommunications sector by initiating several measures to improve connectivity.

SOCIAL DEVELOPMENT 113 Moving towards an inclusive society

Qatar leads the region building quality healthcare and educational infrastructure, empowering women and encouraging Arab culture and heritage.

126 Healthcare is foremost

The National Health Strategy coupled with the plans to bring health services on par with global standards takes medicare to a new level.

103

Overview

Marching towards a vision “The criterion of success in the areas of human development such as health, education, culture and sports etc is not measured solely by the scale of investment (in which there would be no dereliction on our part, God willing), but the lesson lies in working efficiently and faithfully and in the outputs and outcomes,” says the Emir, HH Sheikh Tamim Bin Hamad Al Thani, in his first annual address to the Shura Council. Taking forward his father’s vision, the Emir lays emphasis on execution and tangible development outcomes.

Much has been achieved in setting up systems, institutions, programmes and training. Though it is still a work in progress, the success in some fields is commendable.

PROGRESS 2013-2014 18

The Helium 2 Plant

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ecoming the GTL capital of the world was a formidable feat for Qatar. It is probably a one-off success story that might be difficult to replicate elsewhere. A unique combination of factors – visionary leadership, abundant resources, availability of low-cost natural gas and path-breaking technology and innovation – all worked together to make it a reality for Qatar. Pearl GTL will produce value-added high-margin products that will keep the cash registers ringing in future. Pearl GTL is already pepping up oil and gas revenues, which according to QNB forecasts will have grown by 2.8% in 2013, largely due to Pearl GTL. Petrochemical hub Pursuing the diversification dream, Qatar has set out to create a petrochemical hub. The launch of the LDPE 3 plant in 2012 marked a significant milestone towards this dream. “While Qatar is blessed by plentiful natural resources, it is the value that is created by processing the raw products that moves the

country towards its economic diversification goals in the coming decades. With the launching of LDPE 3 and plans to develop other petrochemical plants, Qatar is set to join the exclusive club of major petrochemical producers and exporters,” said HE Dr Mohammed bin Saleh Al Sada, the Minister for Energy and Industry on the inaugurating the plant in November 2012.

Tourism on a high Sectors such as tourism and construction are showing positive results too. According to the Qatar Tourism Authority (QTA)’s Q3 2013 report, regional visitors increased by 20% and tourists coming from other continents rose by 13.36% compared with Q3 2012. Hotel occupancy was up by 13% and the number of rooms available increased by 4.73%. Tourist attractions such as this year’s Eid Al Adha and Eid Al Fitr festivals along with performances of Cirque du Soleil at the Aspire Dome promoted Qatar as regionally a family tourist destination. QTA is preparing for the launch of National Tourism Strategy, which will serve as the road map for the sector’s development in the

Overview 19 PROGRESS 2013-2014

Qatar is the world’s GTL Capital

GDP by economic Sectors (2012)

(%)

Gas

42

Oil

15.6

Non-hydrocarbon

42.2

Financial services

10.2

Government services

8.7

Trade and hotels

5.6

Logistics

3.3

Other services

1.8

Services

29.6

Manufacturing

9.8

Construction

4.4

Utilities

0.4

Non-oil industry

14.6

Agriculture

0.1

Imputed bank fees

2.1

Total GDP (QR billion)

698.88

Source: Economic Insight report September 2013

Overview

Estimated Current Project spending budgets (% share)

Construction

46.8

PROGRESS 2013-2014

20

Transport

34.9

Industrial

0.5

Oil

1.5 Power

Chemical

2.6

5.6

Water

2.8 QNB Economic Insight report 2013

Gas

5.3

coming years. The construction sector is expected to grow at over 10% as infrastructure projects kick off, and will be a future growth driver.

Research marks the way The environment-friendly GTL Jet Fuel, the first to be approved globally in the last 20 years, originated in Qatar, and Qatar has created technology that can be used effectively in disaster management operations across the globe. These are some of the success stories that have started surfacing from Qatar’s research labs. There may be more to come. Several high-profile research projects that could have a global impact are under way. In 2013, Qatar pledged QR255 billion ($70 million) for a 10-year carbon capture and storage (CCS) R&D project that aims to explore new storage technologies for CCS. It is a joint initiative of Shell, Qatar Petroleum (QP) and the Qatar Science and Technology Park (QSTP) in collaboration with Imperial College, London, and is part of Qatar’s efforts to reduce carbon emissions. Talent development is the key to long-term success. Several funding programmes are in place and the applications for these programmes are increasing every year.

Private enterprise growth Organisations such as Silatech, Qatar Development Bank and Enterprise Qatar are working hard to support the private sector. Qatar Development Bank, through its export arm Tasdeer, helped private sector companies in Qatar significantly increase their non-oil exports in 2012. According to data provided by the Qatar Statistics Authority (QSA), companies directly supported by QDB increased their non-oil exports from QR597 million in 2011 to QR1,056 million in 2012, a year-on-year increase of 77%.

Events such as Global Entrepreneur Week and Enterprise Challenge Qatar, organised by Shell Qatar and QDB, are becoming popular. These competitions unearth entrepreneurial talent among college and school students. More than 430 students from nine universities and six secondary schools participated in the 2013 challenge.

Health gets a boost The National Health Strategy guides Qatar’s progress in the field of healthcare. Launched in 2011, the NHS involves 39 projects and the collaboration of more than 50 organisations.

There are currently 39 NHS projects, 38 of which are under active implementation. More than 11% of the strategy outputs have been achieved and significant progress has been made in the rest. The first phase of the Social Health Insurance Scheme was launched this year.

Qatar’s primary healthcare system has increased staff, improved capabilities, developed services and infrastructure and set up patient pathways. Implementation of the prima-

Sector

End

Comment

Lusail Mixed-Use Development

Construction

2019

Waterfront development to the north of Doha. The lead developer is Qatari Diar. This phase includes islands, marinas and residential, commercial and business districts.

Qatar Integrated Rail

Transport

2026

The project scope includes 300 km of rail in Doha, a metro and light rail network, a passenger and freight railway linking Ras Laffan and Mesaieed via Doha, a high-speed rail link between the new Hamad International Airport, Doha City Centre and Bahrain via a planned causeway and a freight rail to be linked to a planned GCC network.

New Doha (Hamad) International Airport

Transport

2014

The new airport will have six times the capacity and half of it will be built on reclaimed land. It will handle 50 million passengers and 2 million tons of cargo each year by the time it is fully complete officially in 2015 but likely to be delayed), although the initial phase will only include capacity for 25 million.

Roads and Associated Facilities

Construction

2016

The master developer for this project is Ashghal, the Public Works Authority. It includes a network of roads, utilities and infrastructure.

Barzan Gas Development

Gas

2023

RasGas is developing this project to increase gas supply to the domestic market to meet rising demand for power as well as to supply ethane and propane to industry. First production is expected by 2015.

Barwa Al Khor Development

Construction

2025

Mixed-use development (villas and town houses, terraces, flats and mixed-use areas, two sprawling hotels, marina, golf course and shopping malls) to the north of Doha.

Barwa Mixed-Use Development

Construction

2015

This development to the south of Doha includes residential areas, schools, hospitals, hotels, a golf course, commercial facilities and recreational areas.

Doha, Lusail and Dukhan Highways

Transport

2016

This project is part of Ashghal’s plans to develop a number of major motorways

Education City

Construction

2014

The Education City project includes a university campus, schools, a science and technology park and associated facilities.

New Doha Port

Transport

2030

The new port will be built to the south of Doha, replacing the old port in central Doha. The project will be completed in five phases, taking total capacity to 12 million 20-foot containers.

Al Sejeel Petrochemical

Chemical

2018

A QP/QAPCO petrochemical and aromatics plant.

The Pearl-Qatar

Construction

2014

Ongoing development of a man-made island near West Bay, Doha’s business district. It is the largest real estate development in the country and is the first to offer freehold to international investors.

Al Karaana Petrochemical Chemical (Ras Laffan)

2018

A QP and Shell petrochemicals project that will produce downstream products such as ethylene glycol and alpha olefins.

Barwa – Oryx Island

Construction

2022

A temporary pedestrian tourist island for the World Cup. It will accommodate 25,000 fans in five temporary hotels and luxury villas and will also include an aqua park. The project is currently under study.

Musheireb MixedUse Development

Construction

2016

A regeneration project in central Doha, balancing modern innovation with cultural heritage. The development will house over 27,000 residents and includes commercial, retail, cultural and entertainment areas.

Sharq Crossing

Transport

2020

Doha Bay crossing from the airport to West Bay and Lusail.

2022 World Cup Stadiums

Construction

2019

Plans for nine new air-conditioned stadiums and redevelopment of three stadiums for the FIFA World Cup in 2022. Most of the stadiums will have a capacity of 40,00050,000 while the Lusail stadium will have a capacity of 86,250 and will host the opening and final matches.

ry care strategy has already begun. Seventeen new primary health centres are being built across the country over the next three years. The Qatar Council for Healthcare Practitioners was founded in March 2013 to regulate medical professionals. A Translational Research Institute to carry out research that can be translated into tangible benefits is under construction.

Work is under way to deliver mental health care in community-based settings and to integrate mental health within the

broader health system. A new Mental Health Strategy will also be launched soon.

Education system reviewed In a step-by-step approach to building the knowledge blocks, Qatar first reformed its education system. The Supreme Education Council incorporated measures such as school autonomy, variety in curriculum, parental choice and accountability in the

21 PROGRESS 2013-2014

Project

Overview

Major Projects at a glance

The Global Cometitiveness Index 2013-2014 rankings and 2012-2013 comparisons

Country/Economy

Overview

Switzerland

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Rank (out of 148)

Score (1-7)

Ranking among 2012-2013 economies*

GCI 2012-2013

1

5.67

1

1

Singapore

2

5.61

2

2

Finland

3

5.54

3

3

Germany

4

5.51

4

6

United States

5

5.48

5

7

Sweden

6

5.48

6

4

Hong Kong SAR

7

5.47

7

9

Netherlands

8

5.42

8

5

Japan

9

5.40

9

10

United Kingdom

10

5.37

10

8

Norway

11

5.33

11

15

Taiwan, China

12

5.29

12

13

Qatar

13

5.24

13

11

Canada

14

5.20

14

14

Denmark

15

5.18

15

12

K-12 education system. Qatar University engages students in a variety of research programmes and is a pillar of support. Qatar Foundation (QF), an umbrella organisation created centres of excellence in education. The education sector was allotted QR22 billion in 2012-13, 14% more than the previous year.

QF’s flagship project Education City - has continued to expand over the past decade, with the establishment of several topclass international universities that are strengthening Qatar’s efforts in providing innovative education and research. This international conglomerate of elite universities now comes under the umbrella of an integrated centre of academic excellence - the Hamad Bin Khalifa University (HBKU).

Emphasising the importance of education to Qatar, the Emir said in a speech at his first Shura Council meeting: “We shall seek to continue spending on research and development and expanding the school voucher system, scholarship and training programmes, and improving the quality of the educational process, because education is the driving force to progress.”

Environment is also important Being one of the largest per capita carbon emitters, Qatar’s hosting of the COP18 Climate conference in December 2012 was criticised. But several efforts at reducing the country’s carbon footprint such as successful reduction in flaring, investment in carbon capture research projects, investment in solar energy and attempts at promoting green building practices might gradually raise Qatar’s profile as an environment crusader. A big step was taken this year when Kahramaa announced that solar energy from QF’s Solar Smart Grid project

will be fed into Kahramaa’s grids soon. Though the amount of energy met by renewable sources will be miniscule, it is a positive step forward. Kahramaa plans to build a 200 MW solar plant -- that will be 2% of Qatar’s installed energy capacity by 2020. For the first time, an ultra-low-energy consuming green villa was constructed as a pilot project to promote the benefits of green building practices and sustainable development. The project will be powered by solar modules made by Qatar Solar Technologies. This project could be replicated on a larger scale to drastically reduce energy consumption in upcoming buildings. Campaigns such as Tarsheed have been launched to educate residents about optimum usage of water and electricity and how to reduce wastage.

Global Ranking Qatar has climbed the charts in some areas and continues to lag behind in others. According to the World Economic Forum’s Global Competitiveness Report 2013-2014, Qatar ranked 13th out of 148 countries, beating Canada, France and China but lagging behind countries like Germany, the US and Switzerland. Qatar has been named the most competitive economy in the Middle East for the third year in a row.

Qatar attained the highest human development ranking among Arab Gulf countries in the human development report for 2013 issued by the UN Development Programme. It also topped the wealth list, recording the highest average wealth per adult in the MENA region at $153,294 in mid-2013, a 2% growth over the previous year, according to a Credit Suisse Global Wealth report

Overview

Power to the youth

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Qatar writes history with a peaceful power transition

I

n a path-breaking move not just for the GCC but for the entire Arab world, HH Sheikh Hamad bin Khalifa Al Thani transferred power peacefully to his son, Heir Apparent HE Sheikh Tamim bin Hamad Al Thani, on June 24, 2013, 18 years to the day from when he became ruler of Qatar.

Addressing the nation on June 25, 2013, the day after the power abdication, HH Sheikh Hamad said: “I declare that I will hand over the reins of power to Sheikh Tamim bin Hamad Al Thani, and I am fully certain that he is up to the responsibility, deserving the confidence, capable of shouldering the responsibility and fulfilling the mission.”

Addressing a gathering the day after he was handed power, the new Emir, Sheikh Tamim bin Hamad Al Thani, in his first address to the nation, said: “It is natural that we put the interests of Qatar and the Qatari people on top of our priorities.

This includes humans, society, economy, politics, and cultural identity. At the same time, we have to bear in mind that there is no identity without belonging to wider circles.

“We are part of the Arabian Gulf region, and part of the Arab world, and the Islamic world. We are also a part of humanity and the international community.”

He continued: “We seek to preserve relations with all governments and countries and we respect all sincere, active and Continued on page no. 20→

Watershed Moments How HH Sheikh Hamad bin Khalifa Al Thani shaped the identity of Modern Qatar

1971

Graduated from the British Royal Military Academy at Sandhurst and joined the Qatari Armed Forces, gradually rising through the ranks from Lieutenant Colonel to Major-General

1977

1995

Appointed Minister of Defence and also announced as the Heir Apparent

Became the Emir of Qatar

1999

Granted women the right to vote in municipal elections

Overview

1996

Launched Al Jazeera television station

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2005

Presided over the drafting of the country’s first written constitution

2008

Recognising the need for a fundamental transformation, he guided his council of ministers in drafting the far-sighted Qatar National Vision 2030

2003

2006

Granted the United States military the use of Al Udeid Air Base, which now serves as the hub for the US Central Command in the Gulf

A long-standing patron of civilian sports, he was instrumental in bringing the Asian Games to Qatar

2010

Under his auspices, Qatar won an ambitious bid to host the FIFA World Cup in 2022.

He also asserted Qatar’s position as a strategic player in the Middle East with the country’s brave and unwavering support for various revolutions of the Arab Spring, namely Libya and Syria

2013

Handed over power to his fourth son, Heir Apparent Sheikh Tamim bin Hamad Al Thani

AFP PHOTO / POOL / Brendan McDermid

“Good governance in any country is made by justice, honesty and good example.

Destiny has entrusted me with a great responsibility. God is my witness, I have acted as dictated by the duty of the mandate as the Heir Apparent, and my conscience.”

The Emir HH Sheikh Tamim bin hamad al thani

He urged his “Syrian brothers” to unite and ensure that the “large numbers of martyrs have not fallen so that despotism could be exchanged for chaos”.

Commenting on the Arab Spring, and apparently referring to the new revolution in Egypt in particular, he said: “Rarely have there been revolutions that have not been followed by desperate attempts by the former regimes to abort them.

At any rate, we should not jump to hasty conclusions about the future of the Arab revolutions. This is a historical necessity.”

He also called upon the world’s nations to support the Global Dry Land Alliance, an initiative conceptualised and spearheaded by Qatar.

“This proposed organisation will complement the work of the other relevant international organisations in combating desertification and drought and preserving the environment without duplicating their work,” he pointed out.

Facts to note • At 33 years old, HH Sheikh Tamim bin Hamad Al Thani – the second son of HH Sheikh Hamad bin Khalifa Al Thani and his second wife, HH Sheikha Moza bint Nasser – will be among the youngest Emirs in Qatar’s history.

• HH Sheikh Tamim attended Sherborne School, Harrow School and the Royal Military Academy Sandhurst in the United Kingdom, from which he graduated in 1998.

• HH Sheikh Tamim was named Heir Apparent in 2003. His responsibilities includes serving as President of the Qatar National Olympic Committee and Deputy Commander-in-Chief of the

Qatar Armed Forces.

• He is the chairman of the committee organising the 2022 FIFA World Cup, which will be hosted by Qatar, and chairs the Supreme Education Council.

• HH Sheikh Tamim is also Chairman of the Qatar Investment Authority, the country’s sovereign wealth fund, which reportedly has assets of more than QR364 billion ($100 billion).

• QIA owns stakes in many major companies such as Barclays, Xstrata, Harrods and Volkswagen.

25 PROGRESS 2013-2014

I

n his first speech to the international community as the new Emir of Qatar, HH Sheikh Tamim addressed the 68th United Nations General Assembly, touching on several wide-ranging issues affecting the region like the stalemate of the Arab-Israeli conflict, the war in Syria, the consequences of the Arab Spring, the proliferation of weapons of mass destruction in the Middle East, climate change, the Global Dry Land Alliance and Qatar’s larger role in proliferating peace, diplomacy and sustainable development in the region.

He called on the international community to apply the principles of international legality to help Palestine establish an independent state with Jerusalem as its capital as well as the right of return for the Palestinian refugees.

Sheikh Tamim also expressed dismay that “the perpetrators of brutal crimes and massacres in Syria, which have shocked every human conscience, are enjoying impunity from deterrence or accountability”.

Overview

Representing Qatar on the world stage

The Emir, HH Sheikh Tamim bin Hamad Al Thani and The Father Emir, HH Sheikh Hamad bin Khalifa Al Thani, meeting people during the National Day celebrations.

Overview

← Continued from page no. 17

PROGRESS 2013-2014

26

effective political directions in the region but we do not support one side over the other.”

HH Sheikh Tamim formed a government in which he replaced former Prime Minister and Foreign Minister HE Sheikh Hamad bin Jassem Al Thani with the former minister of state for internal affairs, Sheikh Abdullah bin Nasser bin Khalifa Al Thani, who, was named both Prime Minister and Interior Minister, while former Minister of State for Foreign Affairs Dr Khalid Al–Attiyah was promoted to Foreign Minister.

Mohammed Al–Sada, meanwhile, retained the post of Energy Minister, a key position in the country.

“We don’t take direction, and this independent behaviour is one of the established facts,” Sheikh Tamim said in his speech, broadcast on Qatar state television.

A leader who transformed the country HH Sheikh Hamad became the ruler of Qatar when its economy stood at QR29.12 billion ($8 billion), a figure that grew to QR633.36 billion ($174 billion a decade and half later.

The growth came largely from natural gas; Qatar possesses some of the largest proven reserves in the world, but produced almost nothing before 1995.

Sheikh Hamad, 61, also pushed several prestige projects that put Qatar on the world map as well helping take “Brand Qatar” to the skies. Most important of these brand-building exercises were Al Jazeera, the Arab world’s first satellite news channel, and Qatar Airways, which was relaunched in 1997.

During Sheikh Hamad’s rule, Qatar adopted a foreign policy that was moderate, and he also cultivated relationships with

countries and groups across the political spectrum.

Qatar played host to a range of peace talks and negotiations: between Sudanese rebels and President Omar Al-Bashir and between warring parties in Lebanon as well as Fatah and Hamas, the long-divided Palestinian factions.

The Arab Spring brought a more prominent role for Qatar.

In his speech to the nation, HH Sheikh Tamim spoke about his father, the leader who had helped raise the profile of the country.

“His Highness has raised our name high. During his term of office our country has derived its strength from doing good, supporting the aggrieved party, and worked out reconciliations.

His Highness the Father has managed to achieve a quiet, gradual and comprehensive revolution in all aspects of the State of Qatar without exception: investment, economy, media, culture, foreign policy, education, health, sports and environment to make in a few years a true miracle in this region, and provide a unique paradigm for its peoples.

“We take great pride in recording that the reign of His Highness represents a milestone in the history of Qatar,” he added.

“HH the Father decided to end his reign while he can give his best. He handed over the banner to me as an expression of confidence in his Heir Apparent. I hope to be worthy of this trust, and to be able to continue the path laid out by this man who is actually the builder of the modern State of Qatar and the pioneer of its awakening,” he said.

“Now, I am responding to the call of duty to carry the banner with pride on the path of glory of great ancestors,” said HH Sheikh Tamim

A new generation at the helm The faces that make up the new government.

HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani Prime Minister and Minister of Interior

In secure hands The Prime Minister of the first government in the reign of HH Sheikh Tamim is a graduate in both police science and law. He began his career as a patrol officer in the Rescue Police Service in 1985 and rapidly climbed the ranks to eventually become Minister of State for Interior Affairs and a cabinet member in 2005. He has years of experience in security issues and has headed several committees in-charge of securing major sporting events (including the Olympic Security Committee for the 2022 World Cup and Asiad Doha 2006) and important state properties in addition to extensive involvement in counter-terrorism activities. He was head of the National Counter-Terrorism Committee and has represented Qatar at various conferences and seminars on the subject.

HE Ahmed bin Abdullah bin Zaid Al Mahmoud Deputy Prime Minister and Minister of State for Cabinet Affairs

The diplomatic touch The man who has been assisting the Prime Minister and steering the Council of Ministers since 2011, and will continue to do so now under the new government, is a graduate in Arabic language and Islamic studies and also earned a master’s degree in economics. A career diplomat, he has worked at Qatari embassies across the globe including in Algeria, Oman, the USA, Mexico and Venezuela. After serving for a while as Undersecretary at the Ministry of Foreign Affairs, he became Minister of State for Foreign Affairs in 1995, a position he continued to hold till he took on the role of Deputy Prime Minister in 2011. In 1999 he was given additional responsibilities as a member of the Council of Ministers and head of the committee that was preparing the Permanent Constitution of the State of Qatar.

Overview

ately, announcing a new cabinet within days of his coming to power. HH Sheikh Tamim’s new government is largely young and is mostly new. The complete shake-up of the cabinet has seen the creation of five new ministries – Transport, Communication and Information Technology, Youth and Sports, Administrative Development, and Development Planning and Statistics – and only six out of the 20 ministers are familiar faces from the previous cabinet. Here’s a brief introduction to each of the members of the new cabinet and the ambitious paths they have taken to get to where they are today.

27 PROGRESS 2013-2014

Q

atar’s transformation from an obscure country into one of the world’s richest nations and a strategically important one that could repeatedly justify its role as a successful peacemaker in the Arab world is legendary.

His Highness Emir Sheikh Tamim bin Hamad Al Thani is expected to continue taking Qatar along its previous path, while creating his own identity that reflects the power of youth accompanied by maturity and foresight. The young Emir took the first step towards this almost immedi-

Overview

HE Dr Khalid bin Mohammed Al Attiyah Foreign Minister

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HE Hamad bin Ali Al Attiyah Minister of State for Defence Affairs

Jack of all trades

A career braveheart

Having served for eight years in the Emiri Air Force, he completed his graduation in aviation science, went on to specialise in law. Till 2008 he was heading his own legal firm, during which time he was also President of the National Human Rights Committee.

Major-General Hamad bin Ali Al Attiyah is a military man through and through and, true to that, very little is known about him. As Chief of Staff of the Qatar Armed Forces, he commanded the 11,800 personnel who make up the Army, Emiri Air Force and Navy.

HE Sheikh Abdul Rahman bin Khalifa bin Abdul Aziz Al Thani Minister of Municipality and Urban Planning

HE Dr Mohammed bin Saleh Al Sada Minister of Energy and Industry

Building a city for us to love

Holding the key to Qatar’s growth

He began working in the Ministry of Municipality and Agriculture as a trainee engineer in 1993 and was appointed Minister of Municipality and Agriculture in 2006 and later on, in 2009, Minister of Municipality and Urban Planning.

Dr Mohammed bin Saleh Al Sada remains in-charge of one of the most important portfolios in the state, a position that has been his since 2011.

HE Ali Shareef Al Emadi Minister of Finance

The multimilliondollar man

The man who turned Qatar National Bank into one of the biggest lenders in the Middle East was given the exciting and challenging finance portfolio.

he Dr Hamad bin Abdulaziz Al Kuwari Minister of Culture, Arts and Heritage

protecting our cultural treasures

This returning minister has a bachelor’s degree in Arabic and Islamic studies and a master’s degree in political philosophy. He eventually also completed his PhD in political sciences and was Qatar’s representative to UNESCO for 14 years.

He has been the man spearheading the National Health Strategy that has radically changed the healthcare landscape in the country.

HE Salah bin Ghanem Al Ali Minister of Youth and Sports

Understanding the Islamic way of life

Heading the ministry since 2010, he has been working at the Ministry of Awqaf (Endowments) and Islamic Affairs since 1996. He studied Islamic Sharia and Islamic sciences and has a PhD in literature, specialising in Islamic studies.

HE Sheikh Ahmed bin Jassim bin Mohammed Al Thani Minister of Economy and Trade

The equalising laws of the playground

In the habit of fuelling growth

The new ministry is headed by the former Chairman of the Audit Bureau and National Committee for Transparency and Integrity. He has also chaired the committee on Qatar National Day Celebrations.

Previously the Director-General of the Al Jazeera Network and part of the top management team at Qatargas, he is widely credited with many operational innovations that brought the company to the forefront of LNG exporters.

he Dr Hassan bin Lahdan Al Mohannadi Minister of Justice

Crime and Punishment, Justice and Equality

A PhD scholar in law, he served as a judge in the Courts of Qatar till 1998. Before his appointment to the post of Minister of Justice, Dr Al Mohannadi was Director of Legal Affairs at the Emiri Diwan.

he Dr Issa bin Saad Al Jafali Al Nuaimi Minister of Administrative Development

To hear the voice of every citizen His law doctoral candidate, started government service almost two decades ago in the Ministry of Interior Affairs, after which he worked in the Prime Minister’s office till 2004.

Overview

Caring for the country’s well-being

he Dr Ghaith bin Mubarak bin Imran Al Kuwari Minister of Awqaf and Islamic Affairs

29 PROGRESS 2013-2014

HE Abdullah bin Khalid Al Qahtani Minister of Public Health

he Dr Hessa Sultan Al Jaber Minister of Communication and Information Technology

Carving out a niche for Qatar in cyberspace

Overview

Only the third female minister in history, she had been effectively regulating the country’s ICT strategy through her role at the Supreme Council of Information and Communication Technology, where she was General Secretary.

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he Dr Mohammed Abdul Wahed Al Hammadi Minister of Education and Higher Education

Moulding a new generation He held various positions at Qatar University, from Research Assistant to Dean of the College of Engineering, before becoming Dean of Qatar College of Technology.

HE Ahmed Amer Mohammed Al Hamidi Minister of Environment

Dr Saleh bin Mohammed Al Nabit Minister of Development Planning and Statistics

A man with a vision During his stint as Director of Institutional Development at GSDP, he started working closely with former GSDP Secretary-General, HE Dr Ibrahim Ibrahim, contributing to the development of the Qatar National Vision 2030 and the National Development Strategy (NDS) 2011-2016.

he Dr Abdullah bin Saleh Mubarak Al Khulaifi Minister of Labour and Social Affairs

A civil servant with an academic’s heart He served as Secretary-General for Economic Affairs in the GCC Council between 1996 and 1998, after which was he Chancellor of Qatar University for five years.

he Jassim Seif Ahmed Al Suleiti Minister of Transport

Shaping a safe, clean future

Paving the road for development

He has expressed a keen interest in upgrading the Biotechnology Centre and its potential to develop modern techniques to be used in the environment and agriculture sectors; it was one of his first visits as minister.

The creation of the Ministry of Transport comes just in time, with Qatar speeding up its road development programme and the Qatar Rail project, under the new minister who previously was the Chairman and Managing Director of Mowasalat.

economy

“Energy sustainability is vital for Qatar’s continued development, and it supports the vision set forth by His Highness the Emir of Qatar for how our country will reach the year 2030.”

HE Dr Mohammed bin Saleh Al Sada Minister for Energy and Industry

The Pearl GTL Qatar

Gas To Liquid

F

ollowing Qatar’s huge success at monetising the revolutionary Gas to Liquid (GTL) technology, the green fuel is now being recognised as a viable alternative to oil. Numerous GTL plants will dot the energy map in the next few years. Shell is planning to build another plant similar to its Pearl GTL project in Louisiana in the USA, though it has yet to make the final call.

Replicating Qatar’s success elsewhere could be difficult, as the country offered a unique combination of factors that worked in its favour. Clear vision and leadership, access to abundant low-cost natural gas resources, Qatar’s ability to absorb the huge initial investment and Shell’s technology made GTL a successful option for Qatar.

Projects elsewhere have been facing issues with cost inflation and investment. Abundant availability of natural gas and low gas prices there have prompted the US to invest in GTL plants. Interest in GTL has also perked up in other resourcepoor countries such as Korea and China. However, huge con-

struction cost of energy projects is a key risk. The paucity of trained labour and rising labour costs in countries like Australia deter huge investments in GTL. As long as oil prices remain at high levels and natural gas prices are low, GTL remains an attractive option, yet GTL becomes viable only if capital expenditure (capex) and operating expenses can be reduced and the efficiency and quality of end products increased. These are all factors that were favourable for Qatar. The next growth phase for Qatar’s oil and gas sector will be fuelled by GTL product exports. The QNB group predicts oil and gas sector growth of 2.8% in 2013 due to the contribution from Pearl GTL, which reached its full capacity by the end of 2012. One full year’s production from the plant will be added to the energy basket in 2013.

The GTL Capital Qatar, the pioneer in successfully monetising the technology, is now the GTL capital of the world. Pearl GTL, the largest GTL plant to date, and Oryx GTL together make approximately

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According to energy Minister HE Mohammed bin Saleh Al-Sada, the member countries of the gas exporting countries forum (GECF) have great potential to contribute to the growth of the global economy, which has been recovering mainly due to the increase in demand for natural gas as the main, and environment-friendly component in the energy mix.

economy

The growth driver

GTL Plants around the world Location

Plant owners

Production capacity

Cost

Oryx GTL Plant (pioneer in the Gulf region)

Ras Laffan Industrial City, Qatar

QP, Sasol

34,000 barrels per day (bpd)

QR3.46 billion ($950 million)

Pearl GTL

Ras Laffan Industrial City, Qatar

QP, Shell

140,000 bpd

QR67.34 billion ($18.5 billion)

OLTIN YO’L GTL Plant

Qarshi, Uzbekistan

Uzbekneftegaz (UNG), Sasol, Petronas

38,000 bpd

QR14.56 billion ($4 billion)

Escravos GTL Plant

Escravos, Nigeria

Chevron Nigeria, NNPC

33,000 bpd rising to 120,000 bpd by 2023

QR30.57 billion ($8.4 billion)

Westlake GTL Project

Westlake, Calcasieu Parish, Louisiana, USA

Sasol

84,000 bpd

QR36.4 billion ($10 billion)

Alberta GTL Project

Alberta, Canada

Sasol Canada

48,000 bpd rising to 96,000 bpd

QR29.12 billion ($8 billion)

economy

Source: World GTL Congress 2013

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170,000 barrels per day of GTL liquids. Pearl GTL reached full capacity by end 2012 converting natural gas into premium products such as kerosene, naphtha and synthetic diesel. The end products are similar to products from crude oil but are sulphur-free, odourless and clean burning. The world over, the gradual shift to clean burning fuels, specifically greener transport fuels, is expected to perk up demand for GTL products.

They also result in better performance in terms of fuel economy, emissions, and tolerance to extreme operating conditions compared with their conventionally-derived counterparts.

The Jet Fuel of the future Qatar created history in 2013 when it became the first country to commercially introduce GTL Jet Fuel, a 50:50 mix of conventional and GTL jet fuel. In January 2013, a Qatar Airways flight from London to Doha used the GTL blend commercially for the first time. The GTL jet fuel is a breakthrough in the search for greener transport fuels and is expected to have a positive impact on the global transport fuel market. Qatar Airways will make the blend available to all international airlines fuelling in Doha, and intends to completely convert to GTL Jet as soon as possible.

Since starting commercial production in 2007, Oryx GTL – a QR3.64 billion ($1 billion) joint venture between Qatar Petroleum and South Africa’s Sasol – has exported more than 20 million barrels of premium GTL products, sold initially on the spot market and subsequently on three- to six-month term contracts.

Oryx GTL has a total GTL output capacity of around 34,000 barrels per day.

“The majority of the GTL diesel is currently sold to Europe as originally anticipated, while GTL naphtha is being supplied to customers east of Qatar, including India, Malaysia and Japan,” said Nafal Al-Hajri, Head of Sales, GTL. As well as being a global GTL pace-setter, Qatar is a long-standing and dominant force in the global liquefied natural gas (LNG) market, helping power Asian economic growth as well meeting demand from more mature yet highly regulated European markets.

A successful hydrocarbons-based industry is a key component of Qatar’s long-term national economic and social development vision. The sector is also a pillar of the economy, which is expected to grow by 19% in 2011, the fastest in the world for the second consecutive year, according to the International Monetary Fund (IMF).

Qatar has the third-largest gas reserves in the world, estimated at 885 trillion cubic feet (tcf), which, along with crude oil and condensate reserves, equated to around 192.8 billion barrels of oil equivalent (boe) in 2012. With Qatar’s population at over 2 million and nationals accounting for only 14% of the total population, hydrocarbon reserves and revenue per national were the highest in the world.

The development of its huge natural gas reserves has made Qatar the largest LNG exporter in the world and the country’s proven gas reserves are lower than only Russia and Iran. At 2012 rates of production these reserves would last for at least 160 years. This reserve-to-production ratio will decline owing to some production increments over the next few years, but it is likely that Qatar will be extracting gas well into the 22nd century

The changing natural gas landscape

A

recent QNB Group report concluded that the US shale gas is not a game-changer for Qatar. Explaining the reasons for this conclusion, the report noted that the US shale gas revolution is unlikely to spread to other parts of the world. While Asia has the largest proven reserves of shale gas in the world (19% of the world’s total), technical issues such as the depth of gas deposits, proximity to urban areas and the shortfall of technological skills make exploitation costly and will prevent development of the industry similar to that in the US in the near term. In Australia, early attempts to develop the shale gas industry have turned out to be very costly and have not yet produced significant output.

In Europe, shale gas is for the most part not commercially viable or allowed because of ecological concerns. Overall, the US shale gas revolution has resulted in a redirection of Qatar’s LNG exports to Asia. Going forward, strong Asian demand and the limited impact of the US shale gas revolution on global energy markets are projected to result in strong demand for

Qatar’s LNG exports. Qatar is therefore likely to maintain its leading role as the largest LNG exporter in the world for years to come.

Global Investment House’s Head of Research Faisal Hasan said: “Shale gas is unlikely to have a significant impact on Qatar’s gas exports in the short term. However, it may lead to pressure on gas prices in the medium to long term. The impact of shale gas will be mitigated by the fact that many industries are moving towards gas-based power production instead of furnace oil and coal in view of cost and environmental considerations. In other words, the size of the pie is likely to get bigger.”

According to Ernst and Young’s recently-released Business Pulse Oil and gas report, demand for natural gas is expected to increase steadily as a percentage of the global fuel mix over the next two decades, and is projected to account for almost a quarter of the world’s energy demand by 2035.

Deloitte Middle East Energy and Resources Leader Kenneth McKellar said: “There are sufficient uncertainties in a gas mar-

35 PROGRESS 2013-2014

Just two years after Qatar became the kingmaker of the LNG industry, the dynamically changing natural gas landscape is threatening to dethrone the country from its current dominant position as the third-largest producer and second-largest exporter in the world. burgeoning American shale gas reserves have altered the gas flow map and the factors governing the trade, throwing up challenges for key players in the energy business.

economy

How is Qatar playing the game?

“There are sufficient uncertainties in a gas market that is still far from global, for Qatar to continue to market to its core markets of Asia and Europe, which it has already done for several years.”

economy

McKellar Kenneth Leader, Deloitte Middle East Energy and Resources

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ket that is still far from global, for Qatar to continue to market to its core markets of Asia and Europe, which it has already done for several years.”

Though Qatar may be well positioned to ride the demand and price wave in the short term, going forward it may be increasingly difficult to strike long-term contracts, and may have to reconcile itself to lower gas prices. In the long run its capacities will be dwarfed by upcoming capacities in Australia and America. Qatar will be keeping a keen eye on the competition and technology innovations such as gas from methane hydrates.

Unruffled yet cautious, Qatar seems to be weighing its options and has charted out a mitigation strategy for the long term. In Faisal’s view, “Qatar can advocate replacing coal with gas for energy-intensive industries to reduce pollution, get exposure to shale gas companies and further develop gas exporting infrastructure i.e: expansion of shipping fleets. Diversifying the geographical customer base, (entering into) longterm contracts and aggressive customer retention policies can also help maintain the edge.” Qatar is experimenting with all of the above.

Securing long-term customers The LNG trade historically has been done through multi year (usually 20-25 years) supply contracts based on oil prices. Over the past few years, increasingly more LNG is being traded on spot markets due to demand from Asian countries and rising spot prices. An International Gas Union report states that spot volumes were up 13% year-on-year in 2012 at 73.5 million tonnes. This accounted for 31% of total traded volumes, compared with less than 8% in 2005.

Accounting for a major chunk of spot volumes, Qatar rode the price wave to its benefit, compensating for the drop in US offtake. According to the QNB Group, “Qatar supplied 73% of its production through long-term contracts in 2012. The share of long-term contracts will rise to 84% of total production by 2014 as long-term supply contracts to Asia and South America will take up large amounts of production.”

Buyers are now becoming wary of entering into long-term contracts, due to the fast-changing market dynamics, and negotiating for shorter tenures of five to 15 years. In the past two years Qatar has struck 20-year deals with new markets such as Thailand and South America. The QNB Group notes: “During the period 2014-21, around 16% of production is not covered by existing sales and purchase agreements (SPAs) and is potentially available to be sold on spot markets. A number of potential SPAs are currently under discussion, reportedly with India, Pakistan and Turkey.” The QNB Group expects new contracts will be signed to replace or extend existing contracts as they expire.

Price “Wise” To cover the huge initial investments required for LNG, longterm contracts are linked to oil prices and have traditionally been higher than spot prices. Due to rising oil prices and lower gas prices, buyers have been demanding to move away from oil-linked pricing. The difference is now narrowing, leading to gas-to-gas competition. Japanese spot prices have shot through the roof, recently nearly the $19/mmBtu (million British thermal units) levels compared to $16/ mmBtu in 2012.

It’s been a good ride for Qatar in the spot markets so far, as it enjoyed higher prices by diverting long-term supplies to

Qatar diverts gas for making-value added products domestically

(metric tonnes per year, % shares shown) Gas usage as % of total production

2008

2012

2016 (forecast)

GTL (%)

NIL

3.2

5.7

Pipeline Exports (%)

22.6

13.9

17.1

Domestic Use (%)

23.9

16.5

23.9

LNG (%)

52.1

66.4

53.3

Total Production (million tonnes per year)

58.6

114.8

142.4 Source: QNB Qatar Economic Insight report 2013

Faisal Hasan Head of Research, Global Investment House

the beginning of a new era of cooperation among gas exporters. The Gas Exporting Countries Forum, a 13-member group of gas exporters headquartered in Doha, seeks to promote cooperation on gas exports. The two together may share a slice of upcoming energy projects to ride the threat posed by new technological innovations. But McKellar is sceptical and said: “The gas map of the world is too complicated, fragmented and dynamic to enable forging of a strong partnership between Russia and the Middle East.”

Energy investments abroad Qatar Petroleum’s new mission statement is to be a world-class oil and gas corporation with its roots in Qatar, and a strong international presence, reflecting its fighting spirit to stay ahead of the game. Qatar started expanding its energy investments abroad a couple of years ago, with investments in top energy companies such as Shell and Total. Through investments in these companies, Qatar gets a slice of any future development be it technology, innovation or new energy resources. The only way to beat the uncertainty is to own a piece of global energy business.

Qatar Petroleum International (QPI), the international investing arm of QP, has been mandated to scout for promising energy investments globally. Recently, QPI and UK’s Centrica agreed to buy Canadian natural gas fields from Suncor Energy.

Qatar also created Nebras Power, a company that will invest in power generation, water desalination, cooling and heating projects abroad. Investing in end user industries could not only maximise earnings potential but also give it the clout to negotiate back end feedstock deals for natural gas

economy

Russia: Building a bridge?

Qatar and Russia, the top gas-exporting countries and arch rivals in the natural gas business, are charting out a common path to face future challenges. When Qatar started supplying to the European market, which has traditionally been Russia’s stronghold, the two did have issues to sort out. Qatar has now largely committed its gas to Asian countries leaving much of Europe to Russia, a win-win situation. Qatar benefits from high Asian prices and long-term commitment; and Russia from geographical proximity and utilisation of its existing pipeline infrastructure.

Deloitte’s McKellar in an article entitled “Who Goes There: Friend or foe?” published in the journal “A Middle East Point of View” writes: “A more coordinated supply approach to Europe would certainly benefit Russia, and this is where a Russian/ Middle Eastern axis might play out.” He argues that China, “the swing demand market in Asia,” may well keep Qatar as a marginal supplier. In his opinion, “The demand situation in Asia is not really enough for Qatar to focus all its efforts there. It is in China’s interest to ration its Qatar LNG imports at current prices and to allow gas-to-gas competition to develop further in Europe, as that will help it in negotiating lower prices with Russia for larger quantities (up to 60 billion cubic metres) in the short to medium term and with Central Asian suppliers in the medium to long term. It may well be in China’s interest to retain Qatar as a marginal rather than a base-load supplier in order to force down the price of pipeline gas.”

Despite their business rivalry, Qatar and Russia seem keener on cooperation. In a significant development, Gazprom, Russia’s state-owned energy company, opened an office in Doha in 2013 to pursue joint investments with Qatar. It may signal

“Qatar can advocate replacing coal with gas for energy-intensive industries to reduce pollution, get exposure to shale gas companies and further develop gas exporting infrastructure i.e: expansion of shipping fleets. Diversifying the geographical customer base, (entering into) long-term contracts and aggressive customer retention policies can also help maintain the edge.”

37 PROGRESS 2013-2014

short-term Asian spot markets. McKellar says Qatar is “already moving away from oil-indexed pricing” as it is “no longer necessary to underpin the large amounts of capital expenditure for big LNG projects”. He thinks that by becoming a truly global provider of LNG, Qatar has done more than any provider to move away from oil indexation towards gas-to-gas competition”. Reports indicate that Japan may move towards benchmark pricing to lower its gas import costs, in turn affecting Qatar’s revenues.

Japan, Korea and India made up for 61% of spot market transactions in 2012, according to the IGU 2013 report.

To secure long-term gas offtake, Qatar may have to strike a bargain on gas prices going forward. Recently long-term buyer India refused to pay the price demanded by Qatar and struck a US deal for shale gas supplies at a much lower price. Many buyers are now reviewing their options. The QNB Group denies any impact on LNG prices, as rising Asian demand will be supportive of LNG prices in the near term even if oil prices dip. But in the long run, Qatar may have to bow to market pressures.

economy PROGRESS 2013-2014

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Diversification plans gain momentum

Qatar’s Helium 2 plant was officially inaugurated by HE Dr Mohammed Bin Saleh Al Sada, Minister of Energy and Industry, on December 11, 2013.

The Helium 2 plant is the world’s largest helium refining facility, and makes Qatar the world’s largest exporter of helium and second-largest producer.

I

n a press conference at Katara Cultural Village following the inauguration, Dr Al Sada said: “As Qatar celebrates Qatar National Day, I would like to present this achievement to His Highness Sheikh Tamim bin Hamad Al Thani, Emir of Qatar.”

He described the Helium 2 plant at Ras Laffan as “a testament to how Qatar’s national resources from the North Field can be best optimised.”

Speaking at the inauguration event, Dr Al Sada said that by making Qatar the world’s largest exporter of helium, “this project is also a testament to how the elements of Qatar’s Vision 2030 can be put in place to build a better future for many generations to come.”

The Helium 2 plant incorporates highly complex and advanced technology that captures, extracts and refines crude helium from six liquefied natural gas (LNG) mega-trains: RasGas’ trains 6 and 7, and Qatargas’ trains 4, 5, 6 and 7.

RasGas managed the two-year construction project and now operates the plant, which has an annual production capacity of 1.3 billion standard cubic feet (Bscf).

“For RasGas to develop, build and operate the facilities that make Qatar the world’s largest exporter of helium reflects the confidence our shareholders have in our proven ability to manage projects and operate facilities safely and reliably.

RasGas is very proud that the Helium 2 project was executed and achieved timely production with an excellent safety record

Design capacity 1.3 billion standard cubic feet per year 17.3 tonnes of liquid helium per day Technology Air Liquide’s patented advanced helium recovery process Construction 3,000 workers at peak construction Chemical properties of Helium Boiling point -268.9 degress Celsius Colourless, tasteless and odourless gas that is lighter than air

als have been involved in the Helium 2 project since its early stages.

The inauguration was also attended by senior government officials and senior personnel from Qatar Petroleum, RasGas, Qatargas, ExxonMobil, project shareholders, contracted customers and contractors

economy

Helium 2 Facts Feedstock streams for Helium 2 Rasgas mega-trains 6 and 7 Qatargas mega-trains 4,5,6, and 7

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from the outset. As a global energy supplier, RasGas is committed to building on Qatar’s reputation as a reliable international supplier of high-quality helium,” said Hamad Rashid Al- Mohannadi, RasGas’ Chief Executive Officer and Vice -Chairman of Qatar Petroleum.

More than five million man-hours were worked constructing the Helium 2 project without a single lost time incident.

This remarkable safety milestone is testament to RasGas and Qatargas’ commitment to creating and maintaining a safe work environment.

As a result of RasGas’ and Qatargas’ mega LNG trains, Helium 2 has doubled the production capacity of its predecessor, Helium 1. The two plants’ combined annual production of 1.96 Bscf per year is expected to meet around 25% of current total global liquid helium demand.

“As the largest LNG producer, with 42 million tonnes per annum and seven trains operating at full capacity, we in Qatargas are very proud to be part, and a major contributor, of the Helium project since its beginning with Helium 1 and now with the further expansion, Helium 2, which has allowed it to become the largest helium asset in the world and part of our continuing contribution to the diversification of our nation’s natural resources,” said Khalid bin Khalifa Al Thani, Qatargas’ Chief Executive Officer.

The advanced technology applied in the Helium 2 facility has provided Qatari engineers with a variety of career and skill development opportunities. A large number of Qatari nation-

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SLUG NAME

A week after the new Emir, HH Sheikh Tamim bin Hamad Al Thani, took over, changes were announced at the helm of Qatar’s Sovereign Wealth Fund (swf) signalling a change of power to the younger generation.

T

he former prime minister Sheikh Hamad bin Jasim Al Thani, who was also chief executive at the Qatar Investment Authority (QIA), made way for the much younger Ahmad Al-Sayed. Al-Sayed previously headed the QIA’s investment arm, Qatar Holding (QH), and was involved in many high-profile deals. The former PM was instrumental in making Qatar a name to reckon with in international investment circles, with its high-profile acquisitions and politically-motivated investments in the region. While Qatar became a prominent name in international circles, it also courted controversy over some of its European and regional investments.

The new Emir, however, is expected to focus his energies largely on internal affairs and draw a line between politics and business. The strategy at QIA may mirror this intent. The change at the top comes at a time when Qatar is increasingly focusing its energies and resources on developing the country.

With an estimated QR364 billion ($100 billion)-plus to be invested in infrastructure, and with oil prices declining, the surplus cash channelled into the SWF may shrink. The surplus

generated over the past few years, however, has been put to good use for furthering the country’s economic ambitions. The sovereign wealth fund ceased to be a mere passive investment vehicle over the past couple of years and has been used effectively to put Qatar in the spotlight.

From high-profile European assets such as Harrods and The Shard, Qatar gradually shifted its attention to assets that furthered its economic interests.

From acquiring strategic stakes in energy and oil to buying up distressed Western assets at cheap valuations, its motives went beyond plain vanilla investing.

Its energy investments have not only reinforced its place in the global energy market but also given it a number of “soft” advantages, such as empowering its human capital.

For example, Shell is not only the largest foreign investor in Qatar but is also involved in a number of programmes aimed at developing the country’s local expertise.

The investments in financial companies such as Credit Suisse and Barclays may aid its ambitions of becoming a regional asset management hub.

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A geographical shift in portfolio

economy

Sovereign Wealth Fund

Top 10 GCC SWFs

Sovereign Wealth Fund

(QR billion)

Country

Abu Dhabi Investment Authority

2,282

Abu Dhabi

Saudi Arabian Monetary Agency

1,940

Saudi Arabia

Kuwait Investment Authority

1,077

Kuwait

Qatar Investment Authority

418.6

Qatar

Investment Corporation of Dubai

254.8

Dubai

International Petroleum Investment Company

236.6

Abu Dhabi

Mubadala

192.92

Abu Dhabi

State General Reserve Fund

29.85

Oman

Mumtalakat

25.84

Bahrain

Public Investment Fund

18.2

Saudi Arabia

Source : KPMG report May 2013

Geographic allocation of investments by GCC SWFs economy

33 GCC Source: Invesco Middle East Asset Management Study 2012

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44

56 19

29 North America

Continental Europe

14

4 2011 2012

Looking inward Studies have pointed out that GCC SWFs are increasingly investing within the region. A May 2013 report from KPMG on sovereign wealth funds said that there had been a “near 70% increase in GCC-focused investments by regional SWFs”. Invesco’s Middle East Asset Management study for 2012 sug-

gested that the value of assets allocated to those SWFs that invest locally had risen by 10% from 2011. In contrast, despite a near-30% increase in the revenues of GCC economies, assets allocated to SWFs that invest primarily outside the region had fallen by 1%.

Though QH continues to scout for international assets, it has also been raising stakes in local companies to support growth within the country. It pumped cash into Qatari banks and increased its stake in Qatar Insurance Company, the largest insurer in Qatar. Both the banking and insurance industries are poised for solid growth in the next few years and may need capital to grow. This year, QH bought out NYSE Euronext out of Qatar Exchange.

Qatar Holding’s move to invest a part of its profits in a public-listed investment firm, Doha Global Investment Company is not just to distribute sovereign wealth to its citizens but also to give an impetus to the local stock market. Pegged at QR45 billion, the size of the IPO is almost 10% of the total value of the 42 stocks currently traded on the QE. Half of the investment will be made by Qatar Holding and the rest will be open for subscription to Qatari individuals and institutions. The issue will not be open to foreigners, but they can buy the stock once it is listed. The IPO has triggered much interest locally and reports even suggest that investors have sold their existing holdings in QE-listed companies to buy into the new IPO. Scheduled for a May 2013 launch, it has been postponed for now.

Diversifying into emerging markets The KPMG report notes that GCC SWFs are becoming increasingly selective and cautious in their assessment of Europe.

“These SWFs are adopting a ‘wait and see’ approach to Europe as a considerable level of uncertainty continues to exist. Highgrowth markets (including local economies) are gradually taking priority as reduced confidence and decreased performance from existing European portfolios has meant that GCC SWFs are less inclined to invest,” said the report.

The QIA has traditionally been an aggressive investor in Europe. The emerging markets push was initiated last year when QH invested in a Malaysian petrochemical complex and got a licence to invest in Chinese equities. It also announced investments in Malaysia’s tourism sector.

A Reuters report recently said that QIA is showing a keen interest in the emerging markets as it may want to diversify its portfolio geographically. It also reported that the fund hired Michael Cho, a Hong Kong-based banker, as head of mergers and acquisitions in August and Deven Karnik, another Asiabased banker, who was previously with Morgan Stanley, joined in April to run a newly-formed infrastructure team. These moves could indicate a geographical shift in its portfolio in future. Even as the West is showing signs of a pickup, Qatar may get choosy about investments there

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Neighbour’s envy, Owner’s pride

Despite economic slowdown in different countries, Qatari banks have been performing well in the domestic front for the last few years and are looking at global expansion.

Q

atar is surely a paradise for bankers as the banking sector has been robust as far as its strong balance sheets underpinned by strong capital base, prudent risk management, high liquidity and low non-performing assets are concerned during 2013.

While the Capital-to-Assets Ratio (CAR) of the Qatari banks is put at 21%, their non performing loans are lowest in the entire region - 1.7% of total loans disbursed so far thus making them one of the most envied financial institutions in the world.

Qatar Central Bank Governor H E Sheikh Abdullah Bin Saud Al Thani said that the assets of the commercial banks operating in Qatar have grown by 7.7% in Q3,2013, compared with the end of 2012, thus the total assets reached QR 879 billion against QR817 billion in the end of 2012.

Delivering the keynote address at the 9th Official Monetary and Financial Institutions Forum (OMFIF) in November , he said that the deposits of the dealers at the commercial banks operating in Qatar have risen in the Q3 of 2013 by more than 19% compared to the end of 2012 to reach QR498 billion

against QR417 billion in the end of 2012.

In its report titled “Qatar Economic Insight 2013,” Qatar National Bank (QNB) said that Qatar has the third largest banking sector assets in the GCC and has led asset growth in the region.

Qatar had the highest growth rate of 18.4% in banking assets region-wide in year to end-June 2013.

“The main growth driver was domestic assets, which comprised mainly credit (71%) and investment (21%). Conventional banks account for the largest share of assets (72%). The contribution of the banking sector to the economy continues to expand, with the ratio of total banking assets to GDP increasing from 97% in 2008 to 127% in June 2013,” the report said.

QNB also said that public-sector borrowers accounted for 42% of the nation’s QR531.44 billion ($146 billion) in credit facilities at the end of June and this lending is expected to grow in the coming years as Qatar has taken up several mega infrastructure projects in the run-up to the FIFA World Cup in 2022. “The World Cup-related facilities will provide ample opportunities for credit growth for local lenders,” QNB said.

Besides local lending, the domestic banks have been looking to expand their geographical footprint and looking for quali-

“The assets of the commercial banks operating in Qatar have grown by 7.7% in Q3,2013, compared with the end of 2012, thus the total assets reached QR 879 billion against QR817 billion in the end of 2012.”

global network with presence in Qatar, UAE, Kuwait, Canada, the United Kingdom, Germany, Turkey, Singapore, China, Hong Kong, South Korea, Japan and Australia. In addition, significant progress has been made in augmenting our alternative banking channels and retail offerings, while focusing on a tailored range of solutions for corporate sector and SMEs.” In November 2013, Masraf Al Rayan has announced acquisition of Islamic Bank of Britain and is said to acquire a strategic share in a commercial bank in Libya. In fact, Masraf al Rayan has earmarked QR1 billion for acquisitions over the next two years.

GCC Banking Sector Asset Growth (June 2013) (% growth year-on-year)

18.4

11.6

11.3 8.4 6.2 4.8

Qatar

Saudi

Oman

Source: QCB and QNB Group analysis

UAE

Kuwait

Bahrain

47 PROGRESS 2013-2014

ty assets by mergers and acquisition in countries like Turkey, Egypt, Indonesia and Oman.

The other reason which emboldened the Qatari banks to look for acquisition is the pulling out European banks from the Middle East and North Africa (MENA) region as the latter had to strengthen their balance sheets in their respective countries and meet the local regulatory requirements.

“Qatar’s bankable population is very limited and markets such as Turkey and Egypt with their very large sized populations and relatively limited banking penetration offer long term growth opportunities to Qatari banks,” Associate Director (CEEMEA Financial Services Ratings) of the Dubai-based Standard & Poor’s Ratings Services Fevzi Temucin Engin said.

The Qatar Central Bank has already initiated steps to ensure that the local banks maintained enough Capital Adequacy Ratio as per the Basel III norms, which would come into effect in 2018. These steps are viewed as opportunities for the domestic banks to further strengthen their operations both within and outside the country. This move is also expected to provide a competitive edge to the local banks in the international markets.

Doha Bank, another major player in Qatar’s banking sector, has expanded its operations in other countries. “2013 has been a landmark year for Doha Bank. We have established new representative offices in strategic markets including Toronto in Canada, Sharjah in the UAE, the special administrative region of Hong Kong in China, and Sydney in Australia, expanding our global reach. In December 2012, the Abu Dhabi representative office was upgraded to a full-fledged branch,” said R Seetharaman, CEO, Doha Bank.

He further said: “These have helped us in reinforcing our

economy

HE Sheikh Abdullah Bin Saud Al Thani Governor, Qatar Central Bank

“the new capital will support Doha Bank’s prospects for achieving its strategic goals at the local, regional and global levels. It will also strengthen the bank’s lending capacity and improve its competitive edge especially in light of the anticipated boom in various economic sectors in Qatar in the coming years.”

economy

R Seetharaman CEO, Doha Bank

PROGRESS 2013-2014

48

The acquisition of ABank in July from Anadolu Group is Commercial Bank of Qatar’s first investment in Turkey, and its first majority stake in another bank. Anadolu. ABank is a midsized Turkish bank that predominantly caters for SMEs through a network of 69 nationwide branches and as of December 2012, had total assets of QR28.756 billion ($4.4 billion).

CBQ Chairman H E Abdullah bin Khalifa Al Attiyah said: “Turkey is a key growth market for us and ABank represents a strategic entry-point to Turkey’s fast-expanding banking sector. “ CBQ even held an extraordinary general body meeting at the end of November seeking approval for its plans to QR2 billion for additional Tier 1 Capital in accordance with Basel, in compliance with the instructions of the Qatar Central Bank and the terms of the Commercial Companies Law (Law No. 5 of 2002).

QNB also raised QR5.446 billion (USD1.5 billion) from a dual tranche under its Euro Medium Term Note (EMTN) Programme in the international capital markets. Under this programme, two tranches were issued on October 23, one tranche of QR2.73 billion (USD750 million) with a three year maturity, at a coupon rate of three month London Interbank Offered Rate (LIBOR) + 1.25%, and another tranche of QR2.73 billion (USD750 million) with a five year maturity, at a fixed coupon rate of 2.75%.

Not to be left behind, Doha Bank too embarked on a second phase of capital enhancement. In November 2013, the Bank’s shareholders approved the issuance of Tier 1 capital instruments amounting to QR2 billion, after which the Bank’s Tier 1 Capital would rise to 19% improving the CAR in anticipation of Basel III requirements.

“It will support Doha Bank’s prospects for achieving its strategic goals at the local, regional and global levels. It will also

strengthen the bank’s lending capacity and improve its competitive edge especially in light of the anticipated boom in various economic sectors in Qatar in the coming years,” Bank CEO R Seetharaman added.

Over 60 banking transactions were completed and publicly announced across the Middle East and more than 10 of these were in the last two years. Qatari banks have been keen to improve this statistics and are seeking out strategic opportunities to engage in cross border acquisitions which highlighted their strengthening liquidity, increasing loan and deposit volumes, combined with more tactical planning.

Better liquidity, good ratings and improving profitability for banks in Qatar and GCC has two implications. While it provides a better sense of security to the banks’ customers and investors, making them a somewhat ‘desirable’ bidder for transactions, it also helps in increasing positive returns and portrays a healthy economic climate which may in part support, wider foreign direct investment interests in the GCC and Qatar.

The Kuwait-based Global Research, in a report, said that from the valuation standpoint and based on the analysis of four key parameters - Net Interest Margin (NIM), Capital Adequacy Ratio, Return on Equity (ROE), and Price-to-Book Value (PBV) ratio - Turkey and Indonesia, which are said to be trading at low valuation levels, are potential target markets for Qatari banks which are keen on expanding their reach by acquiring quality assets.

“Qatari banks are exposed to lack of major trigger in the domestic market in 2013 as public sector remains the major driver for loan growth. Under these circumstances, we are optimistic that the acquisitions are likely to be the key agenda for Qatari banks to propel their loan book growth.

Qatari banks are all set to capitalise on their firm capital base and strong liquidity positions by tapping growth opportunities in the MENA region and other emerging markets. Our argument draws further strength from the fact that banks in the MENA region are trading at historically low valuation levels, which make acquisitions more lucrative,” the report added.

Global rating agency Moody’s expects the government’s extensive infrastructure investment programme will boost the Qatari banks’ business opportunities in the coming months and lead to lending growth of between 20%-25%.

The agency also said that the Qatari banks’ 2013 bottom-line profitability metrics will remain broadly stable, with the return-on-average-assets ratio ranging between 2.2% and 2.4%. Higher lending volumes, low provisioning requirements and banks’ low cost bases will support the system’s overall profitability.

“However, the banks’ net interest margins will likely decline, due to the regulator’s imposition of interest-rate caps on retail lending and banks’ increased exposure to lower-yielding project finance lending,” the rating agency said

There is no turning back for the country’s four Islamic banks, which are not only supported by the government but also actively involved in project financing for various development projects.

I

slamic banking has been witnessing robust growth across the world, and Qatar is no exception in this regard. Qatar is among the top five nations as far as Islamic banking is concerned because of its strong performance in terms of assets, institutional depth and financial performance.

According to Ernst and Young’s World Islamic Banking Competitiveness Report 2013-14, the growth story of Islamic banking continues to be positive, growing 50% faster than the overall banking sector.

Islamic banking assets with commercial banks globally grew to QR4.84 trillion ($1.33 trillion) in 2011, suggesting an average annual growth of 19% over the previous four years (2011: 24%) and QR5.60 trillion ($1.54 trillion) in 2012. The assets were forecast in the report to grow to QR6.26 trillion $(1.72 trillion) in 2013 and beyond QR7.28 trillion ($2 trillion) in 2014.

The report revealed that six rapid-growth markets – Qatar,

Indonesia, Saudi Arabia, Malaysia, UAE and Turkey - (QISMUT) represented 78% of the international Islamic banking assets with commercial banks, excluding Iran. This includes both pure-play Islamic banks and windows of conventional banks.

Ashar Nazim, Partner, Global Islamic Banking Centre at Ernst and Young, said: “The rapid-growth markets are systemically important to the future globalisation of the Islamic banking industry. We expect Islamic banking to grow at a Compound Annual Growth Rate (CAGR) of 19.7% across QISMUT to reach QR5.82 trillion ($1.6 trillion) by 2018 compared to QR244 billion ($67 billion) in 2012.”

“Islamic finance markets are far from being homogenous, as each market is at a different stage of maturity, and profitability varies significantly compared with conventional banking. For 2012, the average Return On Equity (ROE) of the 20 leading Islamic banks was 12.6% compared to 15% for their conventional peers,” added Nazim.

economy

riding high

49 PROGRESS 2013-2014

Islamic banking

“The rapid-growth markets are systemically important to the future globalisation of the Islamic banking industry.

We expect Islamic banking to grow at a CAGR of 19.7% across QISMUT to reach QR5.82 trillion ($1.6 trillion) by 2018 compared to QR243.88 billion ($67 billion) in 2012.”

economy

Ashar Nazim Partner, Global Islamic Banking Centre Ernst and Young

PROGRESS 2013-2014

50

These challenges have prompted several institutions to initiate wide-ranging programmes such as regulatory transformation, risk transformation and retail banking transformation.

“The successful transformation around the 3Rs could potentially increase the profit pool of Islamic banks by 25% by 2015,” the report added.

Qatar’s Islamic banking has a history, with the first bank -Qatar Islamic Bank - having been launched in 1982 as the government recognised the importance of Sharia-compliant financial solutions for people. It is predominantly a financial hub for Islamic, or Shariah compliant, investments across the various sectors of sukuk, takaful, infrastructure, real estate and energy resources, not to mention the lucrative oil industry.

Of the four Islamic banks in the country – Qatar Islamic bank, Qatar International Islamic Bank, Masraf Al Rayan and Barwa Bank - barring Barwa, the first three are sponsored by the government and governmenti entities like Qatar Investment Authority, which has major shares in them.

Two government-controlled entities – Qatar Holding and Barwa Real Estate – are the principal shareholders of the fourth bank, Barwa Bank, the nation’s youngest Islamic bank, which has maintained its growth in both size and stature. With six branches in Qatar and three acquisitions - The First Investor, First Finance and First Leasing – during 2009 and 2010- the bank has made rapid strides in the past five years.

According to Barwa Bank CEO Steve Troop, Qatar offers an extremely dynamic business environment with a great deal of potential and opportunity for a bank like theirs to flourish.

While maintaining an upward trajectory, the Islamic banks in Qatar have been looking at offshore operations, with Masraf Al Rayan, the largest Sharia-compliant bank by market value,

recently announcing that it has reached agreement on a cash offer by its UK unit to buy out the Islamic Bank of Britain (IBB).

With an existing client base of over 52,000 customers, the IBB has certainly provided Masraf Al Rayan an opportunity to expand its services in UK and continental European markets in 2014 and beyond. In a way, Masraf will be targeting retail Muslim customers in the Western countries where there is a shortage of efficient Sharia-compliant products and customers enjoy higher disposable income ratios.

For the IBB, which has been struggling to come out of the financial mess following the global meltdown in 2008, Masraf Al Rayan’s decision could not have come at a better time. However, the statement from Masraf Al Rayan did not disclose the financial part of the deal.

Masraf Al Rayan Bank’s Group CEO Adel Mustafawi said: “As one of the leading banks in Qatar, we look forward to support the IBB in its growth plans by strengthening its balance sheet and position in the market. We believe together we can build a stronger bank that is more capable of exploiting the enormous business opportunities available in the UK market for the benefit of our customers, shareholders, employees and the economies we operate in,” he added.

Qatar Islamic Bank, which pioneered Islamic banking in this country, has already opened branches and offices in the United Kingdom, Sudan, Malaysia and Lebanon and is planning to take up overseas operations more aggressively, as the domestic market is limited due to its restricted bankable population.

The growth of these banks has been stupendous not just because Qatar is committed to the principles of Sharia and banned the local conventional banks from offering Islamic banking products to their customers after 2011 but also due to their pro-active participation in the lending programmes for various ongoing mega infrastructure projects in the country.

The Islamic banks in Qatar have an opportunity to play a key role in its transformational period, as the nation has embarked on massive infrastructure and development projects laid out in the National Vision 2030.

Qatar Islamic Bank and Barwa Bank are part of the consortium of four banks, the other two being Mashreq and Union National Bank, to provide funds to the developers of the Red Line North Underground project of Qatar Rail Company.

The Islamic banks have ample opportunities to further improve their asset base, given the sheer magnitude of projects and infrastructure development going on in the country. QIB’s Islamic bonds due October 2017 yield 2.73% and are rated A by Fitch Ratings, the sixth-highest investment grade.

Another reason for the success of Qatar’s Islamic banks is that all of them have proper risk management in place. Besides that, a well-developed banking regulatory framework and customer-friendly banking products of global standards also have helped in their growth.

banking assets penetration (% of normal gdp) and islamic banking market share of total assets (%) in 2011 60% Saudi Arabia

40% Kuwait 30% Bahrain

Malaysia

Bangladesh 10%

Jordan

Turkey

Pakistan 0%

UAE

Indonesia

Egypt

30% 80% 130% 180% 230% Banking assets penetration (% of normal GDP, 2011) Size of circles denotes the relative size of Islamic banking assets in 2011

With MSCI upgrading the UAE and Qatar’s status as emerging markets from May 2014, these banks can look for more investments both within and outside the country.

The total assets of the four Islamic banks were QR196.56 billion ($54 billion) by the end of 2012. Assuming that they register an average annual growth of 15% over the next five years, their asset base would exceed QR364 billion ($100 billion by 2017,” according to Fevzi Timucin Engin, Associate Director (CEEMEA Financial Services Ratings) of the Dubai-based Standard & Poor’s Ratings Services.

With this, Qatar will become the third largest-Islamic finance country after Saudi Arabia and the UAE, Engin added.

“Saudi Arabia, the UAE and Qatar will all increase their global importance as centres of Islamic finance in the coming years, as the three markets experience rising international demand for financing,” said Euromoney, citing a recent report by Standard & Poor’s.

Though Qatar’s Islamic banks have not been active in debt markets so far, 2014 may see a departure from this tradition as funding and liquidity requirements set by Basel III norms will make these banks tap the debt markets.

Meanwhile, the Qatar Financial Centre has issued a licence to Kuwait Turkish Bank, the first Turkish Islamic bank in Qatar, and the bank is all set to launch its operations early in 2014.

Though the state-controlled International Bank of Azerbai-

zan too expressed an interest in setting up an Islamic bank in Qatar in collaboration with an “undisclosed” local firm, and planned to start operations in the first quarter of 2013, for some reason, it failed to materialise.

The Ernst and Young report also revealed that many banks are currently in the process of replacing or upgrading their core banking systems. Capital planning in view of Basel III and IFSB guidelines is already influencing the preferred business mix and more Islamic banks believe that collaborations between mobile providers and banks will further accelerate the adoption of mobile banking beyond payments to more complex savings and financial products.

The biggest challenges for Islamic banks are how to become a mainstream form of banking in their home markets, diversification to build regional brands, and taking a more socially responsible approach to differentiate themselves from conventional banks. The growth of the industry is expected to remain moderate going into 2014, as several leading Islamic banks contemplate large-scale operational transformation.

The report further said that it was a different story when it came to profitability. The industry’s average return on equity (ROE) was 12% compared with 15% for conventional banking in 2011. Islamic banks continue to grapple with multiple challenges relating to sub-scale operation, asset quality, negative operating income from core activities and a weak risk culture

economy

20%

51 PROGRESS 2013-2014

Qatar

Source: Central Bank Reports, Ernest & Young Analysis

Islamic banking share of total assets (2011)

50%

economy PROGRESS 2013-2014

52

Growth is imminent

Judicious utilisation of funds has been the backbone of the growth of the asset management, reinsurance and captive insurance sectors in the country.

A

tight regulatory and legal framework coupled with robust economic growth has not only ensured better management of the country’s assets but also ensured the development of reinsurance and captive insurance business sectors in Qatar to match.

With assets estimated to be more than QR364 billion ($100 billion), the Qatar Investment Authority (QIA), the country’s sovereign wealth fund (SWF), has been the cynosure of the eyes of investment seekers and bankers around the world.

In fact Qatar Holding, the investment arm of Qatar’s SWF, has invested the gains accrued on account of the soaring demand for liquefied natural gas during the past few years and invested in world-class firms such as German sports car maker Porsche, Barclays Bank in Britain and Swiss lender Credit Suisse.

With MSCI upgrading the country’s status from that of ‘frontier’ to ‘emerging market’ from mid-2014, the investment flow into Qatar is expected to be anywhere between QR1.27 billion

($350 million) to QR3.64 billion ($1 billion) in the near future.

A report from Datamonitor on wealth management in the Middle East put the private onshore wealth of high net worth individuals (HNWIs) in Qatar around QR145 billion ($40 billion) in 2013, and this has created a conducive environment for pooling more investment from local investors.

With the savings rate in Qatar the highest among the GCC member countries and said to be around 49%, this provides a window for asset fund managers to attract the attention of local investors who might park their funds within the country itself as part of the government’s economic diversification programme.

“Foreign investors have injected significant cash into Qatar in 2013. Year to date, net buying of Qatar-listed equities by foreign investors exceeds QR2 billion ($550 million); this has mainly focused on QNB. Looking at private equity, the majority of the foreign direct investment (FDI) remains in oil and gas and related industries such as petrochemicals, industrial gases and aluminium,” said Akber Khan, Director of

“Foreign investors have injected significant cash in to Qatar in 2013. Year to date, net buying of Qatar listed equities by foreign investors exceeds QR2 billion ($550 million); this has mainly focused on QNB. Looking at the private equity, majority of the FDI remains in oil and gas and related industries such as petrochemicals, industrial gases and aluminium.”

this segment,” he said.

Van Dijk said that globally, the financial sector (banking, asset management, insurance and other financial services) has a share of about 15% and about one and a half to two times that share when looking at liquid investable opportunities in stock and bond markets.

“Asset management and insurance represent about half of

53

GRowth and composition of insurance industry in qatar 1.5

1.2

1.3

%

1.3

1 CAGR* -

1.2

US$ billion

Source: Alpen Capital Insurance report July 2013

1.0 0.9

0.8

0.9

0.6

0.8

0.8

0.9

1.1

1.2

0.1

0.1

0.1

0.3

0.0

2008 2009 2010 2011 2012 Compound Annual Growth Rate*

Life

non-Life

economy

Akber Khan Director, Asset Management, Al Rayan Investment

PROGRESS 2013-2014

Asset Management at Al Rayan Investment.

According to The CityUK’s sovereign wealth funds report released in March 2013, Qatar’s SWF the Qatar Investment Authority, had assets totalling QR418.6 billion ($115 billion) as of December 2012. “Qatar’s desire to develop domestic asset management is part of a well-thought-out economic diversification strategy. For such a significant exporter of capital it makes sense to develop the local ability to deploy this capital, be it domestically, regionally or globally, rather than simply export it for the same purpose,” said Khan.

Though there was still more work to be done, advances have been made to enhance the regulatory environment, liquidity has improved on the Qatar Exchange and Doha is an increasingly attractive destination to attract highly skilled, globally mobile, asset managers, Khan added.

Principal of Amsterdam-based LMG Emerge Erik Van Dijk said that Qatar has proven to be a smart builder of its own growth and development story.

“Qatar should not regionally challenge Dubai/, the UAE but instead specialise. The market for reinsurance, captive insurance business and related Islamic finance (takaful) is also growing substantially. Globally, we have often seen that those who get a piece of the action in banking and asset management are not necessarily capable of growing this other segment of financial services as well. Taking into account income growth of the middle classes in MENA, Africa, Central and Western Asia, Qatar is very well positioned if it wants to grow

“Asset management and insurance represent about half of this with banking and non financial services (e.g. leasing companies etc) representing the other half. Profit margins in insurance and asset management are still higher (especially in insurance) so that this segment is less visible than the other half (where banks often do also have branch offices on every corner of the street!). Of the two sectors, the latter is far more important with related asset management often developing in the slipstream of insurance growth.”

economy

Erik van Dijk Principal, LMG Emerge

PROGRESS 2013-2014

54

this, with banking and non financial services (e.g. leasing companies) etc representing the other half,” he said. “Profit margins in insurance and asset management are still higher (especially in insurance) so that this segment is less visible than the other half (where banks often do also have branch offices on every corner of the street!). Of the two sectors, the latter is far more important, with related asset management often developing in the slipstream of insurance growth.”

With regard to the insurance sector, Qatar was behind Kuwait in terms of total gross written premium (GWP) seven years ago, but the country’s insurance industry was worth QR4.73 billion ($1.3 billion), over 30% larger than the Kuwaiti market, by mid-2013.

In its “GCC Insurance Industry Report 2013,” Alpen Capital said that the Qatari market outperformed Kuwait and expanded at an annual average growth rate of 11.3% between 2008 and 2012. “This industry growth can be attributed to the combined impact of economic progress, substantial focus on infrastructure development, increasing population and compulsory insurance regulations,” the report pointed out.

“Qatar does already understand that it can become an insurance powerhouse through smart specialisation, which does also involve the creation of a good regulatory framework plus other measures to stimulate this growth. Qatar will automatically get a substantial piece of some parts of the asset management market (mainly those asset classes that are important in insurance portfolios) when growing the insurance business.

The country’s stability is also a factor of strength, with the visible marketing of the brand ‘Qatar’ in the Western world doing the rest,” said Dijk.

With regard to Qatar’s expectations of increased investments, he said that the net effect of MSCI’s decision will be positive, although one should not overestimate it.

“In the case of Morocco, for instance, we feel that it will be better to be big in a smaller index (they were downgraded by MSCI) than small in a bigger one. However, one cannot deduce from this that Qatar will not benefit or will even suffer from the upgrade. Qatar is part of the GCC and GCC-focused asset management mandates are already selling. Qatar will have some benefits, but far less important than a focused government policy to stimulate investments in the country’s energy and financial sectors,” he said.

Jason Majid, Partner at Doha-based Clyde and Co; said that asset management, reinsurance and captive insurance are three growth areas that have been identified as being particularly suited to the economic conditions in Qatar and are being promoted extensively by the Qatar Financial Centre.

Both public and private wealth have contributed to a significant capital pool searching for investment vehicles both within the region and beyond, driving the need for increased professional asset management to deal with this liquidity.

“The rapid and exponential growth witnessed in Qatar over the past decade, and its continually expanding economy, have given rise to the opportunity for Qatar to establish itself as a financial hub,” said Majid.

The growth in the complexity of projects and business, and sophistication of corporate governance besides insurance requirements has resulted in a change in attitude towards risk management strategies. Consequently, there is a growing desire to efficiently manage business risks.

“These are all favourable conditions for the growth of the asset management and insurance industries,” he said.

According to Majid, these industries are still in the fairly early stages of their development in Qatar, and there are still challenges to overcome. Many major international players already have a presence in Dubai, and persuading them to relocate and establish something more substantial than a marketing window may be difficult. This is where Qatar’s liquidity, opportunities for joint ventures, and other incentives like the possibility of seed-funding, can play a strong role.

Despite strong regional growth, insurance penetration rates remain relatively low. This certainly demonstrates market potential, but also an opportunity to educate local and regional market players.

“The recent changes brought in under the new Qatar Central Bank law, which transferred insurance supervision from the Ministry of Business and Trade to the Qatar Central Bank, and effectively brings the Qatar Financial Centre under the Qatar Central Bank, will no doubt further cooperation and facilitate regulatory improvements to help provide a robust platform for these industries to set up and thrive in Qatar,” Majid added

The insurance business, though at a nascent stage, is undergoing a transformation in Qatar. Insurance penetration is improving, insurers are clocking healthy growth rates and the regulatory regime is much stronger now.

L

ocal insurers are diversifying globally, and the insurance market in Qatar is getting competitive due to the entry of foreign insurers. According to Alpen Capital’s July 2013 insurance report, Qatar’s insurance industry was worth QR4.732 billion ($1.3 billion) in 2012 and grew at a compound annual rate of over 11% per annum during 2008-2012. The same report said that the insurance industry in the Gulf is projected to expand at a compound annual growth rate (CAGR) of 18.1% between 2012 and 2017 to reach a size of QR136.5 billion ($37.5 billion).

Low penetration, solid growth Traditionally insurance penetration in Qatar and the broader GCC has been very low. The market has been dominated by the non-life sector, with limited uptake for life insurance prod-

ucts. Globally, life insurance contributes a larger proportion to the total premium, whereas life insurance accounted for less than 5% of the total industry in 2012 in Qatar.

Abdulrahman Al Shaibi, Managing Director and Board Member of the QFC Authority, speaking at the MultaQa 2013 conference in Doha, pointed out: “Insurance contributes just 1% to GDP, a sixth of the global average.”

This is also why the region is emerging as an attractive market for insurers. Penetration has improved, largely in the nonlife sector and marginally in the life sector, over the past five years. According to Alpen Capital, overall insurance penetration in the GCC is expected to improve from 1.1% in 2012 to 2% in 2017.

Massive upcoming construction projects in Qatar are expected to exponentially increase the quantum of insurable assets in the market. The introduction of compulsory business lines

economy 55 PROGRESS 2013-2014

Insuring for the future

Insurance density in Qatar (USD) 750

646.5 600

584.3

511.3

675.4

537.6

300

150 35.4

30.5

35.3

31.5

0 2008

economy

Life insurance density

PROGRESS 2013-2014

56

2009

2010

2011

2012

non-life insurance density

such as the social health insurance scheme is another growth driver. In Qatar, the compulsory health business will be handled by a separate state-owned insurer, the National Health Insurance Company. However, there is scope for third party administrators and supplementary health insurance business.

Low retention Historically, Gulf insurers have retained less risk on their books and have ceded a large chunk of the premiums to international reinsurers. Most companies did not have enough capital to retain risks on their balance sheets or the required expertise to manage risks. Qatar and Oman had the highest cessation rates in the Gulf in 2011. Close to 40% of premiums are ceded in the Gulf whereas the figure is 18.5% in the UK and 26% in the US. The cessation rate has been dropping off late by, though it is still much lower than international standards. For instance, Qatar Insurance Company (QIC) – Qatar’s largest insurance company, with a 50% market share – ceded only 30% of the premiums for the nine months ending September 2013 as compared to 42% for the previous corresponding period.

Declining cessation rates are attributed to the expanding motor and medical insurance businesses, where higher premiums are retained compared with high risk commercial lines.

Reinsurance Qatar is considered an attractive reinsurance market given its young population, high GDP growth, low insurance pen-

etration and low catastrophe risk. Reinsurance capacity in the region is expected to increase due to an influx of Asian and Western reinsurers seeking to diversify their portfolios.

Back home, a well-capitalised QIC has diversified into the reinsurance business. Q-Re, a QIC subsidiary, plans to target global reinsurance business.

At the QFC-sponsored MultaQa conference in 2013, former finance minister HE Yousef Hussein Kamal announced that the Qatari government intends to convert former Qatar Petroleum captive Al Koot into a reinsurer focusing on Qatari risks and recapitalise it with up to QR3.64 billion ($1 billion). The decision has been put on hold indefinitely, and no reasons have been given so far.

Regulation In early 2013, Qatar declared the Qatar Central Bank the supreme regulatory authority for all financial services in the country. This brings all insurance companies under a unified regulatory regime on a par with international standards. Earlier, local insurance companies set up outside the Qatar Financial Centre were regulated by a law passed in 1966 which many in the industry believed was outdated.

The new law also provides a level playing field for national and international insurers. The QFC too has enhanced regulations for insurance business conducted within the QFC, aligning it with international best practice. The new rules will become effective from January 1, 2015

Source: Alpen Capital Insurance report July 2013

450

infrastructure

“We have always been longing to see strong Qatari companies that can compete not only locally but also regionally and internationally.�

H E Sheikh Abdulrahman bin Khalifa bin Abdulaziz Al Thani Minister of Municipality and Urban Planning.

For the Qatar Exchange, 2013 must have been the most satisfying year, and it will enter the New Year with more hopes Aspirations to achieve its objectives.

T

he United States plans to resort to “limited” strikes against Syria and the Federal Reserve’s “tapering,” which shook world markets in September, neither created panic nor dampened the spirit of investors in Qatar, who rallied with renewed vigour.

Investors’ confidence stemmed from the fact that the MSCI and Standard and Poor’s had upgraded Qatar from frontier to emerging market status for its financial stability in May 2013, with effect from May 2014.

In an exclusive interview with Progress Qatar, Qatar Exchange CEO Rashid bin Ali Al Mansoori explains the achievements of the bourse, the expectations in 2014 and the services being rendered to investors both local and foreign.

Tell us about the achievements of the Qatar Exchange over the past year?

The most significant event of the year was the upgrading of

Qatar to emerging market status by MSCI and S&P, in recognition of the significant developments that have taken place over the past few years. In addition to that, Qatar Exchange obtained full membership in the World Federation of Exchanges (WFE) as a new step in the context of integration with the global financial markets and stock exchanges.

Qatar Exchange also completed a move to its new building early in the year, and now provides modern and welcoming facilities for investors in the heart of West Bay. The Exchange continues to develop its product range to improve the range and scope of investment options for the investor community in Qatar, introducing trading in government bonds during the course of the year.

Further work has been done in conjunction with the legislature and regulators to clarify the rules for listing fund-related investment vehicles, ready for the listing of new products early next year. The Exchange continues to ensure that services to investors and market participants are of the highest quality

economy 59 PROGRESS 2013-2014

On a high pedestal

“According to MSCI and research, Qatar will have around 0.45% weight in the Emerging Markets index and could attract QR1.82 billion to QR3.64 billion ($500 million to $1 billion) additional capital into the market. There are even higher estimates floating around.

We have seen an increase in account opening activities by international investors already.”

economy

Rashid bin Ali Al Mansoori Chief Executive Officer, Qatar Exchange

PROGRESS 2013-2014

60

and has introduced a number of general education seminars to assist investors and interested parties in managing their investment portfolios.

On the regulatory front, additional services to assist market participants, including access to securities lending and borrowing and the introduction of liquidity providers, have been authorised, and further efforts are being made to enhance these services further.

What progress has there been with regard to Qatar Exchange’s plans to increase the limits on foreign ownership of listed stocks from the existing 25%?

Any increase in the foreign ownership limit (FOL) is a government decision, and QE has submitted some proposals to increase the FOL. The FOL of several large listed companies is at or close to 25% of their market capitalisation. Doha Bank is the most recent example of this trend, recently changing its FOL to 25% of market capitalisation in accordance with an amendment to the bank’s articles of association aimed at allowing this change.

Several companies have actually exceeded this percentage, as Ooredoo and Vodafone have a FOL of 100%, while the maximum foreign ownership limit in Masraf Al Rayan is set at 49%.

Some other companies have expressed their willingness to amend the current FOL set at 25% of their free-float shares to 25% of their full capital.

The CBQ and QIB are examples of QE-listed companies that have responded positively to this change and have recently requested Qatar Exchange to increase the number of their shares available to foreign investors to 25% of their total market capitalisation. Other companies are expected to follow this

approach.

On the other hand, companies that will most likely enter the MSCI Emerging Market index will have to consider on an individual basis whether a change in foreign ownership limit could optimise the benefits of being included in the MSCI EM index. Some of these companies might seek approval from their boards, shareholders and the Minister of Economy and Trade to reflect higher limits in their articles of association.

With Qatar joining the ranks of emerging markets, how much foreign direct investment is expected to flow into the country?

With the upgrade to our market status, Qatar joins other emerging markets, alongside Brazil, Russia, India and China, in the MSCI Emerging Markets Index, which is tracked by investors with more than QR21.84 trillion ($6 trillion) in assets. MSCI Emerging Markets is the index most widely-used by investors in developing markets. Because many of the funds tracking the index are passive investors, inclusion in the index compels additional capital to be funnelled to the markets it covers.

The upgrade of Qatar Exchange will make it earn a place on the global investment radar with a huge funds inflow as the result of joining the higher tier.

An upgrade would not only ensure increased visibility of existing listed companies before foreign financial powerhouses, but would also entice other entities, including family-owned companies, to go public. We have already seen an increase in account opening with the exchange by foreign institutions, and gradually these will increase their investments in the market, especially the stocks that will be included in the MSCI EM index.

According to MSCI and research, Qatar will have around 0.45% weight in the index and could attract QR1.82 billion to QR3.64 billion ($500 million to $1 billion) additional capital into the market. There are even higher estimates floating around. We have seen an increase in account opening activities by international investors already.

What is the total market capital of the 42 listed companies on Qatar Exchange?

It is a little over QR555.60 billion as of December 31, 2013.

Will the exit of NYSE Euronext affect the development plans of Qatar Exchange? What happens to the strategic partnership deal between Qatar Investment Authority (QIA), which is Qatar’s sovereign wealth fund, and NYSE Euronext? Now that QIA has bought NYSE’s 12% stake in QE, what changes do you think QE will see?

Over a period of more than four years of strategic partnership with NYSE Euronext, Qatar Exchange has achieved significant progress and made remarkable achievements in terms of de-

veloping infrastructure and systems and the diversification of investment tools and services provided to investors.

Though NYSE Euronext sold its 12% equity stake in the exchange to Qatar Holding, the investing arm of Qatar’s sovereign wealth fund, the relationship will continue with regards to technology and business support. For example, Qatar Exchange will continue to use the UTP system, that was implemented in 2010. Also, in specific business development areas the two exchanges can work closely together.

Looking ahead, cooperation between the two sides will continue with the development of future mutually-beneficial business initiatives serving investors and issuers of a wide range of financial instruments.

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The Qatar Financial Markets Authority (QFMA) has introduced four regulations more than a year ago. How have they helped in attracting investments?

You are referring to the rules on ETF, Liquidity Providing, Securities Lending and Borrowing, and Direct Market Access.

The ETF Listing Rules paved the way for the introduction of a new type of security (funds investing in shares, or bonds, commodities or other asset classes) that can be listed and traded on the Exchange. There are a couple of prospective ETFs (exchange transfer funds) we are hoping will come to market in the first half of 2014. These products will offer exciting new investment opportunities for investors across the board, whether local or international, professional or retail.

In terms of liquidity provision, there is currently one licensed Liquidity Provider that has committed to make continuous two-way prices in all Exchange-listed securities. We are convinced that over time, when more LPs become active, we will see continued improvements in terms of liquidity and depth to the market for the benefit of investors.

SL&B access can be provided to securities that would otherwise be locked up as long-term holdings, e.g. in portfolios of institutional investors. Other market participants on the bor-

economy

How transparent is the functioning of QE? Qatar Exchange has taken positive measures in response to market concerns around transparency, and particularly the provision of all available data on one website that is easily accessible to market participants. Qatar Exchange is committed to investing resources into ensuring that our website can be used as a best-in-class access point for all investors to gain more information on securities issued and related documentation.

On the other hand, the Qatari market is very active when it comes to encouraging its participants to pursue international standards of investor relations (IR). We are all very aware that IR is a key component of a listed company’s communication strategy in today’s competitive market for capital.

rowing side would benefit from the alternative pool of securities, for example if they had have commitments to make a market in those securities (LPs) or if they needed the securities to meet their settlement obligations (fails management). On the lending side, larger institutional investors (typically) would get the opportunity to get an additional return on their longterm holdings. Lending and Borrowing is one of the key success factors of Liquidity Providing.

Direct Market Access is another way to support liquidity by facilitating the needs of very active investors (whether for own account or for clients). The first application for Direct Market Access is pending

economy

QFC

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Reinforcing its reputation

As an integral part of Qatar’s economy, the Qatar Financial Centre (QFC) continues to welcome a broad range of domestic and international firms, while recent international awards and rankings testify to its progress.

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hen the Qatar Financial Centre was established in 2005, it was with a mandate to help develop a dynamic, modern and competitive financial sector in Qatar that would serve domestic as well as foreign firms and promote the sustainability of the Qatari economy. The QFC continued amply to fulfil this mandate in 2013.

Financial firms increasingly recognise the opportunities that Qatar affords them. Qatar is the fastest-growing economy in a fast-growing region. It has a rapidly expanding population with one of the world’s highest per capita incomes. The economy is based on the world’s third-largest reserves of natural gas, but a primary economic objective of the Qatar National Vision 2030 is to reduce dependence on hydrocarbons by diversifying and building a knowledge-based economy, enriching Qatar’s

human capital and improving competitiveness.

A world-class operating environment Central to the QFC’s mandate is helping to promote the financial services sector in Qatar. The QFC offers world-class legal, regulatory and tax regimes which have evolved over the past eight years. They provide firms with a high degree of certainty, an efficient and business-friendly environment and a robust, competitive platform from which to conduct business in Qatar, the region and internationally.

As Qatar has grown, so have its attractions as a base from which to operate and as a place in which to live. The country offers high-quality education, health and accommodation, combined with a rich cultural life and abundant facilities for sports and recreation. Transport links by air are excellent and spreading, and regional road and rail links are planned or un-

economy

The QFC Authority has also taken steps to speed up the time it takes for QFC-licensed firms’ employees to complete the necessary paperwork. It has introduced “e-immigration”, private medical access for QFC-licensed firms’ employees and their families and online tax submission. Taken together, all these initiatives contribute to making the QFC a more efficient environment for clients’ business.

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der construction. An important attribute, given events in the wider Middle East and North Africa (MENA) region, is Qatar’s financial and political stability.

The QFC welcomes a broad range of regulated firms and non-regulated firms (such as accountants and lawyers). At the end of November 2013, 181 firms, representing a wide range of both domestic and international businesses, had received QFC licences. Firms licensed during 2013 include Aventicum Capital Management, Kuwait Turkish Participation Bank and Charles Russell LLP. The increasing number of QFC-licensed domestic firms (over 25% of current QFC firms are from Qatar) is an encouraging local vote of confidence in the QFC’s operating environment.

Responsive to firms’ needs As the commercial and strategic arm of the QFC, the QFC Authority tries to ensure that the operating environment within the QFC is efficient and responsive to the needs of QFC firms.

This is in keeping with the objective of creating efficient public institutions outlined in the social development pillar of the Qatar National Vision 2030.

During 2013, the QFC Authority further enhanced its regulatory and operational environment. The Companies Registration Office (CRO) transferred to the QFC Authority, and a new licensing department was set up in the QFC Authority for the licensing of non-regulated firms. New structures such as special purpose vehicles, holding companies and family offices are now possible in the QFC. As a result, the QFC Authority is now even better placed to serve its clients in terms of both turnaround times and the range of its offering.

Well-regarded market insights The QFC Authority also continued actively to sponsor and endorse a wide range of market insight initiatives, including events and publications, in 2013.

Market insight initiatives included the 7th MultaQa Conference, organised with Global Reinsurance magazine. MultaQa has become the leading international insurance industry event of its kind in the Middle East. The QFC Authority also supported the second Bloomberg Doha Financial Summit, which was attended by more than 300 asset management professionals from Asia, Europe, the Middle East and the US. During 2013, the QFC Authority produced the latest editions of its well-received annual series, of the MENA Asset Management Barometer and the MENA Insurance Barometer. In May 2013, it published a groundbreaking report on private wealth and the scope for family offices in the Middle East, while in September 2013 it launched the first MENA Reinsurance Barometer. In addition, the QFC continued to sponsor the quarterly Business Optimism Index (BOI) survey for Qatar, produced in cooperation with Dun & Bradstreet. The BOI is the most comprehensive survey of Qatari business sentiment published in Qatar.

As part of its programme of supplying valuable insight into different market sectors, in November 2013 the QFC Authority published the first Asia Reinsurance Barometer, an examination of the current and near-term market opportunities, challenges and key trends in the QR109.2 billion ($30 billion) Asian non-life reinsurance market.

All these initiatives have contributed significantly to a greater knowledge and understanding of the QFC, Qatar and the financial services industry in the region and further afield.

Increased recognition of the QFC’s achievements Recognition of the QFC’s achievements and status as a worldclass platform for financial services firms grew significantly in 2013. The QFC won the “Best Financial Centre in the Middle East” award for the third consecutive year from Global Investor magazine, and the Z/Yen Global Financial Centres Index published in September 2013 gave Qatar the top ranking in the Middle East. Looking at Qatar as a whole, the World Economic Forum Global Competitiveness Report 2013-2014 ranked Qatar as the 13th most business-friendly country in the world, the highest ranking in the Middle East

Q

atar’s economy is in a fast-forward mode, and so is the development taking place in the country. The population crossed the 2.06 million mark in late 2013 and the demand for electricity and water has been increasing in a steady manner.

The demand for electricity is expected to reach 10,000 MW (as against the present installed capacity of 8,761 MW) and new projects are being planned to meet the demand. The present demand for power is around 6,255 MW. Likewise, the installed capacity for water supply is 332.8 million gallons per day (MGD) and an additional 110 MGD is needed, for which plans are under way to meet the demand, mainly through integrated water and power plants (IWPPs) and partly through an independent reverse osmosis (RO) initiative.

As there will be an influx of foreign workers in the coming years to work on various infrastructure projects during the run-up to the FIFA World Cup in 2022, the demand for power is expected to increase by around 6.75% per annum till 2022,

which will be met by gas-fired power plants in the country.

The population is expected to top 2.24 million by the end of 2022, and power consumption is likely to increase from 28.8 TWh at present to 54.6 TWh over the same period. Kahramaa, which regulates the water and electricity supply to the public, has the onerous task of meeting this demand in the coming years.

Against this backdrop, the remarks made by Kahramaa President HE Essa bin Hilal Al Kuwari that the government is not averse to the idea of private sector participation in the water and power sector assumes significance.

Addressing a conference of investors early in 2013, Al Kuwari said that Qatar’s electricity and water production market was open to the private sector, and in deed “very open” to alternative energy investors. “Kahramaa’s goal is to make alternative energies competitive and profitable; therefore we are interested in the deployment of renewable energy, energy -efficient and low-pollution technologies,” he said.

The government is planning to invest a little over QR80 billion ($22 billion) in the next four years to further improve the

infrastructure

Driven by the growth of the economy and also various mega infrastructure projects, Kahramaa is making every effort to meet the growing demand for power over the next nine years.

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‘Power’ing Qatar

“Current indications in our strategic and technical planning show that in the next five years, there will be a need for additional capacity with huge schemes planned everywhere, particularly in preparation for the FIFA World Cup.”

infrastructure

Ahmed Nasser Mubarak Al Nasser Director of Technical Affairs, Kahramaa

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electricity and water generation and transmission networks.

This includes QR36.4 billion ($10 billion) in the electricity network; QR18.2 billion ($5 billion) in electricity and water generation; and QR25.48 billion ($7 billion) in the water network between 2013 and 2018.

While the government is keen that the private sector should be involved in solar power generation, it is also anxious that end users should not feel the pinch, as the production cost of solar energy is quite high.

“Current indications in our strategic and technical planning show that in the next five years there will be a need for additional capacity, with huge schemes planned everywhere, particularly in preparation for the FIFA World Cup. For the past three years, many of the projects were in the planning stage, but now we are seeing them start, including port and metro schemes and many others,” says Kahramaa’s Director of Technical Affairs Ahmed Nasser Mubarak Al Nasser.

However, Al Nasser is confident that Kahramaa will keep up with the growing demand for power and water, as preparations to host the FIFA World Cup gain momentum.

Since the demand for power is likely to cross 10,000 MW by 2020, the government is planning to set up its next IWPP, also known as Facility D, which will produce 2,400 MW and 130 MGD of water.

The plant will be located in the economic zone between Wakrah and Mesaieed, near Doha, and work is expected to commence on the new project in the second half of 2014, with targets of part-production in the last quarter of 2016 and full production in the first quarter of 2018.

The cost is estimated at around QR11 billion ($3 billion) and the government is looking for lenders as well as developers to take up the project.

An industrial desalinated water facility (IDWF) is also be-

ing planned in Ras Laffan Industrial City to cater for the water needs of the upcoming industries there. The IDWF will be constructed on a site in Ras Laffan City to supply industrial desalinated water to Qatar Petroleum. Its capacity will be between 40 and 45 MGD and it is expected to commence production in April 2017.

Kahramaa is in the process of starting the tendering process to construct five Water Security Mega Reservoirs with storage capacity of 3,500 million gallons in different locations in the country. Besides maintaining surplus water production to meet the growing demand and build a strategic production capacity reserve, the construction of these mega reservoirs is aimed at increasing Qatar’s current water reserves from three days to three weeks, and also recharging the groundwater in aquifers.

Despite the talk of tapping renewable energy sources in the region, conventional thermal sources are expected to remain the dominant fuel for electricity generation in the coming years, with all power projects currently planned or under construction in Qatar using gas.

Besides conventional sources, Qatar is planning to generate solar power to the extent of 1.8 GW by 2030. As a first step, 200 MW will be produced by installing 5 MW to 10 MW mini solar power units by 2020, which will meet 2% of the total demand.

Since one of the major constraints for solar generation is Qatar’s harsh environment, Kahramaa has signed MoUs with leading Qatari institutions such as the Qatar Science and Technology Park (QSTP) on renewable sources grid connections, and Qatar Solar Technology for cooperation on renewable energy, and with QEERI (Qatar Energy and Environment Research Institute) on concentrated solar power projects and reverse osmosis technologies.

Besides launching Tarsheed, an initiative to create awareness about conservation of water and energy, Kahramaa is also setting up an “Awareness Park” in the Thumama area to educate consumers on energy conservation and knowledge. The park is expected to be opened in 2014.

The private sector too has taken steps to generate solar power. The first photovoltaic (PV) solar panels were installed in the first phase of the QR20 billion Msheireb Downtown Doha (MDD) project in August 2013.

The buildings within phase 1A are being installed with 2,072 photovoltaic panels and 37 inverters, feeding a total of 463.4 kWp (kilowatts at peak power) of electricity directly into the electrical grid of the project.

When MDD is complete, the project will comprise 5,200 solar panels across a total of 8,400 square metres of on-site energy production in the form of both electricity and hot water.

Each year, the solar PV system will reduce total greenhouse gas emissions by 568 metric tonnes which is equivalent to 241,000 litres of gasoline consumed

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the Future is here, in Qatar

Ashghal has drawn up ambitious plans and is executing several key projects to further improve civic amenities in the country.

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ood roads and better civic amenities like drainage and related infrastructure are viewed as the index of a nation’s progress and Ashghal, the Public Works Authority in Qatar, has been tasked with developing the country’s road network, including expressways, as well as other projects of national importance.

Adhering to Qatar’s National Vision 2030, Ashghal contributes to the economic and social development of Qatar through implementing public infrastructure works consistent with approved state objectives.

Ashghal can look back on 2013 with great satisfaction, as it has unveiled Qatar’s dream project, Sharq Crossing (formerly known as Doha Bay Crossing), under the patronage of HE Sheikh Abdul Raman bin Khalifa Al Thani, Minister of Municipality and Urban Affairs. Ashghal President Eng. Nasser bin Ali Al Mawlawi announced the project at a ceremony attended by several dignitaries including senior government officials.

Described as an engineering marvel and an iconic wonder

of Qatar, the Sharq Crossing will connect the upcoming Hamad International Airport with Doha’s business district and cultural hub.

The project, which has yet to be finalised, is still at the design stage, the works are expected to begin in 2015 and be completed in 2021. While there is no official word on the project cost, media reports put it at around QR182 billion ($5 billion).

“Sharq Crossing is an engineering masterpiece of design, and while providing an important new artery to Doha’s existing road network, it will be instantly recognisable across the world and will be an emblem for Qatar,” said Al Mawlawi.

According to the Ashghal President, the project is the first of its kind in the world. Although bridges and tunnels have been constructed in other countries, Sharq Crossing will be a “blend of both bridges and tunnels. Ashghal, in collaboration with its partners, is confident that once complete, this technical and engineering marvel will be one of the most outstanding structures in the world,” he said.

The project will be one of the most ambitious engineering

infrastructure

An artistic image of the Sharq Crossing projects ever undertaken in the Middle East, comprising three iconic bridges interconnected by subsea tunnels spanning a 10-km stretch of water and linking Doha’s Hamad International Airport with the city’s cultural district of Katara to the north and the downtown central business district of West Bay. Besides the Sharq Crossing, Ashghal has been working towards fulfilling the desired goals, and has taken up several major projects to give a facelift to the country’s civic amenities.

Ashghal has been implementing several projects, worth QR364 billion ($100 billion), which will be completed in the next four to six years. Ashghal has 216 road projects in hand with a total value of QR51 billion ($14 billion), and there are plans to construct 120 buildings between 2013 and 2014 with a total value of about QR15 billion ($4 billion).

More than 30 arterial roads, highways and superhighways will crisscross Qatar well before the FIFA World Cup in 2022,

in a network of smooth and shining thoroughfares that will be unparalleled in the region.

Some of these ambitious highway projects that are part of Qatar’s broader infrastructure development plan are to be implemented by the end of 2013 and nearly all these projects are to be completed over the next five years. Ezdan Real Estate Company said in a weekly report that among the major projects are the East-West Axis roads. This QR1.7 billion project has been awarded to a consortium of J and P and Avax, the report said. The eastern sector of the Axis project costing QR2.2 billion, has been awarded to China Harbour Engineering.

Other projects Meanwhile, according to the Ezdan report, the design and supervision of the implementation of the Fifth Ring Road project has been awarded to Parsons Brinckerhoff for QR320 million.

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“Sharq Crossing is an engineering masterpiece of design, and while providing an important new artery to Doha’s existing road network, it will be instantly recognisable across the world and will be an emblem for Qatar.”

infrastructure

Eng. Nasser Bin Ali Al Mawlawi President, Ashghal

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The other projects that have been awarded to different companies include the Al Khor Bypass and the roads along the coastal areas, Al Zubarah Road and one that links Mekainis on the outskirts of Doha south to Umm Bab. Roads are also coming up linking the camel racing town of Shahaniya, some 40 to 45 km north of Doha, to Al Jamiliyah, which is meanwhile also being connected to Baseer and Bu Sidra. The third phase of the Salwa highway linking Qatar to neighbouring Saudi Arabia is also part of the current road development programme. All these and the other projects are being carried out by the Public Works Authority (Ashghal) at costs running into billions of dollars. The internal roads of Doha are also being developed as part of the ongoing plan.

Massive expansion The National Expressway Programme was taken up in 2010 to build 980 km of new roads besides an array of underpasses, flyovers and multilevel interchanges across the country to enable free-flowing traffic and improve journey times, and is scheduled for completion in 2017.

The second project has been the Inner Doha Re-sewerage Implementation Strategy (IDRIS), by which a major deep tunnel sewer connected to local tunneled interceptor sewers and an advanced sewage treatment works will return to Doha treated water suitable for irrigation. This scheme is planned to meet the long-term drainage demands of the Doha South catchment.

The other major work that the Authority has taken up is the

Local Roads and Drainage Programme, which is part of a greater infrastructure plan and designed to upgrade and maintain the road and drainage network across the country’s five regions – the Qatar North, Qatar South, Doha North, Doha South and Doha West areas.

Under the Expressway Programme, Ashghal will provide vital transportation links across Qatar connecting key cities, towns and villages with high-quality national freeways and urban arterial routes.

Qatar’s entire network of expressways, highways and local roads has been reviewed as part of this project, and based on the conclusions, the Authority decided to improve and enhance the existing network. Once this project is completed, officials say, citizens will not need to worry about traffic snarls, and accidents are also expected to come down drastically.

Around 240 major interchanges ranging from conventional signals to four-level interchanges with tunnels and flyovers will be constructed under the project, which will also provide a national roads network capable of sustaining the future development and expansion of a world-class infrastructure within Qatar.

Construction work began in 2012 on six expressway projects, bringing the total number of such projects to ten. These projects are valued at QR16 billion.

The Local Roads and Drainage Programme includes the development of roads, drainage and new infrastructure in all areas of Qatar to raise the standard of living for all the citizens.

More than 200 works are programmed to be taken up under the project at an estimated cost of QR50 billion. These works are scheduled to be completed within five to seven years.

The Inner Doha Re-sewerage Implementation Strategy (IDRIS) is intended to provide vital drainage infrastructure for the residents of South Doha. The project includes a major deep tunnel sewer network and advanced sewage treatment works.

The main highlight of the project, estimated to cost QR10 billion and to be completed by 2019, is to provide a long-term wastewater treatment solution to serve the needs of Doha, Al Wakra and Mesaieed. It is assigned to upgrade and expand the sewerage infrastructure, and to accommodate the projected population growth of an additional one million people in Doha’s oldest area, the south catchment.

The major tunnelled interceptor sewer and advanced sewage treatment works scheme will meet the demands of the Doha South catchment for the next 50 years, eliminate the hydraulically overloaded conditions, and remove over 35 existing pump stations

S

tatistics indicate that by 2020, 450 million passengers are expected to travel through Gulf airports, and aircraft movement in the GCC region are expected to exceed 2.3 million by 2025, Al Noaimi says. All the hubs have an equal advantage of location, but what will set them apart is excellence in service and quality. That will be the hallmark of the leader in the region.�

Could you tell us about the defining moments of your career?

I started as an air traffic controller (ATC) in 1975, became airport manager in 1979, and in 1990 took charge as Chairman of Civil Aviation. There have been many defining moments and milestones in these past years: linking Qatar to various countries through bilateral agreements that have enabled the national carrier Qatar Airways to grow at a fast pace; establishing safety and security guidelines for aviation, and many more.

As one of the founders of Qatar Aeronautical College, I am gratified to see many ATC officers, meteorologists and avionics engineers who have graduated from this college and are serving in various positions in civil aviation. The establishment of 100 scholarships for Arab students has helped in educating many students who now work in various civil aviation bodies across the Arab world.

The year 2002 saw yet another milestone: I was deeply honoured when the Father Emir, HH Sheikh Hamad bin Khalifa Al

Thani, entrusted me with the responsibility of setting up and heading the New Doha International Airport (NDIA) Steering Committee to oversee the new airport project.

What will be the challenges for the QCAA when the new airport is commissioned?

With HIA becoming operational, QCAA will have to gear up to face a new set of challenges. The main challenge would be to manage a facility of that size efficiently and to ensure the integration of commercial, corporate and other organisations that operate in the airport as well as redesigning the airspace to cater for the growth. With Qatar Airways adding new aircraft to its fleet, we need to undertake routine procedures and carry out audit processes related to registering aircraft, airworthiness and inspections.

Another challenge would be implementing the necessary training system for all departments to communicate, interact, relay messages and work as a team.

Efficiency and speed are vital to managing this growth and running the operations smoothly.

What makes Qatar a perfect aviation hub in the region?

Qatar’s strategic location in the Middle Eastern region makes it a natural geographic link between the global East and West.

As a result, it is emerging as an attractive location for many political, economic and intellectual groups and is also the ven-

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Progress Qatar hears from Qatar Civil Aviation Authority (QCAA) Chairman HE Abdul Aziz Al Noaimi about some glorious moments in the aviation sector, the challenges to be faced when the new Hamad International Airport (HIA) opens its doors, and the ever-growing aviation ambitions of the region.

infrastructure

The face of Qatar’s aviation sector

ment in various infrastructure projects. With Qatar winning the 2022 World Cup as well as the ambitious plans outlined in our National Vision 2030, and the UAE winning the 2020 Expo, many big projects are being launched in the region to support these events and plans. In addition, there is a growing focus on developing the manufacturing sector in the region.

Air cargo will grow exponentially to handle procurement of raw materials and goods for all these mega infrastructural projects and will become crucial for timely completion of the projects.

Qatar has carefully studied this requirement and planned for the cargo facilities accordingly. The opening capacity of the first cargo terminal at HIA is 1.4million metric tons per year, with full capacity set to increase to 2.5million metric tons when the second cargo facility is built.

infrastructure

HE Abdul Aziz Al Noaimi Chairman, Qatar Civil Aviation Authority

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ue for political forums, international conferences, world-class conventions and cultural as well as international festivals.

Strategic aviation planning and the government’s investment in aviation infrastructure as well as innovative technology contribute to the country becoming an aviation hub.

The other main factor is the growth and prosperity of Qatar Airways, its success in efficient operations, safety, security and high levels of service for passengers. Its expanding fleet of cargo and passenger aircraft and addition of destinations opens up opportunities for Doha to become a passenger and cargo hub. QCAA completely supports these initiatives and seeks to make available all facilities that will enable the airline to achieve its goals.

Does it matter that there are other hubs in close proximity? How does it affect competition?

The GCC region has recorded investment to the tune of QR327.6 billion ($90 billion) in the setting up, refurbishment and expansion of airport infrastructure. Every country in the region is in the process of expanding its air, surface and sea transport and cargo handling facilities, as demand grows for goods and services from across the world. We will witness a number of world-class airports competing to provide the highest level of services related to the aviation industry, retail business, travelling standards and cargo facilities. We believe that competition is essential to raise the standards of service and provides impetus to develop all aviation-related facilities.

The Middle East cargo market has remained relatively robust, growing 8.2% during 2011 and more than 15% in 2012. How do you think having the new facilities will help improve this market?

Across the Middle East region there is an increase in invest-

Globally, when the aviation sector is going through a lean phase, how is it that all the Middle East airlines post positive results? and do you think this is a sustainable growth for all the hubs?

The growth rate in the Middle East has been affected by the world crisis to some extent. However, it did not bring it to a halt. The geographical location of Middle East is, undoubtedly, one of the strongest reasons for the continual growth of aviation in the region; investment by the governments in this sector has supported and spurred this growth.

Statistics indicate that by the year 2020, 450 million passengers are expected to travel through Gulf airports, and aircraft movement in the Gulf countries are expected to exceed 2.3 million by 2025.

All the hubs have an equal advantage of location, but what will set them apart is excellence in service and quality. That will be the hallmark of the leader in the region. at the recent Dubai Air Show, all three major airlines of the region placed huge orders with both Airbus and Boeing. At a time when traditional large carriers are being safe and measured in their buys, how can the region’s airlines be so extravagant in their purchases?

The traditional large carriers are in markets that have become saturated. The Middle East region is growing and, looking at the numbers quoted above, these large orders for aircraft are not just realistic but completely justifiable.

Our own national carrier, Qatar Airways, has huge expansion plans that have been somewhat restricted by a shortage of aircraft.

With more bilateral agreements being signed and an increase in passenger traffic as well as cargo, our orders for aircraft are well planned to cope with the increase in demand

H

amad International Airport (HIA) is all set to open its doors, though the authorities are tight-lipped about the much-awaited date.

In fact the first Qatar Airways Cargo shipment has already been received at HIA; the shipment for Qatar Petroleum, was transferred from Europe to Doha in early December, 2013.

The new cargo terminal, which is one of the most technologically-advanced in the world, has the capacity to move 5,700 shipments simultaneously and to handle 1.4 million tonnes of cargo per annum, representing a 75% increase from the current airport.

While the facilities at HIA have been discussed and the delay of its opening debated by the media worldwide, Progress Qatar tries to look beyond these issues to consider the larger scope of the airport and the next phase of construction that will soon be the talk of the town.

There is no denying the splendour of the airport, and when it finally does come into service, it will not just make travelling easier for the citizens of the country but also mark a new era of transportation with its awe-inspiring facilities.

Bernardo Gogna, Project Director for the NDIA Steering Committee, has been a part of this humongous project since its very beginning and talks to us about the next stages for HIA. “The airport can be divided into two broad areas: the new HIA (NDIA) and Airport City. Within HIA (the area between the two runways) a series of future expansions and additions are

planned, the most important of which is Terminal One. The terminal is now serving around 30 million passengers and it will expand to serve 50 million passengers, its planned maximum capacity. The tender for the design of this expansion was launched and was awarded to the well-known architectural firm Foster + Partners. The design process has just kicked off,” he says, adding that this will perhaps be the most important and complex part of the next phase of construction for HIA. The work, according to Gogna, will encompass one and a half years of design and then three years of construction.

“In addition to the terminal expansion,” he says, “the other facilities, already in design process in the midfield, comprising smaller but important buildings, are: the new Emiri hangar, a new cross-taxiway connecting the two runways on the north side of HIA, an additional midfield 100,000-sq. m car parking facility, the Coast Guard Sea Rescue facilities and the back-up and training centre for the air traffic control (ATC) services. The second cargo facility is at master planning stage as well.

“With Qatar Airways continuing to expand at a fast pace, we have to continuously look at expansion and addition of facilities,” says Gogna.

The second area, HIA Airport City, is a new 10-sq. km development where 200,000 people will live and work, linking the new Hamad International Airport with Doha. “The intent of the master plan is to safeguard the area for future development (for the period of the next 30 years) of the national carrier and of other airlines.”

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Hamad International Airport will soon be functional, and it will be a reflection of what the country wants to be: unique and impeccable in every aspect.

infrastructure

“HIA is unique because it is in Qatar”

“Not many people have the fortune to work on such a project, simply because there are not many projects like this in the world. Having the opportunity to work from the early stages to the opening of the airport is truly gratifying.”

Bernardo Gogna Project Director for the NDIA Steering Committee

infrastructure

HIA Exterior view of the Passenger Terminal

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The master plan is for a series of four circular districts along a spine parallel to the HIA runways intended to create a strong visual identity and districts with unique identities.

The Business District will centre on a major new transport hub linking with Greater Doha; the Aviation Campus will accommodate office headquarters and educational facilities for aviation authorities; the Logistics District will provide cargo and warehousing facilities; and the Residential District, adjacent to the new Doha Bay Marina, will accommodate future employees.

A Green Spine connects the districts, echoing their individual identities as it runs north-south. The landscaping scheme is a new public space for Doha that will be used by residents and tourists. A network of public spaces, gardens and plazas will stretch across the site, surrounded by a “desert park.”

“Within Airport City, the important elements are: additional aircraft parking positions on the west side of the Western Runway (a total of around 120 Code E&F parking positions), a second terminal – Terminal Two – for other airlines (while Terminal One will be dedicated solely to Qatar Airways) and all the supporting facilities related to it,” Gogna says. All of these facilities, including Terminal Two, will be ready in time for the 2022 World Cup, he emphasises.

Architectural Pinnacle While the whole of the next phase is laced with challenging designs, Gogna is looking forward to the Terminal One expansion and the development of Airport City.

“But equally interesting is the Terminal One Metro station,” he continues, “which has to be very carefully designed and introduced into the lagoon area, the most beautiful approach to a terminal anywhere in the world.

“In Airport City, Terminal Two and its Metro station, with a covered plaza in between, will create an intermodal, multifunctional space where a lot of elements and activities will come together.

This has been studied carefully and planned by looking at other successful airport city models like Munich and Schiphol airports.”

Being in Qatar is the reason Gogna has been involved in various airport projects, but there has been nothing to match this experience.

“Not many people have the fortune to work on such a project, simply because there are not many projects like this in the world. Having the opportunity to work from the early stages to the opening of the airport is truly gratifying,” he says.

“The project being in Qatar makes it even more special, as the country is going through a period of architectural and art excellence,” continues Gogna.

“Terminal One is not just a well-planned, beautiful terminal; it is a museum, an iconic building, a resort, and even a public event plaza. Projects like this happen rarely in history and it is happening right here, right now, in Qatar.

Architects, engineers and artists from around the world are vying to be in Qatar because here tradition and progress go hand in hand and, greater and more beautiful things are possible with the leadership of the royal family, which makes the vision a reality,” he says.

“I am deeply honoured to have worked under the guidance of the NDIA Steering Committee Chairman and all the Steering Committee members who have provided us with clear guidance on all aspects of the project, from planning to the final execution, to bring the vision to fruition,” concludes Gogna

Hamad International Airport (HIA) is getting ready for its next phase of evolution: Airport City. The master planner of this important project is the world-renowned Rem Koolhaas and his architectural firm, The Office for Metropolitan Architecture (OMA). Koolhaas hAS ALSO designed the impressive Qatar National Library.

S

peaking to Progress Qatar about the airport project in particular, Koolhaas says: “We are delighted and honoured to participate in the exciting growth of Doha, in a project that is perhaps the first serious effort anywhere in the world to interface between an international airport and the

city it serves.�

could you Tell us about the projects that OMA is involved in at Hamad International Airport (HIA)?

OMA was appointed as the master planner of Airport City by the NDIA Steering Committee in 2011, which includes implementation of the infrastructure and utilities systems for the first 10 years of the 30-year development. Additionally, OMA is contracted to design a new visa processing facility, and the visa building, and has also undertaken concept design studies for both the Friday ( jumaa) mosque and a transport hub, Terminal Two, and associated infrastructure planned for the Business District of Airport City.

The Aviation Campus within Airport City

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Infinitely flexible for the future

infrastructure

Airport City

cargo and warehousing facilities; and the Residential District, adjacent to the new Doha Bay Marina at its centre, will accommodate future employees. A Green Spine connects the circular districts, echoing their individual identities as it runs northsouth. The site’s landscaping scheme, comprised of a network of public spaces, gardens and plazas stretching across the site and surrounded by a “desert park,” will create a major new public space for Doha to be used by residents and tourists.

The identity and massing guidelines as provided by OMA’s master plan are designed to ensure a distinctive character for each of the Airport City districts; the design of notable buildings and structures for particular organisations and/or functions within these must seek to align their individual branding requirements with these constraints.

Rem Koolhaas The Office for Metropolitan Architecture (OMA)

infrastructure

Photo: Fred Ernst

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76

Artist impression of Terminal 2 How architecturally significant are each of the buildings?

The architectural significance of OMA’s work on HIA is principally the planning of a strategic mix of programmes designed to support and extend the functioning of the new HIA airport, an airport located in the heart of Doha, and more specifically therefore in this sense to create a critical and intelligent interface between the airport and the city.

Each district of Airport City is unique within the master plan’s overall identity. The Business District centres on a major new transport hub linking with Greater Doha; the Aviation Campus accommodates office headquarters and educational facilities for aviation authorities; the Logistics District provides

Could you take us through Airport City plans?

The Airport City Master Plan consists of four circular or semi-circular districts linked together by a central spine running parallel to the runways of the new HIA airport. Although each of the districts includes an optimised mix of programmes in accordance with statutory planning guidelines to ensure that the majority of needs can be met within the districts themselves each of the districts is assigned a distinctive overriding programme function – naming them, from north to south, the Business District, Aviation Campus, Logistics District and Residential District.

In the first 10 years, the whole of the Aviation Campus and a substantial portion of the Business and Logistics Districts will be developed. Additionally, in an effort to ensure maintenance of the overall proportions of the design as well as its intent to separate specific functions into the circular districts, the primary infrastructure in the form of the major roads traversing the site and those establishing the circles of the districts will be implemented. Large areas of the site’s landscaping scheme as well as the desert park surrounding the districts will be developed in the first phase of the project.

The first 10 years (Phase 1) of the development provides an overall structure to the 30-year plan and the prioritised infrastructure development for the HIA Airport and its stakeholders, which include: the Qatar Civil Aviation Authority (QCAA) and Qatar Airways headquarters and support functions in the Aviation Campus, which also forms the gateway to Airport City; a transport hub and support the commercial and hotel facilities in the Business District; cargo, warehousing and logistics facilities in the Logistics District; and cultural event and leisure opportunities to be provided by the landscaping scheme in its variety of interpretations across the expanse of the site. Completion of the development of the first phase of the project will coincide with the 2022 FIFA World Cup. The Residential District is currently planned for implementation in further phases beyond Phase 1

Unveiling the technical progress of Qatar’s integrated railway network, Qatar Rail executives took the media of the region on a tour of the work completed to date. A Light Rail Transit (LRT) underground station in Energy City, Lusail where 100% of the civil work has been completed, the excavations for the tunneling at the Pearl and a site within Lusail City where the labourers are inducted were all revealed.

W

ith deals worth QR32 billion already awarded, Qatar Rail is on track, said Eng. Saad Al Muhannadi, Chief Executive Officer, adding that the bulk of activities of Phase 1 of the project are already being executed. Eng. Hamad Al-Bishri, Deputy Chief Executive Officer and Chief Program Officer of Qatar Rail also stressed the importance of safety conditions for all workers, with a mandatory safety education programme before they start work at Qatar Rail. Speaking about the safety of construction workers, Al Bishri said: “Every individual worker, irrespective of his designation and previous experience, has to go through necessary trainings on simulators before starting his job. We take all possible precautionary measures to ensure workers’ safety.”

“Qatar is undertaking a number of megaprojects in order to accomplish its National Vision 2030. These projects require world-class transportation equipment and logistics solutions

that are capable of timely delivery,” commented Eng. Abdullah bin Abdulaziz Turki Al Subaie, Managing Director of Qatar Rail.

“The railway network project in Qatar comes in line with the state’s National Vision 2030,” Al-Subaie asserted, “and reflects the government’s commitment to infrastructure and set-up projects as part of Qatar’s sustainable growth and development plans across its key sectors. More importantly, the project is a timely response to the Qatari people’s fast-growing need for alternative and modern means of transportation.”

Qatar Rail aims to bring about a tangible shift in railway projects, leading three vital developments in Qatar: the Doha Metro, the Long-Distance Passenger and Freight Railway, and the Lusail LRT, which will work in full integration to connect Qatar’s key areas with each other, while the Doha Metro will link the capital’s inner and outer areas such as Lusail City, the new Hamad International Airport, Education City, and the West Bay area.

Al Subaie also stressed on role Qatar Rail’s railway network

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Taking transportation to new levels

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Qatar Rail

infrastructure

Qatar Rail officials announcing the phases of construction

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78

projects will play in reshaping Qatar’s infrastructure, ranking among the biggest world-class, pioneering, ambitious and modern railway projects in the region, and placing Qatar among the world’s most advanced countries in the transportation sector. “Whether through construction, design or other complementary and accompanying works and projects, Qatar Rail has provided the private sector with a great deal of business and labour opportunities through its developments,” he said, adding that “among the company’s most ambitious objectives is the significant participation of the Qatari private sector in the railway network projects.”

Progress as scheduled Commenting on the progress of the company’s current developments, CEO Eng. Saad Al Muhannadi announced that “work for the Doha Metro projects is moving along as scheduled, and that for the Lusail LRT has reached advanced stages.”

“The Long-Distance Passenger and Freight Rail transportation system, which will cover 350 km in distance at a speed ranging between 220 and 350 km/hour for passenger trains, and nearing 120 km/hour for freight trains, is currently under technical and commercial evaluation by expert consultants,” he added.

With regards to the Lusail LRT, Al Muhannadi revealed that Qatar Rail has finalised the works for the project’s tunnels, and completed over 60% of the structure for drilling works for its stations. Additionally, 50% of the structure of a duct over the expressway to Al Khor and the Lusail LRT, which is slated to be officially delivered by 2017, has been set up. The Lusail Light Rail Transit is composed of four lines extending 30.5 km in total, of which 19 km are at ground level, 10 km underground, and 1 km elevated, in addition to a 0.5 km track between two high-rises. The overall project consists of a fleet of 34 trains

A portion of the Lusail underground tunnel for Qatar Rail and 37 stations, 24 of which are at ground level, 10 are underground, one is located on the bridge level, and two connect two high-rises.

On a related note, Deputy CEO Eng. Al-Bishri, recapped the progress of Qatar Rail’s current projects, highlighting the Qatari government’s sizeable investments in the country’s infrastructure over the coming few years, 25% of which will pour solely into Qatar Rail’s transportation sector.

THE DOHA METRO The Doha Metro network consists of four lines totalling 354 km across the Greater Doha area, connecting the city’s two central points with major commercial, residential and dynamic areas in Downtown Doha, operating underground in busy areas, and

infrastructure

Lusail City while its southern extension will connect Doha to the centre of Musheireb, which is itself the intersection point for all the Doha Metro lines as well as its central station.

The Gold Line will link Hamad International Airport to Qatar’s new national museum, Musheireb Central Station and the heart of Doha. Meanwhile, the Green Line will transport passengers to football stadiums that will be built in preparation for the World Cup 2022.

The Doha Metro was designed to keep pace with the growing needs and size of the Qatari population, its aesthetic features fitted to Qatar’s cultural heritage and reflecting historic Islamic architecture. The network’s stations’ interior design will be characterised by the use of vaulted spaces, creating a sense of familiarity and warmth for Qatari commuters.

The Doha Metro project will be conducted in two stages:.

The first, scheduled to be completed in 2019, entails the setting up of 37 stations, among them the Musheireb Station, located in the heart of Doha, which will be the metro network’s headquarters and the intersection point for three of its four lines (Red, Green and Gold).

In the future, Al-Bishri explained, the Education City station will serve a double purpose, linking the Green Line to the Long Distance passenger railway in addition to its current trajectory. The project’s second phase, extending to 152 km in total length (47 km underground, 76 km above ground level and 29 km at ground level) and encompassing nearly 56 stations, will be delivered by 2026

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on and above ground level in the suburbs. Moreover, the network will include more than 90 stations (currently 93), two of which are centrally located in Musheireb and Education City.

The metro lines will run as follows: Red Line (Coast Line) takes its route through Wakrah City, Doha International Airport, Musheireb, Katara, The Pearl, and Qatar University.

Gold Line (History Line), running from east to west, connects the airport’s northern part with Souq Waqef, Musheireb, Bin Mahmoud, Al Sadd, and Al Waab.

Green Line (Education Line) follows the Al Rayyan Road and connects Education City–the very centre of Qatar’s educational projects and achievements – with Musheireb and Hamad Hospital.

Blue Line (City Line) is a semi circular line that connects residential and commercial areas in West Bay and the northern part of Airport City with the main C-Ring Road.

Additionally, the network will connect the Red, Gold, Green and Blue Lines with each other, which will be implemented in two phases.

The Doha Metro project will respond to the requirements of the increasing population growth in Qatar. Red Line South will link Doha to Musheireb, which will be the major station and the intersection of all metro lines. The Doha Metro Project will also operate underground in the centre of the city.

The Red Line will link Downtown Doha to the business hub area in West Bay, extending underground to reach the new

Milaha

The Logistic keeper infrastructure

As Qatar’s energy resources started reaching the shores of the world and industrial activity picked up within the country, Milaha’s role as a key logistics provider expanded. Milaha’s Chairman and Managing Director, HE Sheikh Ali Bin Jassin Al Thani, spoke to Progress qatar about the how the next few years are going to be exciting, and how Milaha is well positioned to ride the growth wave.

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As imports and exports pick up, what is the projected growth in the shipping and logistics sector for 2014-15? Is Milaha planning to further expand the number of routes and vessels under operation for container trade?

We forecast about 10% growth in the import sector and 5% in the export sector in 2014 versus 2013. We expect growth in imports to increase further during 2015, in the region of 15% year-on-year. We expect exports to grow at a lesser pace, more similar to what we expect in 2014.

Beyond 2015, and particularly after 2016, Qatar is expected to witness significant trade volume growth fuelled by projects related to FIFA World Cup and the opening of the New Port Project, which is expected during the first half of 2016. Milaha is well positioned to participate in and capture such growth and will certainly grow its business to meet the increased requirements. Whether it is through acquiring new assets or through time charters will be dependent on whether market conditions in the container business improve in the coming years.

Similarly, we expect the logistics segment to grow significantly with the projected growth in infrastructure projects as well as industrial exports. We foresee the requirement of additional capacity in the distribution element (transportation) of the supply chain and increased availability of storage space.

Milaha is planning to develop an international-standard storage facility in Al Thumama, interconnected with the New Port via the planned Doha Expressway. We are currently undertaking development of Phase One, which will be capable of storing up to 40,000 pallets of perishable and fast-moving consumer goods, split evenly between cold/frozen storage and temperature-controlled storage. We intend to operate this new facility on a third-party logistics provider (3PL) basis, pro-

HE Sheikh Ali bin Jassim Al Thani Chairman and Managinfg Director, Milaha

viding entire supply chain solutions, and to be fully operational by 2015.

What is the outlook for the LPG and LNG business? What is the long-term strategy to cater for the growth coming from within Qatar in the oil and gas sector?

Milaha participates in the LNG business largely through joint ventures. We have nine jointly-owned LNG vessels that are on long-term charter. In addition, we are the largest shareholder in Nakilat, which also has its fleet on long-term charter. As a result, our LNG business is relatively stable. Plans to significantly expand Qatar’s LNG production are still uncertain, and our growth in this segment is tied to these plans. Hence, we do not foresee much change in this sector for the medium term.

Infrastructure activity has picked up and the pressure on existing ports is expected to go up. What steps are being taken to smoothly manage the spurt in activity at the port?

In our role as the manager of Doha Port, we have invested significantly to improve the handling capacity and operating efficiency of the port in a number of ways, working closely with the Qatar Ports Management Company (Mwani Qatar). These investments in infrastructure improvements have yielded tremendous improvements in quay and yard utilisation, freeing up additional storage space for container and general cargo throughput. In addition, as a result of careful planning and removal of redundant warehouses and buildings in the port,

What new projects do you have coming up in the real estate sector?

Milaha’s real estate segment has a number of projects in the pipeline across Qatar, and we are developing them in a carefully phased manner. These projects include residential towers, high-end stand-alone private villas, a villa compound and the upgrade and renewal of existing properties. Milaha also plans a mixed-use investment project to consist of a hotel, serviced residential apartments and residential apartments.

Milaha’s active development projects include: the development of land and warehouses for use by our logistics business unit. The warehouses will accommodate chilled, frozen, chemical and general cargo storage and handling.

Ras Laffan MAN. Diesel and Turbo Workshop, one of the largest MAN Primeserve workshops outside Europe, with a state-of-the-art workshop specialising in main engineering components, turbo chargers, fuel equipment and others. our Ain Khaled project, consisting of a commercial building including retail shops and offices.

What is the role of information technology in improving operations?

Technology will play a critical role in enabling Milaha’s growth in the coming year. To this end, we recently developed a comprehensive multiyear technology investment master plan that will meet the needs of the group over the next decade. The master plan covers every aspect of Milaha, from core support systems to individual operational systems. We are investing not just in applications and systems, but also in new capabilities and infrastructure to support the applications. We are in the process of completing two key components of the road map – the Enterprise Resource Planning (ERP) system and an integrated fleet management s ystem.

At the back end, we have revamped our processes to support our users faster and more efficiently, and are investing heavily to train users on the new systems

infrastructure

The company has been exploring international opportunities for its offshore business. Has any breakthrough been made in expanding the business internationally?

We have built a formidable offshore business with our subsidiary, Halul Offshore Services Company. We are proud of the services we deliver and the value we provide our customers within this business. Recently, Halul Offshore’s accomplishments were recognised with the “Marine and Offshore Services Award” at the Seatrade Middle East and Indian Subcontinent Awards held in Dubai in November 2013. Growing this segment is very much a part of our long-term plan. While we cannot comment on specifics at this time, we are actively evaluating opportunities to expand our presence in the offshore services space both within and beyond the region.

we have managed to increase throughput capacity by approximately 300,000 TEUs (twenty-foot equivalent units) over the last 18 months. Resurfacing of general cargo yards has also yielded an additional 35,000 square feet of general cargo storage space.

Milaha has also initiated an intensive training programme for all port staff, bringing in international trainers to further enhance our operational capabilities. Our highly-trained staff working at the Mesaieed Container Terminal (Berth No. 7) has achieved an average of over 40 moves per hour on the gantry cranes, resulting in an operational best of 118 vessel moves per hour using two cranes during 2013.

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As for LPG, we currently jointly own four Very Large Gas Carriers (VLGCs) through our joint venture, Gulf LPG. These are traded in a pool along with Mitsui, and are therefore more exposed to market conditions and trends.

At this time, the LPG market, in terms of freight, is extremely buoyant, with a surge of new orders from Stolt, Scorpio and Frontline. There has also been more consolidation in the sector, like the largest VLGC owner, BW Gas, has further consolidated its position with the acquisition of AP Moller’s vessels, taking its fleet count to 24.

Looking ahead, there is quite a bit of uncertainty about the future of the LPG trade, given the developments in shale gas in North America, the widening of the Panama Canal and the expansion of gas production in Australia. These are just a few of the global trends, and how these interconnect will determine what we will see in the medium term.

Locally, Tasweeq’s annual LPG export volumes have been around 12 million tonnes, which implies around 25 shipments annually, and there is scope for some expansion in this regard as based on recent announcements.

We will continue to monitor opportunities to expand our presence in this space and build a more scaled business in LPG.

Residential rental rates have recorded increases of

i5-20%

SLUG NAME

over the past 12-24 months

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The Pearl Qatar

Qatar Central Bank’s Real Estate Price Index indicates a 20% rise in real estate prices in Qatar between September 2012 and September 2013, indicating overall unmet demand for real estate in the country. Century 21 Qatar, in its June 2013 report, noted that overall the real estate transaction market was approximately 10.4% healthier in June 2013 compared with a year earlier.

A

deeper look reveals a paucity in certain segments and a possibility of oversupply in others.

On the supply side, the focus so far has been more on the high-end segment, be it residential, commercial, retail or hospitality stock. According to DTZ Middle East’s Associate Director, Consulting and Research, Mark Proudley, “at the moment there is a high possibility that in the short to medium term (12-36 months) Qatar will face a shortage of stock across all the residential sectors, particularly if population growth continues at the rates recorded over the last 12 months.”

Paucity of affordable space As Qatar’s population hit the two-million mark much earlier

than expected, there is an immediate shortage of quality affordable housing. “There had been a lot of focus in recent years on flagship developments such as West Bay and The Pearl, which showcase the development of Qatar internationally in the prime real estate market. This has resulted in the roll-out of new properties being concentrated to some degree at the higher end of the market,” according to Johnny Archer, Head of Valuation, Research and Advisory at Asteco Qatar.

The expat population, however, is primarily in need of low cost housing. Asteco’s Q3 Real Estate Report noted that “demand remains strongest for one- and two- bedroom apartments. Demand from families looking for villas within compounds is also high.” Proudley points out that supply in the low-cost segment is currently limited because “the high

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High demand for affordable space

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Real Estate

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By 2015, Qatar will get an additional 1.1 million square metres of retail space spread across 14 malls, more than doubling the gross leasable area per capita to 0.86 square metres.

Real Estate Price Index

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Barwa Village cost of land in Central Doha is currently prohibitive to developing accommodation for the lower- to middle-income demographic.”

Subject to planning permission, DTZ anticipates additional suburbs of Doha being developed to meet future requirements for low-cost housing. “There are a number of large-scale developments being delivered on the outer suburbs of Doha, where land is lower in value, in locations like Wukair and Al Kheesa,” says Proudley.

Demand for small office spaces too have perked up as new businesses set up shop in Qatar. Asteco, in its Q3 Real Estate Report, notes that “a number of newly-constructed towers are being pre-leased by new tenants, decreasing the options for occupiers with large requirements. Although demand for smaller office floor plates from occupiers who require less than 500 sq. m. is still strong, there are only a limited number of office towers in West Bay, where office accommodation is available in small suites or on a floor-by-floor basis. Vacancy levels in secondary locations are high; however, much of this accommodation is below the standards required by most tenants.”

Year

Month

Index

2012

June

159

July

151

August

144.8

September

148.8

October

153.9

November

153.6

December

157.2

January

169.4

February

173.6

March

180.1

April

183.9

May

190.4

June

178.8

July

174.3

August

176.9

September

178.6

2013

Source: Qatar Central Bank The Index measures changes in transacted property prices including land, villa and residential sales. For the year September 2012-13, it indicates a sharp increase in prices.

Investment Demand perks up There is a finite supply of investment properties available for international investors, as the “freehold” areas of Qatar – where international investors can purchase property – are

Mark Proudley Associate Director, Consulting and Research, DTZ Middle East

Average office rental rates and percentage change QR/sq.m./pa

% change

% change

(Q2-Q3 2013)

(Q3 2012-Q3 2013)

West Bay

185

9%

-5%

A Ring Road

110

-12%

0%

C Ring Road

140

4%

0%

D Ring Road

120

4%

-8%

Old Doha

110

5%

5%

Airport Road

145

4%

0%

Source: Asteco

restricted (e.g. The Pearl and West Bay Lagoon). “The majority of investor interest is from local Qataris, with foreign investor interest predominantly restricted to nationals from the region as Qatar is being recognised as one of the safe havens in the Middle East,” says Proudley.

According to Archer, investors have been encouraged by the recent trends and projections in the property market. “We have seen an increase in transactional volumes and values throughout 2013 – a pattern that we expect to continue into 2014,” says Archer. He also reveals that “Asteco has witnessed a significant increase in applications for mortgage valuations, largely from expatriate purchasers, in freehold areas. Recent sales prices this quarter are reflecting an increase in values in The Pearl-Qatar. New apartments in Viva Bahriya are attracting higher prices than apartments in Porto Arabia. Increasing rents in the freehold zones has led to an increase in expatriate tenants looking to purchase, and resurgence in investor appetite.”

infrastructure

Soaring rents QNB predicts an annual 10.5% growth in population over the next two years. The unexpected influx of population into Qatar has created a short-term demand-supply mismatch across sectors, sending property prices and rents soaring.

“Residential rental rates have recorded increases of 15-20% over the last 12-24 months,” says Proudley of DTZ. “In some areas, such as The Pearl, rents have risen by 10% in the past quarter. Unfortunately for tenants, there is little sign of relief in this market as the release of new product struggles to keep pace with population growth,” says Archer.

“Rental rates for commercial properties have been relatively stable over the previous two years, with new demand being cancelled out by increasing levels of supply. The vacancy rate for commercial stock has decreased over 2013 due to high levels of uptake by government-related occupiers.

The pipeline supply over the next 12 months will be lower than preceding years and DTZ anticipates potential for rental inflation in 2014,” Proudley says.

DTZ’s Q3 Real Estate Report reveals that tenants seeking office space in excess of 5,000 sq. m. may be able to secure secondary accommodation at rental rates as low as QR145 per sq.m./month. Small suites of less than 500 sq. m., however, come at a premium rental of QR285 per sq.m./month.

“Residential rental rates have recorded increases of 15%-20% over the last 12-24 months.”

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The report also states that “net take-up of prime office accommodation over the first nine months of 2013 stands at approximately 262,000 sq. m., well above the five-year average of 101,000 sq. m. The vacancy level in the Diplomatic District is approximately 10%, lower than the 16% of 2012.”

Proudley says that projects like Barwa Commercial Avenue will create in excess of 200,000 sq. m. of cost-effective commercial accommodation. However, “there will be continued shortage of small spaces in the prime commercial districts of West Bay,” he says.

The demand-supply anomaly in low- and high-end segments is being corrected as attention has begun to shift to other areas that have struggled to keep pace with population growth, says Archer. “The development of affordable housing projects and new retail centres (such as that recently opened in the Industrial Area) is starting to address the much-needed demand at the other end of the market. The Ministry of Municipality and Urban Planning is currently looking at how best to influence future developments to address the needs of the population,” he says.

Yields to shrink Asteco believes that the current returns on property investment may not be sustainable. As demand pushes property prices upwards, returns are bound to shrink. “With strong economic growth projections for Qatar in the coming years, and relatively attractive returns available on property assets, we believe that there will be an increased appetite for property in these areas, and yields (returns on property investment) may contract to reflect this. Current yields in the property market reflect a certain amount of residual uncertainty from the economic and property downturn of 2008,” says Archer.

“In some areas, such The Pearl, rents have risen by 10% in the past quarter. Unfortunately for tenants, there is little sign of relief in this market as the release of new product struggles to keep pace with population growth.”

Johnny Archer, MRICS, Head of Valuation, Research & Advisory, Asteco Qatar

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According to Proudley, “investor interest in projects like The Pearl has increased as there is greater confidence in the project as a recognised and established residential location, access to more favourable financing rates, and greater liquidity in the economy – particularly amongst local Qataris employed by the government, who benefited from significant salary increases in September 2011.”

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Distribution of organised retail accomodation in Qatar (in %)

City centre

22

Landmark

ii

the centre

3

ezdan

7

Source: DTZ Research

Villaggio

24

Hyatt Plaza

5

the mall

4

centrepoint

5

Retail explosion According to Barwa’s in-house real estate magazine Aqari, high-end retail in Doha is dominated by approximately 588,000 square metres of gross leasable area (GLA) spread across eleven major shopping malls.

The present GLA per capita at around 0.3 square meters, is below regional benchmarks. By 2015, Qatar will get an additional 1.1 million square metres of retail space spread across 14 malls, more than doubling the GLA per capita to 0.86 square metres.

A majority of the current and upcoming malls in Qatar cater to the mid- to high-income segment. The DTZ report mentions that the “majority of retail mall space is fully occupied, with waiting lists at prime malls.

At Landmark, City Centre and Villaggio shopping malls, headline rentals range from QR225 to QR275 per sq.m. per month for standard line units.”

According to Aqari, currently individual retail stores (strip retail) on Salwa Road, Al Saad, Bin Mahmoud, Airport Road, the A and B Ring Roads, the Musheireb Area, Al Wakrah and Al Khor are 100% occupied. The asking rents in new, upcoming areas are 25% higher than average strip retail rents.

Existing rental rates in malls range from QR120 to QR220 per square metre. Strip retail rentals are 30% to 40% lower that asking rates in malls.

the gate

Lagoona Mall

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royal plaza

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Hospitality/Leisure – high-end supply The Qatar Tourism Authority is to spend $20 billion to spruce up Qatar’s tourism sector, leaving vast room for growth in the hospitality sector.

According to DTZ, there are 106 two- to five-star hotels and serviced apartments in Qatar, providing a total of 16,500 keys. Approximately 85% of this is rated as either four- or five-star properties.

An additional six properties are scheduled to open in 2013, adding 2,000 rooms to the market. DTZ forecasts that despite increases in demand, over the medium to long term the large supply pipeline of hotel developments will increase pressure on performance metrics in the hospitality sector

Creating a Qatari Logistics Institution As Qatar’s regional and domestic future grows ever brighter, Gulf Warehousing Company has created a foundation upon which the country’s supply chain needs can be met – Logistics Village Qatar.

“This is a paid advertorial’

W

ith the reaffirmation of FIFA’s decision to hold the World Cup in Qatar, an explosion of activity and development has been set off in the region. The State of Qatar has long been aware of where the wind is blowing, and has set budget after budget preparing for its emergence into global prominence in the coming decades. Setting its 2013/2014 budget at over QR218 billion, with public project spending increasing by 7% to QR62 billion for this period, the country has chosen to aggressively establish itself as a regional industrial hub across all industry verticals.

Not that there won’t be bumps and obstacles along the way. While infrastructure spending is expected to exceed QR200 billion in the coming years before 2022, this spending will be used to address some serious infrastructure issues, among them establishing local solutions to local supply chain problems. Enter Logistics Village Qatar (LVQ), which from its very beginnings has aimed to improve the country’s logistics infrastructure.

The 1,000,000 square metre all-purpose logistics hub, which is already operational after completing its original master plan design in April 2013, and with the fourth expansion phase set to be operational by April 2014, provides a one-stop shop for all the country’s supply chain needs in one central location. It operates on the grand vision of providing a platform tailormade for the specific needs of regional logistics players and large corporate houses, supported by ready-made services and infrastructure to help them become operational instantly.

With fully customisable warehouses built with elevated floors and dedicated office spaces, these modern storage facilities have three to four times the capacity of conventional warehouses. This offers clients the chance to expand within the same premises. LVQ serves every step in the supply chain, offering distribution centre space, multipurpose and customisable warehousing, truck parking and maintenance, a container depot and a laydown area and auction yard, as well as administrative, recreational and accommodation facilities on one site.

The Village is also strategically located near every transportation route and

port, only 15 km from the seaport, 18 km from the airport, and just 2 km from Qatar’s main Industrial Area, all of which have received recent government spending and expansion efforts. This works well within the framework of the National Development Strategy 2011–2016, which places a premium on industries that eliminate transport and distribution costs and integrate along the supply chain. It also complements the national effort of moving trade to the global arena, as it offers a clear venue for all in-bound and out-bound logistics operations.

LVQ also anticipates the needs of small and medium enterprises (SMEs), the sector that will most encourage growth and new investment away from the hydrocarbon industry. Currently 90% of companies handle logistics in-house, often renting out anywhere from 5–15 warehouses in different industrial areas, which makes for inefficient operations. As the country’s infrastructure and industry grow, private interests believe that logistics procurement habits will begin to mirror those in other countries, such as the UAE’s average 25% of logistics outsourced or Europe’s 35–40%. As a result, it is estimated that the third-party logistics segment will grow to 15% of total logistics operations by 2016.

LVQ becomes an attractive option for SMEs, therefore, as it consolidates all warehousing and distribution needs for any industry vertical in one space.

The village also allows for near-immediate operation, both for storage and transportation, which would take no more than a maximum of 10 months to establish fully, and for administration, with its plug-and-play administration buildings that can be operational at the client’s convenience. The alternative is a two-to-three-year period of finalising licences and approvals as well as construction of private warehousing, a heavy burden to place on start-up or SME companies.

Run by Gulf Warehousing Company (GWC), the leading logistics provider in the country, the organisation leverages its global network of logistics providers to give LVQ a distinct advantage in the field. By combining local know-how with international standards, GWC has dedicated its operation as a whole and LVQ in particular to providing a logistics infrastructure base that will match and grow alongside Qatar’s continually evolving loping development needs

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“Q-Post is being transferred to the Ministry this year and it is our aim to bring the Qatari post office into the 21st century for good. To provide best-in class postal services across Qatar and embrace advent of Digital Life.�

HE Dr Hessa Al Jaber Minister of Information and Communications Technology

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he telecom sector has gone through a phenomenal growth phase since being opened up to the private sector four years ago. An Independent Telecommunications Regulatory Authority will soon be established to encourage and support an open and competitive ICT sector. A single ICT backbone connecting all government entities through a secure communications platform will soon be a reality. This will help deliver government services much more quietely and efficiently.

Enabled by technology, Qatar is opening up to a whole new world of possibilities in communications and IT businesses.

ICT penetration has improved; usage rates among households, individuals, and businesses are much higher; and its citizens are increasingly transacting with the government through e-portals.

Satellite launch A milestone in the development of Qatar’s communication infrastructure was the launch of its very first satellite, Es’hail 1, in 2013. The launch will tremendously improve communication services in the MENA region, providing more TV channel choices and cable provider options in Qatar, improved military surveillance and better radio communications for the country’s armed forces. Qatar will be able to provide sophisticated broadband needs for the FIFA World Cup in 2022.

Speaking at the launch of the”Es’hail 1 from Kourou, French Guiana, Minister of Information & Communications Technology HE Dr Hessa Al Jaber said: “Es’hail 1 is the first step in our strategy to develop Qatar into a regional centre of excellence of a sustainable nation. Our next satellite, Es’hail 2, will be planned to meet the increasing national and regional requirements.”

Efforts are being made to create a local talent pool to sustain the emerging industry. The country’s first generation of satellite operator engineers, four of them, completed an intensive two-year satellite training programme at Space Systems in Palo Alto, California. These Qatari engineers will oversee the manufacture, launch and operation of all commercial communication satellites, and will be involved in developing Qatar’s own space capabilities.

Broadband Connectivity In 2012, Qatar National Broadband Network Company (Qnbn), received a 25-year licence from the government to provide fibre optic broadband throughout Qatar. By 2016, fibre optic connections will replace copper cables entirely. The number of people using mobile broadband services grew 40% between 2010 and 2012, from 903,243 to 1,265,566 subscribers. Eighty five per cent of households in Qatar had broadband connection in 2012 compared with just 41% in 2008.

Launched at a one day symposium in December, the Qa-

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The change in the country’s ICT landscape is nothing less than dramatic.

Over half the population now owns more than one mobile phone. Close to 70% of the population used the internet in 2012 compared with 38% in 2008. High-speed fibre optic cables are replacing old copper ones, and Qatar also now owns a satellite.

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Opening a new world of possibilities

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tar National Broadband Plan discussed the potential impact of broadband on both industry and society. The Qatar National Broadband Plan features a 10-year plan with specific policy actions around competition, management of resources, takeup, and the supply side of services and content. In her keynote opening address HE Dr Hessa Al Jaber highlighted that Qatar was placed 27th out of 190 countries in the United Nations E-Government Survey 2012, and 9th on the UN’s e-participation index.

In 2013, Qatar launched a 10-year plan to promote broadband market development and provide high-quality, affordable high-speed services to businesses and households by 2016. The plan lays down goals and strategies to maximise opportunities offered by broadband technology.

Speaking at the launch of the Qatar National Broadband Plan, Blair Levin, Communications and Society Fellow at The Aspen Institute, a keynote speaker at the event, said Qatar’s National Broadband Plan is based on global standards and is “the secret ingredient for success to the fundamental task of knowledge exchange.”

E-Government services Guided by the e-Gov programme 2020, the government is increasingly delivering services to its citizens online. According to ictQatar’s report “Qatar’s ICT Landscape 2013: Government,” 35% of public services in Qatar are now offered online, and over the next 12 months this will shoot to 51%. The services offered online include inquiry services, transactional services, and transactions with online payment functionality. New e-service offerings such as building permits, e-court management systems and public registration of property are a few services that will be added soon.

A study conducted by International Data Corporation (IDC) concluded that Qatar is well on its way to becoming a paperless government. Eighty-seven per cent of organisations surveyed by IDC indicated they have fully or partially automated processes for human resources, finance, procurement, and inventory processes and systems.

Qatar has been recognised globally for progress in e-government capabilities. Qatar ranked 48th out of 193 countries on the United Nations’ 2012 e-government development index, up from 53rd in 2008. The index measures the willingness and capacity of governments to use ICT to deliver public services.

In the same study’s e-participation index, which assesses the quality, relevance, usefulness, and willingness of government websites to provide online information and participatory tools and services to their citizens, Qatar scored a0.63 on a 0-1 scale.

Net access in public spaces One can surf the net for free in seven public parks in Qatar now. An initiative called iParks was launched in 2007 with

three public parks in Doha. In 2012, two new parks were added – Simaisma and Dukhan. According to ictQatar’s annual report, this year more than 12,867 individuals took advantage of iParks’ free Wi-Fi. Two new parks, Al Shahaniya and Um Slal, were added by 2013 and all municipalities will be covered by 2014. The aim is to provide free high-speed Wi-Fi access across the country’s public spaces by 2015.

Cyber security Recently Qatar Foundation’s Twitter account was hacked by Syrian rebels, exposing Qatar’s cyber vulnerability. To combat such attacks, Qatar established a National Cyber Security Committee and drafted several new laws this year, including the Personal Information Privacy and Protection Law and the Critical Infrastructure Information Protection Law. The former ensures the safety and privacy of data and transactions on the Internet and the latter is designed to safeguard key systems in the country, including power grids, oil and gas production, financial transactions, and healthcare and government operations.

The ictQatar annual report notes that in 2012 the Qatar Computer Emergency Response Team (Q-CERT) mitigated 800 reported incidents, eradicating malicious software and other hazards, stopping hackers, and preventing countless potential technology disasters through a variety of new or improved programmes such as the Threat Intelligence Centre and a threat-monitoring system.

Going up the ranks Qatar has been consistently moving up the ladder in the ICT field and has been recognised internationally in a number of global rankings. Qatar ranked above all other Arab nations on the International Telecommunication Union (ITU’s) 2012 ICT Development Index at 30th out of 155 countries. Qatar is now the most networked country in the Arab world and ranks 23rd out of 144 nations on the World Economic Forum’s Networked Readiness Index, which measures a country’s capacity to fully benefit from new technologies in terms of economic competitiveness, citizens’ daily lives, and overall social growth, up from 28th in 2012 and 39th in 2005. The nation’s standing on the WEF Global Competitiveness Index, which assesses the competitiveness landscape of 144 economies, has risen from 46th to 11th over the same time period.

Qatar ranks among the top 10 countries worldwide when it comes to ICT usage and prioritisation by the government, according to the World Economic Forum’s Global Information Technology Report 2013. The report notes that the country scores high on four indicators: ICT use and government efficiency; government procurement of advanced technology; government prioritisation of ICT; and importance of ICT to the government’s vision

Developing ICT capabilities has been an integral part of Qatar’s diversification strategy. Since its inception in 2005, ictQatar’s focus has been on getting the infrastructure in place. Qatar spent close to QR10.8 billion up to the end of 2012 supporting the sector in the form of funding, policies and procedures and infrastructure.

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ow that the building blocks have been laid, attention is shifting to creating new businesses in the ICT segment and developing Qatar as a regional ICT hub. Under the National ICT Plan 2015, the government will be spending another QR6.2 billion with an aim of increasing its contribution to GDP. According to the World Economic Forum (WEF’s) Global Information Technology Report 2012, ICT contribution to Qatar’s GDP has grown by approximately 16% for the past five years and doubled Qatar’s share of total ICT activity in the Middle East region.

Policy initiatives The government has been creating a conducive regulatory and policy environment to encourage continued market growth.

Qatar has implemented an Electronic Commerce and Transactions Law that makes online communications and financial transactions legally enforceable. The law establishes protocols for digital signatures and electronic documents, and authenticates payments.

A new five-year ICT investment strategy is now in place. This strategy identifies and prioritises 68 distinct ICT investment opportunities in Qatar. The major focus areas include e-commerce, digital content, cyber security, and e-payments.

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On a fast track

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Speaking at ICT Forum QITCOM 2012, ictQatar, Minister of Information and Communications Technology, Dr Hessa Al Jaber said: “Once we conclude the development of our ICT Investment and Development Strategy 2016, ictQATAR will conduct an investment forum with public and private sector stakeholders to discuss resulting ICT development and investment opportunities in Qatar.”

Entrepreneurship and innovation According to WEF’s Global Information Technology Report 2012, Qatar has “managed to create one of the best environments for entrepreneurship and innovation worldwide”. The Digital Incubation Centre (DIC) is an initiative that has already started producing technology entrepreneurs in Qatar.

The DIC was set up to help entrepreneurs launch new technology businesses with a specific focus on ICT-based innovation and generating high-quality Arabic digital content. The centre also provides intellectual support, administrative assistance, development opportunities and financial assistance of up to QR750,000 to plan, launch and commercialise a new product over a two-year period.

New businesses launched from the DIC include an online ticketing and event planning company, a game hub, an educational technologies company that aims to promote Arabic culture and values, and Qatar’s first-ever indigenous stock photography library. The 2012 ictQatar annual report said the DIC had turned out 12 incubated start-ups by the end of 2012, and by 2015, the figure will be 28.

“Once we conclude the development of our ICT Investment and Development Strategy 2016, ictQATAR will conduct an investment forum with public and private sector stakeholders to discuss resulting ICT development and investment opportunities in Qatar.”

Booming business These efforts are beginning to show results. ictQatar’s annual report for 2012 states that the country’s ICT market grew at an average rate of 17% a year from 2006 to 2011. In 2010-11 it recorded a 21% growth to touch QR15.5 billion taking Qatar one step towards diversification. With investment of QR5.82 billion as part of the ICT 2015 strategy, the segment is expected to enter a new growth phase. A recent Booz and Co. study of Rearch and Development spending found that the software and Internet sector invested aggressively this year, growing its research and development spending by 22.1%.

SME market The “Qatar’s ICT Landscape: Business” survey pointed out that

new businesses in Qatar are inclined to exploit the benefits offered by ICT and make investments that are critically essential for business success. Start-ups reported lower levels of web presence and network connectivity but employ a significantly higher percentage of skilled in-house technology professionals than businesses across the board. The report also observed that privately-owned companies with one to nine employees, which constitute 70% of all business establishments in Qatar, lag behind other segments on most indicators of ICT penetration and usage, including internet connectivity. The technology gap in this segment offers huge potential for future growth in IT services. a Silver lining for the cloud The cloud, touted to be the most-sought after service, has yet to catch on in Qatar, as awareness of the concept is very low.

Among establishments that are aware of the cloud, only 3% understand it well, and only 3% use it, the Landscape report said.

However, the silver lining is that among those aware of cloud computing but not currently using it, one-fourth of small establishments, 36% of medium, and 47% of large establishments indicated they intend to use cloud services for e-mail, websites, ERP (enterprise resource planning), security and other applications in the future. Large companies such as Commercial Bank have recently taken to the cloud.

Business opportunities follow infrastructure and investment, and with both in place, growth cannot be far behind as far as Qatar is concerned

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QITCOM, an annual ICT forum that discusses local emerging ICT issues, provides a platform for budding entrepreneurs with an idea or a product. For example, “Innovation Theatre” is a forum where budding entrepreneurs can pitch a technology business idea to a panel of experts and win financing and incubation services.

“Tech zone” is for ideas at the concept stage, prototype phase or launch phase. “TumuhaTEC” offers a variety of assistance to help young professionals on their journey to a job in ICT including internships, ICT, mentoring and a scholarship programme. To financially support workable ideas, ictQATAR is currently in the process of developing specific targeted funds in the form of seed funding, grants or investment vehicles for entrepreneurs and SMEs in the ICT space.

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HE Dr Hessa Al Jaber Minister of Information & Communications Technology.

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Ooredoo

A GLOBAL BRAND

Qatar’s national telephone company Qtel is now “OOredoo,” a new global brand, representing the transformation of the company from a local service provider to a global customer-centric services provider. Starting from a telephone exchange in 1949, the company has come a long way to become an international telecommunications company with a presence in 16 countries across the Middle East, Africa and Asia.

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oredoo” in Arabic means “I want” representing a customer centric focus. The rebranding reflects the proud Qatari values of “Caring, Connecting and Challenging”, its global ambitions and its commitment to customers.

Introducing the new brand, Ooredoo, Chairman HE Sheikh Abdullah bin Mohammed bin Saud Al Thani said: “We are not simply about making connections, we are about enriching and empowering the people of Qatar and helping them achieve their goals.”

Committed to changing lives through mobile technology, Ooredoo launched initiatives concentrating on four key aspects: enabling youth, championing women, empowering underserved communities and catalysing entrepreneurs and small businesses.

Reaching out to underserved communities is in the field of mobile finance, Ooredoo is providing the unbanked with basic financial services via mobile. For example, more than 600,000 customers are now sending money through Ooredoo services, with Ooredoo Mobile Money in Qatar, Mobiflouss in Tunisia and Dompetku in Indonesia.

Working to empower women, Ooredoo has leveraged mobile technology to support women’s entrepreneurship in Myanmar. It is developing a franchise model to enable 30,000 women to become entrepreneurs by 2016, by selling prepaid Ooredoo airtime in their communities.

In another initiative, Ooredoo is rolling out mobile health clinics to reach two million children by 2016, in partnership with global brand ambassador and football star Lionel Messi and his Leo Messi Foundation.

“Our industry has two major challenges in the upcoming period. We need to make sure that the benefits of mobile broadband technology are available to as many people as possible. We need to work together with governments, operators and device manufacturers to boost affordability, improve network access and improve the customer experience.”

Total customers * year on year growth for 9 month period

Total customers

Growth (%)*

9 months 2010

69,056

-

9 months 2011

82,421

19%

9 months 2012

89,172

8%

9 months 2013

89,588

1%

mobile broadband connections as there are conventional fixed broadband subscriptions.

International foray Qatar has made inroads into many new markets such as Indonesia, Myanmar, Algeria and Iraq through aggressive acquisitions over the past few years. This international foray has helped the company shore up customer numbers and its bottom line. Significant investments have been made in network capability and fresh licences in some international markets.

Ooredoo is the second out of 10 by market share in Indonesia, garnering 36% market. The company made inroads in the Maldives, increasing its market share from 29% to 33%. In Kuwait and Tunisia, however, Ooredoo is buckling under competitive pressure. It expects its network modernisation programme to give it an edge, as the company will be able to differentiate itself in terms of products and services. Recently it entered into a multi territory deal with Walt Disney’s MENA division to provide customers access to some of Disney’s popular entertainment programmes, strengthening its entertainment portfolio.

Though Ooredoo has lost market share to Vodafone in Qatar, it expects overall growth upside due to investment in network expansion across its geographical footprint

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HE Sheikh Abdullah bin Mohammed bin Saud Al Thani Chairman, Ooredoo

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taking Technology to the next level The idea behind the new name, brand and design is to “take the company to the next level”. Keeping pace with advancements in communications technology, Ooredoo is taking Qatar to the next level by connecting people across its target markets to the fastest networks by investing heavily in state-of-theart networks. The group reported a 46% jump in group capital expenditure to QR6,164 million during the 9-month period ending October 2013 compared with the corresponding period the previous year.

In 2012, the company rolled out Ooredoo Fibre network across the country and launched business services like the Cloud and Mobile Money. Qatar had the world’s fastest rollout of a fibre optic network in 2012, according to global management consulting firm Arthur D. Little. The Fibre To The home programme passed 204,000 homes, and 120,000 homes were connected as of October 2013. The ultrafast fibre optic network is empowering businesses and small and medium enterprises.

The company launched ultrafast 4G LTE mobile broadband networks in Qatar, Oman and Kuwait, and is conducting trials in the Maldives. Ooredoo rolled out 3G in Tunisia and was the first to introduce a UMTS 900 Mhz 3G network in Indonesia.

Named the IM3 Super Internet Service, it will offer packaged mobile broadband services with stronger, outdoor and indoor, signals as well as wider network coverage and faster internet access. Its subsidiary Nedjma received a 3G licence for Algeria in October 2013. In Myanmar, Ooredoo is in the process of finalising the licence terms and preparations are underway for the commercial roll out of next-generation mobile services.

Speaking at the opening ceremony for the International Telecommunication Union (ITU) Telecom World event, Sheikh Abdullah said: “Our industry has two major challenges in the upcoming period. We need to make sure that the benefits of mobile broadband technology are available to as many people as possible. We need to work together with governments, operators and device manufacturers to boost affordability, improve network access and improve the customer experience.

At the same time, we need to do a better job of shaping the future, rather than responding to it. We need to be active investors in new ideas, new thinking and new approaches that will help our customers in their daily lives.”

Mobile broadband is the fastest-growing technology in human history, according to the 2013 edition of the State of Broadband Report. According to the report, Qatar is the only MENA country to be ranked in the top 10 and one of only two countries outside Europe to appear in the top 10 rankings. The report reveals that mobile broadband subscriptions, which allow users to access the web via smartphones, tablets and WiFi-connected laptops, are growing at a rate of 30% per year. By the end of 2013 there will be more than three times as many

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Vodafone Qatar

Catching up

Vodafone Qatar, the only competitor to the state-owned Ooredoo, has been on a frantic growth path, expanding its network across the country and investing in technology upgrading.

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fter just over three years of operations, Vodafone Qatar has gradually chipped away market share from its established competitor in Qatar and driven down costs for consumers. Vodafone’s mobile network now provides 100% geographic coverage of Qatar. The company launched fibre-based consumer and enterprise fixed-line services commercially in October 2012, and has said that it will further expand its fibre services in partnership with Qatar National Broadband Network (Qnbn). In mid-2013, Kyle Whitehill took over from Richard Daly as CEO. With a new CEO at the helm steering the company forward, Vodafone expects enterprise customers and high speed broadband to provide the next leg of growth. Though Ooredoo preceded Vodafone to launch 4G services, Vodafone will not be far behind. The priorities for Vodafone, according to Whitehill, are to “build the network, build the brand in Qatar. The challenge in Qatar is to continue

to meet the global Vodafone equity while keeping the brand relevant to all the different segments in Qatar. I think we have done a very good job in making it relevant to the various segments of population; now it is time to make our brand exciting to Qataris as well,” he says.

“Also on our priority list is to build on our product services and market segments. We have a very high share of consumer mobile segments – we have a 35% share of the market – but a smaller share in fixed lines, and an even smaller share of the enterprise market, so clearly the job is now to build on fixed lines and also to work on businesses, which is historically Vodafone Global’s strength.”

Recently Vodafone Qatar and NetComm Wireless Limited announced a strategic partnership to extend Vodafone Qatar’s fixed and mobile networks to devices and machines which are used to enable Smart City applications such as security systems, intelligent transport systems, smart metering and smart

Slips out of the red The expanding customer base has translated into higher revenues and profits as well. Vodafone Qatar’s revenue for the half-year grew by 33% year-on-year. The company for the first time slipped out of the red and hopes to declare a dividend this year. Listed on the Qatar Exchange, the stock struggled to cross the face value of QR10 until a month ago. Since October 2013, the stock has shot up over 25% to close well over QR11.

The newfound enthusiasm is also due to Qatar’s entry into the Emerging Market club. Vodafone allows foreign ownership in its stocks up to 100%, triggering heightened interest in the stock.

Network expansion The company will be investing heavily in the second half of 2014 to strengthen network infrastructure and deliver faster data speeds. Vodafone aims to expand its network presence across the length and breadth of the country including the desert. In partnership with Qnbn the company will be rolling

Kyle Whitehill CEO, Vodafone Qatar

out more fixed-line networks for consumers and enterprises.

Vodafone Qatar and Qnbn had brought high-speed internet connectivity to as many as 32 business and residential towers in West Bay by the end of 2013, as part of a phased roll-out of state-of-the-art broadband fibre optic infrastructure.

Users in the towers will have access to improved performance from their ICT facilities delivering advanced voice telephony, high-definition video conferencing capabilities, stock and inventory control and knowledge management. Backup, storage and transfer of data will be faster and more efficient.

Fibre-optic connections will support the latest productivity applications, services and content for business, and cloud computing possibilities. The last-mile coverage connecting to Vodafone’s global network will enable the company to offer international connectivity services along with local enterprise solutions.

Enterprise customers Vodafone expects future growth to come from the fast-growing corporate segment, specifically small and medium enterprises. Sophisticated technologies and super-speed Internet are expected to stimulate demand for a range of sophisticated communication services from this segment. Over the next 12 months, Vodafone will provide unified communications to consumers and corporates that will significantly lower telecommunications costs for its customers.

In a bid to woo this segment, Vodafone opened the Al Safwa Centre. The centre holds workshops with executives to let them know how Vodafone can be a partner in their growth by supporting them through new technologies and innovative solutions

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Gaining Market share In a country with a population of approximately 2 million, but growing rapidly, Vodafone Qatar’s customer base increased 27% as of September 2013 compared with the previous corresponding six-month period. Its mobile customer market share has went up from 22% in 2010 to 32.3% in 2013. By providing value for money in the post-paid segment and focusing on retail expansion and visibility, Vodafone shored up customer numbers. Several attractive local and international calling offers were given in the post-paid segment. The company had more than 20 retail outlets across the country as of November 2013, with the task of making the brand visible. During the first half of 2013, Vodafone launched a comprehensive range of enterprise-grade fixed products such as Corporate Voice, Internet and Data Network solutions, adding several new enterprise customers and new residential customers in upcoming localities such as The Pearl and Barwa City. In three years of operations, Vodafone has brought down overall telecommunication costs in Qatar and provides healthy competition to the market leader, Ooredoo.

“The challenge in Qatar is to continue to meet the global Vodafone equity while keeping the brand relevant to all the different segments in Qatar. I think we have done a very good job in making it relevant to the various segments of population; now it is time to make our brand exciting to Qataris as well.”

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medical devices.

The new agreement follows from the success of NetComm Wireless’ existing partnership with Vodafone Global Enterprise for delivery of Vodafone MachineLink 3G across Vodafone Global Enterprise’s markets. With Vodafone’s unrivaled global experience in connecting machines, businesses of all sizes across all industry and service sectors are set to benefit from the ability to remotely monitor and manage previously isolated assets from a central location in real time using Vodafone Qatar.

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Assisting the differentlyabled

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Autism, dyslexia, vision or hearing impairment or any disability should not restrict a person from getting educated or earning a livelihood.

Mada helps people with disabilities lead a near-normal life through technology solutions.

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ada (Qatar Assistive Technology Centre) takes forward Qatar’s goal of digital inclusion for all, and develops assistive technologies that can change lives for the better. Assistive technologies placed in classrooms, workplaces, and homes throughout Qatar allow people with disabilities to work, attend class and connect with peers from around the world, and to effectively lead a normal inclusive life.

Mada also helps parents and society deal with the social stigma associated with disabilities, and equips them to handle such issues. Counselling sessions on various disability-related issues are regularly conducted to support society. The information sessions focus on how technology can be a disabled person’s best friend.

In 2012, a total of 1,150 people visited the resource centre, and Mada provided one-on-one assessments and support to 486 of them. The centre delivered 30 courses to 335 professionals and parents on topics related to how technology can help people with autism, dyslexia and other disabilities.

The organisation was formed in 2010 after Qatar became a signatory to the UN Convention on the Rights of Persons with Disabilities. Mada is funded by a levy on the turnover of Qatari telecom companies, channelled to Mada through ictQatar.

Vodafone, Ooredoo, Microsoft, non-governmental organisations and private sector assistive technology developers are some of its partners in making Qatar an inclusive society. For example, through its collaboration with Vodafone, people with disabilities get a 50% discount on telecommunication service fees, with 20% off on handsets.

Through another partnership, with Bookshare, the world’s largest online library of accessible e-books, Mada established the “Mada Collection”, which includes over 100 books in Arabic that can be accessed by differently-abled people in Qatar who meet membership requirements.

Some commendable efforts by Mada include participation in Al Noor Institute’s Blind Book Fair that allowed the visually-impaired to access literature, and assistive technologies for patients recovering in hospitals. The organisation also provides a wide range of technology products including adapted keyboards, software that reads text on the screen in a computer-generated voice, and even technology that allows people to communicate through a computer that recognises eye movements.

In 2013, Mada launched an Arabic-language assistive technology portal, a first in the Arab world. The portal contains detailed information about a wide range of technologies that help connect people who have learning, physical, visual and hearing disabilities to the world of ICT. Through the portal, Mada has reached out even to those beyond the borders of Qatar.

The Research and Development department works closely with assistive technology manufacturers from around the world to produce much-needed Arabic-language versions of assistive technologies.

According to the ICT Annual Report 2012, the Centre delivered 644 ICT solutions in 10 months, including commercial products, free and open-source solutions such as iPad apps translated into Arabic, and around 80 information resources published under Creative Commons licences

Corporate business, research & diversification

“We are looking for the active participation of the private sector to encourage positive competition and to support the employment, training and development of young people.�

HE Abdullah bin Nasser bin Khalifa Al Thani Prime Minister and Interior Minister

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Awash with funds and fuelled by ambition, Qatar’s government-owned entities are pursuing a dream : to be “world-class” corporates with “roots in Qatar” and a “strong international presence”.

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hese words aptly describe Qatar Petroleum (QP’s) new vision, but can be extended to define corporate Qatar’s collective hunger for recognition and excellence. Qatar’s state-owned companies have been vehicles for advancing the country’s ambitions. Stifled by limited growth opportunities within the country, most corporates have extended their branches in search of new markets. Top-rung companies Ooredoo, Qatar National Bank and Qatar Petroleum, have preferred the acquisition route to expand business in target countries, and have benefited. Qatar Airways has launched a series of flights to under-serviced destinations in ever new geographies.

Within Qatar, diversification, optimum use of resources and self-sufficiency have been central themes directing expansion of investments and businesses. Qatar Petroleum is successful-

ly creating a petrochemical empire in Qatar to monetise gas resources. Other national companies producing cement and steel were created to meet the construction demands of the country and reduce dependence on imports. A solar industry is being established to fulfil Qatar’s sustainability, diversification and industrial goals and aspirations.

Do it big When Qatar conceives a project it is always a mammoth. Be it QP’s upstream and downstream projects, Qatar Airways’ fleet expansion or Ooredoo’s acquisitions, the ability to splash cash has allowed Qatar to dream big and execute big. Qatar has gone for the biggest and most sophisticated aircraft and the best technology for its energy expansion projects, acquired top companies and built projects on a world scale.

QP’s energy diversification projects have turned the world’s

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Big dreams, Giant Leaps

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eyes towards this tiny country. Partnering with the world’s best energy companies, QP built the world’s largest gas to liquids (GTL) plants at a cost of QR69.16 billion ($19 billion), making Qatar the GTL capital of the world. It is investing QR91 billion ($25 billion) to build a petrochemical plant that will more than double the country’s petrochemical capacity. Qatar will be one of the top petrochemical producers in the world when the plant comes on stream.

In less than 20 years, Qatar Airways has transformed itself from a regional player into an international airline with membership of the oneworld alliance, flying to over 130 destinations globally and owning the world’s youngest fleet of over 120 aircraft. With over 230 aircraft on order worth more than QR182 billion ($50 billion), the fleet will boast 13 new-generation super-jumbo A380s, the world’s biggest aircraft in a luxurious configuration, by 2015.

In 2008, when Ooredoo (formerly Qtel) acquired a majority stake in Indonesia’s second-largest mobile company, instantly multiplying its customer base, the company had just laid the foundation for gaining entry into the top 20 global telecom companies by 2020. Over the past few years, Ooredoo has been recording double-digit growth in customer additions due to acquisitions abroad. Investing around 20% of its revenues to upgrade infrastructure and acquire new licences, the company is betting on new markets such as Myanmar and Iraq to propel growth. In 2013, the company‘s capital expenses shot up by a substantial 46% as it invested further in new markets.

Big dreams and big investments have translated into big achievements. The state-owned companies possess the world’s largest fleet of LNG carriers, the biggest LNG ships. Qatar is in the process of acquiring the latest super-big aircraft; is the number two helium and third-largest LNG producer in the world and is the largest single-site producer of petrochemicals such as low-density polyethylene and the fourth-largest urea producer in the world. Incidentally, Qatar is also the world’s wealthiest nation, a position from which it derives the power to dream big and strategically secure a position in the world.

Scale matters Scale matters, as it gives Qatar’s companies the cost efficiencies and the muscle to manoeuvre. The Pearl GTL plant is a perfect example of how scale can tilt the odds in Qatar’s favour. As Qatar has been ever willing to turn on the cash tap, it could build a dramatic-sized plant effortlessly where most other countries would have been struggling to raise finance and face cost escalation.

GTL capital costs are about $100,000-200,000 (QR364,000728,000) per barrel per day, two to four times those of LNG, affected by several factors such as plant size and the potentially volatile prices of construction materials. Depending on the particular plant and local cost of gas, GTL may break even

at about $40-$80 (QR145.6-291.2) per barrel. Oil prices hovering above $100 (QR364) per barrel mean Pearl GTL makes a clean cut. By investing heavily in a large-scale project, Qatar has shown the world how GTL technology can be commercially profitable.

Similarly, Qatar’s petrochemical industry too benefits from low cost and scale. The emergence of shale gas in America could be a headache for Qatar’s upcoming petrochemical industry. Faisal Hasan, Head of Research at Global Investment House, believes Qatar will be able to keep its edge in the petrochemical industry due to its lower cost of gas production visa-vis shale gas.

“Any reduction in gas prices may render shale oil gas production infeasible. Environmental concerns too might act as a hurdle for mass production,” he said.

Energy and Resources Leader at Deloitte Middle East Kenneth McKellar also dismissed any immediate threat to Qatar’s petrochemical industry. “Shale gas will only affect the petrochemicals industry and Qatar’s role in it if significant amounts of natural gas and feedstock from shale are diverted towards the US petrochemicals industry rather than exported to other countries. The extent of this diversion will depend upon how strong the petrochemicals lobby is in the US,” he said.

Echoing Faisal’s view, McKellar said: “Qatar benefits from cheap ethane feedstock, strong capital backing and wide access to Asian markets – the three key factors in Qatar’s favour which it will be challenging for competitors to overturn.”

Another example is how Qatar has benefited by investing in large-sized latest-technology LNG carriers (QMax). These ships have on-board re-liquefaction systems limiting gas wasted during transportation and making them cost-effective. Hence, the larger the carrier, the lower the transportation costs.

Having invested heavily in LNG plants and LNG transportation, Qatar is now looking at buying stakes in regasification projects, the last link in the LNG value chain across the world through QPI, QP’s international arm. A strong presence in LNG plants to carriers to regasification plants gives Qatar complete control in the LNG trade.

Banking expansion Flush with funds, Qatari banks are debuting in foreign markets.

QNB, Doha Bank, Ahli Bank and Commercial Bank have all started operations in other countries, and their overseas assets registered growth of 9.5% between 2008 and 2011. The overseas assets of listed banks in Qatar increased from QR81.54 billion ($22.4 billion) to nearly QR107.02 billion ($29.4 billion) during the same period, a QNB report said. Constrained by Qatar’s small population base, banks are looking at more populous markets in Egypt, Sudan, Turkey, Indonesia and India.

Corporate Qatar has just taken wing and there is more to come

Building a research base from scratch is not an easy task, certainly for a country that has not historically been known for its research orientation. But when Qatar successfully harnessed GTL technology on a massive scale to become the GTL capital of the world, it proved its mettle. It was a significant feat when Qatar Airways commercially introduced the first globally–approved GTL Jet Fuel– a more environment-friendly alternative.

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he high-profile names now being associated with Qatar, be they scientists or research institutes, are testimony to the rising profile of the country. It is still early in its ambitious journey to become a global research hub, but the building blocks are being put together one at a time.

Building blocks Under the Qatar Foundation umbrella, dedicated centres of excellence such as the Qatar Energy and Environment Research Institute (QEERI), Qatar Biomedical Research Institute

(QBRI) and Qatar Computing Research Institute (QCRI) have been set up. Each of these centres has specific research programmes aimed at researching and developing solutions that benefit the people of Qatar and the world. The mandate is to conduct translational research – research outcomes that can be used for improving people’s lives. Simultaneously, the Qatar Science and Technology Park fosters technology-oriented companies and helps them take locally-developed technologies to market. The Qatar National Research Fund allocates funds for promising projects and programmes to attract local talent towards research. The Qatar National Research Strategy,

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Building the blocks successfully

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announced last year, gives direction to the country’s research efforts. All the research institutes are currently in recruitment mode, scouting for talented scientists globally. State-of-theart infrastructure is also being built.

Hamad Mohammed Al Kuwari, Managing Director at QSTP says that some entities at the Science Park have already registered intellectual property rights and have started making money.

The taste of success In the past couple of years, success stories have started emanating from these research centres. Very recently, Qatar’s inhouse technology was used by the UN to aid disaster relief after typhoon Haiyan struck in the Philippines. The QCRI’s Dr Patrick Meier, Director of Social Innovation, developed MicroMappers, a tool that browses through streams of online social media data such as photographs, tweets and chatter to display relevant information on satellite maps. The information can be used by organisations involved in disaster work to implement relief work effectively. The QCRI’s work was highlighted in the World Disaster Report the most important and high-profile annual publication in the humanitarian field.

The QBRI’s scientists made a breakthrough when they identified a genetic marker that will help identify patients with type 2 diabetes (T2D) who are most likely to develop certain kinds of cancer. The discovery revealed a link between cancer and diabetes and will lead to development of therapies and preventative strategies for the two diseases. Another research project discovered that stem cells can be used to treat diabetes. The stem cells engineered by the QBRI teams were found to control insulin production depending on blood glucose levels.

Led by Qatari astronomer Dr Khalid Al Subai, the Qatar Exoplanet Survey, a project undertaken by QEERI, discovered three giant Jupiter-like planets, ‘Qatar-1b’, ‘Qatar-2b’ and ‘Qatar-2c’.

Exoplanets are planets found outside the solar system.

QEERI recently received a grant of QR17.58 million ($4.83 million) to expand the project to look for new discoveries.

Qatar University made another breakthrough in the aviation biofuel project when its research team isolated single-celled photosynthetic organisms (cyanobacteria and microalgae) that are unique and found in the waters of Qatar. They grow well in the extreme heat, strong sunlight and highly saline waters of Qatar.

The fat from the algae cultures is extracted to make fuel.

Following this initial success, the project is being implemented on a larger scale. The biofuel, if successfully developed, could be a game-changer for the aviation industry.

As more research programmes yield results, revenue from intellectual property rights and commercial product development will start bringing in revenue.

Attracting talent Qatar has so far been successful in attracting high-profile technology companies, research institutes and scientists to implement its vision. Speaking about QSTP’s success, Al-Kuwari said: “According to our internal target, we did not expect 46 companies to move in by 2012. We were expecting it by 2015. The demand has picked up quickly and we are almost full now.”

QSTP will soon be launching its second phase to accommodate more companies. “The second phase will consist of work on the Tech 3 building, which is 38,555 square metres, and the Tech 4 building, which is 12,000 square metres. Work on both projects will be carried out simultaneously,” said Al-Kuwari.

Building a research hub is more about people than stateof-the-art infrastructure. Abundant resources to carry out research and challenging tasks have attracted high-profile scientists to Qatar. Last year, QBRI hired Dr Phillippe Froguel to head the Genomic Research Centre. Froguel is a pioneer in the field of genomic medicine and he was the first to identify the type 2 diabetes gene in 1992. Soon after, his appointment, in a significant breakthrough, the international research team headed

by Froguel discovered the genetic marker that revealed a link between diabetes and cancer.

The nascent research institutions in Qatar are recruiting scientists from all over the world to work on significant projects. However, developing local talent is the top priority. Qatar Foundation, the funding organisation, has launched various programmes to kindle the research bug in Qataris. QNRF sponsors various programmes targeted at various levels from undergraduate to postdoctoral. Qatar Student Leadership Programme is one of the few programmes dedicated to producing home-grown scientists. Under the programme, students gain valuable hands-on research experience under the expert mentoring and guidance of scientists and professors at leading research institutes in the country.

New programmes are on the anvil, and the allocation too is set to go up according to the five-year plan announced by QNRF. Applications for these programmes are constantly on the rise. In the latest cycle of the Undergraduate Research Experience Programme (UREP), 68 Qatari students were successful in gaining awards – a 58% increase from the previous cycle – and 44 of those students were women

P

ublic-Private Partnerships (PPPs) will not only provide the required expertise and know-how for the development and operation of mega infrastructure projects but will also enable the government to concentrate on other issues confronting the nation.

Recognising the importance of the PPP model, Qatar launched the first venture by setting up the Ras Laffan A Independent Water and Power Plant (IWPP) in 2001. This was followed by three more IWPPs – Ras Laffan B, Ras Laffan C and Mesaieed Plant- demonstratiing the successful PPP model adopted by Qatar since then.

Except for Ras Laffan A, the remaining projects were undertaken on a Build, Own, Operate and Transfer (BOOT) basis, and the power produced was purchased by Qatar Electricity and Water Company (QEWC).

Buoyed by the success of its PPP model, the government has decided to extend it to other sectors like construction, health, waste management, real estate and transport, as the government is likely to spend an estimated QR910 billion ($250 billion) during the run-up to the FIFA World Cup 2022.

Of this, QR546 billion ($150 billion) is to be borne by the government and state-owned Qatar Petroleum (QP). The pri-

vate sector, along with other public entities, is expected to finance the remaining portion of approximately QR364 billion ($100 billion).

Reiterating Qatar’s commitment to encouraging private sec-

“The next phase of development in Qatar will be driven by large-scale infrastructure projects, which will require the input and support of the private sector and which will deliver a major contribution to the welfare of the citizens of Qatar.”

HE Ali Shareef Al Emadi Minister of Finance

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the Participation of the private sector in building the country’s infrastructure is nothing new for Qatar, as it started experimenting with this concept more than a decade ago.

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“Qatar needs to further diversify its economy and encourage the private sector and entrepreneurship. It should continue its focus on research and development, education and health. Successfully delivering on this will help Qatar achieve its National Vision 2030, and place Qatar as a leading economic centre in the region and global economy.”

Robert Stheeman Chief Executive, UK Debt Management Office

tor, the Prime Minister and Interior Minister HE Abdullah bin Nasser bin Khalifa Al Thani, while inaugurating the Euromoney Qatar 2013 conference in mid-December, issued, called upon the private sector to become more proactive in Qatar’s ongoing process of economic diversification, away from the benefits reaped from oil and gas.

“We are looking for the active participation of the private sector to encourage positive competition and to support the employment, training and development of young people. The oil and gas sector has long been the main driver of the Qatari economy. The new phase requires the government to focus more on diversification of the sources of the economy, supporting development and expansion in non-oil sectors,” the Prime Minister said.

Minister of Finance HE Ali Shareef Al Emadi, who spoke on the role of the financial sector in supporting stability and ensuring achievement of the Qatar National Vision 2030.

“Financial stability requires sound fiscal policies and the development of a financial system that can cope with risks and boost the capacity of the national economic system to absorb risks. The next phase of development in Qatar will be driven by large-scale infrastructure projects, which will require the input and support of the private sector and which will deliver a major contribution to the welfare of the citizens of Qatar,” the Finance Minister added.

While public sector has been the key driver of credit growth, the private sector, particularly the domestic banks, are playing a crucial role in meeting the demand for credit in view of the

project boom in Qatar.

A report from QNB Financial Services said that the loans disbursed by the local banks grew 5.5% year-on-year in May 2013. Rising liquidity and enhanced economic activities are likely to generate greater demand for credit in the country, the report said.

The Dubai-based consultancy Markab Advisory, which conducted a study entitled “PPPs: A vehicle of excellence for the next wave of infrastructure development in the GCC,” said: “By weaving PPP into its infrastructure and growth plans for the next ten years, Qatar can rapidly emerge as a centre of excellence for PPP in the region.”

Speaking at the Euromoney conference, UK Debt Management Office Chief Executive Robert Stheeman also stressed that the private sector should be encouraged in Qatar.

“Qatar needs to further diversify its economy and encourage the private sector and entrepreneurship. It should continue its focus on research and development, education and health.

Successfully delivering on this will help Qatar achieve its National Vision 2030, and place Qatar as a leading economic centre in the region and global economy,” Stheeman said.

While several countries have enacted legislation to implement PPPs in a fair and transparent manner, Qatar, which has already established a PPP directorate in the Ministry of Economy and Trade, is also planning to have a similar Act in force to strengthen investor confidence besides reiterating its commitment to the private sector’s role in the country’s economic diversification process.

Markab Advisory also said that like other countries, Qatar can significantly benefit from efficiency gains and cost savings achieved through PPPs. If Qatar, which has an aggregate infrastructure budget (from the government alone) of around QR546 billion ($150 billion) in the next five years, is able to achieve average procurement and project lifecycle savings of 10% on projects with a potential economic multiplier impact of 2x, the possible overall savings would be around QR109.2 billion ($30 billion).

The private sector will be held responsible throughout the project cycle and payments will be linked to specific delivery standards. The private sector’s involvement through the lifecycle of the project will also ensure that operators remain accountable for the delivery and sustainable quality of the projects.

Another advantage is that Qatar will have the potential to become a hub for project finance activities as well as infrastructure funds. Such a pipeline of PPP projects in diverse sectors, supported by Qatar’s world-class regulatory infrastructure, can provide the opportunity for banks, infrastructure funds, pension funds, lawyers, advisers, corporate finance and structuring specialists, asset managers and others to come together and create the region’s first infrastructure financing centre

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or example, Maersk Oil supports local businesses through the company’s tender evaluation process.

It grants preferential terms of evaluation to make local vendors’ bids more competitive allowing an additional 5% on goods and 10% on services for local vendors.

“In 2012, Maersk Oil Qatar spent more than QR1.73 billion ($475 million) with local vendors. Over the past four years, approximately 58% of the company’s total procurement turnover has been spent in the local market,” notes the Sustainability Report.

In a bid to encourage local suppliers, Pearl GTL buys large quantities of hydrochloric acid locally from Qatar Vinyl Company. By the end of 2013, Shell Qatar had included three new local vendors on its list, and promised more such opportunities in 2014.

To derive sourcing efficiencies, companies are taking a

consortium approach to leverage supplier relationships. For instance, the “Strategic Material Forum,” a Qapco initiative, brings together local manufacturers benefit from collective buying.

Inclusion of local manufacturers in Qatar’s rail tenders awarded in mid-2013 is another example of the government’s commitment to project Qatar’s private sector. Local companies - Galfar Al-Misnad Engineering & Contracting, AI Darwish Engineering and Hamad Bin Khalid Contracting will be involved along with foreign contractors to lend a hand in building Qatar’s first-ever rail system, gaining experience and knowledge.

Local partnerships make the cut Qatar’s petrochemical diversification will, to a large extent, be spearheaded by local companies. The Ras Laffan mega-petrochemical complex, scheduled for completion in 2018, will be developed jointly by Qatar Petroleum and Qapco.

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Local sourcing has been on the rise both by the government and big corporates and according to the latest Qatar Energy and Industry Sustainability report, in 2012 total local procurement by 28 companies in the energy sector averaged 53.78%, compared with 49.32% the previous year.

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Number of companies reporting

48%

23

49%

28

54%

28

% of companies reporting

66% 80% 80% I 2010 I 2011 I 2012 I Source:Qatar Energy and Industry Sustainability report 2012

For the first time two Qatari entities will develop a petrochemical complex on a large scale without the ownership or support of multinational partners. The venture is expected to create more than 1,500 jobs for Qataris and open up new opportunities for local economic partnerships and community development. The decision is testimony to Qatar’s confidence in local capabilities.

The entrepreneurial ecosystem The entrepreneurial ecosystem built by Qatar has several parts to it. Silatech, Enterprise Qatar, Qatar Development Bank (QDB) and Bedaya Centre are all engaged in assisting private sector and local capability development.

Each plays a different role, from drawing young minds to business to giving mentoring and financial assistance to startups. Sometimes they work together on different projects.

For example, the Sila Angel Investment Network is an initiative where all these organisations come together. The initiative connects start-ups and early-stage entrepreneurs with influential, high-net-worth individuals who become “business angels”.

Business simulation competitions, such as Enterprise Qatar Challenge, prompt school and university students to “think business” and probably motivate them to own one when they graduate. They also sow the seeds of innovation and ideation.

Al Fikra is an executive educational and coaching programme designed for Qatar-based entrepreneurs and students. The programme readies them to deliver business plans and go on to establish successful private businesses. Silatech provides counselling to youngsters on business and job opportunities. These initiatives target wannabe entrepreneurs and start-ups and provide incubation.

QDB steps into the middle of the journey and provides professional and financial assistance for promising business propositions. It funds businesses that are otherwise shunned by regular financial institutions. The bank sponsors Qatari businessmen various international trade shows to increase the profile of Qatari enterprises. QDB CEO Mansoor bin Ibrahim Al Mahmoud, in the company’s 2012 annual report, sets an ambitious target of “making a 3% contribution to the GDP of Qatar by 2015”.

QDB also acts as a facilitator for increasing SMEs’ exports.

Through a well-defined export strategy, QDB identifies growth products and target markets that can drive exports from SMEs. Its efforts have resulted in a 77% increase in non-oil exports by companies directly supported by QDB. Qatar Statistics Authority (QSA) data show that non-oil exports increased from QR597 million in 2011 to QR1.05 billion in 2012. These exports are expected to touch QR3.8 billion by 2016 according to the strategic studies conducted by QDB

The most important achievement for Qatar Chamber (QC) this year was receiving the preliminary approval from concerned authorities to set up its ambitious QR2 billion private company. Expected to emerge as a key driver in the transformation of Qatar’s industrial economy, the new venture will act as an umbrella for Qatar’s start-up firms.

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ohammed bin Tawar Al Kuwari, Vice Chairman of QC, said the formal announcement of the launch would be made soon. Initially, the capital would be raised through IPOs, which would be restricted to Qatari businessmen.

The company would go for listing on Qatar Exchange.

The proposed company will mainly focus on non-oil industrial sector. The Chamber has already identified many project opportunities through this venture, according to Al Kuwari.

QC has conducted a feasibility study of the proposed company, which has suggested how to make the new venture a profit-making one. The company needs support from various entities, Al Kuwari said.

The launch of the company is totally in line with Qatar’s development vision. He recalled the Emir HH Sheikh Tamim bin Hamad Al Thani’s recent speech at the Advisory Council meet that stressed the need for transforming Qatari entrepreneurs more productive. QC’s decision to launch the new venture is an attempt to live up to the Emir’s expectation, he noted.

“The growth of Industrial sector is key for Qatar’s economy.

Qatar’s private industrial sector is facing several challenges abnd there is a need to expand our industrial areas. Compared

with our neighbouring countries, the total area designated to private sector industrial projects is very limited,” he said and stressed the need for accelerating the pace of development of Qatar’s proposed free economic zones in three different areas.

ICC Secretary-General Jean-Guy Carrier said he was confident that impetus from the agreement reached in Bali will drive further negotiations at the WTO in Geneva to complete other important elements of the Doha Development Agenda.

“We are thrilled with this outcome, which is particularly important for developing countries, who will be the main beneficiaries of this agreement,” he said.

Qatar Chamber (QC) has been working closely with the ICC to encourage all WTO parties to seal a trade facilitation deal that would contribute to economic growth and job creation by simplifying administrative procedures and standards that dictate how goods cross borders or how they are handled in customs. The drive is a partnership the two organisations have created called the ICC Business World Trade Agenda (WTA).

QC Chairman HE Sheikh Khalifa bin Jassem bin Mohammed Al Thani said: “The efforts we made with ICC to push governments to conclude a deal in Bali have paid off. Our aim has been to mobilise business to provide a practical and forward-looking trade policy that will contribute to economic

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“Our leadership across a half-century has been able to surpass all difficulties until we bring Qatar today to the suitable status and position it deserves. A prominent and shiny name sparkling in the sky of the economy, politics, media and sport with the people of Qatar have a dream and hope for a future they make themselves toward more progress and prosperity.”

HE Sheikh Khalifa Bin Jassem Bin Mohammed Al Thani Chairman, Qatar Chamber

growth and job creation. There will be enormous benefits for developing countries, making them integral players in global trade and more attractive destinations for foreign investment, which in turn benefits the world economy.”

Qatar Chamber is one of the oldest chambers of commerce in the GCC, having been established in 1963. It operated within the structure of government agencies until 1990, when a law empowered the Chamber to operate independently. This enabled Qatar Chamber to undertake a wide range of activities with national, regional and international businesses.

The QC mission is to be the benchmark of chambers worldwide in line with the Qatar National Vision 2030, to be the gateway of businesses both in Qatar and abroad and to organise, represent, defend and promote commercial, industrial and agricultural interests, and to promote Doha as an global business hub. QC is the catalyst that promotes business, encourages investment, and manages growth in the local economy.

QC provides support to local businesses by providing consulting and advisory services, quality label and due diligence services and market studies. It organises and establishes commercial, agricultural and industrial fairs and events.

QC also provides an opportunity for local businesses not only to network with each other but also to use the Chamber as a platform to link to other businesses and industries globally.

Local businesses will find that many doors will be opened to link with international businesses through QC’s active hosting of conferences, opportunities to network and joint business initiatives, and its provision of exclusive opportunities for its members to meet high profile professionals.

QC is involved in several initiatives that exemplify its dedica-

tion to gathering international business people and providing a valuable opportunity to exchange ideas, best practices and innovations, promoting networking efforts between chambers of commerce and drawing on their experiences for the benefit of future business and commerce.

Qatar Chamber (formerly Qatar Chamber of Commerce and Industry) also recently celebrated its Golden Jubilee. The Emir, HH Sheikh Tamim bin Hamad Al Thani, together with Prime Minister and Interior Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani and other dignitaries participated in the celebrations.

The Minister of Economy and Trade HE Sheikh Ahmad bin Jassim bin Mohammad Al Thani, said that celebrations were an occasion that deserved all the recognition and attention because it reminded us of the beginnings of building a Qatari economy. He said that it was also a moment of inspiration that included a lot of lessons.

The QC Chairman said: “Our leadership across a half-century has been able to surpass all difficulties until we bring Qatar today to the suitable status and position it deserves.”

He emphasised the first democratic experience Qatar had witnessed with the election of QC’s board of directors in April 1998 according ample room for Qatari women and youth to share in the board of directors membership, in the interests of the private sector and further enhancing the Qatari economy.

He said QC was the first chamber in the region to host the World Chambers Congress, successfully managed to be a member of the 20th consultative group and to be a headquarters of the Islamic Chambers, in addition to hosting the regional office of the International Chamber of Commerce (ICC)

qatar and the world

“The foreign policy of the State of Qatar is based on the principle of mutual respect, noninterference in the internal affairs of states and supports the rights of peoples to selfdetermination.�

HE Dr Khalid bin Mohammed Al Attiyah Minister of Foreign Affairs

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Trade, peace mediation and investments

Foreign Policy footholds

Qatar’s foreign policy has so far been shaped by three main planks–trade ties, peace mediation and investments. The energy trade shift from the West to the East has enhanced Qatar’s engagement with the East - be it Japan, Korea, Singapore or Indonesia.

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econdly, being a country with limited military might, Qatar has tried to protect its interests by becoming a peace broker and in turn spectacukarky boosting its own status in the world. A few successful attempts over the years have earned it laurels and the desired recognition from the

world.

Qatar has always been cautious with its relationships deliberately avoiding taking sides and balancing ties with friends and foes alike. As Qatar emerged as a key player in regional politics, its ties with its neighbours sometimes became strained and pressure mounted on the country and its leaders to take sides on specific issues. As Qatar navigated through the deep, muddled waters of international politics, it had to face a few setbacks too.

Blessed with immense surplus wealth, Qatar’s investments

around the world govern the third leg of its foreign policy. Be it Greece or Indonesia, Qatar has been the saviour of debt-laden European governments and fast-growing Asian countries seeking investment.

Taliban peace process and failure Qatar’s attempt to broker peace between the Taliban, Afghanistan and the US fell flat after the Taliban decided to close down their “office” in Doha shortly after its opening. The talks were significant, as the parties involved were trying to negotiate and move forward after nearly 12 years of war in Afghanistan. Qatar could have scored points if the talks had indeed progressed and an agreement been reached. However, it is not easy to walk fine thread on thorny issues and it ended up as an embarrassment for Qatar.

The Afghan government protested the Taliban’s use of their

qatar and the world

The Emir, HH Sheikh Tamim bin Hamad Al Thani, seen with Minister of Foreign Affairs HE Dr Khalid bin Mohammed Al Attiyah at the 34th session of GCC Supreme Council held in Kuwait. old flag–the one they used when in power during the five-year period to 2001–and a sign board at its Doha office bearing the name “Islamic Emirate of Afghanistan.” This, the Afghan government said, was tantamount to running a parallel diplomatic channel, and it refused to carry on any further talks till the issue was sorted out. The US warned that the office should be closed if the issue remained unresolved. Qatar responded by removing the Taliban’s flagpole and taking down the sign. Not pleased with the response, the Taliban said they might move the peace talks from Qatar to another country, stalling the possibility of Qatar playing a role in the peace process, if any.

Relations in Egypt The overthrow of Egyptian president Mohamed Morsi of the

Muslim Brotherhood, with whom Qatar enjoyed a warm relationship was yet another setback for Qatar. Qatar had committed QR65.52 billion ($18 billion) in investments in Egypt when the new government took charge. The rise of the Muslim Brotherhood was not appreciated by Qatar’s neighbours, Saudi Arabia and the UAE, who rushed to fill the void when the Morsi government was overthrown. Saudi Arabia approved QR18.2 billion ($5 billion) in aid to Egypt and UAE has offered QR10.92 billion ($3 billion) to Egypt since the army ousted the Islamist president. Together, Saudi Arabia, Kuwait and the UAE have pledged more than QR43.68 billion ($12billion) in aid to Egypt after Morsi was ousted. Egypt being the most populous of the MENA countries, is an important business partner for the GCC countries. As the GCC countries fight it out for

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AFP PHOTO / WILL OLIVER

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The Shard, London influence in Egypt, Qatar appears to be losing its hold in the country for now.

America - defence and business America has been Qatar’s key Western ally, as the two have often held together on important regional issues like Syria.

The US and Qatar also cooperate on security in the Persian Gulf region. Qatar hosts CENTCOM’s forward headquarters and has supported NATO and US military operations in the region.

Qatar houses branch campuses of six major US universities.

Increasingly, the US is also bagging a larger chunk of business generated by development activity Over 120 US companies operate in Qatar. The US accounts for roughly 15% of Qatar’s imports, though natural gas exports have been dwindling due to the discovery of shale gas in America.

Britain - Qatar’s second home Britain could easily be Qatar’s second home, given the large chunks of British real estate owned by Qataris. From The Shard to Chelsea Barracks, Qatar has accumulated high-profile assets in the UK. Qatar and Britain also share strong energy ties.

These got a fresh boost in November 2013 when UK’s Centrica renewed a deal to purchase 3 million tons of LNG, approximately 13% of Britain’s annual residential gas demand from Qatar.

Energy and investment – Shifting east Qatar is increasingly engaging with East Asian countries as the balance of trade shifts towards that region. Korea and Japan have been solid energy partners, importing close to a fourth of their energy requirements from Qatar. The country has been engaging with Singapore on strategic and administrative issues in addition to trade. In 2013, Qatar delivered its first LNG cargo to Singapore. As Qatar pursues new Eastern customers for its LNG, fresh linkages have been established with new friends in the region. Relations with China, for instance, are assuming a new dimension.

Last year Qarar received a licence to invest up to QR18.2 billion ($5billion) in Chinese equities, making it the largest foreign investor in the Chinese market. China is Qatar’s fifth-largest export destination, and may soon get ahead of others in the list. Cooperation extends beyond LNG imports to investment in upstream and downstream projects. In 2011 QP, Royal Dutch Shell and PetroChina agreed to build a petrochemicals and refining complex in Zhejiang province with an initial investment of QR45.5 billion ($12.5 billion).

Qatar’s quest to fruitfully invest its gas surplus is yet another dimension of its external relationships. Qatari investment in Malaysia, Indonesia and India received a boost after Qatar invested huge sums in these countries

qatar and the world

Going beyond football

the Ambassador of brazil to qatar, His Excellency Tadeu Valadares, talks about building a strong relationship that connects the two countries together. And football is just the beginning.

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atar and Brazil share a vibrant bilateral relationship. Since diplomatic relations were established in 1974, our countries have come a long way in terms of increasing and strengthening tourist, commercial, cultural and political ties. Both our countries share a sharp view to the future. We are committed to building a more democratic and pluralistic international community, one in which the once-called “peripheral� countries deserve to be heard and can also prosper and thrive. Both our societies are very proud of their respective cultural heritages. In a world characterised by a functioning but imbalanced globalised economy, fast communication and virtual relationships, Qatar and Brazil can both contribute with a sense of local, community and family values. The two countries believe that development and modernisation must take the fair demands of the past, and of tradition, into consideration. Both Qatar and Brazil are home to people of varied cultural traditions and religions and of a cultural heritage that demands from us to be more and more tolerant, since Brazilians and Qataris belong to extremely diversified societies. Based on these special traits we share, the two countries are strengthening their ties and moving forward into the future.

He Tadeu Valadares Brazil’s Ambassador to Qatar

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growing trade Brazil imports a significant amount of liquefied natural gas and fertilisers, and Qatar imports iron ore, aluminium and food, mostly poultry. In 2012, this bilateral trade for the first time surpassed QR3.64 billion ($1 billion). Brazil is roughly the 20th largest Qatari importer. If we consider that only seven years ago our bilateral trade was much more concentrated and the total amount of commerce barely reached a few million dollars, we can verify how much bilateral trade has evolved.

Building bridges with business There may be opportunities in Qatar for our large construction and engineering firms, due to the country’s vast expansion in infrastructure projects. Brazilian entrepreneurs have a recognised expertise in these fields. Also Brazil is also undergoing major expansion in infrastructure, providing good opportunities for the Qatar Investment Authority, which is actually already present in Brazil, mainly in the real estate business. One potential area for more Qatari investments is the area of ports, in which new and more flexible legislation concerning foreign ownership has recently passed.

In addition to commercial cooperation, Qatar and Brazil are studying opportunities for trilateral technical cooperation in third countries. The field of food security seems to be especially promising. Moreover, Brazil is part of Qatar’s “Educate a Child” initiative, and there is room for the two countries to expand their cooperation in the area of global education.

World Cup hosts - learning together 2014 will be an extraordinary year for Brazil. The country will host its second World Cup in 64 years. As you know, football is the favourite sport for most of the 200 million Brazilians. In

fact Brazilians and Qataris are very much alike in this regard, both peoples sharing a special passion for the game. We are thrilled to have Qatar, which will host the 2022 World Cup, with us at this time of joy and celebration in our country. We hope Qatar will learn from our experience–which will certainly not be an easy one, but will for sure be a remarkable success.

We will have no fewer than 12 host cities throughout the large area of our country, and we are fully aware of the challenges ahead of us. It shall be a good opportunity for Qatar, certainly, to learn from our good practices and also to take into consideration decisions that may end up proving not to be the best possible ones.

A year-long sharing of culture We do hope that the Qatar-Brasil Year of Culture 2014 will be a great opportunity for Qataris to become more acquainted with Brazil, as well as for Brazilians to learn more about the history and culture that singularise Qatar. In this context, it is Brazil’s goal to deepen mutual knowledge and in doing so to stress what unites our two peoples and our cultures. The 2014 Year of Culture has the potential to be a very successful exercise centred on the present profiles of the two countries, two peoples and our respective cultures. There are many interesting facts that bring us together and that are little known, both in Qatar and in Brazil. On the one hand, for instance, Brazil is home to some fifteen million Arabs and Brazilians of Arab descent. This makes the Arab culture look, sound and taste familiar to all Brazilians. On the other hand, Brazil is recognised in Qatar particularly because of football and because of the many football players and coaches working here. With the Qatar-Brasil Year of Culture 2014, we hope Qatar will feel even closer to Brazil, and Qataris to Brazilians

qatar and the world

Better together

Her Excellency Yvette Burghgraef-van Eechoud, Ambassador of the Kingdom of the Netherlands in Qatar, speaks to Progress Qatar about the different levels of collaboration between the two countries.

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he most recent display of the excellent relations between our two Royal Houses was the presence of HH Sheikha Moza at the enthronement of our King Willem-Alexander in April. Before that, in 2011, a very successful state visit of Queen Beatrix took place, where she was accompanied by her son, Willem-Alexander, and daughter-in-law, Maxima, now King and Queen of the Netherlands. Many businesses and institutions travelled with the Royal Family to expand links in business and research, but also in culture. On prior occasions, HH the Emir Sheikh Tamim bin Hamad Al Thani, and His Majesty King Willem-Alexander met quite a few times in the framework of the International Olympic Committee, both being very passionate about sports. I think it creates a special bond when two young monarchs accede to the throne in the same year.

Trade - now and in future In 2012, total exports from Qatar to the Netherlands amounted to QR1.6 billion and imports stood at QR1.8 billion. The trade is now largely dominated by energy flows, but is bound to diversify into increasing flows of goods and services. Considering the limitations of the local consumer market, I expect our trade

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HE Yvette Burghgraef -van Eechoud Netherlands Ambassador to Qatar

to grow mainly in machinery, equipment, technology and services. Although committed to buy on the local market, a global leader like Damen Shipyards still sources most parts and services needed for building and maintaining yachts and vessels from the Netherlands or elsewhere in Europe. In high tech, Philips is of course a major supplier of medical equipment.

The advanced technologies developed by Philips fit perfectly in the ambitious plans for the medical sector as part of the Qatar National Vision 2030.

qatar and the world

Perspectives from a top tourist destination For me, Qatar has plenty of opportunities to become a major tourist destination for Europeans. The vision of Qatar to blend tradition with modernity is a very powerful one. It is developing a unique cultural brand in the world. The quality of the hospitality sector, the many international events and the vibrant cultural life, with its architecture and museums, make it a really interesting proposition for top-end visitors. The development of the water sports sector and recreation only adds to its attractiveness.

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On the business front The main investments from the Netherlands in Qatar are in the energy sector–Royal Dutch Shell is the largest single investor.

Related industries like maritime (shipping, port development, logistics and the like) also offer good opportunities. Although the sponsorship and joint venture model may limit the potential for foreign investments, it is compensated by the bold vision and ambitions of the Qatari authorities, which make it quite a stable environment for investors.

The Netherlands, on the other hand, is the gateway to Europe. Rotterdam, as the largest port in Europe, is the main vein for trade of bulk goods into Western Europe. The Dutch are by nature international and pioneering people, so trade and innovation are in our DNA. We speak our languages, possess a high level of education and are extremely efficient in our business. That, together with a very favourable tax regime and excellent financial infrastructure, is the reason why many foreign companies establish their European headquarters in the Netherlands. We are of course thrilled that Muntajat, the main trader of oil and gas in Qatar has chosen the Netherlands as the home country for its international trade and marketing activities. The strategic position of Rotterdam as the main port for energy flows is of course paramount for Qatar’s gas exports.

Lessons in food I had the pleasure of meeting HE Fahad Al-Attiya, and I must admit that I am very impressed by the vision that has been laid out by the Qatar National Food Security Programme. They have studied and identified clearly where the Netherlands matches their needs. Of course, the fact that we are a small country

but still the second-largest exporter of agricultural products in the world has triggered their fascination. Maximising outputs while minimising resources used is key for small and urbanised countries like Qatar and the Netherlands. That requires smart and sustainable solutions, many of which we have been pioneering for decades. Wageningen University and many Dutch research institutes provide world-class technology to boost a productive and sustainable agricultural sector. Coupled with smart agro-logistics systems, Qatar can certainly reach an elevated level of food security without having to rely on imports too much.

Holding hands across the board The sports infrastructure sector holds special promise. As showcased through the Orange Pavilion at Aspire4Sports, an interesting cluster of 80-plus excellent Dutch companies have joined forces as the Dutch Sports and Infrastructure Cluster.

Together, they are able to deliver total solutions for complex international sports events like the FIFA World Cup in 2022.

They do so in a sustainable and responsible way, taking good care of natural resources and human resources, especially the many migrant workers without whom no such events would be possible. In these international events everybody should be a winner.

Apart from the 2022 projects, renowned Dutch architects like Rem Koolhaas, Mecanoo, UN Studio, Zwarts & Jansma are keen to help shape Qatar’s architectural features as displayed by the gorgeous Doha skyline and venues like Education City or Airport City. Engineers like Royal Haskoning-DHV and construction companies like BAM and Ballast Nedam, and also Arcadis and Philips Lighting have vast experience in transforming these architectonic visions into reality.

We hope to expand our cooperation on sustainable energy and related technologies. Dutch companies like TNO, Ecofys, ECN and Eneco have much to offer here. That is why at the end of November we had a very successful workshop on small -scale gas organised by TNO, with our Minister of Energy and Economic Affairs attending. Dutch technology is also leading in the establishment of a large solar plant in Qatar, a very promising sector that Qatar is keen to explore despite its abundance of fossil resources.

My personal goal is to connect the Qatari and Dutch youth, as global citizens, to tackle the challenges of our time together, combining their strengths. There is such an amazing amount of energy and connectivity in this age group. They are curious, open-minded and looking for ways to add value to the global society. In the end, we all share our humanity and our planet, don’t we? Anything I can do to build social, cross-cultural and entrepreneurial bridges between young Qataris and Dutch youth, I’ll gladly play my part.

Connecting people and dots, that’s my mission

social development

“Innovation is not only about finding better treatments, rather to produce methods to reduce the need for those treatments.�

HH Sheikha Moza bint Nasser at the opening ceremony of WISH

Qatar has made pioneering efforts in the region in building quality healthcare and educational infrastructure, empowering women and encouraging Arab culture and heritage.

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atar ranked first in the Arab World and 36th in the world in the UN Development Programme’s 2013 Human Development Report, which ranked countries on the basis of development in various parameters including health, education, environment and standard of living. Qatar tops the wealth chart and its citizens enjoy the highest per capita income in the world, ensuring a high standard of living. But there is more work to be done to ensure basic human rights and equality for all.

Human Rights - a long way to go A number of reports published by the United Nations, Human Rights Watch and the recently-released report by Amnesty In-

ternational, “The Dark Side of Migration,” have documented the serious plight and abysmal working and living conditions of expat labourers in Qatar’s construction industry. Abuses range from inhumane living conditions to unpaid wages to passport confiscation. The restrictive Kafala (sponsorship) system is being condemned and the call to abolish it is getting louder. According to Amnesty International, the restrictive law, combined with ineffective enforcement of worker protection, leads to exploitative conditions. But Amnesty also recognises that Qatar has been much more open and accessible to Amnesty than some of its Gulf neighbours.

The Qatari government has acknowledged the problem and is taking steps to address the issues. The government has appointed international law firm DLA Piper to independently re-

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Moving towards an inclusive society

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Her Highness Sheikha Moza bint Nasser with other dignitaries at World Innovation Summit for Education view the allegations, but also feels that “the resolution itself is premature” and the allegations are “amplified.”

Qatar has yet to announce comprehensive reform measures to tackle the existing system. However, a piecemeal approach is being followed by leading institutions responsible for a majority of construction projects in the country. The Qatar 2022 Supreme Committee and Qatar Foundation have framed independent standards that will govern projects within their ambit.

The Qatar 2022 Supreme Committee has introduced a “workers charter” that lays down standards to ensure the safety, security, health and dignity of all persons working on 2022

projects that contractors should compulsorily follow. Qatar Foundation launched the Qatar Foundation Mandatory Standards of Migrant Workers’ Welfare, a set of standards that apply to all contractors and sub-contractors engaged on building projects for QF. However, enforcing these standards and laws is the key issue, as rightly pointed out by Amnesty. The National Human Rights Committee believes educating and creating awareness and promoting a human rights culture is important to stop abuse and has been taking initiatives to this end. The World Cup 2022 can be an opportunity for Qatar to fast-track reforms and be a role model for the region.

A new health strategy An ambitious nation needs to take along the less fortunate and provide equal opportunities for mentally and physically challenged persons. Qatar is a signatory to the UN Convention on the Rights of Disabled Persons, and is working to ensure that Qatari laws and codes comply with the Convention. Qatar set up the Shafallah Institute to oversee accessibility, accommodation and integration of people with disabilities into all sectors of life including education, employment, transportation and medical care. Mada Qatar Assistive Technology Centre is an initiative that supports people with disabilities through technology.

Culture and Heritage Qatar may be a forward-looking country that embraces technology and modernity but at its heart this country is proud of its heritage and Arab roots. Qatar strives to preserve its culture by promoting Islamic art, architecture, literature and programmes for encouraging online Arabic content. The 1001 Inventions exhibition held in November 2012 uncovered the scientific achievements of Muslim civilisation.

The Qatar Museums Authority (QMA) connects museums, cultural institutions and heritage sites in Qatar and creates the conditions for them to thrive and flourish.

QMA is committed to instigating Qatar’s future generation of arts, heritage and museum professionals. At its core is a commitment to nurturing artistic talent, creating opportunities and developing the skills to service Qatar’s emerging art economy. By means of a multifaceted programme and public art initiatives, QMA seeks to push the boundaries of the traditional museum model and create cultural experiences that spill out onto the streets and seek to involve the widest possible audiences. Through a strong emphasis on originating art and culture from within and fostering a spirit of national participation, QMA is helping Qatar find its own distinctive voice in today’s

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Qatar’s new national mental health strategy, the first of its kind in the Arab world, was released at the World Innovation Summit for Health in December 2013, based on recommendations from the World Health Organisation, researchers and policymakers who produced it were responding to as-yet unpublished studies that show one in every five Qataris suffers from some kind of mental health problem.

The researchers suggested the number may be even higher due to under-reporting because of the social stigma attached to the issue. It is estimated that three of the top five causes of disability in Qatar are mental health issues, costing the country QR1.71 billion (US$470 million) annually.

Abdulla Al Kaabi, Executive Vice-Chief Medical Officer at Sidra Medical and Research Centre in Doha, said of the importance of a national strategy: “Putting together a strategy was a huge step, but implementing it will be the true challenge, and we need all stakeholders to be involved.”

Dr Suhaila Ghuloum, Senior Consultant Psychiatrist at Hamad Medical Corporation on the National Mental Health Strategy, says: “Three of the top five causes of disability in Qatar are mental disorders, namely depression, anxiety and substance misuse. We also know that there is a treatment gap here: it is estimated that less than 25% of the population who need mental health services are accessing them.

“Service provision will involve multiple providers, therefore more studies are being conducted to further evaluate the gap currently present in mental health needs, in collaboration with our stakeholders,” she adds.

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Women’s empowerment Qatar’s leadership believes women need to walk hand in hand with men for a progressive developed society. HH Sheika Moza bint Nasser, a role model for women in Qatar and the region, has been at the forefront, introducing initiatives for inclusive growth.

In 2003, for the first time, a woman minister took a place in the cabinet. Ten years later, HE Dr Hessa Al-Jaber joined the new Emir’s cabinet as Minister of Information and Communications and Technology. She is the third woman in Qatar’s history to join the cabinet. Women have increasingly been enrolling on professional courses, and according to a survey a higher percentage of women than men opt to go into higher education. Women in Qatar are decision-makers in many business institutions, but the figures are still lagging behind those for men in decision-making roles.

According to research conducted by the World Bank’s International Finance Corporation (IFC) and Booz & Company, women constitute about 25% of the workforce in female-owned firms in the MENA region, with many at professional and managerial levels, compared with 22% in male-owned firms, mostly in low-skills positions. A Booz & Company survey also found that in Qatar, 62% of interest in entrepreneurship came from males, and just 38% from females.

Qatar has taken steps to advance women in the workforce by encouraging them to take up decision-making roles, assisting women entrepreneurs and ensuring collaboration and networking opportunities. The Social Development Centre provides assistance – financial and mentoring – to women entrepreneurs to start their own business. Qatar Businesswoman’s Association provides a platform for networking among women entrepreneurs across the region. The Qatar Women’s Sports Committee offers “competitive” school sports programmes for girls and “competitive” sports performance programmes for young women at the national level. The presence of female athletes representing Qatar at the 2012 Summer Olympic Games reflects a commitment to support and raise the bar for competitive sports for women in Qatar.

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Workers at a construction site in Doha global cultural debates.

A part of its Qatar-Brazil 2014 project is a year-long cultural exchange programme dedicated to connecting people in the State of Qatar and the Federative Republic of Brazil through culture, community and sport. An active year of thought-provoking exhibitions, festivals, competitions and innovative cultural exchange activities in both nations will strive to strengthen bilateral relations and create lasting partnerships between institutions and individuals.

Qatar-Brazil 2014 is held under the patronage of QMA Chairperson HE Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani, in partnership with Qatar’s Ministry of Culture, Arts and Heritage. It is the third consecutive Year of Culture launched by QMA, following Qatar-Japan 2012 and Qatar-UK 2013.

The Qatar National Research Fund supports a research programme “Origins of Doha” jointly being pursued by University College, London and QMA. The project aims to discover Doha as it was during the 19th century.

Al Zubarah, Qatar’s largest archaeological site and an important port for pearl fishing and trading during the 18th-19th century, was included on the UNESCO World Heritage List in mid-2013. It is the first Qatari site to enter the UNESCO list. The inclusion follows the enormous effort by Qatar to preserve and conserve the historic site.

Qatar Genome launched at WISH H H Sheikha Moza bint Nasser launched Qatar’s human genome project, a groundbreaking initiative to map the genetic code of citizens for better diagnoses and treatment of various diseases.

She announced the project, Qatar Genome, while addressing the opening session of the first World Innovation Summit for Health (WISH 2013) at Qatar National Convention Centre held in December, 2013.

“As a result of the integration of scientific research and clinical realities, I am pleased to announce the project ‘Qatar Genome,’ a project that consists of a future road map for personalised medicine,’’ said HH Sheikha Moza.

‘Qatar Genome’ will be implemented in three phases: collecting samples, analysing them, and then working on tailored medicine. It will aim at understanding the diseases that affect Qataris. The human genome project internationally serves as a source of detailed information about the structure, organisation and function of the complete set of human genes (genome). This information is considered the basic set of “instructions” for the development and function of a human being.

Genome studies are moving from analysing the personal DNA code of individuals for research to clinical applications tailored to the genetic make-up of cancers

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Powered through knowledge

“Whoever sets out on a path to seek knowledge therein, Allah will make a path for him to paradise through that knowledge and the angels will lower their wings for that student of knowledge out of [Allah’s] pleasure over them.”

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he pursuit of knowledge is the only facet of life where greed really is good. And Qatar has been consistently greedy in its efforts to better its education system. From giving every child the right to basic education to equipping the younger generation to take the country forward on the back of the burgeoning gas trade, from creating higher education platforms that are on a par with the developed regions of the world to today pushing the frontiers of research, the country has been pursuing its goal of paving the way for a knowledge-based economy with diligent single-mindedness.

There are several challenges to be met still–improving standards of primary and secondary education, addressing the high dropout rate in primary schools, adapting education to suit changing communities balancing out gender ratios in

higher education institutions, and helping them produce market-ready graduates and drive cutting-edge research – but the government has recognised these problems and has been making efforts to provide efficient and sustainable solutions.

Today, students in Qatar have a wealth of options laid out for them, irrespective of what career they choose. World-class facilities and faculty have congregated in Doha in a bid to make the city a new centre of learning in the region, on a par with the venerable cities of Cairo and Beirut.

The Year that Was for the Supreme Education Council The Supreme Education Council (SEC) has had a busy year.

From organising spelling bees the to education fair and celebrating excellence, the council has been working toward

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From Kuttab to campus – history of education in Qatar

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polishing the system and nurturing the hidden genius of students, giving them the voice and confidence to shape their destinies.

On Education Excellence Day, the then Heir Apparent and Chairman of the Supreme Education Council HH Sheikh Tamim bin Hamad Al Thani honoured more than 24 outstanding students, teachers and schools that came out top of the competing high school students, university graduates, PhD holders, teachers, schools and distinguished scientific researchers.

Not stopping at just a pat on the back, the SEC also extended support to students in more practical terms. The Scholarships Office revealed that the number of Qatari students under its sponsorship, pursuing various scientific disciplines at undergraduate, master’s and doctoral levels in both Qatar and abroad, had grown to 3,000 in the 2012-2013 academic year from 526 students in 2009-2010.

In tune with bringing technology to the forefront, the Council officially launched the e-learning project in the presence of SEC leaders, educators, teachers and stakeholders in the educational sector at the Education Forum 2013. It also launched the second phase of “e-bag” for the academic year 2013/2014.

Designed to provide every student and teacher in the country

“In Qatar, we need to develop the education sector in the country in order to promote individual performance and productivity.

Innovation in education is key to support the realisation of Qatar’s overall national development goals and position Qatar as a leading knowledge economy, in line with Qatar National Vision 2030.”

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HE Dr Mohammed Abdul Wahed Ali Al Hammadi Minister of Education and Higher Education

Percentage of students enjoying classes: 64% enjoy Arabic, 70% enjoy English, 66% enjoy mathematics, and 72% enjoy science.

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Average number of books in the school library is 5163, and the average book-student ratio is 12:1.

Average number of computers in each school is 127.5, with the highest average, 151.4, in independent schools, followed by 122.8 in international schools, and the lowest average, 22.3, in private Arabic schools.

Average student-teacher ratio is 11.4.

Average number of hours spent by students doing homework in a week is 1.7 hours in independent schools, 2.3 hours in private Arabic schools, and 2.3 hours in international schools.

The highest academic level students aspire to: 20% below bachelor level, 11% bachelor level, and 69%. higher than bachelor.

Average schooling expenses a family facesper year for each student is QR10,208.

Education for all Qatar brought together under the umbrella of WISE some of the biggest thinkers and doers in the field of education from across the world, to network, discuss, collaborate and reinvent education for life.

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ver 1,200 prominent education, corporate, political and social leaders from 100-odd countries descended on Doha in a bid to arrive at workable solutions for many of the common problems faced in the world today. Is global literacy an attainable goal? Will technology one day replace teachers? What is the future of MOOC (massive open online content)? These were some of the hot topics at the global conference.

Education ministers from across the globe met at WISE to discuss best practices and the importance of promoting innovation in education. Chaired by Minister of Education HE Mohammed Al Hammadi, the session brought together leading policymakers from 16 countries who debated whether the role of a policymaker is to implement policies developed to foster innovation or replicate best practices from the field.

One year ago, on the same stage, the Education For All Foundation was announced, with its goal to bring back to school the millions of children globally who are missing out on education because of poverty, conflict or social pressures. It was revealed that within the year, its Educate A Child (EAC) programme, along with its partners, is on track to bring more than two million out-of-school children into education programmes and plans to reach ten million more by the end of the 2015 school year. This was a major milestone and a matter of pride for Sheikha Moza, who is the brains behind the whole operation.

HE Sheikh Abdulla bin Ali Al Thani, Chairman of WISE, announced the creation of the Future of Education Fund

with a tablet PC, along with educational aids and applications that conform to national curriculum standards, 30 primary and preparatory schools received their consignment of tablets, falling short of the 50 schools that were supposed to come under the second phase. Ten schools had been included in this project in the first phase earlier in the year and 60 more are scheduled to benefit from this initiative in the next phase.

The Council has launched a new application, “hadamti” (My Services) for iOS, which can be used as part of their e-learning services by students and by all staff working at the SEC and in independent schools to keep track of their salaries, loans, vacations and evaluations of performance.

In addition to announcing a hotline this year for parents, students and teachers to get in touch directly with the SEC, the Council also organised the Education Fair this April to bring

HH Sheikha Moza presenting WISE Award to Vicky Colbert

on the last day of the conference. This fund will “help innovative, transformative enterprises and solutions in education, providing financial assistance, as well as expertise and training, to translate ideas into action”.

Vicky Colbert of Colombia, Founder and Director of Fundacion Escuela Nueva, and co-creator of the Escuela Nueva education model, was awarded the WISE Prize for Education for her efforts spanning over three decades to improve the quality and relevance of basic education in underprivileged schools across Colombia and beyond. To date, Escuela Nueva has been implemented throughout Latin America, including Brazil and Mexico, and in the Caribbean, East Timor and Vietnam, reaching more than five million children around the globe.

together the important stakeholders in the country’s primary and secondary education fields. Focusing on “Various Alternatives for Better Education”, the four-day event witnessed participation from all Qatar’s independent, private, Arabic and international schools along with SEC officials, educational experts, school principals and teachers as well as members of boards of trustees, students and parents.

The annual school report released this year by the SEC’s Evaluation Institute for 2011-2012 covers 298 schools, 19,896 teachers and 1,96,207 students in Qatar and provides some interesting statistics.

The Council, under the auspices of HE Dr Mohammed Abdul Wahed Ali Al Hammadi, Minister of Education and Higher Education, organised the fourth edition of the “Qatar International College Fair” under the theme “Toward diversity for creativity

Qatar Foundation’s Class of 2012 saw the highest number of graduates in its history.

Public spending on education increased from 1.75% of GDP in 1976 to 4.1% as of 2012, according to UNESCO. Education accounts for 28% of the capital spending allocation for 2013-2014, QNB says.

QR23 billion ($6.04 billion) went towards the education budget last year, according to MEED. MENA countries, with Qatar at the top of the pack, are world leaders in spending on education, with 18.6% of the total government spending going towards education projects compared with the world average of 14.2%.

Qatar spends QR31,333 ($8,585) on average yearly, among the highest in the world, on the pre-university education of each of its students, according to the GSDP.

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As of 2010, over 95% of both men and women had achieved literacy, according to the CIA World Factbook.

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talking points

and innovation”. Over 90 colleges and universities from around the world, including Qatar Education City’s institutions, Qatar University, the Community College of Qatar and College of the North Atlantic-Qatar (CNA-Q), were hosted at the fair, allowing students and their caretakers (parents and teachers) to interact with decision-makers, admissions officers and parties in charge of scholarships.

Preparing students for life after campus is the fundamental tenet of any education provider and the SEC is no exception, providing a strong support system for vocational training programmes and career fairs for Qatari students. Sometimes change starts with the smallest, most innocuous of things, like the proposal made at Global Innovators 2013 to change the name “Vocational and Technical Education” into “Applied Higher Education.” Organised by CNA-Q, the roundtable brought together experts from the UNESCO Regional Bureau in Doha and the SEC, who decided that such an appropriate academic and scientific term, which matches the vision of the State of Qatar, will change the perspective of society toward vocational training.

Even when not on Qatari shores, the Council looks out for its own. The new minister, HE Dr Mohammed bin Abdul Wahed Ali Al Hammadi, opened a Career Day in Washington for Qatari students living in the USA. He said: “This gathering will give us the opportunity to closely meet our students studying in the USA and to be introduced to their circumstances and their affairs.” Similarly, a meet-and-greet was held with the Minister for Qatari students in France when he was in Paris for the UNESCO conference later in the year

Nurturing great minds Carnegie Mellon University Qatar encourages innovation across its programmes

“This is a paid advertorial’

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s a global leader in education, Carnegie Mellon University is known for its creativity, collaboration across disciplines, and top programmes in business, technology and the arts. The university has been home to some of the world’s most important thinkers, among them 19 Nobel Laureates and 11 Turing Award winners.

In 2004, Qatar Foundation for Education, Science and Community Development invited Carnegie Mellon to join Education City, a groundbreaking centre for scholarship and research that is the ideal complement to the university’s mission and vision.

Carnegie Mellon University in Qatar — like all Carnegie Mellon campuses globally — is founded on the firm belief that through the encouragement of scientific inquiry and the promotion of practical preparedness, the university can provide a generation of thinkers, business leaders, researchers and scientists that will change the world. Core values of innovation, creativity, collaboration and problem solving provide the foundation for everything the university does.

Aligned with Qatar Foundation’s mission to develop the country’s youth to become leaders and innovators, Carnegie Mellon implements its curriculum by maintaining the academic standards, values and principles of the home campus in Pittsburgh, US, while delivering meta-curricular programmes that suitably reflect the ethos of Education City.

Carnegie Mellon University in Qatar’s enrollment continues to grow each year. There are 400 full-time students enrolled at the university’s campus in Education City: 32 in biological sciences, 187 in business administration; 84 in computer science; and 97 in information systems. In addition to their core focus, the university is dedicated to enhancing the undergraduate educational experience so that students can explore other disciplines. Students can take classes in a wide range of other areas, such as architecture, philosophy and English literature. Despite the increasing enrolment numbers, students still enjoy a low faculty-to-student ratio of 1:7.

Eighty-one students graduated from its top-ranked programmes in May 2013, bringing the total number of alumni to approximately 300.

The university’s graduates are highly sought by regional and international organisations. More than 90 per cent of Carnegie Mellon Qatar’s alumni are either in graduate programmes or employed in top organisations like Google,

Microsoft, Qatar Petroleum, Shell and Commercial Bank, to name a few.

Carnegie Mellon is proud to be a part of such a significant movement to transform the nation into a leading knowledge-based economy, and to be a part of Qatar Foundation’s drive to equip the country’s population with the skills to get there. The programmes it offers in its Education City campus demonstrate commitment to the Qatar National Vision 2030, and are aligned with the country’s fundamental pillars of developing people, society, the economy and the environment. Much of its research work embodies the principles of the national vision.

Researchers at Carnegie Mellon Qatar are actively engaged in developing cutting-edge technology. The university has been awarded 34 National Priorities Research Programme (NPRP) grants from the Qatar National Research Fund (QNRF), five Young Scientist Research Experience Programme (YSREP) grants and 19 Undergraduate Research Experience Programme (UREP) grants.

The total funding from QNRF is more than $30 million.

Some of the research projects include Carnegie Mellon Qatar’s Qri8 lab, in collaboration with the National Robotics Engineering Centre, which explores the use of robotics technology to improve safety and production in the oil and gas industry. Another significant research project is Human Language Technologies research on natural language processing, including using statistical machine translation to expand Arabic language content available on the Internet. The Automated Measurement of Galaxy Morphology project aims to develop software that can measure the physical properties of galaxies, which helps us to understand how these structures evolve over time. Another area of research, investigating the properties of pathogenic fungi in Qatar’s hospitals, will add to the current understanding of how these fungi are able to infect patients and aid in the developments of new treatments.

Carnegie Mellon is also working hard on research relating to cloud computing, education, robotics, business process design and engineering, innovation-driven entrepreneurship, next-generation wireless networks, information security, and air quality.

Consistently top ranked, Carnegie Mellon has more than 12,000 students, 90,000 alumni and 5,000 faculty and staff globally. In Qatar, students from more than 40 different countries enrol at our world-class facilities in Education City, affording them a truly unique and multi-cultural experience

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Healthcare is foremost

While health services are constantly being improved and updated to global standards, the National Health Strategy (NHS), part of the Qatar National Vision 2030, takes the health service offerings of the nation to an entirely new level.

S

peaking at an event to mark the completion of two years of the National Health Strategy (NHS) 2011-2016, the Minister of Health and Secretary-General of the Supreme Council of Health (SCH), HE Abdulla bin Khalid Al Qahtani, said that Qatar will inject QR38 billion into its healthcare system in the next five years, which is a huge increase from its current annual spending of QR1.34 billion.

TThe expenditure will be on workforce and services provided to patients, excluding infrastructure.

“Thirty nine projects have been initiated, of which two projects have already reached completion,” he said, recalling that Qatar’s National Vision 2030 aims for sustainable development with a decent living envisioned for all its citizens. But to confirm the success of this strategy, he said that there should be a dialogue.

“When we know the loopholes we know we have succeed-

ed, as we then know what to avoid or change and go ahead,” he said.

But Qatar’s challenges are huge and unique. It will have to address region/race/culture-based health issues, given the large and diverse migrant population.

Professor Edward William Hillhouse, Chief of Medical Academic and Research Affairs at Hamad Medical Corporation (HMC) said: “HMC has evolved to meet the changing healthcare needs of Qatar’s growing population, which has grown remarkably in just two decades.

The Corporation manages eight hospitals along with further specialist clinical, educational and research facilities, and is growing in capacity each year around the diverse needs of the evolving population.”

A community-based model Dr Faleh Mohamed Hussain Ali, Assistant Secretary-General,

“Progress is not automatic. It is based on a long-term and previously designed vision.

The NHS is the first step to achieving the National Vision and it is the result of two years of hard work of all concerned parties.

It has been two years since we started the NHS and the challenge continues to grow daily, but it is rooted in an established foundation, guaranteeing success.”

The Challenges The NHS is a large, complex programme of work, with many interdependencies. The challenge, according to Dr Hussain Ali, “is ensuring all the project teams across the health sector are talking to each other about the plans and the impact changes will have upon other key projects, stakeholders and services.

We continually remind ourselves that the NHS is about improving the capacity of the system to improve the quality of

care we provide the citizens and residents of Qatar.”

The National Primary Healthcare Strategy details how primary care will become the first point of contact for patients. In future, care decisions and choice of treatment will be supported and coordinated by the patient’s family doctor.

“We are also supporting the development of a National e-Health Strategy, which will ensure we have the technology to allow patient records to follow the patient through the system,” he says.

Qatar is investing significant additional funds in the public healthcare budget. The overall approved budget for financial year 2012-2013 was QR9.15 billion, 47% higher than 20112012.

This included an approved budget of just over QR1 billion for the Primary Health Care Corporation (PHCC) and just over QR7 billion for Hamad Medical City, which, together with the Sidra Medical and Research Centre, will continue to develop the country’s tertiary care capability.

According to Dr Hussain Ali, “our healthcare providers are committed to implementing electronic patient records. HMC and the PHCC have embarked on an ambitious project to implement an integrated clinical information system that will lead to the creation of a Personal Health Record for each patient. Over the next 12 months, the Supreme Council will be developing a National e-Health Strategy for Qatar which will include provision for a Health Information Exchange.”

All needs are answered The SCH has a specific focus on the lower-income male expat population.

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Policy Affairs SCH, said the three main aims of the NHS to shift Qatar’s healthcare to a more preventative and community-based model, with better coordination and improved quality of care at all levels; create effective, affordable and sustainable services for all residents in Qatar; and to integrate high-quality research and continuing professional development into all areas of care delivery, in line with the health priorities of the country.

“In the first two years the NHS projects have been very busy building the essential building blocks of success for each of the 39 projects, including assigning managers, building project teams and allocating budgets to deliver against project objectives and developing key strategies and building back-bone infrastructure including the development and decree of the Social Health Insurance Law, the launch of the National Primary Healthcare Strategy and establishment of the Qatar Council of Healthcare Professionals,” he said.

The NHS has also been involved in building additional detail into the implementation plans, and aligning and connecting where projects have interdependencies and require cross-organisational working.

social development

HE Abdulla Bin Khalid Al Qahtani Minister of Health and Secretary-General of the Supreme Council of Health

The Goals There is a very clear goal for the healthcare system, according to Dr Hussain Ali, and it is to create “a comprehensive worldclass healthcare system whose services are accessible to the whole population”.

“The NHS 2011-2016 is the first stage of that journey. By 2016 we will offer patients a more comprehensive and accessible service, it will be more integrated, there will be a greater focus on preventing ill-health, there will be a larger high-quality clinical workforce, we will have improved regulation of clinicians and facilities, we will have introduced better mechanisms for funding and paying for health services that benefit patients – for example health insurance – and we will have a stronger focus on research and education. The specific changes you will see in these areas are set out in the updated executive summary of the NHS,” he said.

“our healthcare providers are committed to implementing electronic patient records. HMC and the PHCC have embarked on an ambitious project to implement an integrated clinical information system that will lead to the creation of a Personal Health Record for each patient.”

social development

Dr Faleh Mohamed Hussain Ali Assistant Secretary-General, Policy Affairs, Supreme Council of Health

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“We have, in partnership with the Qatar Red Crescent Society, opened clinics targeted at the worker population. We are currently working with Private Engineering Office, a government agency, to develop a network of primary care centres and hospitals for workers, and located for their convenience. These facilities are designed to meet the specific needs of workers, and will link effectively with specialist services when more complex care is needed. We expect these facilities to open by 2016,” Dr Hussain Ali said.

6

By the end of 2014, six Health Centres will be constructed.

PHCC Outlay

II

By the end of 2018, eleven more Health Centres will be constructed (subject to increase).

Mental Health Strategy launched

U

nder the kind patronage of HE Abdullah bin Khalid Al Qahtani, the Supreme Council of Health launched the Qatar National Mental Health Strategy; an ambitious five-year plan to build a high quality mental health system and to transform the way mental illness is perceived and treated in Qatar.

HE Al Qahtani stated that: “Qatar’s Mental Health Strategy is a significant milestone in people-centred healthcare reform and a big step towards realising our National Health Strategy goals.” He illustrated that Qatar is investing in mental health as a priority health and social issue; recognising that changes to service delivery and increasing awareness about mental health can improve the lives of many individuals and families now and in the future. “Mental health is an essential component of health and wellbeing and therefore an important part of an integrated healthcare system. Our health service providers stand together today, committed to implementing this plan to deliver accessible mental health services and public education initiatives within the broader health system in Qatar” he said.

The National Mental Health Strategy is a comprehensive response to address the mental health needs of the people of Qatar. Research estimates that 1 in 5 people in Qatar experience a mental illness at any one time, but less than 25% of those who need these services are accessing them. It also found that the level of mental health knowledge is low and that perceptions about mental illness cause people to delay or avoid seeking help.

“It is a highly ambitious plan to make primary healthcare the foundation of Qatar’s health system and ensure that excellent services for managing sickness in primary care are complemented by excellent health promotion services.”

Stages of implementation

20I3 July

Qatari women aged 12+ for maternity and related women’s health conditions (close to 90,000)

QI 20I4

All Qatari nationals in a select provider network

Q3 20I4

All Qatari nationals in an expanded provider network

QI 20i5

All Qatari nationals, white-collar expatriates and visitors

TBD 20i5

All Qatari nationals, white-collar and blue-collar expatriates and visitors

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Patients are priority Dr Mariam Abdulmalik, Managing Director of the PHCC describes the National Primary Healthcare Strategy 2013-2018 as “ambitious.”

Elaborating, she said: “It is a highly ambitious plan to make primary healthcare the foundation of Qatar’s health system and ensure that excellent services for managing sickness in primary care are complemented by health promotion services.”

The three main aims of the PHCC are to be evidence-based, within purpose-built, patient-centred and family-oriented facilities; to have a safe, efficient and effective way of treatment; and to maintain a pro-healing environment that is respectful to the culture of the country.

According to Bill Gillespie, Assistant Managing Director, Strategy and Organisational Development, PHCC, “we expect to see primary care as an equal partner to hospital care; we expect to see a balance between treatment and prevention in primary care and we expect to see primary care supporting more patients to take control of their own health. All of these will be translated into measurable goals as part of the implementation of the strategy.”

Primary healthcare will focus more on private-public partnerships and this will be nurtured, according to Dr Abdulmalik.

She said: “We are already procuring a private sector partner to manage and run four of our health centres,” she said. In addition, social health insurance will give primary care providers the opportunity to step into a growing primary care market.”

To ensure greater coordination between public and private primary health care systems to ensure a seamless service to the

social development

Dr Mariam Abdulmalik Managing Director, Primary Health Care Corporation

tar Red Crescent, who are now managing these primary care centres to cater for the growing population of workers. These are Al Mamoura and Al Wafideen healthcare centers.

“The genesis of the plan to introduce social health insurance lies in the Qatar National Vision, which sees a healthy population as a key necessity for the building of a successful nation.”

social development

Husein Reka Manager, Health Insurance, Supreme Council of Health

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patient, “we need to realise that there will be specific services that will be provided by private versus public health systems as part of the national strategy. Once these are defined at a state level, we need to then begin the work of coordination, collaboration and development of appropriate procedures and protocols to ensure all sectors of healthcare are working towards the best care for the patient. The PHCC will take the lead in developing the service models that will help realise the national healthcare strategy and vision for Qatar,” she said.

At present Qatar has a hospital-centric approach and HMC is where the population wants to go for quality healthcare services. The PHCC’s aim is to reduce that, with primary care being the first contact for the population. This could be a humongous task, as the population’s trust on the primary care center is still precarious. “To give examples, we are looking at improving patient flow, reception and registration; workforce development and training of staff that is more specific to needs; improvement of the appointment system; reduction of the backlog for specialty clinics; and raising the standard of patient safety and quality as we commit to seek accreditation with an international standard in the next two years. ” The PHCC has embarked on two major programmes in this area. The first programme aims to redesign and standardise current paper medical records. The second programme is a joint initiative between HMC and the PHCC to introduce a shared Electronic Medical Record across primary and secondary care.

PHCC for the workers There are currently two health centres that have been designated and transitioned from PHCC to the management of Qa-

Insuring the health of the population The formation of the National Health Insurance Company (NHIC), which will start operating this year and get work under way to implement the first phase of the system, is perhaps the most revolutionary and far-reaching programme of the NHS. Husein Reka, Manager, Health Insurance at THE Supreme Council of Health, clarifies some key aspects of the new national health insurance scheme (NHIS). “The genesis of the plan to introduce social health insurance lies in the Qatar National Vision, which sees a healthy population as a key necessity for the building of a successful nation,” Reka said. One aspect of achieving a ‘healthy population’ is by providing ‘effective and affordable healthcare services’, which is one of the seven key goals of the NHS. By launching the NHIS, everyone in Qatar will have guaranteed, affordable and effective access to basic healthcare services from a choice of providers from the public and private sectors.”

Ensuring universal coverage is also supported by the World Health Organisation which asks its member states to commit to developing their health financing systems so that all people have access to services and do not suffer financial hardship paying for them.

Expat Health Cover: the Onus is now on employers “As you know, all non-nationals must be sponsored to be legally resident in Qatar. The rationale for asking employers to cover the insurance premium is to ensure that the responsibility for their employees’ well-being is part of their overall contract of engagement. In a practical sense, it also make it simpler to ensure that universal health coverage is achieved in a smooth process by dealing with several thousands of employers rather than millions of individuals,” said Reka, explaining the reason behind shifting the onus of healthcare on to employers.

The Health Insurance Law (Law No. 7 of 2013), under Article 18, clearly places responsibility for the premiums of their employees on to employers. The NHIC will work together with the Ministry of Labour (which is represented on the NHIC Board of Directors) to ensure implementation and adherence to the provisions of the law.

“Regarding the kind of premiums that might be involved, schedules are being developed for stages 4 and 5 that pertain to expats. These are currently in process and will be announced well before the launch of the relevant stages. Since stages 1 to 3 only cover Qatari nationals, whose premiums are covered by the government, this issue does not immediately become applicable,” he clarifies

Corporate Social Responsibility and environment

“Our vision is to protect our environment, keep and develop our resources in order to reach a sustainable development.�

HE Ahmed Amer Mohammed Al Hamidi Minister of Environment

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Qatar’s renewed commitment

As part of Qatar’s National Vision 2030, to adopt a sustainable and futuristic strategy for energy, economic and social security, the government has accorded top priority to renewable energy, which will soon become part of Qatar’s energy mix.

T

he decision to encourage renewable energy is a follow-up to the calls for sustainable economic development, where these sources will be a core activity towards preserving Qatar’s national resources and protecting its environment.

Besides solar, the government is also planning to produce biofuels to reduce usage of fossil fuels and also to undertake research and development of renewable energy technologies.

“Energy sustainability is vital to Qatar’s continued development, and it supports the vision set forth by His Highness the Emir of Qatar for how our country will reach the year 2030,” said HE Dr Mohammed bin Saleh Al Sada, Minister for Energy and Industry.

Kahramaa, which is tasked with ensuring water and power supply in the country, has plans to generate 200 MW from solar energy, which would be 2% of total installed capacity of 10,000 MW by 2020.

The tendering process to kick-start a pilot project, in which photovoltaic (PV) solar panels will be installed on the rooftops of Kahramaa’s offices to produce 5 MW to 10 MW of solar pow-

er in the country, will begin soon.

The plan to produce solar energy was announced at the 18th United Nations Framework Convention on Climate Change (UNFCCC) Conference of Parties (COP18), which was held in Doha from November 26 to December 7, in 2012 and has been working on ways and means to make the project a success.

Qatar, which will host the FIFA Football World Cup in 2022, has said the event will be carbon-neutral and chalked out a plan to have the stadiums powered by solar energy.

The government has even suggested that solar power will be connected to each of the stadiums’ electrical systems and the national grid.

In tune with the government’s decision to add 1,800 MW of solar energy to the national grid, local banks are funding construction of the first QR4 billion ($1.1 billion) solar-grade polysilicon production plant at Ras Laffan Industrial City. The plant is a joint venture of Qatar Foundation, Qatar Electricity and Water Company (QEWC) and Qatar Solar Technologies (QSTec), and one of the first such plants in the GCC region.

Initially, the plant will produce 8,000 metric tonnes per annum (MTPA) of polysilicon and will export it to other countries

CSR & environment

Doha campus of Texas A&M University has a project working on using solar energy to break down natural gas into carbon and hydrogen for industrial uses.

Besides solar energy, the government is also looking at developing sources of biofuels, particularly for the aviation industry as the International Air Transport Association (IATA) has suggested that at least 10% of aviation fuel should come from alternative energy sources, chiefly biofuels, by 2017.

As Qatar expects tourism and hospitality activities to pick up in the coming years during the run-up to the FIFA World Cup, Qatar Airways partnered three years ago with Airbus (owned

by Netherlands-based EADS), the Qatar Science and Technology Park and Qatar Petroleum to develop bio jet fuels.

The research work has been progressing smoothly, and once the initial testing is done, the project members are planning to produce the bio jet fuel on a large scale, up to 1.5 million litres, and supply it to flights operated by Qatar Airways.

The national carrier has already successfully conducted the world’s first commercial flight powered by a Gas-to-Liquid (GTL) fuel blend, in Jauary 2013, which was a significant development in the use of alternative fuels by the airline industry.

The country’s economic growth is driven by rising energy prices and higher exports of liquefied natural gas (LNG). Almost one-third of the Middle East’s total conventional gas reserves are in Qatar, which has a world share of about 12%

143 PROGRESS 2013-2014

to be manufactured into solar energy products and technologies.

Later, production capacity will be increased to 45,000 MTPA and move along the solar value chain, producing high-quality ingots, wafers, cells, modules and solar energy products and technologies in Qatar as well as other countries.

The polysilicon produced will be enough to make solar modules that can produce 6.5 GW – enough to power a city from the sun.

Encouraged by the government’s policy decision, several international companies are conducting research and development in the solar sector.

US energy giant Chevron has invested QR36.4 million ($10 million) in the Centre for Sustainable Energy Efficiency (CSEE) at the Qatar Science and Technology Park, and the same amount is being invested by local clean energy firm GreenGulf.

One of the issues that Chevron aims to address is building solar panels that can perform in the hot and dusty Gulf environment. With very little rain, panels can get clogged with sand and dust and thus absorb less sunlight.

According to Chevron, their effectiveness can be reduced by as much as 40% after six months. Photovoltaic cells also operate less effectively in high temperatures.

Other international firms investing in solar research in Qatar include General Electric, Shell and ConocoPhillips, while the

Qatar successfully reduces flaring

CSR & environment

Qatar ranks in the top 20 gas flaring countries in the world according to the World Bank - not a statistic to be proud off. To reduce the negative environment impact of its energy industry Qatar embarked on a series of corrective measures that has earned it accolades around the world.

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I

n 2005, Qatar flared 4.29% for every unit of gas intake.

This measure has reduced to 1.08% in 2012 - a commendable achievement according to many experts.

The Qatar government has stated that it is committed to halve the volume of gas flared to 0.0115 billion cubic metres per million tonnes of energy produced by 2016.

Gas flaring is excess gas combusted during oil and gas operations as a safety measure during unexpected circumstances.

Flaring accounts for 12% of the Qatar’s energy related greenhouse gas emissions and hence is a “high priority challenge,” according to Qatar Energy and Industry Sector Sustainability report 2012.

Ras Gas flaring performance

World Bank partnership Qatar joined the Global Gas Flaring Reduction (GGFR) partnership, a World Bank initiative that works towards flare reduction. Qatar, being the first GCC country to join the partnership has set a precedent in the region. The co-operation has been extended and Qatar is participating in phase 4 of the GGFR partnership, for the period 2013-2015.

Signing the agreement, HE Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry and Chairman and Managing Director of QP, said: “This partnership agreement supports Qatar’s ambition of becoming an energy leader that provides critically needed lower emission and environment-friendly LNG to all corners of the globe. I am confident that this phase of the partnership will deliver measurable GHG reductions and I look forward to our continuous and productive cooperation with the World Bank.”

2013

1.06

2014

0.6

2015

0.45

2016

0.43

Action plan for flare reduction Several initiatives are being taken by the energy industry in Qatar to achieve the target goals. In addition to targeted ef-

Percentage gas flared per unit of gas intake

Actual (%)

Flaring reduction planned target (%)

2005

4.29

_

2006

3.83

_

2007

2.48

_

2008

2.16

_

2009

1.75

_

2010

1.64

_

2011

1.26

_

2012

1.08

_

Source: Ras Gas Sustainability Report 2012

forts by each company, technical training and awareness programmes are also being implemented in the sector to further reduce flaring. Qatargas’s QR2.9 billion project aims to recover gas being flared during the liquefied natural gas (LNG) ship-loading process at Ras Laffan. Qatargas Engineering and Ventures Chief Operating Officer Sheikh Khalid bin Abdulla Al Thani said: “The project will recover enough natural gas per year to power the equivalent of more than 40,000 homes.”

In 2012, Ras Gas launched a new five-year flare minimisation programme covering its Ras Laffan facilities. During 20052016, Ras Gas aims to reduce flaring by 90%. Improved facility designs, new operating procedures, and using waste gas for power generation are some measures taken by the company to achieve the goal

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A plan to feed the nation

progress explores the drivers behind the nation’s new food security plan and the grand food experiment that is about to be initiated here.

Q

atar’s new National Food Security Plan is presently under review by a committee under Prime Minister HE Abdullah bin Nasser bin Khalifa Al Thani. The journey to unravel the web of farm to fork macroeconomics and devise a strategy to ensure sustainable and safe methods to keep Qatar food-secure may be exciting and exhausting in equal measure because of its unique position in the world, both geographically and economically. We look under the wraps to see how this is going to shape Qatar’s relationship with food over the next few years.

Chew on this Today, over 92% of the food consumed in Qatar comes from outside its borders. While this is undoubtedly skewed, Qatar’s options are fiercely limited by extremely low rainfall (less than 76 mm/year), depleted aquifers, a fairly harsh climate and limited arable land. Domestic production totals around 0.1 million metric tonnes, which is 0.9% of the food produced in the entire GCC region. When a country is also severely import-dependent, the slightest fluctuation in global availability and prices (or even the mere hint of it) can have an immediate and drastic impact at on the consumer level. Add to this the high-risk choke points along our import routes, like the

Suez Canal and the Strait of Hormuz (45% of our food imports come through here). Iran has on several occasions threatened to block the Strait of Hormuz in response to increased economic sanctions.

Waking up to smell the coffee Qatar’s vulnerability with regard to food security was driven home during the 2008 global food price crisis that had a staggering effect on many economies and led to social unrest and political turmoil. Another, more recent, example was the impact of the Kingdom of Saudi Arabia’s ban on exports of poultry last year. Jonathan Smith, Director of Communications for the Qatar National Food Security Programme (QNFSP) says, “These kinds of moments shine light on the fact that though our national food system, designed originally to serve a population of under 250,000, has far too little coordination and too much strain,” he said.

Established in 2008 with a mandate to research the problem and develop a fully-integrated national plan based on its findings, the QNFSP has put three years of research and a process of intensive analysis, economic modelling and planning into the four-volume, 2,000-page plan presented to HH the Emir and members of the government.

“A task force representing 17 stakeholder groups, from min-

Constraints as benchmarks To arrive at a plan, those working at QNFSP had to zero in on their constraints and chalk out their options based on these, starting with the most critical one – water. “No option went into the plan that did not first pass the test for responsible use of water. It is one of the fundamental and defining characteristics of our situation. Therefore, instead of starting with the question of ‘How much do we want to grow?” we asked ourselves: “How much water can be responsibly budgeted to produce the most strategic blend of crops we need?” says Smith.

By asking questions consistently on how resources should best be used, QNFSP has identified several options that together have the potential to boost domestic production by five times, on the same amount of land currently in use and – here’s the interesting part – using one-third less water than is being used today, Smith says. “And it all started by talking about our constraints instead of our ambitions.”

Jonathan Smith Director of Communications, Qatar National Food Security Programme

The holy trinity of food security – Water, energy and food Qatar’s two naturally fed freshwater underground reservoirs, recharge at a natural rate of approximately 56 million cubic metres annually but Qatar currently extracts approximately four times this amount of freshwater from the aquifers each year. “Today Qatar has only three days of non-aquifer water storage, and even with new facilities that are under construction, water reserves for the entire country will only reach about 10 days. We need this natural storage system back,” Smith says. Under the aquifer recharge system modelled in the National Food Security Plan, it is hoped that approximately two years’ worth of freshwater volumes can be recharged back into the reservoirs by 2025. A two-pronged approach will be implemented to achieve this – highly efficient irrigation practices on farms coupled with a new source of freshwater supplies for agriculture, developed using desalination technologies and renewable energy. the next part of the equation On the energy front, though Qatar today powers the desalination process with natural gas, which is one of the cleanest energy sources in the market, the plan is to shift to a renewable source like solar energy. “When you take into account factors like solar hours and the UV (Ultra Violet) intensity seen here, we have three times the solar energy capacity of countries like Germany and Japan who have long been global leaders in developing solar energy technology,” Smith enthuses. “A large-scale project that could generate the 700-800 MW that will be required to deliver the water and energy requirements of national food security will create significant opportunities

CSR & environment

Being smart about self-sufficiency Food security is often confused with self-sufficiency. But in its strictest terms, self-sufficiency isn’t part of Qatar’s ambitions, and rightly so. “Trying to grow all of our food would be fundamentally irresponsible for a dryland nation such as ours,” said Smith.

The key, Smith says, is to work closely with local producers to fill the strategic gaps – to grow what we should grow, trade for what we should trade for, and have a marketplace that helps both parts work safely, effectively and fairly for both business owners and customers.

Even with the plan’s goals scaled down to more realistic levels (QNFSP published initial research in 2011 that identified ways to reach up to 70% self-sufficiency by 2023. The plan as it stands today is working towards 40%), it is still extremely ambitious, with a broad and balanced approach that cuts across the entire national food system consisting of four aspects: international trade and investment, domestic production, the local marketplace (local warehousing, trading systems, transportation, regulations, pricing standards etc.) and strategic reserves of food and water.

“A task force representing 17 stakeholder groups, from ministries and business leaders to fishermen and farmers, was brought together, and an intensive consultation period of sit-down interviews was conducted for more than 40 weeks.”

147 PROGRESS 2013-2014

istries and business leaders to fishermen and farmers, was brought together, and an intensive consultation period of sit-down interviews was conducted for more than 40 weeks,” Smith explains, taking us through the process. “We built on what we had heard from local leaders by working with subject matter experts in Qatar and from around the globe – architects of some national food security policies from throughout the world, economists, food scientists, experts from the UN and other international programmes – to ask them about what they had learned from their own work and how they would see it applying in Qatar.”

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for private sector enterprises. Addressing the water issue that is so critical to maintaining food security with the help of solar energy projects expands the positive returns on the initiative even further.”

Means of improving and maintaining national food security in Qatar:

All roads lead to food security Smith says that many of the recommendations can be achieved within ongoing infrastructure projects and through reforms that require little or no extra funding. Giving an example, he says, “Ashghal is in the process of expanding the Doha Central Market, which was originally built in the 1980s.

This market is not only critical to how we trade imported and locally-grown food, but it’s also a vital link in getting food to customers in a safe, nutritious and affordable manner. Bringing food security-related design, operation and performance parameters into these kinds of infrastructure improvements can often mean that the same project delivers even greater value for the public.”

Another, more exciting, collaboration is the one with the Qatar 2022 team in the research and development of efficient cooling technologies, announced at the Clinton Global Initiative annual meeting in New York this year. “Our challenges are similar: reduce energy demand, conserve water and deliver an environmentally and economically responsible solution for cooling large spaces. The model we are investigating with Q22 will increase water efficiency by nine times. We are also working with Q22 to see if the training fields being built for the World Cup, with their hectare-sized pitches and hybrid cooling systems, can be converted to high-efficiency greenhouses for local food production,” he says.

“The bottom line, if you took the whole body of recommendations as they stand today, over the next 10 years, we’d spend about QR4 billion a year, roughly equivalent to subsidy levels that Qatar already invests on food issues,” Smith adds. All things considered, the plan seems to sound economically.

Development of a comprehensive and coordinated trade and import strategy

Beyond local farms Even though we have dwelled largely on the part of the plan that focuses on domestic production, Smith assures us this is only because “it is an exciting, innovative chunk of the plan that is fun to unpackage”. In reality, this is only one-fourth of the plan which has “a significant focus on improving coordination and connectivity between the parts of the national food system and updating policies and regulations around pricing, food safety, import procedures, etc.

“We need more food warehousing, more cold storage and more transport infrastructure. Fortunately we are in a period of development and so this is the right time to fix these kinds of market infrastructure,” Smith says. The team has also worked on responses to situations like disruption of trade routes. “We have to ensure we have contingency plans for alternate supply

High-efficiency domestic food production and expansion of Qatar’s private sector food industry Strengthening the coordination and integration of food value chains from farm to fork Expanding food storage capacity and strategic reserves of both freshwater and the full “food basket” in order to hedge against risks related to fluctuation in prices or export bans Global investment in commercially viable ventures that support national food security. routes for key classes of food. Nearly all of the food we import comes through either of the two points of entry – Strait of Hormuz or the KSA border (a small amount of perishable food is delivered by air). Even beyond the issue of route interruption, strategically diversifying routing and suppliers puts Qatar in a better position to negotiate when conditions in the global market fluctuate. We have to diversify the routing and strategically diversify the supply system,” he says.

Since trade is and will remain an important chunk of food security, the strategies involved will also have to be revisited.

“There was a time when it looked like buying up farmland was one of the better options available to countries like Qatar. But today here are a wide variety of food security-driven strategies for investment, both in farm operations abroad and in companies that are involved in innovative agro-technologie.

Sailing in the same boat Qatar is one of the 60 countries, together home to over two billion people, categorised as drylands, that face food insecurity.

The Global Dry Land Alliance was formed to collaborate (“think of it as a NATO for food”) with these countries to develop effect strategies in the face of a crisis. Conceptualised and led by Qatar, the alliance proposes to bring together “countries with similar challenges, to support each other in building resiliency and minimising the human and economic impact of food-related risk and crisis”. In his speech at the UN General Assembly this year as the new leader of Qatar, HH the Emir touched upon this, calling upon countries to join in and support the initiative

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“Our goal is to become a global leader in the world of museums, art, heritage and archaeology.

The goal comes with a sustainable vision of cultivating a new voice for Qatar for generations to come; our purpose is to be a cultural instigator for the new generation.�

Sheikha Al Mayassa bint Hamad Al Thani Chairperson, Qatar Museums Authority

this year the qatar tourism Authority (qta) announced that it would be revealing the Qatar Tourism Sector Strategy 2030 to attract more foreign visitors to the country. Should the hospitality sector brace itself?

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peaking to the press in October 2013, Issa Mohammed Al-Mohannadi, Chairman of the QTA stressed how tourism and global influence are closely tied, and Qatar needs to up the ante in its tourism sector to complement its global reach.

As one would expect, currently business tourism massively outweighs leisure tourism. According to QTA’s second-quarter report in 2013, some 61,406 people visited Qatar between April and June and more than 60% (43,108) of them were business visitors. Even among the tourists, more than half were very likely job seekers. Al-Mohannadi said that although the QTA recognises that “business tourism is far more lucrative than leisure tourism,” it is striving to bring in more purely leisure tourists to enjoy the sights and sounds of Qatar.

This seems to have worked in the third quarter, during which several exciting events held in Qatar, like the Eid Al Adha Festival and entertainment events like Cirque du Soleil and Disney on Ice, brought in visitors from across the region. In fact hotels in Qatar witnessed a very encouraging 90% occupancy rate during the Eid holiday, according to Al-Mohannadi.

But for tourism to grow steadily and sustainably and become an important contributor to Qatar’s growth, a more long-term and concentrated effort is required, which is exactly what QTA is in the course of preparing. Announcing that his office has been working on the Qatar Tourism Sector Strategy 2030 from July of last year, in collaboration with local stakeholders and the United Nations World Tourism Organisation, and making a careful study of the experiences of 26 countries with an active

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Hospitality that’s quintessentially Qatar

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“Qatar is growing with more facilities for family leisure. so it definitely attracts regional travellers who are looking for a nice place to spend quality time with their family.”

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Hossein Vetry Cluster General Manager Ritz-Carlton Hotels, Qatar

tourism sector, Al Mohannadi revealed some of the ambitious targets that the strategy is working towards. By 2030, the plan will ensure that tourism contributes over 3% of the country’s GDP up significantly from the current 0.8%. Along with this growth will comes rise in hospitality – and tourism-related employment, which currently stands at 1.8% of total employment (19,900 jobs). This is projected to rocket to 127,000 (or 5.3% of total employment) by 2030 thanks to the plan. Aligned with Qatar National Vision 2030, the tourism strategy will take into account local traditions and values, economic impact and environmental sustainability, he said. The how, what and other specifics of the plan that were to be revealed in detail by November or December 2013 haven’t yet been announced, but when they are finally brought to light it is expected that the strategy will have a similar effect to that of the National Development Strategy and National Health Strategy on their respective sectors.

Competition, change and cha-ching The major cogs in this machinery are Qatar’s hotels. According to the Qatar Statistics Authority, Qatar has about 80 hotels, ranging from luxury to one-star accommodations. According to QTA’s third-quarter report, although 600 extra rooms have been added since the same period last year (increasing Qatar’s room inventory by 4.73%), average hotel occupancy rose by 7%. The strong 57% occupancy rate might be attributed to the increased number of tourists with an almost 20% increase in regional visitors, the greatest influx coming from Saudi Arabia and Kuwait. Tourists coming from other continents also rose by 13.36%, with arrivals from Asia showing the biggest increase at 18.27%. Subsequently, total revenues for four- and

five-star hotels rose 13.81% from last year to QR703.1 million for the quarter. This “increment trend of leisure market from other GCC countries and the further strengthening of the business market due to the high capacity of business in Qatar” was why many hotels like the Ritz-Carlton Doha had a “very promising year”, according to Hoss Vetry, Cluster General Manager of the hotel group.

Walid Nabil Ali, Corporate Director of Sales and Marketing at Best Western Doha, echoes this sentiment. “2013 has been the best year of Best Western in Doha; it is this year when the company experienced the highest growth in market share, occupancy and revenue,” he said. “This is despite the huge and extraordinary increase of competitors in the competition set.”

The hotel is now going to undertake a complete renovation “to offer the Doha market a tailor-made business hotel for corporate travellers who seek the best amenities they need to do their business efficiently but in the most economic valuedriven way,” Area General Manager of Best Western Jochen A Schmid added.

On the other side of town, the General Manager at W, Safak Guvenc, also has no complaints. “It was a period of adjustment, yes,” he said. “But it was a great year for us with the growing economy and population and our competitors are also seeing growth. And I am anticipating the same for the next year. We opened two new restaurants this year – La Spiga

by Paper Moon at W and Paper Moon at Jaidah Square. We are currently renovating our gym and generally focusing on improving our products and introducing new F&B (Food and Beverage) concepts before we grow too fast.”

For the Four Seasons’ General Manager and Regional Vice-President, Rami Sayess, 2013 was the year when they finally saw the impact of all the new supply in terms of competition that opened up in 2012. “The market has naturally become very competitive given the economics of demand versus supply,” he says. “Despite this, however, we are confident that there will be continued demand for the level of experience that we offer. Our goal, looking forward, is to continue being the very best at what we do, and we have some very exciting projects that will also come on line in the next 12 to 18 months that will further support our leadership positioning.” Although he doesn’t mention what these projects are, he says the hotel will “actively support the marketing drive that QTA has planned in the future for the city”. A case in point is how within Four Seasons’ own sales network, the destination is promoted on a par with the hotel.

Too much of a good thing?

According to professional services firm Deloitte, the QTA has committed to providing 75,000 rooms for the massive World Cup event in 2022. The QTA has also said that it is preparing to invest QR73 billion ($20 billion) in tourism-related infrastruc-

Gaps and opportunities The staggering gaps in the hospitality sector – between the luxury properties and the mid-range and budget properties,

Safak Guvenc General Manager, W Hotel

for example – point to the biggest areas for growth in the coming years. According to Jonathan Wall, Associate Director, Hospitality and Real Estate Sector Advisory at Deloitte Qatar, “at present the market is dominated by four-star and five-star hotels, which provided over 75% of the total keys in 2012 and a similar percentage in the pipeline for future development.” He compares this with countries with a mature tourism sector, like the US, where five-star hotels make up only 20% of the total keys, and mid-range and budget hotels account for over 50%.

He points out that there is a big market for development in this sector which will have bigger implications for the tourism sec-

“2013 was the year when we finally saw the impact of all the new supply in terms of competition that opened up in 2012.”

Rami Sayess General Manager and Regional Vice-President, Four Seasons Doha

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“We opened two new restaurants this year – La Spiga by Paper Moon at W and Paper Moon at Jaidah Square. We are currently renovating our gym and generally focusing on improving our products and introducing new F&B (Food and Beverage) concepts before we grow too fast.”

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ture, some of which might even go towards Finnish-designed floating hotels whose energy efficiency, sustainability and low space requirements are said to have attracted Qatari planners.

This sort of mindset is a great stimulus for private players, encouraging them to invest in the exploding economy. But is there a fear of over-saturation? Are hospitality players wary of rushing in only to experience a lull before and after the three months in 2022?

“We have already seen an influx of hotel rooms as early as last year, which we all know is happening in preparation for the World Cup 2022. Doha will witness a lot more hotel openings in the years to come. The issue now is how the hotels will manage to survive until 2022,” says Ali. Schmid also says there certainly are signs that the hotel market will be saturated, particularly beyond 2022, and this will be more so in the five-star market segment.

“There are general short- to medium-term concerns within the luxury segment that there will be continued saturation,” Sayess, says echoing some of the concerns within the hotel industry. “We continue, however, to be positive that the demand will catch up with the supplies given the mega-projects and significant infrastructure that is coming into Qatar.” Vetry chooses to look at the positive side of things as well. “It is good to have healthy competition, as each property will try its best to provide maximum level of service to its target market. Each brand has its own market so definitely every hotel will have its own share,” he says. Guvenc points at other cosmopolitan cities like Dubai, London and New York that continue to see new hotels coming up. “I am not worried at all. It’s a natural part of growth,” he says.

Ali also mentions another important factor that will affect this burgeoning hospitality scene: “The situation will also have a direct impact on average room rate (ARR), Doha’s ARR which is relatively high, will be aligned with Europe and Far Eastern countries.” But he too closes with a positive thought: “Having said this, I believe that the Qatari government has anticipated this situation and I am positive that they have devised a plan that will augment the gap which may occur.” This explains why the group continues to want to expand its presence in the country. Schmid says that Best Western is actively looking to add more hotels to its portfolio, “especially in the segment of corporate, value driven hotels.”

Ali also outlines plans for other like serviced apartments and leisure beach properties. “Both facilities are currently low in supply yet high in demand. Finally, we are also planning to establish a luxury Middle Eastern spa brand, which will be the first in the region.”

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Jonathan Wall Associate Director, Hospitality and Real Estate Sector Advisory, Deloitte Qatar

GCC international tourist arrivals 2001-11 18.0

+9.4%

15.0 +10.4%

Million

12.0

Source:Alpen Hospitality Report

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“Mid-range and budget hotels will not only be welcomed by the business sector, especially small and medium-sized companies, but will also encourage short breaks and stop-overs by transit tourists, a key area of promotion by both the QTA and Qatar Airways.”

9.0 +7.4%

6.0 3.0

+17.7%

+10.5%

Qatar

Oman

+13.0%

0.0 Saudi Arabia

UAE

Bahrain 2001

Kuwait

2011

tor, as a whole. “This will not only be welcomed by the business sector, especially small and medium-sized companies, but will also encourage short breaks and stopovers by transit tourists, a key area of promotion by both QTA and Qatar Airways.”

Brands like Best Western have not been blind to this disparity and the growing need for hotels in this category. Ali says the company is “on the lookout to find a perfect fit for the urgently-needed three- and four-star hotels in the West Bay and Corniche area as this is still in short supply of hotel rooms.” Schmid says that “today’s business travellers are seeking a more economic hotel product that offers them what they really need without any unnecessary perks and facilities that often drive up the rates.” Sayess also mentions how the three- and four-star

segments will benefit given the business attraction of Doha.

Guvenc believes all the players connected to the industry will get their share of the pie. “With Qatar Airways starting to fly to more destinations, entertainment avenues, restaurants, museums and all hospitality-related sectors will continue to grow on the same level, fuelled by and in turn fuelling the construction sector,” he says.

Growth in the leisure industry will be very well received by both residents and tourists. Vetry opines a weekend getaway will go down well with locals and visitors from other GCC countries. “Qatar is growing with more facilities for family leisure so definitely it attracts regional travellers who are looking for a nice place to spend their quality time with their family,” he says.

Most of the hoteliers we spoke to also suggested that while the business climate has gathered more than enough momentum, there is untapped potential surrounding the leisure industry that has yet to be kick-started. “Currently, the visitors coming to Doha are around 80% business travellers, and the better way to increase growth in tourism is to open a new market opportunity,” says Ali. “Should the leisure market be considered a priority for the government, mega-projects must be considered, such as the only Disneyland in the GCC, or the largest water park in the world, as a main source of attraction that will draw the families from all over to come to Doha. For retirees and heritage enthusiasts, building museums and enriching the existing heritage sites may also help in enhancing the tourism industry,” he says.

Sayess also believes that theme parks and more cultural and beach offerings that would draw in the leisure crowd is the way to go . “The opening of the new airport in 2014 will create a great platform to build on both these segments. In addition, the plans to significantly expand the shopping offerings will also attract the regional leisure customer,” he says.

Qatar is already making all the right moves in this direction, according to Guvenc. “QTA’s “48 hours” campaign comes to mind. They are also very active in attending road shows to promote Qatar internationally,” he says, the latest being the QTAled delegation to ITB Asia in Singapore, which is the largest travel show in Asia.

Schmidt sums it up well when he says: “The Qatar Tourism Authority has already realised the importance of its function within the process to strategically drive the tourism sector in Qatar and is now actively seeking ways of how it can liaise and closely work together with the hotel and tourism industry in Qatar to come up with action plans and strategies of how to execute this process. This includes the identification of the most relevant market segments for Qatar such as Sports, MICE (Meetings, Incentives, Conferences and Exhibitions), education and culture. All these are market segments that are very suitable for Qatar and segments where Qatar can create a real competitive advantage within the Gulf region.”

Getting Qatar to read

The tremendous treasure trove under Qatar’s soil may one day deplete but knowledge is a treasure that only accumulates. Qatar’s quest to build a knowledge-based society cannot be accomplished if its population does not read. From building ‘spectacular’ libraries to holding book fairs and book discussions, Qatar is finding ways to get its people to discover the pleasure of reading. tourism, culture, retail & sports

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An artist’s impression of the Qatar National Library paign that inspires people to read and share their experiences.

The campaign calls on people in Qatar to upload one to two minutes videos to tell their stories about books and reading.

Community reading initiatives and book fairs are other means to take young minds through the journey of words.

Maktaba is a community initiative that focuses on Arabic language children’s literature. Maktaba’s volunteers conduct monthly story telling sessions at the Katara Art Centre for children. Corporates too have started supporting reading initiatives. Ras Gas as part of its corporate social responsibility (CSR) program ‘Year of Education 2013’ supports ‘Maktaba Mobile’.

Launched in association with Maktaba, it is an interactive virtual library aimed at young Arabic readers worldwide. The Doha International Book Fair that concluded its 24th edition is an annual event that brings titles from across the world to Doha. A new book fair organised by the Katara Art Centre was held at Katara in 2013. Hopefully, these steps taken in the right direction should kindle interest in young inquisitive minds

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H Sheikha Moza bint Nasser, Chairperson of Qatar Foundation for Education, Science and Community Development has been at the forefront of some of these efforts. The Qatar National Library (QNL) supported by QF and scheduled to open in 2015 in a new building is a big step in this direction. Book lovers have often complained not having access to a well-stocked library or a dearth of interesting books to read. In a country where majority of the population are expats, paucity of English titles is also a dampener.

QNL is expected to be a world class resource centre that will house 1.2 million books, 5,00,000 eBooks, periodicals, newspapers and special collections - offering something for all. The library has struck partnerships with the British Library and World Digital Library to provide resources relevant to Qatar. It currently offers free online access to a vast collection of resources including the latest bestsellers, classical works, concerts, top academic journals and documentaries. QNL is currently digitising over 500,000 pages of historical material relating to the Gulf region. Post digitisation a wealth of resources will be available on Arab and Gulf history.

The Childhood Cultural Centre (CCC) initiated by HH Sheika Moza is actively involved in conducting programmes, events and campaigns to get children and youth to read. Be it the ‘I am reading’ campaign launched in conjunction with Lagoona Mall or the regular book reading and story-telling sessions, introducing locals to the joy of reading is one of CCC’s key aims. In an innovative attempt, CCC launched a mobile book store - a colourful bus full of books that tours around the city selling books. The bus could be spotted outside public parks and schools luring children and parents to browse through the wares on offer.

Laysh: to read or not to read launched by Bloomsbury Qatar Foundation Publishing and TEDxYouth@Doha is another cam-

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THE MIA IS FIVE

Doha’s Museum of Islamic Art (MIA) celebrated its fifth anniversary on December 1, 2013. The celebrations not only reflected on all that has been achieved in the museum’s first five years, but also pointed to MIA’s aspirations for the future.

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he extended celebrations began on November 1, 2013, with the immensely popular Red Bull Flugtag in MIA Park, attracting over 18,000 spectators, and culminated on December 1, 2013, with a full day of activities at the museum. HE Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani, Chairperson of the Qatar Museums Authority, said: “Five years ago MIA came to fruition under the wise leadership of HH the Father Emir. Today it’s a beacon of light- shedding understanding and dialogue between East and West, Muslim and non-Muslim. This month we celebrate its five-year anniversary and are grateful for the continued support of the people of Qatar under the leadership of His Highness Sheikh Tamim bin Hamad Al Thani, Emir of Qatar.”

Since its launch in 2008, MIA has firmly established itself as one of the world’s leading museums of Islamic art, with a masterpiece collection that covers three continents and 1,400 years of Islamic culture. During this period MIA has also demonstrated that museums are more than depositories for beautiful antiquities.

“Over the past five years MIA has grown exponentially, changing the way people view museums,” said Aisha Al Khat-

er, Director of the MIA, adding: “We are bringing MIA spaces to life with events, and expanding the exhibition experience to include workshops for kids and adults, lectures and behindthe-scenes tours. We aren’t just a museum; we are a centre of knowledge and inspiration, a place for local community and an icon of the diversity and depth of our culture.”

Al Khater has been working in the museum since 2007, long before the building was inaugurated, and was made Director in April 2011. Shadowing two great scholars of Islamic art – the two earlier directors of the museum, Dr Oliver Watson and Dr Sabiha Al Khemir – during their work of cataloguing and curating at MIA was a great learning experience for Al Khater.

She is currently studying for a master’s degree but that in no way slackens her work at the museum. She is busy with the rebranding of MIA, and she and her team have “taken major strides in defining who we (MIA) are, finding our way, and having a long-term vision for MIA. “Earlier, it was about the opening of the museum, extravagant events and magnificent objects. Now it is about reaching out to the community and sharing the knowledge,” she said.

Al Khater is clear about her priorities and the direction to be trodden: “My focus in the next five years is more on the region

and locally. We want to build the trust of the people here. We want to share the knowledge of our experts, make the most of our expertise,” she says.

MIA has gained international prominence too. Al-Khater reminds us: “We are constantly bombarded with requests for loans from our permanent collection from major museums around the world.”

For a museum that is barely five years old that is indeed an achievement to be proud about, and Al Khater feels that “this shows the commitment of the staff in building on the presence of the museum.

“We want to reach out to the community virtually too. Information on the whole collection will be available online, and that will be a whole resource of information,” she says.

MIA has seen consistent growth over the past five years, with 2013 being particularly monumental. The museum welcomed its one-millionth visitor in February 2013, achieved a new record for exhibition attendance, and “attained a social media following that not only rivals international counterparts but surpasses them”.

New Branding Accompanying these celebrations was the museum’s new

brand launch, introducing a logo and brand that reflect MIA’s direction and ambitions. MIA’s new brand expresses itself with a dynamic approach centred on the six pens of traditional Arabic calligraphy, a lively colour palette that reflects the diversity of Islamic civilisations past and present, and cubic shapes to represent Islamic architectural traditions and the museum building itself.

“Though we had a branding in terms of logo, what we did not have was a strong understanding of the vision. How we communicated to the public in terms of who we are and what we should be doing was not very clear. We were asked to do a lot of things we were not supposed to do, that didn’t really fit into our scope of work, which was fine at the time since we were the only museum with a professional exhibition space.

We had to agree to some exhibits that did not fit our profile, like the 16th-century Dutch exhibition etc.,” she said.

This is what Al Khater wanted to set right, to have a logo and branding that reflect the direction and ambitions of MIA, “to say this is what we are, what we can deliver, and also what we can’t.

“Another misconception that the earlier branding evoked was that we were about Islam. Which we are partly, but we were also about the art of that era. In this new logo “Art” (or

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Aisha Al Khater Director of the MIA

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“We aren’t just a museum; we are a centre of knowledge and inspiration, a place for local community and an icon of the diversity and depth of our culture.”

Yearly figures 2012-2013 Over 4,600 children and adults participated in MIA activities.

Over 12,000 visitors were taken on guided tours of the MIA galleries and special exhibitions.

There were Over 4,900 visitors to The Library.

Over 14,500 schoolchildren visited MIA galleries and the Education Centre.

creased, which might imply a the changing mindset towards museum culture too.

Potted Elephant, One of the exhibits at MIA

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‘Fen’ in Arabic) is much more prominent,” she said.

Al Khater wants to make the museum more than a space to keep valuable historical antiquities but an educational tool that is accessible to all.

It is for this that Al Khater is devoting much of her time to a programme or guide for different segments of society to access and interpret the collections, to make the MIA experience more detailed and one that remains with you for a long duration.

“This programme will be delivered in two years’ time,” says Al Khater.

Who visits MIA? While MIA doesn’t keep a record of the demographic segmentation of visitors, Al Khater said that there has been a high percentage of South Asian, Bahraini and Saudi visitors.

“Visitors come directly from airports and through travel agencies, and we have a high percentage of VIP visitors. Any high-profile dignitary will surely come to visit the MIA,” she said, adding: “We will need to get the demographics of visitors, not for anything but to find out which communities we are missing and find ways to entice them to our museum.”

She is not so much focused on the number of people coming to MIA as on the intrinsic value that each person takes away from their museum visit.

Al Khater also notes that Qatari visitors seem to have in-

Teaching the Teachers MIA is handling educational programmes quite intelligently by equipping teachers with the tools to pass on knowledge to their students.

“We also want to bring back the art of calligraphy. For this too we try to educate the teachers on the process; making the teachers confident to pass on what they learn to the students,” she said.

MIA is also working with universities, especially UCL and QU, on research.

“We had much bigger student participation, and visits from schools increased this year, which is very encouraging.”

Under the skies The MIA Park has become a place where people of all cultures congregate and enjoy the beauty of the Doha Corniche, in the shadow of MIA. The park for MIA was already in the museum master plan according to Al Khater.

And having a park close to the museum is not new to museums worldwide.

“We can now entice people who do not come to museums as such. We try and do events that connect MIA exhibitions with the park activities. Like how we had a kite-flying event that connected with the “Ferozkoh: Tradition and Continuity in Afghan Art” exhibition, as it was a tradition followed by the Afghans,” she said.

From Park Bazaars to a free concert by the Qatar Philharmonic Orchestra in the museum atrium to Jazz in the Park, where MIA partnered with Jazz at Lincoln Center Doha for a series of free world-class jazz concerts, activities within MIA park have done what many institutions dream of, bringing communities together

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Al Zubarah

Bringing the past back to life In June 2013 Al Zubarah Archaeological Site was inscribed onto the UNESCO World Heritage List, becoming one of 911 natural and cultural properties on the international register.

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he city of Al Zubarah lies on the north-west coast of Qatar. The largest archaeological site in the country, its ruins cover an area of 60 hectares.

For almost a century it lay deserted, with its walls crumbling into mounds of sandy rubble strewn with fragments of Chinese porcelain and earthenware cooking pots.

Al Zubarah was settled in around 1760 by members of the Bani Utub tribe from the Nejd who migrated from what is now Kuwait. Between 1775 and 1780 its commercial importance grew when the city of Basra in Iraq was conquered by the Persians. This, together with an outbreak of plague, resulted in many merchant families from the town emigrating and settling in Al Zubarah.

The town was laid out according to a plan, with narrow lanes running down to the sea and others running at right angles, and the regularity of the street pattern suggests that the town was laid out and built as one event. A souq stood near the shoreline, and the harbour was guarded by a small fort. In its heyday the population may have numbered between 6,000 and 9,000.

Buildings were constructed of faroush, the beach rock formed from compressed seashells and sand, and limestone quarried at Fraiha to the north of Al Zubarah. Mud was used as mortar between the rocks and stones, and a layer of gypsum-based plaster, sometimes decorated with incised patterns, completed the whole. Roofs were made from mangrove poles, which were sometimes waterproofed with bitumen.

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Above this was a layer of woven bamboo strips topped with mangrove or palm branches. Finally a layer of compressed mud was added. Floors were sometimes plastered with gypsum. From the sea the lines of white buildings shone in the sunshine against the golden sandy floor of the desert.

The busy harbour accomodated not only fishing dhows and the pearling fleet, but traders from far-off lands. The town occupied a strategic position as a centre for trade, linking sea routes that ran both north and south along the coast of the Persian Gulf. So important was the settlement that a contemporary European map simply labels the entire peninsula of Qatar as “Zubarah”!

A fortified settlement, Qal’at Murair, was constructed in 1768 on an escarpment overlooking the town to guard the wells that provided the town’s water supply. Al Zubarah, being built on sabkha (salt flats), had no fresh water of its own. The following year a two-kilometre-long canal was dug to link the walled town and the fort. This may have enabled water to be transported by boat from the wells to the town even when it was under siege.

For much of its comparatively short existence Al Zubarah experienced strife. In 1780 it was attacked by the Persians. In 1809, it came under the control of the famous leader of the Jalahimah, Rahmah bin Jabir, but in 1811 it was burned to the ground by Saiyyid Said, the ruler of Muscat. The town was left

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Conserved walls on the palatial compound

Al Zubara Fort “entirely in ruins,” according to a British resident in the Gulf who was an eyewitness to the disaster. The site was reoccupied, and a smaller wall was built to enclose the reduced settlement.

More raids and then again rebuilding in the area followed.

In 1842, it was partly reconstructed by disaffected members of the Al Khalifah as a base from which to attack Bahrain, and in 1878 it was again destroyed. In September 1895, two British gunboats attacked and destroyed 44 boats in the harbour, an operation described in a British report as “very satisfactory,”

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Testing of Pottery samples although these boats were vital for the livelihood of the people. Al Zubarah continued as a small pearl fishing community, but was gradually abandoned in the first half of the twentieth century. The settlement’s weakness had always been its lack of readily available fresh water, and by the time the last inhabitants left, the wells at Qal’at Murair had become so saline that they could no longer be used.

In the 1980s the first archaeological excavations took place at Al Zubarah, conducted by the Department of Museums and Antiquities. Two large courtyard houses and a market area beside the shore were uncovered. The variety of small finds – large, heavy silver coins from Iran, gold jewellery, incense burners, fine porcelain–indicated the relative affluence of the townsfolk. Part of the original city wall, with several of its large

drum towers, was reconstructed.

In 2002 a large number of hearths near the shore were excavated, evidently in a semi-industrial area. Several small clay crucibles containing solidified burnt material indicated the smelting of metal, and fragments of iron, bronze and copper reinforced this. A quantity of large pearl oyster shells piled in the corner of an open courtyard were from a species, Pteria macroptera, that was mainly gathered for mother-of-pearl, widely used for making buttons. Among miscellaneous small finds in 2002 were bronze coins, fragments of inlaid glass paste bracelets from India and a ring made of agate, probably of Yemeni origin. Fragments of export-quality Ming blue-onwhite and other porcelain came from the Chinese province of Canton, which had trading links with the Middle East, and blue-green celadon ware probably came from Thailand.

The excavations showed three distinct areas of occupation.

Layers of burned ashes bear witness to Al Zubarah’s turbulent past. The oldest layer, dating to the 18th century, appears to be of purely domestic origin. It is in the later layers that the evidence of hearths and crucibles is found. “Tannur” ovens, made of clay jars half-sunk into the ground, were used for the preparation of bread. Several date-presses, where syrup from the compressed dates trickled down narrow channels into a collecting jar, were uncovered in the 1980s excavations, and more have recently been discovered.

Excavations in 2003-2005 doubled the area uncovered in 2002 to 1,600 square metres. A street became visible, running between the house walls. A number of small finds gave glimpses of the lives of the people of this remote region. One was a small, green-glazed toy horse, minus its head and legs, similar to those already found in Iraq, the UAE and Bahrain.

A tiny clay jar was crammed full of brightly-coloured beads made of semi-precious stones, glass and metal. The barrel of a small cannon may have come from a ship.

In 2009 the Qatar Islamic Archaeology and Heritage Project was established by the Qatar Museums Authority and became one of the largest archaeological, conservation and heritage projects in the Gulf region, involving an international team of more than 40 specialists. Large-scale excavations at Al Zubarah continue in collaboration with the University of Copenhagen, with conservation experts working beside the archaeologists.

One excavated area has been dubbed the “palatial compound”: a conglomeration, covering 100 x 110 metres, of structures surrounding nine courtyards, with large, square buildings surrounded by high walls. Some rooms contain cooking areas and hamams (bathrooms). These had floors with layers of tiny shells or clean white gypsum plaster, and walls whose plaster was sometimes decorated. In the courtyards are holes where water or grain storage jars and tannur ovens were once half-buried. The whole complex was fortified, with towers from which the building could be protected from attack from

towns, which flourished outside the control of the Ottoman, European and Persian empires and eventually led to the emergence of the modern-day Gulf states.

The restored Zubarah Fort, which was erected in 1938, will become a visitors’ centre sponsored by Maersk Oil presenting the rich heritage of the Al Zubarah archaeological site. Presentations will centre on the history of the fort and its importance as a national monument, the excavations on the site of the town and Qal’at Murair, and the importance of protecting the natural environment of the area. There will be a bookshop and projection room within the fort, in addition to a permanent exhibition.

Maersk Oil Qatar’s sponsorship, which is part of the company’s “Action on Qatar” social investment programme, will also provide a public outreach programme and educational activities. There are plans to construct a pavilion near the fort with informative displays, and a programme of site visits for schools will be implemented. A travelling outreach programme will tour schools and engage students with heritage and archaeology-related programmes. School activities will range from lectures and PowerPoint presentations to pottery workshops, flint-knapping presentations and the opportunity for young learners to try their hand at mock excavations. A teacher training programme is being launched to assist teachers in creating their own programmes on the history of Al Zubarah, stressing the importance of heritage preservation

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either land or sea. The discovery of two staircases leads to speculation that some parts of the palace may have had an upper storey.

Examination of the contents of a nearby midden, where domestic waste piled up, revealed that the inhabitants of the “palace” enjoyed a high-protein diet, eating meat as well as fish. But despite its grandeur and the precautions for its security, the “palace” was occupied for no more than two or three generations.

Al Zubarah was, above all, a pearling port, and immense wealth poured into the town from its harvest of these treasures from the sea. But trade was also an important source of income for the citizens. Fleets of vessels carried pearls, dates and jars of dibs (date syrup) along the trading routes and imported tobacco from Iran, fine coffee from Yemen, foodstuffs and huge quantities of pottery, especially Chinese porcelain produced for the export market. Coins and trading tokens from Persia, India, Turkey, Zanzibar and British-ruled East Africa indicate how widespread the trade was. It is known from documentary sources that some of the inhabitants were poets and scholars.

In June 2013 Al Zubarah Archaeological Site was inscribed onto the UNESCO World Heritage List, becoming one of 911 natural and cultural properties on the international register.

Its importance has been recognised as the best preserved of the region’s major pre-oil era trading and pearl-fishing coastal

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Samples tested by Maersk oil and research technology centre

Retail Roundtable

As many as 12 new mega-malls were under construction in Qatar in 2013, with total stock likely to grow to 22 by the end of 2015. This amounts to an expected gross leasable area (GLA) of 1.3 million square metres, according to estimates by Alpen Capital.

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atar wants to be at the pulsing epicentre of everything, and retail is high on the list. The country has already surpassed most European countries in terms of retail space, with approximately 300 square metres of organised retail accommodation per 1,000 people while most European countries have an average of 200 sq. m.

To put things in perspective, Dubai has the highest ratio of retail space in the world, offering 1,000 sq. m. per 1,000 people).

Despite this, Bobby Singh, Director of Retail Operations (Fash-

ion) for Naira International Group which represents a diverse range of brands including Harrys of London, Jezequel and Little Marcel, thinks the “business of fashion in Qatar is still minuscule at the moment when stacked against other major industries”, but with the “growth and opening of new malls as well as easy access to global travellers”, the share will inevitably increase, and Qatar is perfectly positioned to become – and most likely will become – an international shopping hub in the future. “Fashion worldwide plays a big role in the global economy, where it generates over a trillion dollars a year. With

Lagoona Mall

the right vision of development, the government can ensure that fashion plays its fair share in shaping Qatar’s economy,” opines Omar El Khatib, Luxury Business Unit Manager at Darwish Holding, the owner of retail chain Fifty One East.

Endless Potential The QR3 billion, 162,000 sq. m Mall of Qatar will be one of the earliest new malls to open its doors in 2015. The Deputy Managing Director of developer UrbaCon, Shem Krey, is optimistic about the potential of Qatar’s retail market. “Many of the world’s biggest brands are now available here. They are paying close attention now to the country and its significance in the world economy. They are waking up to the fact that Qataris are very good buyers, with one of the highest income and spending rates in the world,” he says. El Khatib says the demand for different luxury products is only set to grow, with Middle Eastern and Gulf customers becoming increasingly sophisticated and well informed about the luxury industry. “However, in fashion, the local market is still strong in shoes, handbags and accessories. Furthermore, the increase in demand for readyto-wear is very well noticed, in the market as the country in general and the society in specific is continuously opening up

to the international trend and culture,” he says.

Raza Beig, Chief Executive Officer of fashion brand Splash, says the potential is huge, and with “Qatar and the Middle East having started to invest seriously in infrastructure across all sectors, the dividends will be big in the long run”. For Singh, the playing field is level and open to everyone. “The fashion retail sector in Qatar is evolving and is still far from reaching its potential or, so to say, saturation. There is a gap, need and niche,” he says.

El Khatib also points out that “all eyes and attention, across industries, turned to the Middle East and Gulf region after 2008 because they were least affected by the recession. Qatar is ranked among the top countries in luxury markets, and that in turn is surely felt in the local market in general and on our brands in specific.”

A barrage of brands The influx of new and powerful brands ensures sure that the tap is unlikely to run dry soon. Fifty One East, which has brought several prestigious brands like Brioni, Kiton, Fratelli Rossetti, Sartorio Napoli, Harrys of London, Oscar de la Renta, Herve Leger, Michael Kors, Viktor & Rolf, Reed Krakoff, Nancy

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“Many of the world’s biggest brands are now available here. They are paying close attention now to the country and its significance in the world economy. They are waking up to the fact that Qataris are very good buyers with one of the highest income and spending rates in the world.”

Shem Krey Deputy Managing Director, Mall of Qatar developer UrbaCon Trading and Contracting

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Villaggio Mall

Gonzalez and more to Qatar, says its relationship with several of them goes back over 30 years to the time when “Modern Home” (the original name of the department store) was the “only one of its kind in Qatar”.

Introducing a new brand is a delicate process; in fact Singh compares it to a marriage. “Initiation is never easy and establishing relationships takes time. But it is for keeps,” he says.

The brand’s confidence has to be built with the backing of a serious track record.

“After the announcement of the development of our Fifty One East flagship store at the Lagoona Mall in 2007, our company started pursuing more brands to build and further strengthen its portfolio of luxury brands in fashion. Once the careful selection of luxury brands took place our professional and experienced team worked on establishing relationships with these famous brands that are presently represented at the flagship store and acquiring their exclusive representation in the country,” says El Khatib.

Bringing Fifth Avenue and Oxford Street home “As the market develops and brand offerings increase massively, a majority of residents are now interested in doing their shopping locally as they feel more at ease here. This in turn gives them more time to enjoy their travels rather than feel the need to spend a lot of time shopping due to shortages in the market back home,” says Fifty One East’s El Khatib. He feels local spending can be encouraged by offering the right brands, seasonal collections, competitive pricing and “highest level of refined customer service,” which all add value over shopping

Raza Beig CEO Splash & ICONIC

elsewhere.

Singh knows that bringing in new and different brands of various genres to the Qatari market is the key. But he asks a compelling question: “Where do we open them? As the country and the region thrives and survives on a definite shopping mall culture, there is a dearth of destination malls for the consumer and the anticipated tourists. With this action, the growth and the exposure, it is going to be a diverse market in fashion retail that will suffice to the maximum for the residents and, furthermore, attract consumers from other regions to visit Qatar.

But the aim needn’t be to convert all international shoppers to local ones. Krey feels that education of the international fashion brands will help instigate shopping locally. “Qataris shopping at Fifth Avenue, Newbury Street and Oxford Street don’t necessarily deplete the significance of Doha’s shopping scene. In fact, it works to our advantage by giving buyers better exposure to brands and driving their brand addiction. People used to that level of service and selection certainly won’t complain about recreating it closer to home, and it definitely won’t over-saturate the market,” Krey says.

Though the developments in retail might be somewhat overshadowed, literally, by other mega projects that are now in motion, there is no denying that these will add a touch of glossy sheen to the country’s image in addition to smoothing out its jagged edges. As many as 12 new mega-malls were under construction in Qatar in 2013, with total stock likely to grow to 22 by the end of 2015. This amounts to an expected gross leasable area (GLA) of 1.3 million square metres, according to estimates by Alpen Capital. In retail, double-digit growth is still a reality

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“The fashion retail sector in Qatar is evolving and is still far from reaching its potential or, so to say, saturation. There is a gap, need and niche.”

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A little support goes a long way But the industry demands a certain amount of “nurturing” attention from the government. “Improvement of regulations to go in line with international standards and simplifying import regulations, which is presently a complicated procedure that most businesses are struggling with, will help the sector. In addition, more local business’ free trade policies should be implemented to ensure a smooth operation in the retail sector.”

Krey feels that things have been set in motion in the right direction. “We just hope they will materialise. For example, Qatar Airways needs to operate more flights to fashion destinations. This is directly proportional to tourism and affects local spending,” he says. This sentiment is echoed by Singh, who says: “The growth cannot be sustained by the residing local and expat population. There is a dire need of the so-called floating population caused by tourists. Altogether, this will take fashion retail in Qatar to another level.

“Social infrastructure like VCUQ’s courses in fine arts and design will help just as much as building general infrastructure and transportation,” says Krey. “Currently the malls in Doha are old and tired. We need better, more fashionable malls a new influx that’ll put us in the new millennium.” Rental growth in prime malls has been as high as 90% over the past six years a big indicator of how desperate the demand is for new retail spaces.

In all the commotion to attract international names, local designers and brands shouldn’t be left in the lurch. Because to make a marking on fashion, Qataris can’t just remain consumers, however voracious their appetite may be. The government should step in to help local brands too, feels Beig.

“The one support the region requires to offer to local brands is position – in terms of visibility and location in malls. The local brands are usually given the B and C grade locations. If given the right location, I am confident they would compete very well with the international brands. Today one can’t even compare performance because the playing fields are different,” he says, adding that schools, institutions or academies too guide and encourage young Arab designers and retailers would be a great contribution too. Krey also says new brands and designers should be sponsored and promoted more.

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Children attending the Ajyal film festival

DFI goes with a different format

A brand new film festival for young people, called the Ajyal youth Film Festival, was held from november 26 to 30, 2013, marking a change in format for the Doha Film Festival. The newly-designed festival engaged families and educators through a celebration of the best in international youth cinema, and will hold year-round activities to enrich film appreciation. “Ajyal” is the Arabic word for “generations.”

F

estival Director Fatma Al Remaihi explains: “At the Doha Film Institute (DFI), we tried to incorporate everything into one event, and sometimes it is hard for audiences to comprehend what you are trying to achieve during an eight-day festival (the DFI Festival in 2012). We have noted some specif-

ically popular days the family day, being one of them. We then thought it would be nice to do a festival focused on children and families.”

The final two days of the festival were marked as a family weekend. Activities, exhibitions, screenings and a few red carpet events were all part of the event. The theme of the festi-

Age–appropriate The DFI wa particularly cautious about the age-appropriateness of the movies on display. Content was top of mind, especially since the festival was going to be dealing with young people and a younger audience. DFI also was going to invite speakers to discuss the films.

For DFI, the festival was not just about entertainment. The festival director says: “The first element of the festival is how to discuss topics to make it better for our children. The second element is something I feel very strongly about and we lack in the Gulf region – the discussion of children content.”

A two-day industry forum addressed such pertinent issues. A number of interactive workshops were held over two days. The forum encouraged teacher and parent participation.

Al-Remaihi is optimistic. “No one in the MENA region has given this much focus on children’s content. The fruits of our efforts may not be seen till a few years later. With industry professionals we can discuss the problems and work out the solutions together.”

The jury programme was an important aspect of the Ajyal Festival. Youngsters aged 8-21 applied to become official jurors. These included youngsters based in Qatar, besides 20 international jurors flown in for the festival. The jurors met film makers, took part in workshops and attended special activities.

The best jurors from the Ajyal Film Festival will now be selected to attend an Italian film festival.

Fatma Al Remaihi Ajyal Festival Director

Winning films A series of 11 short films were included in the Festival’s Bariq (meaning “sparkle” in Arabic) section. These films were not part of Ajyal’s official competition, but the screening gave the youngest audiences the opportunity to learn what being a juror is all about, and they were asked to choose their favourite, which was ‘Macropolis,’ directed by Joel Simon.

The Made in Qatar Award, a prize given to a filmmaker who is a Qatari national or calls Qatar home, was selected by an international jury. The award went to Nora Al-Subai, for ‘My Hero.’

Jurors for the Mohaq (“new moon” in Arabic) section aged 8 to 12, watched two feature films and a programme of eight shorts, and awarded the Best Short Filmmaker award in their section to Satsuki Okawa for her ‘Little Kyota Neon Hood’.

Hilal (“crescent”) jurors, aged 13 to 17, determined awards from four feature and six short films. The results: the Best Short Filmmaker award went to Colombia’s Giovanni Granada for ‘The Invention’, while Dutch director David Schram took home the Best Feature Filmmaker award for his ‘Regret’.

Ajyal’s oldest group of jurors, the Bader (“full moon”) jury, aged 18 to 21, also gave two awards, after deliberating on four features and eight shorts. The Best Short Filmmaker prize was awarded to Kuwaiti director Meshal Alhulail for ‘Men’s Barbershop’, and George Tillman, Jr was named Best Feature Filmmaker for “The Inevitable Defeat of Mister and Pete.”

DFI is also organising a second festival, called the Qumra Film Festival, in March 2014. It will focus on emerging directors and expand competition to films from around the world

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Made in Qatar The Made in Qatar screening featured a series of short films made right here in Qatar through the Institute’s Filmmaking Challenge Lab series. In all, the Ajyal Film Festival screened 65 films from 30 countries.

Among its many activities, the DFI conducts an art series at the Museum of Islamic Art (MIA) along with the QMA’s organised art exhibitions. To highlight the recent Hajj exhibition at the MIA, DFI screened a film about the Hajj. The vision for the Ajyal Youth Festival was clear. “What is our youth going through every day? Their issues are not specific to Doha or the region, they are universal topics. Which is why, when you bring a film from Germany, but discuss a subject that is universal, everyone can relate to it,” claims Al Remaihi.

“At DFI, we tried to incorporate everything into one event, and sometimes it is hard for audiences to comprehend what you are trying to achieve during an eight-day festival (the DFI Festival in 2012).

We have noted some specifically popular days the family day being one of them. We then thought it would be nice to do a festival focused on children and families.”

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val this year was Japanese animation (anime) with five classic anime films screened during the event. These included films like Hayao Miyazaki’s ‘The Wind Rises’ and ‘Garden of Words’ and ‘Voices of a Distant Star,’ both by Makoto Shinkai. In keeping with the theme, a special Otaku Exhibition, along with an “Otaku Saves the Day” Instagram hunt and “Otaku Cosplay” competition,’ were also among the activities.

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Qatari sportswomen make a giant leap

A candid chat with Qatar Women’s Sports Committee (QWSC) President Ahlam Salem Al-Mana reveals the quiet but powerful revolution in women’s sports in the country.

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n the gleaming sunlight pouring in through the windows at Ahlam Salem Al Mana’s office at the Ladies Sports Hall within the Aspire Zone, the many trophies scattered across the room shine with a life of their own.

But conspicuously missing is the IOC Women and Sport trophy which Al Mana received this year from the International Olympic Committee for her contribution to women’s sports. She was chosen as the annual global winner and accepted the award along with the five continental winners to Switzerland in July. “Is this the IOC trophy?” we ask, pointing at a shiny, towering award that sits proudly on her desk. “No, that one is our team’s GCC Women’s Handball Championship trophy,” she says. Right next to it is another achievement the Qatar women’s handball team clinched earlier this year. On the opposite table sits one of the girls’ basketball team’s awards.

“They have had a very good year,” she smiles proudly. The IOC

trophy, however, lies tucked away in a box in a far corner of the room.

For the QWSC, 2013 was a year that the whole country could be proud of. “We have received approval from HH the Emir Sheikh Tamim bin Hamad Al Thani to start women’s sport in six to eight clubs around the city like the ones in Al Sadd, Al Rayyan, Al Arabi, Al Khor, Lakhwiya and more, who will host the football, handball and table tennis leagues. We are also in talks with the Qatar Golf Association to start women’s golf. We are flying down a coach from outside and thrashing out the final details,” she says. Contrary to how things work around the world, the men’s and women’s teams across various sports in Qatar are under different organisations (track athletics is a notable exception). But Al-Mana says their close collaboration means that essentially they are training and developing together. “In any case, while participating in international events

Ahlam Salem Al Mana President, Qatar Women’s Sports Committee

But despite the sports scholarships and other incentives available to young athletes here, Al-Mana says it’s still a secondary choice when it comes to education and that poses the biggest challenge for the QWSC not societal pressures as many would have guessed. “The mindset against women participating in professional sports is not as prevalent as we have been led to believe. There are a few isolated cases, yes, but it’s definitely improved from when we started. Our major concern is to ensure that sports and academic development go hand in hand and don’t compete with each other,” Al Mana says.

She says that many girls take up highly qualified and rigourous disciplines like engineering, medicine or management because they have ambitions to work in the energy sector or the ministries. With their education making heavy demands on their time and energy, sport takes a back seat. Even for the younger, school-aged kids, the prospect of coming in for practice after having just spent a whole day at school is not very appealing. “They’d rather stay at home to study or relax,” she says. “But these are not crippling problems. They can be fixed.

For example, we give our girls academic support as well during competitions and practice sessions. We bring in teachers who can help out with their studies and give them space here to read their lessons and do their homework.”

The London Olympics was a monumental milestone for the QWSC. For the first time in Qatar’s history, four women athletes were part of the contingent. Not only that, sharpshooter Bahiya Al Hamad carried the Qatari flag at the opening ceremony. “That was proof enough that our leaders believed in the potential of our country’s sportswomen. There was a great push from the IOC and the London Olympics organising com-

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“We have received approval from the Emir, HH Sheikh Tamim bin Hamad Al Thani, to start women’s sport in six to eight clubs around the city.”

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the girls’ team competes under the name of the national association of whichever sport they are taking part in. They help us choose our coaches, structure a professional programme and give us plenty of advice when required. We are working very closely with the associations when it comes to women’s sports irrespective of whether the sport is part of the QWSC’s agenda.

For example, the girls’ track team trains with the Qatar Athletics Federation, who we have a very good relationship with. So if we spot a talented athlete better suited for track events we shift her over to the association, who will give her the relevant training.”

Al Mana is optimistic about enthusiastic support from the newly-created Ministry of Youth Affairs and Sports. “We anticipate that the ministry will definitely put us on a path of continued growth, with new strategies designed around promoting women’s sports. We already have tremendous encouragement from the government, without which none of our achievements would have been possible,” she says. “The biggest support comes in the form of our sizeable budget, which has been increasing year on year. Because of this we are able to introduce new programmes and develop better strategies with the hiring of highly qualified coaches and staff. Our doctors, physiotherapists and other support staff are also continually trained to better serve the vision we have at the QWSC. HE Sheikha Jawaher bint Hamad bin Suhaim Al Thani has a keen interest in our work and she lends her support in every which way she can – she enquires about our activities over the phone and comes over in person to interact with the girls. She even attended the last women’s football league finals to cheer the teams on.”

Al Mana is aware that to ensure the trickling down of the sporting spirit to down the very last child in Qatar, she has to work closely with education leaders. “We’d like to collaborate more with the Supreme Education Council to develop sport through education. It is common knowledge throughout the world now that sports support education – if you are actively involved in sports, the healthy lifestyle will ensure that you give your best in academics as well. So we need the SEC to support and promote what we do, whether it’s us or Aspire or the Qatar Olympic Committee. The QOC is doing such a good job with the Schools Olympic Programme. The Council must encourage all schools to participate and ensure that all the children across the country have a chance to compete. Sports must become a part of their daily lives not just something they do for 40 minutes a week,” she says. “We are planning to open talent centres in schools to give girls more opportunities to play sports. This way they don’t have to go to sports clubs but can practise their skills and unwind after the regular school hours. We tried this for three months last year in selected schools and it was a success. We are waiting for approval from the Council for a more extensive roll-out of the programme.”

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Qatar’s contingent at the London Olympics. mittee to open the event to women from across the world, and we received a lot of support and encouragement from inside and outside the country,” she says. Al Mana recalls that she had many a sleepless night in London, especially the night before the opening ceremony. “Our first competition was table tennis, where we were fielding our TT champion Aya Majdi. I just broke down in tears that day at the stadium. Many asked me if I was crying because we lost, but I was crying because I simply couldn’t believe that we had come so far,” she smiles.

“Many of our athletes were too young to participate in 2012 but we are hoping the momentum will sustain and we’ll be able to send an even bigger team to Rio in 2016,” she says.

Meanwhile, the athletes at QWSC have been getting a lot of practice with increased participation in many international sporting events. Even now they are deep into preparations for the next Asian Games.

Al Mana is aware that she might be biased in her opinion, but according to her, women’s sports in Qatar are on par with or even better than in many GCC countries, some of which started their women’s sports development programmes much earlier that the QWSC. “I hope to one day see the QWSC as a

consultant for women’s sports in the region,” she smiles.

That is an ambitious (but increasingly realistic) dream for an organisation that started small little more than a decade ago, with introductory sports programmes for girls in schools. “But that was the right way to do it. We were able to involve the parents and the teachers and generate interest among them during the initial days, and they in turn encouraged more girls to take up sports. Then subsequently we had to open sports halls and training centres to accommodate our budding athletes. This is what we are trying to emulate through the introduction of separate women’s sections in sports clubs. Once the community as whole starts showing more interest in these sports, the authorities will have the incentive to further develop the programmes and facilities.”

Al Mana continues to list the plans that the QWSC has for the future of women’s sports in Qatar. Her enthusiasm and energy seem inexhaustible, and her passion for sports unmistakable. “I have always loved sports. When I was in school I especially loved athletics, gymnastics and handball. But those were different times. I couldn’t follow my dream of competing professionally, so after school I took up sports studies and graduated as a Bachelor in Physical Education (ours was only the second batch to graduate in this discipline),” she remembers. After having worked as a teacher in a boys’ school for 11 years, Al Mana was invited to become one of the committee members when the QWSC was formed. “I was very happy when I was nominated to join the QWSC and I knew that I had to chance to give young girls today the opportunities that I didn’t have,” she smiles.

The international press calls her a women’s sports activist and a fighter for women’s rights. She is all of that, but that is just incidental. Deep down, she is just a true lover of sports who has channelled her personal disappointments into an unstoppable force that will come to shape the destinies of many young girls in the country

W

hile the world debates whether the 2022 FIFA World Cup finals in Qatar should be switched to the winter, the authorities here are quite confident of pulling the event off in the heat of the desert summer.

FIFA president Sepp Blatter has launched a consultation process over whether the timing of the football showpiece should be moved so as not to endanger players’ and fans’ health in the unbearable summer heat that can reach 50 degrees Celsius.

The Qatar 2022 Supreme Committee, though, are adamant they can come through with their plans to keep stadia cool.

“We have always said that we can organise the World Cup in summer,” said Hassan Al Thawadi, Secretary-General, Qatar 2022 Supreme Committee, at the recent Doha Goals Forum.

“But if the world of football or FIFA wants to hold it in winter, we will be delighted and ready to. But if they want it in summer, we are also ready.”

The Qatar 2022 Committee has also unveiled a new concept design for Al Wakra Stadium, a host site for the World Cup. The concept design, by AECOM in association with Zaha Hadid Architects, reflects the sea-faring heritage of the Al Wakra community and captures the essence of the traditional Arabian dhow.

The stadium will have a gross capacity of 40,000, with modular top tiers, allowing the capacity to be lowered to 20,000 after the tournament. The organisers are aiming for tempera-

tures of 25-26 degrees Celsius with the aid of the air-conditioning.

Doha Goals pledges aid Policymakers and government representatives from the sports bodies of 20-odd countries who participated in the Doha Goals Forum in December 2013 discussed the importance of sports in addressing some of the most important socioeconomic and political challenges faced by the contemporary world.

Qatar’s Minister of Youth and Sports, HE Salah bin Ghanem Al Ali, who chaired the Doha Goals sports ministers summit, said: “Today’s meeting is an important step towards better and stronger collaboration between ministers of sport so that we can build a case for sport to be given higher priority at a policy level.”

The summit also expressed concern over three major issues on which delegates pledged to coordinate action during 2014:.

– Countries with less developed economies that are current beneficiaries of aid and development funding highlighted the idea that investment in sports infrastructure and sports activity should be seen as a legitimate use of development funds.

Recipients of such development funding called for the rules for these grants to be amended to allow wider support for sports facilities and endeavours in the context of development funding.

– Delegates highlighted the need to focus on the impact of sporting events beyond the best-known major competitions.

While lower-profile events may not have the same weight

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Qatar has wider goals than just holding a successful 2022 FIFA World Cup, it aims to develop a sports industry that will be sustainable, with the long-term goal of keeping its people active and healthy.

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Get set, go

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Hassan Al Thawadi, Secretary-General, Qatar 2022, Supreme Committee, at the recent Doha Goals Forum with international audiences, there are still numerous benefits for smaller events to be held in smaller countries where investment can be more manageable and the impact in real terms just as big.

– Delegates pledged to do more to share information between nations within the context of the G20, G8 and other international groups, in order to fight the corruption that can blight sport. The global interdependence of elite sport in particular means that these issues affect all nations. Major sporting events are also a showcase for the importance of nations collaborating across borders to promote transparency and fight corruption.

Sport Day goes down well with everyone In line with Qatar’s 2030 national vision to create a physically and mentally healthy community, it was decided in December 2011 that the second Tuesday in February each year would be a National Sport Day started in 2012.

And so it was that year, 2013, when thousands of Qatari residents, young and old, took part in the second annual National

Sport Day on Tuesday, February 12.

Ministries and government bodies, as well as a multitude of organisations, schools and individuals from around the country came together to celebrate sport in whatever way they could.

With the day planned well in advance, and dozens of free events happening in almost every public location around Doha – including the Corniche, Aspire, Katara, Al Refaa and the Museum of Islamic Art, as well as the many other public sporting facilities – it was a great opportunity for everyone to get out, get active and test themselves in a host of different sporting environments.

A Football Performance and Science Tournament lasting for five hours attracted more than 500 schoolboys, while the Aspire Academy football tournament attracted over 600 student athletes and members of the public.

In an event called “Light the Torch,” participants pedalled over 30 stationary bikes outside The Torch-Doha Hotel in a challenge to generate enough electricity power the hotel’s outdoor lighting system. The cyclists were members of the Aspire

enough to get a heroic and useful draw in Seoul, to leave them in a handy position in the group, but the home side snatched a winner in the 96th minute to dull Qatar’s chances of qualifying.

Qatar began their 2015 Asian Cup qualification campaign in February with a 2-0 home win over Malaysia. A 1-0 defeat in Bahrain – four days before they played South Korea in the World Cup qualifier – set their progress back a little, but backto-back wins over Yemen as well as a win in Kuala Lumpur meant they qualified for the January 2015 tournament with relative ease.

Shaq wants to bring NBA to Qatar Ex-NBA basketball star Shaquille O’Neal visited Doha for the Aspire4Sport Conference and Exhibition in November, and mooted the suggestion that Qatar could one day host an official NBA game.

The former Los Angeles Lakers power forward who has acquired a stake in the Sacramento Kings franchise, said he was in talks with HE Sheikh Saoud bin Abdulrahman Al Thani, Secretary General of the Qatar Olympic Committee, about hosting an official NBA game here.

O’Neal said: “I give you my word that I’m going to try to come [to Qatar] in the next two years with my team. I know that Qatar’s premier basketball arena will be finished by October next year, which is probably too soon to bring a pre-season game, but we will be back.

“I’ll be talking to my co-owners and I’m sure they’ll do it. I also had a conversation with HE Sheikh Saoud about it, so we are all going to be working to get that going, but regardless, I’m going to be coming back [to Qatar] inshallah.”

Wood masters Qatar In golf, Englishman Chris Wood produced a stunning eagle on the 18th green to win the Qatar Masters in February, which

tourism, culture, retail & sports

Al Annabi’s disappointing year The Qatar national football team had a busy schedule in 2013, as they were involved in three different campaigns. Although they successfully qualified for the 2015 Asian Cup in Australia, they were disappointed that they didn’t make it to the World Cup in Brazil in 2014, while they also had a forgettable Gulf Cup of Nations in January.

The focus for Qatar at the start of the year was to get to Brazil, but first up was the Gulf Cup of Nations in Bahrain. Al Annabi were drawn in Group A with the UAE, Oman and the host nation. Although they took an early lead against the Whites in their first game, they would lose 3-1. A one-goal win against Oman in their second game set up a decider against Bahrain, but they lost it to a single goal and were eliminated. The UAE went on to beat Iraq in the final.

The luckless campaign was too much for the Qatar Football Association to bear and they let their 55-year-old Brazilian manager Paulo Autuori go, hiring ex-Qatari footballer Fahad Thani in his place.

Thani’s first task was to reboot confidence levels ahead of the crucial World Cup qualifiers, which included a trip to South Korea in March as well as games against Iran and Uzbekistan in June.

Midfielder Khalfan Ibrahim’s equaliser looked to have been

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Active programme, it took nearly 20 minutes to achieve the feat.

The Qatar Football Association and Qatar Shell attempted to facilitate the largest–ever five-a-side football tournament at the Aspire Zone, with Guinness World Record officials in attendance to oversee proceedings.

The inaugural Dolphin Energy Doha Dash, organised by Professional Sports Group, at Losail International Circuit saw over 1,300 runners following the tyre marks of MotoGP stars as they raced around the circuit. Participants competed in four categories: a five-kilometre and three-kilometre race, a one-kilometre mini-dash and a one-kilometre ladies’ walk.

Meanwhile at the Corniche, Al Kharaityat and Aspire Zone more than 40 nurses and medical staff from Hamad Medical Corporation’s hospitals offered free health checks including blood pressure tests and weight measurements. Thousands of people took the chance to have their health checked taken by HMC’s experts.

One of the highlights of the day was the launch of a “Be Fit” campaign, which drew many people to commit to a weightloss programme which would be closely monitored by VLCC beauty and fitness experts, further promoting the concept of a healthy lifestyle.

The 2014 National Sport Day is on February 11, and with the lessons learned from the first adventures it promises to be even bigger and better than in 2013.

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The Star Qatar’s London 2012 Olympic Games bronze medallist Mutaz Essa Barshim was the star performer where he clinched gold in the high jump at the 2013 Arab Athletics Championships, the 18th edition of the international athletics competition among Arab countries, which took place in Doha from May 21-24, 2013 was his first victory on the European Tour.

The 25-year-old, who had started the final round with a three-stroke lead, double-bogeyed the short third hole and found himself a shot behind Spain’s Sergio Garcia and South African George Coetzee standing on the final tee-box, after they had set the clubhouse target at 17 under par with rounds of 64 and 66 respectively.

But Wood played the final hole magnificently and sank the crucial putt to complete a three-under-par 69 and earn his maiden win.

Gasquet thrills French crowd with win Frenchman Richard Gasquet won the Qatar Tennis Open for his eighth career title in January, coming from a set down to beat Russia’s Nikolay Davydenko 3-6, 7-6 (4), 6-3.

“It’s a big success for me,” Gasquet told the crowd, which included French expatriates. “I fought a lot because it was very tough and we were both tired. He is so talented and he plays so fast. It was tough for my game, but I managed to win. A lot of good players have won here – (Roger) Federer, (Andy) Murray.”

Defending champion Victoria Azarenka retained her Qatar Total Open title in February with a gutsy 7-6, 2-6, 6-3 victory over American Serena Williams.

It was only the Belarusian’s second victory over the American in their 13 meetings to that point.

The top-seeded Azarenka, who was making her third Qatar Total Open appearance, had won the first Grand Slam of the year in Melbourne, but Serena would go on to win in Paris and New York later in the year, showing what a quality final the fans hd been treated to in Doha

Patriotic fervour and gaiety, coupled with an impressive parade by the Qatar’s Armed Forces, marked the National Day celebrations. The Emir, HH Sheikh Tamim bin Hamad Al Thani along with The Father Emir, HH Sheikh Hamad bin Khalifa Al Thani, viewed the parade along with other dignitaries.

‫انضمام برج تورناندو لمجموعة‬ ‫ناطحات السحاب في قطر‬ The Tornado Tower forms a part of the new Doha skyline

‫ كانت ضمن العيد‬،‫ ومعرض داميان هيرست الذي نظمته هيئة متاحف قطر‬،‫مهرجان أجيال ألفالم الشباب في كتارا‬ ٢٠١٣ ‫من الفعاليات الثقافية التي عقدت في قطر خالل العام‬ The Ajyal Youth Film Festival at Katara and Relics, an exhibition by Damien Hirst, organised by Qatar Museums Authority, were among the various cultural activities that took place in Qatar during 2013.

‫احتضن الحي الثقافي كتارا العديد من الفعاليات‬ ٢٠١٣ ‫الثقافية خالل العام‬ Katara Cultural Village was the venue for numerous cultural festivities during 2013.