Qatar Today August 2011 by Oryx Group of Magazines

august 2011

CoNtENtS 36

C oVE r Story

40 CoVEr: SEllING BraNd Q WoUld yoU BUy It?

Why is Brand Q such a hard sell? Why do we assume that there is better quality abroad than on our doorstep? What are we doing to promote and extend home-grown businesses? Vani Saraswathi talks to leading Qatari businessmen and entreprenuers about Brand Q's future.

36. VodaFoNE ExtENdING ItS PlayGroUNd

John Tombleson, acting CEO Vodafone Qatar, explains to Rory Coen how they have the means to be a competitive rival of Qtel.

59 10

16. WHat NExt For ISlamIC BaNkING?

Ezdhar Ibrahim examines how the future is shaping up for Islamic Banking in Qatar, after the announcement by QCB to shut down all Islamic windows.

59. yoUtH, takE CHarGE

INJAZ Qatarâ&#x20AC;&#x2122;s Executive Director, Ayesha AlMudehki, tells Cassey Oliveira how the Qatari youth can provide for a culture of entrepreneurialism and business innovation.

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CoNtENtS

august 2011

77 34

64 70

70. GPS oN tHE CrESt oF a WaVE

The new Green Programme for Schools (GPS) programme is gaining momentum as dozens of organisations are signing up to show their support for the green cause.

64. Co-CrEatING a SaFEr ENVIroNmENt

Rory Coen ďŹ nds out how Harris Corporation and Atlas Telecoms are co-creating to make our environment more secure.

34. tHIS tImE For aFrICa

Africa is becoming a very attractive continent to invest in. Rory Coen examines why why GCC investors are looking to the Dark Continent as an opportunity.

82. IrISH GolF rUNNING INto tHE GrEEN

Irish golfers have won a third of the last 18 majors. Rory Coen looks at their potential to win even more in the coming years.

rEGUlarS NEWS BItES.................................................10 o & G o V E r V I E W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 BaNk NotES................................................14 W o r l d V I E W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 BrakING NEWS..............................................72 markEt WatCH.............................................76 d o H a d I a r y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4

INSIdE: CGC NokIa ProdUCt BooklEt

V o lU m E 3 7

ISSUE 8

PUBlISHEr & EdItor-IN-CHIEF CHIEF ExECUtIVE ExECUtIVE VICE PrESIdENt VICE PrESIdENt maNaGING EdItor dEPUty EdItor EdItorIal CoordINator CorrESPoNdENtS FaSHIoN &lIFEStylE CorrESPoNdENt

aUGUSt 2011

yoUSUF JaSSEm al darWISH SaNdEEP SEHGal alPaNa roy raVI ramaN VaNI SaraSWatHI SINdHU NaIr CaSSEy olIVEIra rory CoEN EzdHar IBraHIm orNa BalloUt

art dIrECtor aSSt art dIrECtor – ProdUCtIoN aSSIStaNt art dIrECtor SENIor GraPHIC dESIGNErS

VENkat rEddy SUJItH HEENatIGala HaNaN aBU SaIam ayUSH INdraJItH SamPatH GUNatHIlaka PHotoGraPHEr roBErt F altamIraNo

maNaGErS –markEtING

moHammEd SamI zUlFIkar JIFFry SENIor mEdIa CoNSUltaNt CHatUrka karaNdaNa mEdIa CoNSUltaNtS VICtorIa FErrarIS HaSSaN rEkkaB markEtING rESEarCH & amJEtH alI SUPPort ExECUtIVE aCCoUNtaNt Sr. dIStrIBUtIoN ExECUtIVE dIStrIBUtIoN SUPPort

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Qatar today INVItES rEadErS’ FEEdBaCk SHarE yoUr VIEWS oN tHE maGazINE or aNy ISSUE CoNNECtEd to Qatar. oNE lUCky rEadEr WIll WIN aN ExQUISItE moNt BlaNC WrItING INStrUmENt.

PrataP CHaNdraN BIkram SHrEStHa arJUN tImIlSINa BHImal raI

write to: the editor, qatar today, Po Box 3272, doha. Fax: (+974) 44550982, eMaiL: qtoday@oMsqatar.coM qatar today reserVes the right to edit and PuBLish the corresPondence. Views and oPinions exPressed in the PuBLished Letters May not necessariLy Be the PuBLication’s Views and oPinions.

august 2011

From tHE dESk

JUly

HaS BEEN odd. tHErE IS No otHEr Way to dESCrIBE a moNtH WHEN tHE WEatHEr tUrNEd FEral, road aCCIdENtS IN doHa Got EVEN morE GrUESomE, a mad maN tUrNEd EVIl aNd a QatarI HEro Got kICkEd oFF HIS PEdEStal. Anders Behring Breivik’s manifesto is out – the document that tries to give the reason why he killed close to a 100 people, most of whom were children. An Islamophobic rant, speaking against multi-culturalism. The easiest way of gauging the region’s reaction to his rant is to get on Twitter. There was manic anger, bristling indignation, some dismissals – but there was not much (at least in English) discussion. The problem is, the policy or decision-makers seem to react in the same manner as the common man on the streets or online. Breivik’s actions will receive no support, but his manifesto well might. And if there is a time to quell Islamophobia, it is now. It has for long been received with hurt, and responded to in anger. Let’s get into some open, honest dialogue. Let’s lay bare our prejudices and fear, use that as a starting point to solve issues. Another issue that requires some honesty is the life ban on Mohammed bin Hammam, a man who just six months ago was hailed as a hero for bagging the 2022 bid. Is he a fall guy for powers far beyond his control? Honesty, anyone? The winning of the bid, though received with great cheer, has also raised concerns amongst local businesses. Would they be part of the party? Will their businesses flourish? Or will we continue to see help from abroad, under the assumption that it’s better, and Brand Q can’t deliver? Lots of questions that we try to answer in our cover story this month. This is going to be a long discussion, and we will revisit it in the future. And a reminder: Buckle-up! Doesn’t matter where you are seated, if you are in the car and it’s moving, let the belt be secure. Ramadan KaReem.

Vani Saraswathi

august 2011

Qatar today 7

Showroom Timings: 8.30 am to 2:00 pm - 8:00 pm to 11:00 pm (Sat - Thu); 8:00 pm to 11:00 pm (Fri).

lEttErS feedbaCK qtoday@oMsqatar.coM

GoinG diGital the coVer story oF QaTaR ToDaY JuLy issue on digitaL econoMy touched on aLL VitaL asPects oF technoLogy Being Pursued By qatari Businesses and aLso Brought out the VacuuM that the country needed to touch uPon. i agree with one oF the ParticiPants in the story who highLighted the need For More serVices aiMed For sMes. a weLL-researched story. rehMan kureshi

moRe diveRsifiCation

The potential for growth of aluminium, which is vital for construction, transportation and packaging, is indeed high in the country. The article by the expert also touched upon the growth of aluminium production in the neighbouring countries which will also increase the demand for the need of energy in these countries, thus presenting a win-win situation for Qatar who could then supply the needed energy. Working in the aluminium industry, this analysis presents us with high hopes. yasser seraFini

potential foR GRowth

The insurance sector is one of the sectors that has high potential in the country. There are products in the insurance sector that have not yet been marketed in the country. The article Insurance: Primed for Growth in Qatar Today July issue rightly pointed out that in Qatar, it is just building assets, infrastructure products, and automobiles that are being insured. There is a whole range waiting to be explored.

Qt Poll – aUGUSt

rasad asLaM

PoLL resuLt is Based on Messages receiVed tiLL 20th oF eVery Month

hiGh on investments

Qatar being one of the wealthiest countries in the world comes as no surprise but the investment trends of these high net worth individuals is of high interest. In the article Global Wealth Management: An opportunity unexplored, the investment trends that Guy Monson recommends will be highly beneficial for any investor. The article makes for a good read. Mahesh g

spoRts foR all

I have extremely enjoyed reading the Sports File section of Qatar Today. In the July issue, the writer Rory Coen articulated what ran through most sports loving peoples’ minds when they watched the Wimbledon matches played recently, that tennis is one fantastic sport. We look forward to more such stories in the sports section. ryan wiLLs

IS FIFa'S lIFE BaN oN moHamEd BIN Hammam JUStIFIEd? SmS aNSWErS to +974 33072524 a lUCky WINNEr WIll WIN a NokIa E63

QataR today: a vibRant Guide foR ouR futuRe

When an emerging nation is taking mighty, firm and rapid strides along the golden path of Social, Cultural, Educational and Financial developments, going beyond the horizon of region to the competitive track of international arena, it is hardly possibly for folks like me, to have the honour, pride and pleasure of being a witness to these multifaceted growth areas without a guide. Qatar Today proves to be an intelligent, vibrant guide with full of life and with a vivid vision. reeM aL-qaderi

IS tHE CoUNtry PromotING QatarI BUSINESSES?

53% 47% yES

tHE WINNING NUmBEr oF tHE laSt Qt Poll IS 55856452

Qatar today INVItES rEadErS’ FEEdBaCk SHarE yoUr VIEWS oN tHE maGazINE or aNy ISSUE CoNNECtEd to Qatar. oNE lUCky rEadEr WIll WIN aN ExQUISItE moNt BlaNC WrItING INStrUmENt.

CHECk oUt all artIClES oF Qatar today oN WWW.ISSUU.Com/oryxmaGS/Qatartoday

write to: the editor, qatar today, Po Box 3272, doha. Fax: (+974) 44550982, eMaiL: qtoday@oMsqatar.coM

qatar today reserVes the right to edit and PuBLish the corresPondence. Views and oPinions exPressed in the PuBLished Letters May not necessariLy Be the PuBLication’s Views and oPinions.

FINDING SAFE HARBOURS 30

NEWS BITES

VODAFONE QATAR STARTS ITS INTERNSHIP PROGRAMME

Bin Hammam handed life ban BY FIFA

ohamed Bin Hammam received a life ban from football following revelations that he bribed voters ahead of June’s FIFA Presidential

election. Football’s governing body’s ethics committee announced their decision after a two-day hearing, which will mean the former head of the Asian Football Confederation (AFC) is now unable to be involved “in any kind of football-related activity at national and international level for life”, said Petrus Damaseb, FIFA ethics committee deputy chairman, last month. The ethics committee’s report said there was “comprehensive, convincing and overwhelming” proof that bribes had been paid to officials to support Bin Hammam’s campaign for the FIFA presidency In a statement, Bin Hammam’s legal council said he will continue to fight the case through every legal route available to him. Bin Hamman’s legal team declared that

12 Qatar Today

august 2011

they would continue to clear his name and would look at every legal avenue available to them. Their statement incuded: “The FIFA ethics committee has apparently based its decision upon so called ‘circumstantial’ evidence which our case has clearly demonstrated was bogus and founded on lies told by a senior FIFA official. “We have strictly observed the legal rules regarding the confidentiality of these proceedings and not shared our evidence, which is compelling, with the media. “FIFA, either directly or through third parties, appears to have done the opposite with selective and continual leaking of documentation that has been part of these proceedings to the media in order to influence public opinion and create bias.” Meanwhile, Qatar look set to qualify for the third round of the Asian World Cup Qualifiers after a resounding 3-0 win over Vietnam at Al Sadd Stadium on July 23rd. The Vietnamese will look to overturn this deficit on July 28, in Hanoi, Vietnam.

odafone Qatar has started its summer 2011 Internship program for University Graduates, as part of its Talent Development Strategy. Vodafone has designed the programme to provide the interns with a practical working experience in a professional environment and to contribute in shaping their future career. The programme – first launched in June 2009 – started on July 3, with an induction programme, which introduced the interns to the world of Vodafone Qatar. During this 6-8 week course, they are given the chance to work on various projects in different departments. Each one was assigned a mentor whose job is to help and guide them through their experience. In addition, they will be given the chance to access various training programmes, before presenting what they learned to senior staff. “Our internship programme offers students first hand experience of what it is like to work within an international organisation. This summer, we have 11 students working in different parts of our organisation, where they can put theory into practice and gain experience and exposure to the world of Vodafone Qatar,” said Katrina Schmahl, Head of Recruitment and Nationalisation, Vodafone Qatar. “The internship programme is an ideal opportunity for us to identify and work with those individuals who could become a part of our talent pipeline and contribute to our future success,” said Jan Mottram, HR Director, Vodafone Qatar.

news bi t es

Mawashi prepare for Rama dan

awashi will be importing 150,000 Australian sheep to meet the extra demand in Qatar during Ramadan. Ahmed Al Kaabi, the Managing Director of the Qatari Meat and Livestock Company, told Al Sharq that they expect to be importing about 3,500 sheep per day, including frozen mutton and livestock, from Australia. They are also importing 20,000 Syrian and Jordanian sheep, which will be available at the Central Market at QR800 per head.

Al Kaabi said the import of Syrian and Jordanian sheep would be done in conjunction with the Ministry of Business and Trade, while they would also be importing various types of meat and livestock from countries such as Georgia, Sudan and Pakistan. Mawashi are in talks with representatives from Saudi Arabia to export sheep from their Sudan breeding base during Ramadan and Haj season to help meet the increasing demand for meat there, Al Kaabi disclosed.

New COO for Northwestern University

avid Carr has been named Chief Operations Officer for Northwestern University (NU-Q), having previously served as Director of IT and Chief Technology Officer, titles he will retain. Dr Everette E. Dennis, Dean and CEO of NU-Q said, “David's wide experience and deep knowledge of virtually all of NU-Q’s operations is greatly welcome as we continue to extend our activities and programs." Carr’s responsibilities will include strategic planning and coordination of several departments, as well as leadership on problem-solving task forces and other efforts aimed at supporting the Dean’s new initiatives for outreach and greater emphasis on digital and global media.

Jordan and Qatar agree on Green Initiatives QR20 billion regeneration of downtown Doha

atar-based real estate developer Msheireb Properties opened a major forum in London last month on investment in the country’s emerging non-oil and gas sector. MEED Qatar Infrastructure Projects 2011 brought together chief executives from Qatar’s real estate, banking, transport, utilities, and construction sectors, as well as high-level government representatives, to debate the rapidly evolving project market in Qatar. Msheireb Properties’ CEO, Eng Issa M. Al Mohannadi, introduced delegates to Msheireb Properties’ signature development: Msheireb, the QR20 billion regeneration of the downtown area of Doha. “We are realising a new architectural language for Qatar and delivering on exacting environmental standards through the combination of modern technology and traditional principles in sustainable design,” he said. Msheireb will transform a 31-hectare site in the old commercial district of Doha. The

mixed-use development will comprise of more than 100 buildings, including 900 residential units, retail and office space, as well as hotels and cultural attractions. “The Msheireb project involves a prestigious portfolio of UK-based consultants whose experience and expertise will help realise each phase of the development,” he continued. “Msheireb also has considerable potential for UK retailers, hoteliers and businesses seeking to enter Qatar or expand their presence in the region.” Commercial real estate will represent more than a third of the Msheireb project, while space for retail and hospitality will also constitute around 30% of the project. Construction at Msheireb began in January 2010 and phase one will include a National Archive, museum, and an Eid prayer ground. The development will open in five phases from 2012 to 2016. Msheireb will also preserve several existing heritage sites, including houses dating back to the beginning of the last century.

he Gulf Organisation for Research and Development (R&D) recently signed a Memorandum of Understanding (MoU) with the Jordan Engineers Association (JEA) to promote sustainability through initiatives for reducing energy consumption and carbon emissions, promoting the use of environmentally safe products and supporting green building projects. The Gulf Organisation for R&D is Qatar’s leading research, consultancy and training institute and the developer of the Qatar Sustainability Assessment System (QSAS). The QSAS is a performance-based sustainability rating system – the first of its kind in the MENA region – which aims at creating a sustainable urban environment to reduce the environmental impacts while satisfying local community needs. In addition to addressing all locally relevant aspects of sustainability, ecological impact, and green building design criteria, QSAS developed a standalone building energy standard to support Qatar’s building energy ratings.

august 2011

Qatar Today 13

news bi t es

HNWI believe in Qatari Real Estate arclays Wealth report that 100% of Qatari High Net Worth Individuals (HNWI) indicated that they are currently invested in the real estate sector here. All of the individuals surveyed intimated that it would remain a strong investment strategy in the next 12 months. The report, ‘Risk and Rules: The Role of Control in Financial Decision Making’, is based on a global survey of more than 2,000 HNWI, and provides an in-depth examination of wealthy investors from a behavioural finance perspective. In addition to considering the different financial personality traits that exist amongst wealthy investors, the report shows their views on nine asset groups: real estate; cash; alternative strategies (long/short funds, arbitrage etc); equities from both developed and emerging markets; bonds from developed governments, blue-chip corporations and high yield/emerging markets; and commodities. Head of Investment Advisory, Barclays Wealth MENA, Khurram Jafree, said: “Qatari investors distinguish themselves

among their peers by their enthusiasm for investments in real estate. The report clearly illustrates there are considerable differences among wealthy investors in Qatar and between Qatari investors and their counterparts in the region and the world. This is a timely reminder, if one was needed, that the wealth management industry needs to tailor its services at the individual level and that one-size fits-all approaches do not work."

Qatari HNWIs

43% believe that cash is risky

39%

find investments in emerging market equities risky

63%

consider developed market equities a safe investment option

Qatar Railways Company welcomes new CEO

atar Railways Company (QRail) has appointed Eng Saad Ahmed Al Mohannadi as the company’s new Chief Executive Officer (CEO). He joins QRail as the company is ramping up operations in preparation for the Qatar Integrated Railways Project, which will incorporate a metro system, long-distance passenger travel, and freight transport. Al Mohannadi was previously Director of Technical Affairs at Qatar General Electricity & Water Corporation (KAHRAMAA) from September 2008. He has received many accolades, most notably an Award for Outstanding Performance at Kahramaa. The company recently held a series of awareness events in the rail industry for a number of leading consulting firms, construction companies and operations companies around the world who will participate in the project.

IBQ Communicators celebrate its 6th edition

he 6th IBQ Communicators Awards will have over 80 contestants battling it out this year for the coveted titles during a Grand Finale in November at the Ramada Hotel. 60 of Qatar’s best speakers will showcase their communication skills for the International Category during the pre-qualifying rounds in October while 20 will seek to win a spot amongst the top six contestants in

14 Qatar Today

august 2011

the Humorous Category. The Awards are organised by the ICCONE Toastmasters Club under the patronage of IBQ to encourage and promote communication and leadership skills in the local community. A cheque presentation ceremony was held at IBQ headquarters to mark the occasion. George Nasra, Managing Director of IBQ said: “This is a significant milestone for both IBQ and ICC-ONE Toastmasters as

we enter our sixth consecutive edition of the Awards. This is a strong testament to the success of the initiative." M.I. Farid, Founder President of the ICCONE Toastmasters said: “This could not have happened without the serious commitment of our long-term partner, IBQ, and the breadth and innovation behind our annual programme which has encouraged an increasing number of participants to take part year after year.”

dEalING WItH rEPUtatIoN rISkS

o & G oVErVIEW

QatarGaS aCHIEVES HIStorICal mIlEStoNE

atargas has announced the signing of a Heads of Agreement (HOA) for the long-term supply of liquefied natural gas (LNG) to Energia Argentina Sociedad Anonima (ENARSA), Argentinean oil and gas company, achieving yet another remarkable milestone. The HOA was signed by Khalid Bin Khalifa Al-Thani, CEO Qatargas, and Gabriel Mazzola, General Attorney & New Business Manager, ENARSA. According to the agreement, Qatargas will deliver five million tonnes per annum (mta) of LNG to ENARSA at the Southern Cone LNG Hub in Argentina for twenty years beginning in 2014.

This LNG supply is expected to meet nearly 16% of Argentina’s total annual natural gas consumption. Minister of Energy and Industry for the State of Qatar and Chairman of Qatargas, HE Dr Mohammed Bin Saleh Al-Sada said, “I am delighted that Qatargas has again, through this long term agreement, significantly contributed to the global reach of Qatari LNG. Argentina is one of the world’s fastest growing LNG markets, which needs longterm supplies to meet its increasing demand for natural gas and we are very proud to partner with Argentina to be able to support their energy needs for many years to come”

QaFCo SIGNS dEal WItH PoWEr FIrm

atar Fertiliser Company (Qafco) will supply about 13,000 tonnes of aqueous ammonia annually to Mesaieed Power Company Limited (MPCL) as per the agreement signed between Qafco’s Vice-Chairman and Managing Director, Khalifa Abdullah Al-Sowaidi and Mohammed Al-Harami, MPCL’s Finance and Administration Director. Speaking on the agreement, Al-Sowaidi said: “Qafco intends to supply aqueous am-

monia to various companies and gas-operated industrial plants in Qatar to utilise it as an effective agent to reduce nitrogen oxide emissions and help comply with the Qatari environmental regulations.” MPCL’s Al-Harami said that company was committed to environmental standards and to maintaining the integrity and cleanliness of the environment as part of the company’s vision and mission. “MPCL is keen to support all national efforts and initiatives aimed at producing clean energy for sustainable development in Qatar.”

QaFCo’S aQUEoUS ammoNIa ProdUCtIoN iN figures

60,000 toNNES PEr aNNUm.

Qatar’S GaS dEVEloPmENt StratErGy

hile speaking to Oxford Business Group as part of the research for The Report: Qatar 2011, ExxonMobil Qatar, President and General Manager, Alex Dodds said that "Qatar’s major domestic gas development projects will provide the foundations for the country’s economic expansion by generating the power needed for extensive infrastructural works. These projects would help meet the domestic and industrial energy supplies, allowing Qatar to move ahead with its economic diversification as per the Qatar National Vision 2030." After the Al Khaleej Gas Venture, the next phase of Qatar’s gas development is marked by the Barzan project that is scheduled to begin operations by 2014.The venture is a joint initiative between ExxonMobil Qatar and Qatar Petroleum and will be operated by RasGas. “The Barzan project is a critical component of Qatar’s strategy because it will provide the remaining energy needed to propel the country towards sustainable development,” said Dodds. “Qatar’s long-term plans to drive forward its expansion in the world-wide LNG market are in line with global trends which indicate that natural gas would overtake coal as the primary power source.” According to Dodds, ExxonMobil’s three LNG receiving terminal projects in Wales, Northern Italy and the US are ‘strategic assets for the delivery of Qatari LNG into key markets’. This would further help establish Qatar as the global supplier of clean-burning energy.

august 2011

Qatar today 15

GCC STOCK MARKETS POISED FOR GROWTH

bank notes

QFIB acquires stake in Kuwait O&G

atar First Investment Bank (QFIB) has acquired a $16 million stake in Kuwait Energy Company, a leading Middle Eastern independent oil and gas exploration and production company headquartered in Kuwait. The stake was acquired from an existing shareholder and marks QFIB’s second investment in the oil and gas sector. Commenting on the deal, QFIB Chairman Abdulla bin Fahad Bin Ghorab AlMarri said: “This is our second investment in the oil and gas sector. Kuwait Energy fits

perfectly with our strategy of investing in growing companies with outstanding management. Kuwait Energy has already established itself as a leading player, with strong positions in promising markets such as Egypt and Iraq. Furthermore, Kuwait Energy’s operations in the MENA and Eurasia markets provide a unique gateway to access niche opportunities which we aim to capitalise on.” Kuwait Energy Chairman and Managing Director, Dr Manssour Aboukhamseen said: “QFIB has an excellent reputation as a leading investment bank in the region and

GIC’s Gulf Bond showing consistency

ulf Investment Corporation (GIC)'s Gulf Bond Fund has achieved a year-to-date (YTD) return of 3.29 %, showing consistent performance when compared to the same period of 2010, despite market instability in the first half of this year. Fund Manager and Vice President, GCC Fixed Income Desk, Khalifa Al-Rashid said: “The Fund’s noticeable performance since it was launched six years ago is a reflection of GIC’s industry expertise built up over the last 26 years.” Al-Rashid also mentioned that GIC’s primary objective is to ensure that the Gulf Bond Fund provides investors with consistently competitive performance. The Fund, which was launched in 2005, aims to generate a return in excess of short-term bank deposits. It also seeks maximum current income and price appreciation, consistent with the preservation of capital and low return volatility. The high quality of the portfolio, where 84% of underlying assets are rated A- and above, by international rating agencies, together with the management’s prudent selection criteria – which involve selecting

16 Qatar Today

august 2011

highly-rated and highly liquid regional securities, weekly redemptions and consistent returns with a low risk profile – attracts clients seeking a conservative investment approach to the Fund.

Khalifa Al-Rashid Fund Manager and Vice President, GCC Fixed Income Desk.

enjoys a strong shareholder base. We aim to make the most of QFIB’s sectorial expertise, deep understanding of the MENA region and extensive network for further fund-raising activities in the future.” Established in Kuwait in August 2005, Kuwait Energy has a proven track record of successes in oil and gas fields in the MENA region, has been profitable each year since inception, and has increased production and reserves each consecutive year. Recently, it announced it had signed gas development contracts for the Siba and Mansuriya gas fields in Iraq.

Barclays Capital: ‘Best Investment Bank in MENA region’

arclays Capital has been named the “Best Investment Bank in the Middle East and North Africa” (MENA) region – by Banker Middle East, one of the leading magazines dedicated to the regional financial services sector - at the annual Banker Middle East Investment Awards, which were recently held in Dubai. Chief Executive Officer, Barclays plc, John Vitalo, MENA, said: “Our universal banking model continues to serve our clients effectively across the MENA region, providing them with integrated solutions for their evolving financial requirements and objectives. We look forward to continued success over the coming period.” Makram Azar, Head of Investment Banking, MENA, and Senior Relationship Banker, EMEA, at Barclays Capital, continued: “This award attests to our continued momentum and our success in delivering comprehensive and innovative world-class solutions to our clients.”

BA N K N OTES

What Next for Islamic Banking? The closure of conventional banksĂ Islamic window, leaves the future unclear for its current customers, writes Ezdhar Ibrahim Ali. By e z dhar ibra h i m

The trend

for conventional banks to open Islamic branches began at the turn of the century, when HSBC set up an Islamic banking service called Amanah in New York in a bid to attract Islamic capital into longterm deposits. This trend soon caught on the world over and Islamic banking is now currently worth $1.14 trillion (QR 4.15 trillion), with international financial assets worth $180 trillion (QR 655.5 trillion) In Qatar, it started out with conventional banks having Islamic windows in 2005. Qatar Central Bank (QCB) then issued a directive that windows won't cut it, and banks had to set up separate Islamic banking entities. Which gave way for the establishment of QNB Al Islami, Commercialbank's Al Safa Islami, Doha Islami etc. QNB Al Islami is by far the most successful, and now has a credit portfolio of over QR 30billion, and more than 200 staff across several branches. This directive from QCB, ordering the closure of conventional banks' Islamic windows, left many people wondering how the banks deal with it, and what would become of their customers and employees. People have argued strongly both for and against the directive, but all agree there needs to be discussions between

18 Qatar Today

august 2011

the banks and QCB to find a compromise that won't trigger losses or disrupt their businesses. Then there's the question of what will become of the people working in those branches, and the possibility of incorporating the branches affected into one huge Islamic bank. Much has been written about QCB's directive and the perceived loss of franchise for conventional banks. A report by Moody's credit rating agency claimed it would lead to losses of 8-16% of their total deposit base, assets and profits, and inferred that Islamic operations contribute 10-15% of their yearly earnings. Worst affected would be QNB, which holds 39% of their total assets of the banking sector in Qatar and has a 20% share of the Islamic banking market, while Doha Bank whose Shariah-compliant transactions represent no more than 9% of the total would get off easier. Senior Credit Officer at Moody's, Khalid Howladar, was quoted in the Financial Times newspaper as saying: While there is still some uncertainty regarding the required timing, my understanding is that the conventional banks are providing information to potential bidders. Once timings are formalised and institutions are committed, you will likely see more visible signs, such as asset or franchise sales

or bids, and branding or branch changes. A report by the Kuwaiti company KAMCO says the QCB directive will define the shape of business in Qatar for years to come, with the local credit market expected to grow by over $100 billion (QR 365 billion) to finance infrastructure projects and basic economic development. It says Islamic branches of conventional banks achieved net profits of around QR 1.15 billion in 2010 against QR 3.1 billion for the Islamic banks, representing a major challenge to them. QCB justification: avoidance of confusion In an attempt to clarify the rationale for its directive, QCB identified two main areas of concern: supervisory issues and monetary policy. With regard to the first, QCB explained that the emergence of the commercial banks Islamic arms had led to the comingling of two different types of assets and liabilities within the same bank, and this had complicated the process of risk management. It outlined four aspects to the problem: Islamic finance is characterised by more diverse and complex forms of risk than conventional financing, such as the return, liquidity, credit and mar-

BaNk Not ES ket risks relating to mudaraba, musharaka, istisna and ijara contracts. Just how complex these are becomes apparent when one bears in mind that a large part of these activities is being funded from customers conventional fixed-income deposits, not based on the distribution of profits like Islamic deposits. This then adds to the complexity of the monitoring mechanisms and prudential ratios and indexes used for risk management as a result of combining the two different types of risk. Financial reporting. The overlap between the two types of finance makes it difficult and complicated to prepare consistent financial reports for the bank that meet a single set of international standards. Capital adequacy. It has been found extremely difficult in both practical and legal terms to segregate the funds of an Islamic branch from those of the conventional parent bank, especially in the run-up to implementation of Basel-3 standards. The stability of the financial system, because combining Islamic and nonIslamic banking activities prejudices free competition between the two, again posing a major challenge for the Islamic banks. As for monetary policy, the QCB statement continued, there is a clear difference between the basic principles and methodologies, underpinning each of the conventional and Sharia-compliant approaches to finance; mixing the two creates impediments to the optimal use of monetary policy instruments. Their segregation, however, will enable QCB to manage liquidity in the banking system more effectively, as well as improving the efficiency of open market operations. Moreover, it will open up the prospect of developing new instruments targeting each type of finance separately according to its volume and relative influence on money supply. Monetary policy instruments can thus be expected to have a swifter and more effective impact on their operational, intermediate and ultimate objectives. Could a unified bank be the way out? The QCB statement has still not pacified a lot of bankers and financial experts, however. Banking expert Abdullah Al-Khater

thinks the clarification itself needs clarification, as the rationale put forward by QCB doesnĂt prove that it was necessary to close and liquidate the banks Islamic branches. All QCB needed to do, he says, was to issue a circular clarifying the nature of the branches activities and the regulations governing their work, as in a number of other Arab and non-Arab states where conventional banks have

tHE INCrEaSEd ComPEtItIoN For BotH CoNVENtIoNal aNd ISlamIC BaNkS SHoUld HElP tHE CoNVENtIoNal BaNkS ImProVE tHEIr SErVICES, aNd tHE ISlamIC BaNkS to BEComE morE aCtIVE, ImProVE tHEIr PErFormaNCE aNd Work to INCrEaSE rEVENUE sheiKh Khalifa biN JasseM biN MohaMed al-thaNi chairMan oF the qatar chaMBer oF coMMerce and industry (qcci)

Islamic off-shoots. None of the conventional banks with Islamic branches have any problem in applying capital adequacy standards, such as those of the Islamic Financial Standards Board (IFSB), which conform to both Sharia law and international standards. Al-Khater has called for a timetable for the banks to follow between now and QCB's deadline, the end

of the current year, so as to ensure their financial stability, with individual deadlines being set according to the financial position of each bank and the size and liquidity of its assets. Businessman Abdullah Ali Al-Abdullah suggests as a first step, the establishment of a shareholding company bringing together all the Islamic branches of conventional banks, each holding a stake proportional to its size. In addition to this capital, shares could also be offered to the public and to customers, enabling a strong Islamic bank to be established with the conventional banks' Islamic offshoots as its branches. Meanwhile, businessman Nasser AlMeer sees no need for QCB's intervention, and he deplores its timing, coming as it does on the heels of Qatar's successful bid for the 2022 World Cup and with all the preparations that will entail, which are expected to pull in QR100-200 billion of investment. He urges QCB to declare clearly and transparently the motives behind its directive, and laments the way none of the institutions concerned has made a move, as if it's all down to the free choice of the customer, who is caught between the hammer of the directive and the anvil of the banks. Supporters of segregation Chairman of the Qatar Chamber of Commerce and Industry (QCCI), Sheikh Khalifa bin Jassem bin Mohamed Al-Thani, takes a positive view of the QCB directive. He says specialisation in the banking sector is useful in principle as well as providing a spur to competition in the financial market, which is good for all the various banks operating in the country. He points out that the increased competition for both conventional and Islamic banks should help the conventional banks improve their services and the Islamic banks to become more active, improve their performance and work to increase revenue. Economist Dr Adel Al-Alawi agrees: The Central BankĂs directive, he says, is a wise economic decision and will undoubtedly serve the interests of customers, investors and the Qatari economy by making clear the distinction between conventional commercial banks and Islamic banks. Calls for an extension of the deadline Sheikh Dr Ali Mohieddine Al-Quradaghi who chairs the Shariah supervisory board

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Qatar today 19

BA N K N OTES at a number of financial institutions said: "QCB should have found an alternative to closing the Islamic branches." He urges it to set up a new bank bringing together all the branches that are due to be wound up, to create a massive financial entity worth over QR 44 billion in total. The directive, he said, "requires a lot of study and reflection, since the Islamic branches have had a considerable impact on the Qatari financial market, which means that there needs to be a delay while all aspects of the matter are examined". He insists that businesses worth QR44 billion cannot be liquidated in less than a year. Answers that haven't satisfied customers Khaled Mohammad Al-Naama, Lead Manager for Business Development at Doha Bank, said that the bank's senior management would study the matter, and it was they who would determine how things were to be resolved. In his view, the main options were either to turn the branches into commercial branches or sell them to Islamic banks. He argued that the thrust of QCB's action was to provide greater protection against risk, and he praised QCB for taking action on this. He said: "Defining and differentiating specific areas of activity was a good thing; every organisation had to have a designated activity". Asked about the fate of the employees involved, Al-Naama said that whatever course the bank decided on, it would pay careful attention to the position of the staff as a matter of priority. He assured them that the bank would treat the matter extremely seriously and rigorously in order to protect employees' rights. Doha Bank's Chief Executive R Seetharaman said 89% of the bank's assets were conventional, so it would not be taking a big hit. HSBC Amanah said in a statement: "In accordance with Central Bank requirements, HSBC Amanah will close its Islamic operations in Qatar by December 31, 2011. There will be no impact on staff who will be absorbed into the conventional business." George Nasra, Managing Director of IQB, part of the National Bank of Kuwait Group, said: "Three Islamic banks were bidding for the banks Islamic portfolio, which the bank either had to sell or wait until its loans come to maturity and then

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close down to comply with the Central Bank's directive. We will decide very soon what steps to take whether to agree to sell to whoever makes the best offer â&#x20AC;&#x201C; our portfolio is of a very high quality â&#x20AC;&#x201C; or to choose the other option, which is to continue to manage our current portfolio of loans until they mature." He said IBQ had also decided not to lay off any employees at its Islamic branches, primarily on humanitarian grounds.

Customers caught between the hammer of the Central Bank directive and the anvil of the silence of the banks Nasser Al-Meer Businessman

Skittishness in the stock market The Qatar Exchange rose sharply in reaction to the Central Bank directive in anticipation of strong growth for the Islamic banks in the period ahead, as they pick up customers and business from the conventional banks' Islamic branches. Experts say the longer-term implications for the Exchange will depend on the means

adopted to effect the segregation, with regard to both technical matters such as the process of valuing and selling branches to Islamic banks or bundling them into a new Islamic bank. Insurance companies on tenterhooks The QCB's decision to close down commercial banksâ&#x20AC;&#x2122; Islamic branches has raised fears that the same thing might happen to insurance company's takaful offshoots. In recent times a number of conventional insurance companies have opened special sections for Islamic takaful insurance activities, in view of the massive growth in Islamic insurance services. Mohamed Maher Al-Jabari, Life and Medical Takaful Manager at the Qatar Islamic Insurance Company, says: "The closure of commercial banks' Islamic windows has depressed the insurance business as a whole, whether insurance for goods or cars or insurance against bad debt. Although the directive had a major effect on Islamic insurance companies, it was nevertheless a perfectly proper matter for the Central Bank as part of its regulatory function, and if a similar directive were applied to the Islamic sections of conventional insurance companies it would have a positive impact on Islamic insurance companies." He advocates turning Islamic insurance branches into independent companies for fear of confusion arising between parent companies and their subsidiaries. Meanwhile Sheikh Nasser bin Ali bin Saud Al-Thani, Chairman of the Qatar General Insurance and Reinsurance Company, said: "Insurance companies that have set up Islamic insurance branches meet all the requirements regarding financial independence and Sharia constraints. The investment prospects for the country in the years ahead will bring about a major resurgence in the insurance sector." Sheikh Nasser adds that the decision to close conventional banks' Islamic branches is in the interests of both kinds of finance, the commercial and the Islamic, which deals in more diverse and complex forms of risk than commercial banking and should never be confused with conventional finance

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SIGNATURE CITIES 29

realty check

Qatari Diar celebrates reopening of hotel

atari Diar Real Estate Investment Company celebrated the re-opening of the 150-year old luxury hotel – Hotel Schweizerhof Bern – in Switzerland. The renovated hotel has had a glorious record of accommodating stars such as Peter Ustinov, Grace Kelly and Elizabeth Taylor. “The newly renovated hotel is a symbol of Qatari Diar’s commitment to luxury development that embraces local history and tra-

dition while incorporating top international standards and design. We look forward to continuing our relationship with the city of Bern for years to come,” said Eng Mohammed bin Ali Al-Hedfa, Group CEO of Qatari Diar, at the grand opening night. While Qatari Diar spearheaded the hotel’s renovation and conceptualisation, London’s MKV Design agency was responsible for developing a modern interior that would also acknowledge the hotel’s illustrious past. The fully renovated 5-star

Msheireb Properties appoints LEED consultant for project

hotel was designed to combine the hotel’s tradition of luxury with contemporary flair, classic design and world-class service. It offers 99 rooms and suites, an 800 square-metre conference and business centre, a ballroom and a soon to be opened wellness zone. The Hotel Schweizerhof Bern, together with the Bürgenstock Resort in Luzerne and the Royal-Savoy in Lausanne, is part of Qatari Diar’s port-folio of redevelopment projects in Switzerland.

Highway project receives QR1.8bn finance

sheireb Properties (formerly Dohaland) has appointed Interface Engineering and Green Building Services Inc as a site-wide LEED (Leadership in Energy and Environmental Design) consultant for its signature regeneration project in downtown Doha. With this, the company aims to achieve the highest concentration of LEED certified sustainable buildings in a single community anywhere in the world. The Interface Global and Green Building Services team has certified 352 LEED buildings of all building types around the world to date, with another 275

LEED registered projects under development. The team aims to have the entire Msheireb project certified as a sustainable neighbourhood. Msheireb Properties CEO, Eng Issa M. Al Mohannadi said, “Sustainable development is a long-term investment in our nation’s future and reflects Qatar’s Vision 2030. This appointment will ensure our development meets the highest environmental design standards. Sustainable buildings, such as those that qualify for LEED certification, consume fewer resources, generate less waste, cost less to operate and provide healthier living and working environments for everyone - both

n an agreement signed between QDSBG Construction Company and Barwa Bank, the Bank will lend QR1.8 billion to finance the Company’s Dukhan Highway project. Barwa Bank, Vice-Chairman, Mohammad al Saad said, “We hope that the Dukhan Highway project will be the first of many opportunities for QD-SBG to participate in the development of Qatar’s infrastructure.” Meanwhile, QD-SBG Construction Company CFO, Mike Whitfield said, “We are impressed by the support provided by the Barwa Bank team. We needed to move quickly and they responded, we needed flexibility and they provided it. We were able to focus on project mobilisation, knowing that we had the support of a strong financial partner.” QD-SBG is a joint venture between Qatari Diar and Saudi Binladin Group formed to carry out major developments in Qatar.

indoors and outside. The regeneration of downtown Doha through the Msheireb project will benefit the environment and all of its citizens for years to come.”

august 2011

Qatar Today 21

VodaFoNE ExtENdING ItS PlayGroUNd

araB SNIPPEtS GCC

CoSt oF lIVING dIPS

he trend of falling accommodation costs continues across the Middle East region, driving the cities down the global cost of living ranking and, particularly in the case of politically stable markets such as the UAE and Qatar making them potentially more attractive places for expatriates to live. Mercer’s 2011 Cost of Living Survey, out today, list the GCC rankings as follows: Abu Dubai, UAE (67), Dubai, UAE (81), Riyadh, KSA (135) , Manama, Bahrain

aFP Photo/stan honda

biRth of the south a MeMBer oF the south sudan deLegation dances aFter the FLag oF south sudan was raised outside the united nations in a cereMony on the day the generaL asseMBLy Voted to adMit the newLy ForMed nation oF south sudan to the un JuLy 14, 2011 at un headquarters in new york.

aFP Photo/ MohaMMed huwais

paeans to what? yeMeni singer ishraq PerForMs during a woMen’s raLLy in suPPort oF President aLi aBduLLah saLeh in sanaa on JuLy 16, 2011 as dePuty inForMation Minister said that saLeh, who has Been receiVing treatMent For BLast wounds in saudi araBia since earLy June, wiLL return hoMe “soon.”

24 Qatar today

(157), Kuwait City, Kuwait (159 ), Doha Qatar (164), Muscat, Oman (184) and Jeddah, KSA (185). The Mercer Cost of Living Survey data is the most comprehensive in the world and is used by firms and governments to help determine remuneration for expats being relocated to cities across the globe. The survey covers 214 cities across five continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

august 2011

SaUdI araBIa

HNWI CHooSE CommodItIES

ccording to a recent study by Barclays Wealth, 80% of Saudi HNWIs view commodities as a safe investment proposition, a far greater proportion than any other market included in the 13th volume of the Wealth insights report titled “Risk and Rules: The Role of Control in Financial Decision Making.” The report is based on a global survey of more than 2,000 HNWIs, and provides an in-depth examination of wealthy investors from a behavioural finance perspective. Saudi is the only country in the Middle East where all respondents expressed strong views on the risk factor of commodities, in stark contrast to other markets where up to 12% of investors has no particular opinion on commodities. In line with the fact that Saudi investors view them as safe, 62% of investors are currently invested in commodities, higher than any other country included in the global survey. Additionally, the report revealed that 94% Saudi HNWIs consider investments in real estate to be safe over the next 12 months; 60% of Saudi HNWIs view investment in cash as risky, while only a minority (24%) find it safe; 66% of Saudi investors find developed market equities safe, making them a more preferable investment choice over emerging market equities. Ayman Sejiny, Chief Executive Officer of Barclays Saudi Arabia (BSA), said: “Understanding Saudi high net worth individuals is extremely important for the wealth management industry as they include some of the globally recognised investors operating in a market that is witnessing noticeable growth figures.”

AFP PHOTO/Abdurashid ABDULLE

w o r l d view

Global Shame?

AFP PHOTO / PATRIK STOLLARZ

SOMALIA, Mogadishu: Severely malnourished Somalis receive intravenous fluids and nutrients at an outdoor makeshift emergency centre at Badbado, in southern Mogadishu, where thousands of internally displaced Somalis have gathered as they flee from a severe drought that has hit southern Somalia. on July 17, 2011, The UN said it had made its first delivery of aid in two years to a rebel-held region of Somalia, as calls mounted for more international help to deal with the devastating drought in the Horn of Africa. War-torn Somalia is the country worse affected region by a severe drought, prompting appeals for increased aid to some 10 million people facing starvation, according to UN figures.

A Japanese Celebration Japanâ&#x20AC;&#x2122;s players celebrate with the trophy after the FIFA Womenâ&#x20AC;&#x2122;s Football World Cup final match, Japan vs USA, on July 17, 2011 in Frankfurt am Main, western Germany. Japan won 3-1 in a penalty shoot-out after the final had finished 2-2 following extra-time.

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afp PHOTO/JONATHAN NACKSTRAND

w o r l d view

Bloody Insanity NORWAY, Sundvolden: The Utoeya island, 40km south west of Oslo, is seen in the background as flowers and candles are laid on July 23, 2011, in memory of the victims of July 22 shooting spree on the island. Norwegian police questioned a right-wing suspect over the massacre of 92 people in twin attacks.

AFP PHOTO/BEN STANSALL

Yellow journalism at its worst

AFP PHOTO / Ki Price

UNITED KINGDOM, London : News Corporation Chief Rupert Murdoch (C) speaks to the media after meeting the family of murdered British schoolgirl Milly Dowler in London, on July 15, 2011. Murdoch would use advertisements in British national newspapers that Saturday to apologise for “serious wrongdoing” by his News of the World tabloid, News International said.

News International Chief Executive Rebekah Brooks is pictured behind her car’s tinted windows as she leaves Rupert Murdoch’s London home on July 12, 2011. She has since resigned and been arrested. Former British prime minister Gordon Brown accused Murdoch’s media empire on July 12, 2011, of using criminals to obtain his private documents, as lawmakers prepared to quiz police over phone hacking.

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Qatar Today 27

view p o in t

GCC Stock markets poised for growth Compared to the beginning of the year, when we saw violent protests in parts of the Middle East and North Africa, and a disaster of unimaginable scale in Japan, the last few months have been somewhat quieter. That’s not to say either problem has been satisfactorily resolved, but at least the worst case scenarios appear to have been averted.

Although

in some respects, the recent past has been an improvement on the earlier period, economically this has not been the case. A sharp slowdown in US growth combined with serious financial stress in parts of peripheral Europe gave ammunition to those who felt the economic recovery in 2010 was not sustainable. While the GCC was immune to the economic and financial problems in the developed world, its stock markets were not. This fails to reflect the extraordinary financial strength of the region. Qatar, for example, is expected to generate a budget surplus of around $14 billion (QR51 billion) in the first half of its fiscal year, a run rate equivalent to around 20% of GDP, while Kuwait recently announced a current account surplus of $38.6 billion (QR140 billion) despite large government spending programmes. The region’s financial strength was apparent in June when Global Finance announced that Qatar had overtaken Luxembourg as the wealthiest country in the world on a per capita basis. Although not all countries in the GCC are equally wealthy, they have all benefitted to a greater or lesser extent from exploiting their oil and gas reserves and from diversifying their economies, and they are all ranked in the world’s top 25% on this measure. Nor did the poor stock market reflect the fact that, while reducing its global economic growth forecasts, the International Monetary Fund (IMF) increased its forecast for the GCC economy to a near-record 7.8%, with Qatar expected to grow by 20% and Saudi Arabia by 7.5% (its fastest growth in a decade). Indeed, 7.8% represents a premium of 50% to the average growth achieved in the GCC since 1998. A sharp increase in government spending lies behind the IMF upgrade. Spending plans have been carefully designed to provide short-term gratification, such as salary increases and job seeker allowances, but they also provide a much needed long-term commitment to tackle unemployment, poverty and poor housing. Disposable income, and hence consumption, will rise, providing an immediate boost to the economy, while the longer-term commitments will ensure economic prosperity for years to come. Running alongside the economic recovery has been a strong recovery in corporate profitability. According to Bloomberg consensus data (as at June 30), the GCC is expected to enjoy earnings

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growth of 28% in 2011 after a double digit increase in 2010. Even this understates the real improvement as earnings in Kuwait are expected to fall because the one-off gain reported by market heavyweight, Zain, last year will not be repeated. Excluding Kuwait, earnings are expected to rise by 40% in 2011 – surely one of the fastest growth rates in the world. The second quarter results should also impress, with 24% quarter-on-quarter growth expected. However, year-on-year growth, which compares earnings against those in the second quarter of 2010, will appear more pedestrian, rising at a low single digit rate, because of last year’s Zain transaction. Investors may be disappointed by this apparent lack of growth, especially compared to the 23% year-on-year growth recorded in the first quarter, but we would regard such a view as misplaced and see strong earnings momentum underpinning the stock market in the coming quarters. Growth rates by sector and country will diverge enormously. Dubai and Saudi Arabia could report year-on-year growth in the second quarter of 55% and 19% respectively, while Kuwait is expecting a sharp drop because of the difficult basis effect. In Oman, earnings could rise by 17%, while Qatar is expecting 34% growth after single digit growth in the first quarter. Abu Dhabi should also perform well, with a more than doubling of earnings versus the same quarter last year.

VIE W PoINt At the sector level, the strongest year-on-year growth in the first quarter came from Telecoms (+50%) and Materials (+40%), while Consumer Discretionary (-4%) and Consumer Staples (-42%) lagged. In the second quarter, we are likely to see Industrials (+54%) and Utilities (+49%) leading the way, while Telecoms (-45%) and Energy (-25%) will see a reversal of their strong first quarter performances. Qatar, with its record breaking economic growth, should see strong growth from the industrial and telecom sectors, with Qatar Navigation and Nakilat impressing. For the full year, industrials and utilities look best placed, with Industries Qatar and Qatar Electricity & Water poised to deliver strong numbers. The uniquely positive macro picture and strong earnings growth combine to make an impressive investment case for the region. The poor performance of the stock market is therefore a matter of great frustration. While the MSCI Emerging Market Index is 25% above its level prior to the demise of Lehman Brothers (to June 30, 2011), the Bloomberg GCC 200 Index is down

37%. This is even worse than the 18% decline in the MSCI Global Financials Index, the constituents of which wrote off more than $1.3 trillion (QR4.7 trillion) during the financial crisis. The Dubai market remains 65% below its pre-Lehman level. Even this year, despite struggling with spiraling debts and growth-reducing deficits, the US and European equity markets have out-performed those in the GCC. The fact that stock markets do not reflect the excellent macro story in the region is a tremendous opportunity for investors. Earnings have recovered nicely and with share prices remaining subdued valuations have compressed. With the majority of the world struggling to come to terms with slowing growth and rising debt, the GCC stands out as a beacon of financial and political stability, with an accelerating rather than decelerating economy. Indeed, the region is set to enjoy some of the best economic conditions in the world over the next year or two. As global investors increasingly catch on to this fact, the prospects for the regionâ&#x20AC;&#x2122;s stocks markets are sure to improve

all data souRCed fRom bloombeRG

paul CoopeR senior executiVe oFFicer, sarasin-aLPen & Partners

VIEW PoINt

deaLing with reputation risks IS tHE USE oF SoVErEIGN WEaltH FUNdS to INCrEaSE tHE VISIBIlIty oF a CoUNtry a Good IdEa? aNd WHat CaN Ultra HIGH NEt WortH INVEStorS lEarN From a SoVErEIGN WEaltH FUNd, aSkS HEINrICH WEBEr.

laTely,

I observe investors are frequently debating those questions. Let’s discuss the issue of branding, then Sovereign Wealth Funds, then the risks of combining the two. It is clear that branding is crucial for countries, as the example of Switzerland, my home country, clearly shows. The brand of Switzerland relates to precision, integrity, quality and confidentiality; thus giving Swiss companies an extra boost selling services like banking and healthcare, or offering products like watches and medical devices. Qatar’s brand as a savvy participant in global politics is relatively new. It leads people to think of Qatar as cultural bridge builder, as it goes the extra mile to achieve colossal projects, like the football World Cup. What Qatar has to achieve is that ‘Made in Qatar’ or ‘Executed by Qatar’ has to distinctively relate to the highest quality that its citizens are proud of, thus motivating exceptional standards. A Sovereign Wealth Fund (SWF), like QIA, which is funded by proceeds from oil and gas, has as its main goals, to diversify future income away from the non-renewable natural resources of the country and to invest for the benefit of future generations. However, SWFs can also be used to fund social developments or to execute a political strategy, such as the heightening of visibility or the branding of a country. The SWF Qatar Investment Authority was created in 2005, coinciding with the strong appreciation of oil prices. Assets are estimated to about QR310 billion ($85 billion). Sometimes QIA is criticised for mixing the interests between Qatar and the ruling family, which in theory could be a governance problem, but given the wise leadership of the rulers, this should not cause any major negative effect. Investments and Risk Two issues have to be addressed in this context: investment outcomes and reputational risks. The value of any investment is the aggregate of all future cash flows, a number difficult to estimate,

booKmaRK www.issuu.coM/oryxMags

which should be maximised given a specific risk tolerance. By using SWFs for broader aims, the economic impact of ‘political’, ‘social’ or ‘public-relations’ driven investments have to be translated into future cash flows and integrated into the discountedcash-flow-valuations. The risks of investments at the level of an SWF are threefold: market risk, i.e. the assets lose value, credit risk, i.e. debt will not be paid back and reputational risk, i.e. an investment creates bad publicity. The reputational risks are the most difficult to manage. Even smart investments can trigger protectionism and jealousy, thus generate unexpectedly a bad press. An efficient way to mitigate such risks is developing the brand using other vehicles than the SWF itself; e.g. the national airline or other eminent entities, such as Qatar Foundation, Barwa or Qatar Sports Investments. The other reputational risk for the government backing the SWF is that the investments and brand-building is not understood at home. Citizens of a country might consider investments by an SWF in projects they have difficulty to relate to as capricious. Here the mitigation would consist of communicating clearly at home and leveraging the pride of the citizens to be associated by a country with a strong brand. Ultra High Net Worth investors have a different outset than a SWF. However, they have similar issues in risk management as the SWF, like market and credit risk; but also reputational risk when they chase trophy assets. Going for a trophy asset is of course emotional, but a risk analysis – in respect to any potential publicity fallout – has to be rational and in-depth. One of my clients is offered a premier league football club. However, after balancing the positive effects of national publicity for his family’s name and enterprises with the negative effects of an image of a non-focussed investment strategy, we had to advise this particular client to abstain from the investment; whereas, such an investment would make perfect sense for another kind of investor. As SWFs, private investors are well advised to conduct an analysis from the angle of public relations, taking into consideration many different outcomes and learning from the history of the elder SWFs, like the GIC of Singapore

By heinRiCh webeR weBer heads the geneVa Branch and the desk MiddLe east at FaLcon PriVate Bank. Prior to this, he was adVising uhnw cLients worLdwide at one oF the MaJor PriVate Banking FirMs in geneVa. he wiLL write a reguLar coLuMn For qatar today.

30 Qatar today

august 2011

VIE W PoINt

signature Cities The World

seems to get smaller as the speed of travel continues to increase. In the past we travelled in order to trade in towns, cities and regions that were famous for a local product or resource. Places became distinctively associated with their purpose and goods, but with each layer of history, the richness of identity has begun to generate travel purely for tourism. Conversely, globalisation means the speed at which ideas, products and processes seem to be leading to more and more monotony, with less and less distinction. People are still drawn to places by economic forces, but success for places is increasingly a measure of the ease of connectivity into global logistic chains. Apart from making sure that the hard-wiring for transport systems – planes, trains, ships, trucks and cars – is effective and efficient, places also need to ensure that they have global recognition. Recognition means having distinction which newcomers, investors and entrepreneurs can identify with to help them gain market advantage over competitors. Countries, regions, towns and cities – even individual destinations, such as resorts and attractions – need to raise their visibility and develop specific place or ‘brand’ value. Places with low budgets tend to try to develop brand identity around their existing history or culture, emphasising artefacts or artistry. Others have turned to building new so-called signature or ‘iconic’ buildings and structures that are meant to represent the place at some symbolic level. For example, the Sydney Opera House, the Eiffel Tower in Paris, the Statue of Liberty in New York, or Tiananmen Square in Beijing. Cities in the Gulf are relatively young but most have the benefit of big budgets and a spate of signature buildings. The problem is that being tallest or biggest is often only a short lived honour. Funny shaped buildings are only photogenic until the next funny shape comes along while museums are only as important as their content and curatorship. The ‘birds nest’ stadium in Beijing may be famous after the Olympics in 2008, but do people wonder about the message it conveys? Icons can be negative as well as positive, but buildings tend to be around for a long time. Nevertheless, city branding has become an important phenomenon especially now that the economic crisis makes competition for investment ever more demanding. Branding frequently relies on distinctive icons or simplistic caricatures of a more dynamic

reality. The process of ‘place making’ involves a richer, more inclusive development of local identity, drawn from the relationship between people and place. This dynamic process is a more robust representation of how people react with their environment to make them distinctive. The two processes are not mutually exclusive but the first relies on ‘wham bam’, while the second is more subtle, sophisticated and supportive. Gulf cities are mostly city-states comparable in scale and size to successful places like Monaco, Singapore, Luxembourg or Hong Kong. Such city states usually have only one major city so that national and local identity becomes one in the same. Are they successful because they have a strong identity or do they have a strong identity because they are successful? Probably both! Doha also benefits from this union of local and national identities and so making sure the city represents Qatari values is really important. The abundance of projects already underway and proposed include great museums, mosques, new stadia for the FIFA bonanza, and transit facilities such as the new Doha International Airport and Airport City. Add to this major stations associated with the planned metro and rail system, and structures that may be part of the potential bay crossing. Together with West Bay and the redevelopment of Msheireb, within a decade Doha will indeed have many distinctive buildings. Blending these iconic architectural statements with the National Vision 2030 and the real social, educational and cultural enhancements won’t be easy. It will require a first rate development framework as a recipe for creating a stable city-state unequalled in the region. Here again Qatar has already proved equal to the task with the preparation of the QNMP and the Qatar National Development Framework recently described at a MEED conference in London as “exemplary, the best development framework I have seen anywhere” (Geoff Mee, Business Development Manager, Qatar Rail Company). The QNMP is expected to become public later this year, but its own brand identity is already becoming well known. Representing a host of local Islamic traditions and international best practice – symmetry, order, balance, transit focus, local centred, socially cohesive, vibrant yet sustainable – the brand mark underpins the seriousness with which Qatar and its far-sighted leadership are building a unique, world beating brand developing this city-state, so that it continues to punch well above its weight

By ian lyne Managing director oF Future-dynaMix and ForMerLy ProJect Manager oF the qnMP. ian can Be reached at ian.Lyne@Future-dynaMix.coM.

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Finding Safe Harbour Sea trade is a lifeline of the global economy. Ore from mines in Australia, corn from North America, and flashy new iPads from China all find their way through the worldâ&#x20AC;&#x2122;s major ports. The simple harbours of centuries past are now complex systems that typically employ thousands of people and cost billions to build and maintain.

Traditionally,

that burden has fallen on governments: port construction, financing and operations were handled by the public sector because of their relatively high infrastructure and financing needs, long project lifespans, and required economies of scale. However, since the early 1980s public-private partnerships (PPPs) have frequently been used in port construction and operations. In the Middle East, 17 public-private port projects valued at more than $4 billion (QR14.5 billion) have been completed since the mid-1990s. Over the next 10 years, additional investments of $40 billion (QR140.5 billion) are expected in new ports and expansions. One of these, the New Doha Port, is projected to have capacity for more than six million container units when it is completed in 2030. At a cost of approximately $4 billion for its first phase alone, it will be one of the largest ports in the region (see facing page). Most of the new port capacity will likely be created by some form of partnership â&#x20AC;&#x201C; often via concessions for port construction and operations, in which private companies build and op-

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erate facilities for the duration of a contract, essentially taking ownership during this period. Despite their complexity, if structured properly concessions can generate tremendous value for both the government and the private partner. For example, during recent negotiations over a concession for a regional port, the governmentâ&#x20AC;&#x2122;s negotiating team was able to extract more than $100 million (QR364 million) of additional value compared to the original deal on the table, leaving that money to go back into public coffers for other projects. On the other hand, badly structured concessions can result in direct and indirect liabilities to the government in the range of hundreds of millions of dollars. Given the magnitude of these potential gains or losses, concessions need to be carefully considered and implemented. Designing and awarding a concession typically takes from four to nine months, though it can take significantly longer if the country does not have the necessary legislative framework in place. Both sides must ensure that the deal is in their best interests. Governments select the concession model, quantify savings for the public, and evaluate and rank the offers. Meanwhile, bidders assess their expected returns and compensation

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to the concessionaire, and secure external financing. There are a number of factors that must be agreed upon during the contract stage to ensure that both parties understand their obligations and rewards. Compensation: Typically, the private partner collects revenues from operating the terminal and compensates the government for providing the assets and/or the opportunity. This compensation consists of a one-time, fixed, initial goodwill payment; royalties, determined by revenue or volume; and rental charges to offset the opportunity and cost of land development incurred by the government. Alternatively, in situations where the private partner is unlikely to recoup its investment but the government needs to provide services to its citizens in public transport, for example, the government may need to provide subsidies to the private partner. Performance Monitoring: The contract must define parameters for service to ensure that the operator provides all services necessary from the government’s perspective, rather than only those that are profitable. The contract should define metrics to track service and put penalties in place for any shortfall in performance. Contract Duration: The length of the relationship needs to be aligned with the operator’s level of investment and magnitude of risk to allow the company to recoup its cost and earn reasonable

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returns. For example, models in which companies accept only a limited amount of risk and offer a small amount of capital upfront should also have a relatively short contract duration, as a longer contract would offer them excessive returns compared to their investment and risk undertaken. Exclusivity Rights: Prospective operators frequently request such rights to protect their investment and limit competition. These requests can range from the right of first refusal to an outright prohibition on future port expansion and the introduction of new terminal operators. In most cases, the government should resist these requests or try to limit their scope and duration. Customer Protection: These clauses are essential, especially for terminals with primarily local cargo with limited alternatives available. These terminals have the characteristics of a natural monopoly and captive users need to be protected from potential abuse. Customer protection clauses typically take the form of price caps and/or required approvals for price increases. Regional governments have an opportunity not only improve delivery and operations of their ports but to also ensure that they are getting their money’s worth from the operations. When properly executed, concessions are an efficient and transparent model for effective construction and operations that benefit national and regional economies

By alessandRo boRGoGna, PrinciPaL and ivan JaKovlJeviC, senior associate, BooZ & coMPany about booz & Company: BooZ & coMPany is a Leading gLoBaL ManageMent consuLting FirM, heLPing the worLd’s toP Businesses, goVernMent Ministries and organisations. our Founder, edwin BooZ, deFined the ProFession when he estaBLished the First ManageMent consuLting FirM in 1914. today, with More than 3,300 PeoPLe in 60 oFFices around the worLd, we Bring Foresight and knowLedge, deeP FunctionaL exPertise, and a PracticaL aPProach to BuiLding caPaBiLities and deLiVering reaL iMPact. we work cLoseLy with our cLients to create and deLiVer essentiaL adVantage.

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eXport power a rEPort rElEaSEd laSt JUNE By PrIVatE CoNSUltaNCy dEloIttE PrEdICtS tHat BEtWEEN 2010 aNd 2015, ElECtrICIty dEmaNd IS SEt to rISE By 25% aCroSS tHE mIddlE EaSt.

lasT

June, Qatar completed work on its Ras Girtas power plant, a $3.9 billion (QR14.2 billion) project in Ras Industrial City. Given steadily increasing electricity demand in the GCC, even large investments in power capacity expansion do not come as a surprise. In Qatar however, the situation is a bit different. Ras Girtas is set to bring the State’s total production capacity to 9,000MW – that is 2,500MW more than the country consumes, even during peak demand periods. Boosting electricity supplies Qatar, rather than playing catch-up or trying to keep pace with demand, has been boosting its electricity supply levels well beyond need. The country’s excess production leaves, for the time being, plenty of power for export. In the GCC – where a combination of growing populations and heavy industry have increased electricity demand – building up excess capacity seems like the right idea; power needs across the region are on the up. A report released last June by private consultancy Deloitte predicts that between 2010 and 2015, electricity demand is set to rise by 25% across the Middle East. Saudi Arabia, the largest country in the region, is a good example; authorities there are planning investments of over $80 billion (QR 291 billion) to satisfy growing electricity demand, which has been increasing 7-8% per year, according to Electricity Minister, Abdullah Abdul Rahman Al-Hosain. In the Gulf, industries like aluminium and steel have increased electricity consumption. “There has been an aggressive increase in industrial growth, as many of the GCC countries are looking for diversification in various sectors,” according to Abhay Bhargava, an Industry Manager at private consultancy, Frost and Sullivan. The example of Oman is telling. The country has been investing heavily in its aluminium industry in bids to diversify its economy. However, as its aluminium production increases, so too does its power consumption. The Chairman of the public authority for electricity and water, Mohammad Abdullah Al-Mahrouqi, predicted that energy needs are set to increase 9% annually.

Last May, the Sultanate hit record-breaking demand levels. The country’s demand peaked at 3,900MW on May 21, exceeding the country’s 3,700MW capacity. Utility providers were able to avoid shortages by using reserve diesel generators as a stop-gap measure. And it is not only capacity that the State is upgrading. Power infrastructure improvements have also been a priority. The country is set to invest $8.24 billion (QR30 billion) in electricity network projects over the next 10 years, Qatar General Electricity and Water Corporation (Kahramaa),Technical Affairs Director, Ahmed Mohannadi, said in a conference last February. His statements certainly ring true with recent investments: Last December, Kahramaa awarded a $140 million (QR 510 million) contract to Swiss-Swedish power and automation firm, ABB, to build four new transmission substations, and upgrade another four. In February, ABB received another $30 million (QR109 million) to construct two more substations. In order to export this excess capacity, the GCC Inter-connection Grid – which connects the electricity grids of GCC member states – is set to be crucial. The first phase of the project, linking Bahrain, Kuwait, Qatar, and Saudi Arabia was completed in 2009. Last September, Doha and Manama concluded an electricity export agreement using the GCC Grid infrastructure. According to the agreement, Qatar will provide Bahrain with 150MW of electricity between the hours of 3pm and 5pm. As demand rises and as connections improve, it is likely that Qatar will have more opportunities to export electricity to satisfy its neighbour’s demands. With its domestic infrastructure undergoing continual upgrades and international connections receiving continual improvements, Qatar’s avenues for electricity export are set to rise. The region as a whole has much to gain from sharing more electricity. Although Qatar now has excess capacity, this may not always be the case. Like its neighbours, the State has seen consumption increase rapidly in past years, more than doubling since 2002, according to the World Bank. In the meantime, however, Qatar’s energy investments seem to be paying off. The State known as a gas exporter could soon find itself known as an electricity exporter as well

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By oliveR CoRnoCK the author is the regionaL editor oF oxFord Business grouP

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This time for Africa The expansion of LNG capacity and the increase in oil prices means that Qatar is making huge revenues this year, but not all of this can be invested domestically – the economy just isn’t large enough – so alternate regions of growth are being sought.

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By ro ry c oe n n Africa today, we recognise that trade and investment, and not aid, are pillars of development” – Paul Kagame, President of the Republic of Rwanda. For years, much of Africa has been reliant on self-sufficiency, loans and foreign aid to sustain their economies and provide for their citizens. Many countries have historically been unable to diversify from these forms of income to use their natural resources to generate wealth and grow their economies. However, recent signs indicate that the region may be on the cusp of an economic

evolution, with the GCC region playing a major role. In the next five years, two-thirds of the world’s economic growth will be generated by emerging markets, and these countries will account for 41% of the global GDP in 2015, compared to just 31% today. Trade with Africa has grown at a rate of 11% per year, since 1980, yet it still only accounts for 3.6% of the GCCs total trade. However, the continent will have the youngest, fast-growing and fastest urbanising populations in the world. Its current population of 1bn is expected to double by the middle of the century. It’s evident that

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“Africa’s growth could be a boon for the GCC. Global companies are already setting up bases there for their business in Africa”. Ali Al- Sadder, Economist Intelligence Unit; co-author of ‘GCC Trade & Investment Flows; the emerging market surge'.

the region has the development pillars in place to embrace economic challenges rather than deflect them. Drivers of Growth The Economist, in their special report ‘GCC Trade & Investment Flows; the emerging market surge’, highlight some key factors which will drive Africa into an era of sustained growth, and provide investment opportunities for the GCC region itself. The region is riding a 5% growth wave since 1996, which is chiefly attributed to rising commodity exports, increased investment and economic policy liberalisation. The willingness of countries in Africa to implement economic reform has attracted more external investment from global enterprises, which are always looking for areas of guaranteed growth at a time of stagnation in the developed world. Why invest in an economy growing at 2% when there are more lucrative opportunities in developing countries? China are looking at ways of sustaining their burgeoning economy and weren’t shy about investing in the dark continent in search of their requirements. They’re interested in the minerals and oil there, but as Panjabi, of Jacky’s Group of Companies points out, “China is also looking at markets it can sell to. From a long-term manufacturing point of view, costs have increased in China, so they will start to invest in manufacturing in Africa”. Opportunities for the GCC All of this presents Qatar and its fellow GCC members with opportunities, to provide for more cost-efficient food supplies and also to invest capital in lucrative projects. Whilst

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Qatar’s own economy is flourishing at the moment, it just isn’t big enough to absorb all interested investments; so much of it has to go abroad, usually through the sovereign wealth fund, the Qatar Investment Authority. Ali Al-Saffar, co-author of the report says that, “Trade relationships with the Gulf are often pioneered by the three big airlines in the region, which set up routes across the world. Trade relationships often spike once a new route is established. GCC-based airlines have been increasing their flights into Africa, seeing potential there. “Africa’s growth could be a boon for the GCC,” he continued. “Global companies are already setting up bases there for their business in Africa, taking advantage of the GCC’s close proximity and its excellent infrastructure. Beyond being a base though, logistics services, primarily GCC-owned ports companies, are becoming increasingly important in Africa; the UAE’s DP World already has a 20-year concession to operate a port in Djibouti, and Qatar has invested in a deepwater port in Kenya. Tourism and telecoms could also increasingly become important to the relationship between Africa and the GCC.” The recent food security scare in the Gulf will have interested exporters in Africa. The continent has an abundance of arable land and according to a report from the World Bank recently, 56 million hectare of land were leased or sold to foreign investors in 2008 and 2009, 70% of which was in Africa. The Economist reveals that ‘sovereign wealth funds, state-owned food companies and private investors have shown increasing interest in securing long-term leases on land for use in export-oriented farming.

Qatar’s Hassad Foods, the Saudi Company for Agricultural Investment and Animal Production, the Kuwait China Investment Company and the UAE’s Minerals Energy Commodities Holding, are all seeking to invest in farmland. Professor Niblock, at the Exeter University, who attended a conference in Riyadh on Gulf-African relations said, “It became clear to me that African countries are looking at ways of opening their economies to the Gulf. The amount of trade is small, but GCC countries have a sense of food shortage, which provides major investment opportunities in the agriculture sector in Africa”. As Qatar continues with its policy of diversification away from oil and gas, they will become increasingly interested in Africa’s precious minerals, such as platinum, bauxite, coal, iron, copper, lead and diamonds; indeed it hosts 80% of the world’s platinum reserves and 50% of its diamond and cobalt reserves. Other sectors which are forcing the hand of GCC investors are Tourism and Telecoms. “Tourism is an integral part of the relationship with North Africa, which shares religious and cultural links with the GCC,” says Al-Saffar. “Construction companies invest in tourism development projects in Morocco, Egypt and Tunisia. Saudi companies have also started hotel projects in Zimbabwe and Mozambique. Beyond tourism, Gulf Telecoms operators are expanding into the African market, due to increasing competition and market maturity at home.”

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Vodafone CLOSE TO PARITY WITH QTEL Vodafone Qatar ended Q-Tel’s mobile monopoly in 2008 and have since set out to gain their market share against their experienced rival. Rory Coen finds out how they are trying to bridge the gap...

he Vodafone Qatar office at the Qatar Science and Technology Park (QSTP) evokes a rather ludic aesthetic; an open-plan, which exhibits the signs of a playground as much as a serious place of business; the canteenarea hangs suspiciously off the main office floor and are barely distinguishable from each other. There’s a hive of activity and mischief about, as employees scurry around with a controlled abandon. This, they explain, is their playground;

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By ro ry c oe n and their network is ours. They only celebrated their third birthday this year I guess. Recent figures show an increase in their revenue – up 159% on last year – so shareholders of the company are throwing toys from their prams after it was announced they wouldn’t receive any of this until 2013 - at the earliest. They feel they should be seeing a quicker return on their investments and are worried. “They would have known this when we delivered the IPO (Initial Purchase Agreement) in 2008,” said John Tombleson, acting CEO of Vodafone Qatar. “We said then there’d be no dividends before 2013. We’re a start-up company, and start-up Telcos typically don’t pay dividends for at least three years after starting operations. You can imagine the initial cost of setting up a business, and until your customer-base burgeons and helps exceed these costs, you don’t have any profits to distribute.” Vodafone’s annual report (year ending March 31, 2011) showed that EBITDA

(earnings before interest, tax, depreciation and amortization) – which is how profit is quantified in the Telco Industry – for the full year was a loss of QR27.1 million, which was a significant improvement on the loss of QR125 million and QR225.3 million in 2009 and 2010 respectively. “We were expecting these losses in the first number of years, so we’re not off target,” added Tombleson. “And we can report another quarter of profit in EBITDA. We are a fully funded company; only 15% of our share capital is borrowings.” Market Share As part of Qatar’s commitment to the World Trade Organisation (WTO) guidelines, ictQATAR was authorized in 2007 to grant additional mobile and fixed-line licenses to open the telecommunications market in the country. Vodafone acquired the mobile license in June, 2008 and switched on their mobile network in March 2009. As of March 31 of this year, Vodafone’s market-share in this country was 27%, an

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“we have approximately 450 cell-sites in Qatar today, but we want to add another 130 in the next 10 months. I envisage we’ll be on parity with QTel by October of this year.” increase of 9% over 12 months. The number of customers using a Vodafone SIM was 756,767, which is 45% of the Qatari population. This was a 63% increase from 464,962 customers in March, 2010. The biggest challenge for Vodafone Qatar now is to ramp up their customer-base further to maximize profits; so to facilitate this, they will need to improve their network infrastructure and capacity, which inevitably means even more investment. Tombleson is adamant that they will continue with a line of aggressive spending into other industry areas. “We received a ‘fixed line’ license in June of last year, and since then we have been building our core network, such as data centers, heavy duty switches, etc. We’re also laying fiber around Qatar for our transmission network, which will connect to the ‘last-mile’ – or fiber to the home – which is being laid by the Qatar National Broadband Network (Q.NBN). “This leapfrogs most countries, as the ‘last mile’ would normally be facilitated by the incumbent, who might provide only copper here, and possibly fiber in affluent, wealthy areas. However, the vision here in Qatar is to put fiber everywhere, into every home, so we are behind this initiative. We’re hoping to launch our fixed-line service in the first quarter of 2012. Mobile “In the mobile space, we are predominantly ‘pre-paid’, but are looking to introduce a ‘post-paid’ service for consumers. We already have this facility for businesses of course, but we’re currently in the process of implementing a large IT billing system to deal with the huge demand that consumers will inevitably bring.” Qatar Telecom (QTel) are the leaders in this space, but they have been circling the block for years now; Vodafone are the new kids with a vibrant energy and enthusiasm to take them on and wrestle for their market-share. They recently asked ictQATAR to investigate the legitimacy of Virgin Tel-

John Tombleson, acting CEO of Vodafone Qatar.

ecom’s position in the market, seeing it potentially as a third operator. “It wasn’t necessarily at our request,” said Tombleson. “There were parts of it where we asked for clarity and I believe ictQATAR made the right decision in asking Virgin to shut down operations, because it was confusing for consumers to know if it was a third party or if it was part of QTel.” So the gloves are off, but Tombleson is quick to point out that it’s very important to have two Telcos pushing each other hard to improve quality and competition, which is ultimately what the consumer wants. Both are 60% owned by the Qatari Government, so most of the profit will go back into the welfare of the country. Confidence in connection Tombleson recently received clarification from ictQATAR that they were pushing the Municipalities to grant them a permit to build more cell-sites around the country,

to broaden their reach to all potential consumers. This application has been sitting with the authority for 14 months, retarding their momentum to provide the network they want for their customers. “As a company, we aim to promise four things,” said Tombleson. “A confidence in connection – wherever a costumer is, they’ll have a great signal, be it data or voice. We also provide an unmatched customer experience, competitive prices and a winning brand. However, we haven’t been able to provide the confidence in connection just yet because of the delay. “For the people of Qatar, they want two strong and competitive Telcos here - to enhance the end product and customer service - so this letter from ictQATAR means we can now release our guys to widen our network; we have approximately 450 cell-sites in Qatar today, but we want to add another 130 in the next 10 months. I envisage we’ll be on parity with QTel by October of this year.” To expedite this drive for parity, Vodafone Qatar are bursting into the world of ‘innovation’ and allowing customers to send money back home on their mobile devices, without having to queue up at their bank of a Friday to do it. They were showcasing their new product – a mobile application called SouqIt – at the recent QITCOM event in Doha; it’s an alternative to ebay, provides a service for people in Qatar to buy and sell goods. They will also be providing some services from the cloud, including Microsoft Exchange and ERP, but are awaiting validation of the billing system. It promises to be an interesting dual between the pair over the coming years, which can only be good news for the consumer. Vodafone Qatar will feel that the old dog has had its day, and with some clever and creative innovating from its vernal team at QST, they can claim the majority market-share of mobile and fixed-line follow

@vodafoneqatar

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Majalis: CORNERSTONE OF QATARI SOCIETY Qataris are rekindling the old, but not forgotten Majils, as they gather in parliament to openly and uninhibitedly discuss the relevant issues of the day, dutifully pampered by their host for the evening. They’re becoming so popular that they now have an international and celebrity appeal.

hen I was in my early restive teen years, I thought that standing by the door of our Majlis – or as it is called in Kuwait, Diwaniya – waiting for my father’s guests, ushering them, and serving them some coffee was the grandest form of hospitality. That was what

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I understood from my father’s lessons back then. But as I grew up, I understood the astuteness behind his actions and why he wanted to plant this seed in me. Mejalis is the plural of a Majlis, which has diverse meanings in the Arabic language depending on the context. The literal meaning of Majlis is the seating area or room found in every home in the Gulf and is used to host guests. This is part of the Khaleeji identity and a sign of a person’s hospitality and social status. In the socio-political context, Majlis is a formal gathering that’s hosted by a representative of a family or a tribe, and historically it played the role of the local government, the civil society and occasionally the court. Mejalis in the past witnessed the formation of policies, settlements of disputes

and establishment of social and political movements. It was the merchants, tribals, religious leaders and intellects who had the prominent Mejalis and the commons regularly visit them. In a nutshell the State was a group of Mejalis. Mejalis 2.0 – Revamped and More Critical After the formation of modern states and the maturation of the governments, the role of a Majlis dramatically shifted from being the cornerstone of the society to a social club with nary a common interest. Relatives or acquaintances get together either daily, weekly or on monthly basis to keep the warmth of their bonds. The majority of the people perceive them as a unique character of the cooperative societal identity

lIStENING PoSt

It WaS tHE mErCHaNtS, trIBalS, rElIGIoUS lEadErS aNd INtEllECtS WHo Had tHE PromINENt mEJalIS aNd tHE CommoNS rEGUlarly VISIt tHEm. IN a NUtSHEll tHE StatE WaS a GroUP oF mEJalIS. while some cynics describe them as a platform to vent, spread rumours and plead for bounties. However, both agree that Mejalis are imperative to the social fabric. Recently a new wave of Mejalis has surfaced in the Qatari society, writes Al-Ibrahim. Quasi-cultural and educational saloons that are open to the public, to share their thoughts and experiences and more importantly question what they believed to be the axiomatic truth. People gather around common interests and discuss issues about socio-economic policies, politics, religion, and even philosophy. The topics discussed are diverse but relevant to what young Qataris are going through. They discuss the effects of the Arab Spring, Qatarizaiton policies and implementation, Qatar 2022 and the ramifications on the cultural values and identity, secularism and the relevance of apostasy in Islam in this era, and Qatar’s National Development Strategy 2011 - 2016 and the nationals role in it. They educate people about atrocities committed and natural calamities, and raise donations for Arab and Non-Arab countries in Asia, Africa, and even the minorities in Europe. They perceive themselves as the resurrected civil society. These gatherings take the shape of brown-bag seminars except people would not have to bring their brown bags with them as food and drinks are offered by the host. Some would come well prepared and even present from a written background paper that he wrote himself and others would talk spontaneously because of the nature of the Majlis. Some would even use visuals

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and sometimes presentations. However, the speakers would not have to worry or be nervous because the cameras are not on and they are not trying to impress anyone. First Hand Experience I have encountered a first-hand experience as my brother, Hamad, and I started a Majlis a year ago. We have hosted Qatari and International speakers such as Issa AlMohannadi, the CEO of Msheireb Properties; Martin Day, Foreign and Commonwealth Office spokesman for the MENA region; Umej Bhatia, ex-Charge d’Affaires and Head of Mission of the Singapore Embassy in Doha; Tim Sebastian, the Chairman of Doha Debates; Salman Shaikh and Shadi Hamid, from Brookings Doha Center; Dr Hassan Al-Turabi, a Sudanese opposition leader; Tarik Yousef, the CEO of Silatech and many others. We have got visitors from different ethnic and religious backgrounds as our Majlis held sessions in both Arabic and English and local and regional journalists and bloggers covered some of these sessions. We have held sessions, which had as many as 60 people – a large number for such a social gathering but we are lucky that we have so many friends. We have got queries from the Netherlands, Dubai and Singapore. We had visitors from five different continents, some of whom had never been to a Majlis and did not understand its role in our society. In our Majlis, there is no censorship and there are no stupid questions or thoughts. Freedom of speech and belief is not rhetoric; it is part of our regular Mejalis. What is

being told in our Majlis doesn’t stay in our Majlis. After each session, people gather in the different corners of the Majlis and discuss or criticise a point, which has been raised during the session. And we provided cognitive doggy bags for our visitors to carry back – some food for thought. We have triggered and nurtured an intra-societal dialogue and touched on taboos. We have learned the most from topics that we were not allowed to discuss or question in schools and universities. We have utilised Facebook and Twitter to update our regular visitors with summaries of what has been discussed in sessions that they attended or might have missed and to invite them to future sessions. For those who never visited the Majlis before, a Google Map location is shared in every event page that is created on Facebook. They also can forward the invitation to their friends or whoever is interested. A regular visitor told me once that our Majlis is not really far from where he was; it is only few buttons away. Before every big night in our Majlis, I get a nostalgic feeling. I remember my dad lecturing Hamad and me on the etiquettes of the Majlis. “Hamad and Hassan! Wear your ghotra (the Arabic head dress), smile to your guestes and be eloquent, you have to serve the coffee and tea yourself. Serving the Arabic coffee to your guests is the epitome of hospitality and a sign of respect. Do not fill the finjal (the Arabic coffee cup) because it is rude and stand by your guest till he is done.” I smile and I remind Hamad of such beautiful memories and we laugh together

By hassan al-ibRahim

the author is the co-Founder, Fikra consuLting and research, the First qatari think and do tank which is Founded to Look into huMan deVeLoPMent (PhysicaL, cognitiVe and socio-econoMic) in qatar. in its First year, Fikra was aBLe to BuiLd PartnershiPs with duBai schooL oF goVernMent and the woLFensohn centre For deVeLoPMent in Brookings. Fikra was awarded a $900,000 grant to study qatarisation with Brookings institute and is currentLy in the Board oF the nationaL adVisory coMMittee For the generaL secretariat oF deVeLoPMent’s undP hdr.

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Selling Brand Q Would You Buy It? By Vani Saraswat hi

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he nation has projects in excess of QR350 billion (about $100 billion) planned. Apart from FIFA 2022-related work, Qatar will spend $35billion on a rail network, $20billion on roads and $25billion on real estate (approximate: QR127 billion, QR73 billion and QR90 billion respectively). Local businesses must be riding high on these announcements. When something seems too good to be true, it probably is. Despite the massive investment in human capital and the liquidity of the state, government and quasi-government corporations drive growth, with the private sector relegated to the periphery. “The truth is, the economy of the region is mainly driven by the government, not the private sector. The government makes the call, sets the agenda, draws up the strategy for the economy. In essence, the private sector, which is supposed to be one of the strong engines for growing the economy, has taken a back seat,” says Issa Al-Mohannadi, Qatari corporate leader and CEO of Msheireb Properties (MP). In this context, it is no wonder that Brand Q has little distinction from the Qatar Government, leaving a blurred distinction between the two. Headline events like winning the 2022 bid, announcing the world’s most expensive

football stadium, the Qatar Foundation logo on the Barcelona football jersey or owning Harrods have little local flavour, while the building and rolling out of Qatar initiatives is seen more as a triumph of wealth over ability than as fruits borne from homegrown industries (a perception that is not entirely off the mark). Those who benefit the most are the ones to whom the jobs are outsourced to. Talking of home-grown capabilities is a very sensitive subject and is often a sore point when the discussion veers towards why buying local is not the first option. The simplest and most bandied about excuse is the lack of expertise, service and skill in the country, which means looking beyond the borders as the best way forward. However, the voices countering this argument are getting louder and more incessant. The counter-arguments range from the emotional to the studied; from truth to convenience; from facts to assumptions. One grouse is shared across the board: that apart from finance, little or no support is given to local industries. The argument here is not about nationals versus expatriates. It’s about businesses that have invested in the local market, that tap into its resources to help to build ca-

SELLING BRAnD Q

Ibrahim Jaidah

“The guy who is going to start his own business has to take a risk, take a loan at the beginning of his career. Say if it’s someone in the creative field, he is immediately up against the savvy fly by night businessmen, who will conduct business out of a suitcase, who doesn’t have any presence, does not even pay a rent here. There should be legislation to at least protect the smaller and medium sized companies.”

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CoVEr Story pacities against those who do business out of suitcases and tea lounges. Qatar Today speaks to captains of industry and entrepreneurs to understand why Brand Q is such a hard sell. thRee CleaR points emeRGe: Make the PriVate sector and entrePreneurshiP More attractiVe to youngsters. Bring aBout a Mandate to Buy LocaL. and Most iMPortant, LocaL coMPanies need to Face reaLity and gear uP For coMPetition.

These three interlink to both highlight the problem and provide the solution. We begin by asking why local companies are not seen as worthy competitors.

issa al-MohaNNadi

“tHE laSt CHaNCE For tHE PrIVatE SECtor, at lEaSt IN my tImE, IS 2022. aNd I SaId aS mUCH to tHE QCCI. WE loSt tHE oPPortUNIty IN 2006 to dEVEloP tHE PrIVatE SECtor, WE loSt oUt IN tHE o&G dEVEloPmENt – WE CoUld HaVE dEVEloPEd a maJor ENErGy SErVICES ComPaNIES; WE HaVE rEaCHEd 77mtPa BUt tHErE WaSN’t mUCH dEVEloPEd aloNGSIdE tHat. tHE raIl ProJECt HaS BEEN laUNCHEd; HoW mUCH oF tHat WIll dEVEloP loCal CaPaBIlIty? “IF WE lEaVE It to CHaNCE, tHEN NotHING WIll HaPPEN. It IS tImE For tHE GoVErNmENt to takE a CoNSCIoUS dECISIoN, to HElP loCal BUSINESSES.”

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Bring it on! Ibrahim Jaidah of Arab Engineering Bureau (AEB), considered a pioneer in his field and is an oft-quoted success story, has an interesting take on competition. “Some local firms complain about competition from abroad and I don’t agree with this. True, with competition, with bigger names coming in and better quality of work in the market, local companies will have to fight harder to compete with them. But now that I’ve proved that I can do as well as international firms, I can bill like them and get away with it. I’ve taken advantage of this, instead of complaining that I’m not being spoilt! “This is the new world of competition, and it’s going to open up more. So there are local businesses that are worried, and will be more worried in the future.”

What can’t be overlooked is that other countries which opened up to competition did so after building local capabilities. That hasn’t happened here yet. Jaidah agrees that the solution is not in restricting international competition, but in building local capabilities. “Unfortunately this hasn’t been looked at. It’s been slow, and Qatari companies are struggling to compete with new comers. Some countries have implemented legislation that says a locally registered company gets a 10% extra margin. For instance, if you are not lowest in price but have the ability and are up to 10% above the lowest bidder, you still get priority. This should be the case in all sectors. The construction industry is one of the main sectors in any economy. Such advantages should be considered, because what we build in the next 10 years is going to equal what we have built in the last 30 years. “We will lose out, if we don’t use this opportunity to establish strong, highly qualified local entities in terms of companies, in all sectors be it graphic or interior design or suppliers.” Talking about the projects being announced in the light of 2022, he says: “Interestingly, it was announced by the Prime Minister when we won the bid that the local companies would get a decent share of the pie. Frankly, when you see the amount of work that has to be done, there is no way we can do it; it’s far more than we can handle.” Raise your game Al-Mohannadi raises a question that has no single or easy answer: “Define what is local.

SUCCESS StorIES ibRahim Jaidah: "easy as it May sound For a LocaL guy to set uP a Business, it is hard work. i Purchased araB engineering Bureau in 1990-91. i Borrowed Money to Purchase it. then you reaLise that howeVer Much you May think it’s an adVantage to Be LocaL, it’s aLso a disadVantage. who is this LocaL uPstart who can design? it’s aLways Been Foreign nationaLs who haVe Been designing, so there weren’t Many others with the wiLL to do so. that was a chaLLenge which took Me Few a years to ProVe that i couLd do as weLL or eVen Better. i Managed to do that with a Lot oF hard work and sacriFice. the rest is history." iF you were to do it now, wouLd it Be easier or tougher? "there are tons oF oPPortunities. whether i wouLd haVe done it the saMe way, i don’t know. For youngsters, there is a wonderFuL oPPortunity to teaM uP with estaBLished FirMs that coMe FroM oVerseas. they wiLL Be oF great VaLue - Being LocaL and haVing the right kind oF training and education." araB engineering Bureau is one oF the Leading architecture FirMs in the country and region, and has to its credit seVeraL LandMark ProJects incLuding the qF headquarters, BarZan towers and keMPinski.

cover story We are struggling to understand as a player in the market what it means. Is there such terminology as local companies versus local reps – maybe you can define it for me?” Though his company’s flagship project (QR20 billion regeneration of the downtown area of Doha) often awards contracts to ‘foreign’ companies, Al-Mohannadi says there is intent to go ‘local’ – “then again, all companies are local, aren’t they? Qataris are supposed to own 51% interest in all businesses as per the law” – but it is not always possible. (See footnote on Pg. 47) “There are some special areas – whether we like it or not, or they (private companies) like it or not - that cannot be handled by ‘local’ companies,” he stresses, “because of issues either of scale, technology or skill.” Defending why his company chooses international or foreign companies over locals, he elaborates: “There are so many different skills required – excavation, dewater, dredging, site preparation. As a company, it is in my interest to have one contractor who will take care of all those tasks, to have one focal point. Local companies may have the capability to take care of one of the operations, but not all of them. Local companies complain that we go for international companies, and they in turn use us. You could have come to us directly, they say, and we could have done it cheaper.” But that’s cheaper only for one element, Al-Mohannadi says. “I have five elements for doing this job; yes, you are cheaper, and you have been sub-contracted, but you can’t handle the other related work. For business owners, it’s more efficient to go to a single point of contact for their jobs than break them up into pieces and offer them to different companies.” Eventually that contractor may use four to five sub-contractors from the market, he accepts. “It’s not unusual when someone tells me they’re working on my project.” Despite all these constraints, his company has made an effort to define what’s local. “We are probably the only company that has in its procedure, when we go for a contractor, a mandate for a joint-venture (JV), with a local company. This mandate did not come from the Government. We are trying to help the local market, so we feel compelled to do it this way. Did the Government ask us, or the QCCI? No. I believe this is the right thing to do for the market.” And the challenges continue. “The minute we say we want local companies, the international companies point out that

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they are majority-owned by nationals.” Omran Al-Kuwari of Green Gulf, weighing in on the argument, says there are many reasons why local companies lose out, some of which are obvious. “This is a new economy, and local companies do not have the history or track record of the international companies. From the project owner’s perspective, going with an international firm with a proven track record makes more sense to mitigate risks, to get funding – but there are many areas where local companies have an added advantage and still lose out to international companies. They don’t get opportunities because of other reasons.” He feels the only way to compete is to enter into partnerships with international companies. Al-Mohannadi adds: “Qatari companies don’t reject the idea of a JV, but international companies see no financial benefit in it. When they can get their work done elsewhere, for much less, without compromising on quality, they don’t see the value of coming to Qatar. Acquiring staff here isn’t cost-effective, because Qatar is one of the most expensive places to live in. “If there is a mandate for companies to have a local presence – which we are considering, by the way – what the international companies will do is jack up the price, and we will pay the price.” Time for consortiums Prominent Qatari businessman and Chairman of Al-Darwish United Group Yousuf Jassim Al-Darwish says local construction companies have increased their level of performance from the previous year in all aspects, technical or qualified expertise, and are undergoing continuous development and modernisation. “This development and modernisation is in part due to the support given by the government, by way of awarding us tenders and projects.” However, he feels, “in light of developments in the country, with huge projects planned in infrastructure development and construction, more support is required from the government, and to this end we need to establish an association of contractors through which they can talk about the problems facing the construction sector, and to cooperate with each other and with governmental authorities to find appropriate solutions that are fair and transparent, for the sake of the country and its citizens.” He suggests: “Small and large local com-

Yousuf Jassim Al-Darwish

he says: “as per the laws governing the work of construction companies in qatar, There is no differentiation between local contractors and others from the GCC. There are hundreds of commercial companies from the GCC working in Qatar. there should be some sort of reciprocity that is insisted upon.”

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Success Stories Omran Al-Kuwari: After 10 years with QatarGas Al-Kuwari though happy in his job, decided to do something different with his life. He left his full-time public sector job to immerse himself completely in a new business venture. That was three years ago... “I had the idea for Green Gulf, but I wouldn’t have been able to do it without some government support. I had QSTP and Qatar Foundation supporting me with strategic funding. I was able to benefit from some of the successful programmes running in Qatar.” Even though he had that support, it was still difficult. “First of all, there is a social element to it. It is still taboo to be solely a businessman. What’s expected is a day job in a prestigious public sector company, and running a business on the side. But as an entrepreneur when you decide to jump in full steam into a business, it does raise questions. “Then there is always the financial risk, that entrepreneurs all over the world face. But the whole experience has been both challenging and rewarding.” The timing was perfect for Al-Kuwari, as his business was in sync with changes in the region and globally. Green Gulf Inc is a leading clean technology advisory business based at the Qatar Science & Technology Park.

panies alike could work together, so that when a larger tender beyond the scope of a single company comes up, then there can be a consortium of two or more such companies that works on it under a joint name, pooling their capabilities and resources. They can share the benefits and liabilities of the project.” (In a recent interview to a local Arabic daily Al Arab, Al-Darwish discussed the challenges facing local companies, parts of which are used in this article.)

Buthaina Al-Ansari

“The sell is in the marketing. When you approach companies, prepare yourself, Market your product well, Brainstorm with your team, and Talk like a consultant. Why are consultants successful? Because they talk a lot (even if they deliver little) – so learn from that, ace your presentation.”

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Why go international? Being one of the largest regeneration projects in the region, Msheireb has come under a lot of scrutiny, particularly since it aims to build something quintessentially Qatari. “We are always asked why we didn’t use local companies to establish the architectural language which is rooted in Qatari history. So I ask myself the question; if I am bringing European architects to develop this, are they more capable of doing this, or do they have more knowledge than the local businesses? The answer is they don’t have the knowledge, but neither do the local companies. What the international companies have is creativity, capabilities, discipline, quality and efficiency. Jaidah doesn’t completely buy that reasoning. “About 30% of the work I do is for international firms, for signature architecture. If that doesn’t prove our merit, what else would?” What effort has been taken to assess local

capabilities, he asks. “There is a tendency, especially in the design sector, that whatever comes from the outside is fresh and new, and this is not unique to Qatar, it happens in many places around the world. Unfortunately a lot of them get a shock later, when dealing with someone not familiar with local needs. “In our field of architecture and design, there has been an influx in the past 10 years of design firms coming from all over the world. The intention of the State of Qatar is to open up to competition and opportunities for variety, which is not entirely a bad thing. I take this as a challenge. ” Revise tender processes Al-Darwish is also concerned about ‘unfair competition with international companies’, and points out that some foreign companies operate here without adequate controls being imposed on them. “Some foreign companies claim to be international and get their government's support to compete in projects that local companies could easily handle alone or at least in partnership. Local companies should be encouraged to execute major projects, either by themselves or in partnership with specialised international companies, to facilitate their development.” Furthermore, to ensure the efficiency of international companies, he says there should be a mandate that they operate within the local economy by not less than 40% – which means they will have to enter into

cover story a JV with a local company, rent equipment, buy materials, and use local resources. Recalling past practices, he says Qatari companies that participated in tenders were given preference over foreign companies, up to a cost differentiation of 15% over the latter’s price. He regrets the stopping of this system, and emphasises that cheaper foreign contractors don’t mean better work or efficiency. At this point he argues, it is important to upgrade the Central Tenders Committee and Audit Bureau, and to review and apply tender rules and regulations accurately. Omran Al-Kuwari says that when it comes to less capital-intensive industry (in emerging sectors such as new media and other creative fields) there definitely seems to be a perception that anything international is better, “simply because those companies have better marketing. There needs to be more incentive to support local companies. Keep in mind, it’s not just from international companies; competition is also coming from the government itself. They should make sure that they’re not competing with the private sector.” Qatariat T&D Holding Founder and Chairperson Buthaina Al-Ansari points out that “there are monopolies here in various sectors, which is a big challenge. Now how do you compete with these? Some of them have a huge government backing. “Even if we accept the need for monopolies in some sectors, they should function in a manner that assists smaller companies. Sub-contract your work. Allow others to grow.” Dealing with deficits That question applies to private businesses as well, says Jaidah: “Although the country has advanced, how have you taken advantage of it? Don’t hide your head in the sand. Let’s go talk to these international firms to collaborate. I have professional friends who take advantage of this – such as lawyers and designers. Even if your firm is relatively new, explore partnerships. We cannot go against the tide. See where it is going and adjust, try to find synchrony.” Al-Mohannadi agrees: “If we have to help local businesses, then local businesses need to help themselves first. “How many have standardised their systems and processes to international levels? How many provide services to international standards? A lot of people in Qatar have representative offices or have

businesses run by expats where a Qatari is registered as the owner. To be honest with you, I can count on the fingers of my hands those owners who are keen to develop their businesses.” Referring to successful home-grown businesses, he attributes their success to the owners’ focused and unwavering involvement in the operations. “That’s the kind of entrepreneurial spirit that will lift the quality of the private sector in Qatar. What we are missing now is quality Q. If we don’t work hard now, if the government doesn’t put an effort into creating quality – say the kind of effect ‘Made in Japan’ products have – then we will be in trouble. “Building quality quotient and building trust is important. This is what local businesses need to realise – if I don’t play by international rules now, I will be left out of the game. “Saying people are not giving us a chance and other such excuses are not unequivocally true. There is some merit in those arguments – but you need to question yourself too. Are you using the latest technologies? Are you brain-storming strategies for your business? Have you adopted standards? Have you developed your offices and assured quality? You’ve been in existence for 20 years as a business, but nothing has really changed! You can’t just scrounge for crumbs. You’ve been repeating yourself for the past 20 years without a growth strategy. “If they want to compete with the best, they have to bring something more to the table. The problem with local companies is they want to think local and take international jobs. That doesn’t cut it, because Qatar is already international. Building the 2022 stadiums is an international job; MP is an international job, in size, quality, and cutting edge technology. “I see where they are coming from in their hesitancy – to commit to cost without guarantee of business or assurance if something in the pipeline is risky; and I agree with them. That’s where the government should step in and say listen, if you do 1,2,3,4,5, you will be classified for X (see box on Pg 46), and if you get that classification you will be taking 10-20% of any international tender that comes in. If you set that up, then there is an incentive for local companies to reform themselves, to become capable to play the game at that level. “It’s a long debate and is bound to con-

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Omran Al-Kuwari

“You don’t necessarily need more entrepreneurs – in the US only 2% of the population are entrepreneurs, but you need a stronger private sector. educational institutions should create more interest to bring about a cultural and societal change in the attitude towards the private sector. In the meantime, the government needs to create the right environment. The right steps have already been initiated, by way of Enterprise Qatar, QDB. I am very optimistic. Couple of years ago, it wasn’t so. Now there is some momentum. This is not an easy problem to solve for anybody, but we are going in the right direction.” august 2011

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One stop shop to help private companies Issa Al-Mohannadi rues the lack of guidance for the private sector. Once that is fixed, the creation and selling of Brand Q will be much easier, he says. He contends that there is something critically wrong that someone has to correct right away. “Who? In my opinion the government should step in,” he says, suggesting the establishment of an office for this purpose. This office will audit companies and brands, and categorise them as per capabilities. The office will also be responsible for attracting and nurturing local companies. “it will help local businesses up their game, be it by way of education, technical support or consultancy. Help them to establish quality systems and work with them to bring them to a certain level. This office should also facilitate business contacts for them. “First help me identify local companies, and then hold me accountable for using their services. Mandate that these branded and categorised companies should be given preference in tenders.” How do we identify and help local companies, he asks. “So there are international companies based abroad, with a local branch that has Qatari interest, and they claim to be local. How much can I dig and ask them for structure and proof on the ‘localisation’ of their operations? It’s not practical for us as a business. “Give me an official list to tell me if these local companies recruit resources from here and that they have the right capabilities. If that source is available, we will take it seriously. We now have a tendering committee list and that list includes international companies.” Home-grown companies are now fighting over the crumbs, as the biggest projects will go to international companies that have a proven track record, he points out.

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tinue if action is not taken. They will accuse you of not giving them a chance, but we will counter this by saying you don’t have the proof of capability.” Al-Kuwari adds: “I am not an expert on tender policies, but I do know there is an urgent need for the government to step in, without compromising on quality. There are several critical projects in the pipeline, and we need the best working on them. Why would companies invest in themselves if they don’t have some kind of assurance?” Private sector needs zest The truth is, for Qataris to be fully engaged in the private sector is not appealing enough. “Very creative young graduates come into the market and I know the government cannot absorb more than 70% of them. Imagine, we have the school of architecture in QU; VCU-Q is graduating a lot of interior designers; and all of them are entering the government sector in a direct or indirect manner. When they come to train here with me, the first thing I tell them is to train well, open their eyes, and hopefully they’ll become a new competitor for me in a few year's time. “You take all the consultants in the State of Qatar, and see what percentage are Qatari. Just imagine, in my industry, locals who are practising in the design or architecture field account for less than 1% of the total. This is alarming. There should be an incentive from the Government for youngsters to seek opportunities in the private sector. Sometimes, they get a job in the public sector for no greater reason than to figure in the payroll." Jaidah is worried that a lot of young creative brains are sitting in a job where they might not even fulfill half of their ambitions. He feels there should be some sort of incentive to absorb young local talent. “Let’s take my design team here – I have 400 people in my company, and I am the only local. I’ve been begging some locals to come and join us, but they won’t. They want something easier. They don’t understand that by being patient for a few years, to become a professional, how much it would mean for them in the long run, as a professional designer, gaining experience from the local industry. They don’t see the opportunities in front of them, and we need to open their eyes. There is so much to gain.” He recalls that 15-20 years ago, it was

mandatory to employ locals for the duration of their contract. “Imagine how much training and building of local capabilities would happen. Say if it’s building stadiums, and the international firm has to take in a few locals – seconded from government departments perhaps - and train them. Imagine the scope of growth from there for that person. He can either take the learning back to the employer or, if he is ambitious enough, set up his own firm. QF has done it in a few cases, but QF is different, it’s not the norm.” AEB has recently signed a contract for an army-related project. “It’s a good-sized one. The conclusion of the contract is that we will train three locals through the duration. I initiated this, while we were negotiating my fees. I can give you more than money, I can invest in people with brains, I told them. The youngsters are thrilled that they are going to be joining us. By the time we complete the project, they will know a lot about it, and how it was achieved. Hopefully they will be ambitious enough to compete against me one day - it is getting boring now, as no one is really competing with me.” Who is at the helm? It’s more than evident that dynamic local businesses that are doing well have at the helm a business owner who is 100% committed to the operations. Al-Kuwari himself stands testimony to this reasoning. “Just because you are a local company it doesn't mean you can take it easy? The only way to be ahead of the game is to be handson. The reason companies like AEB are successful is because their local management team is fully engaged. Local companies have the strength of knowledge and insights of the country that they must leverage to their advantage. “You can’t expect business just because you are local if you are not willing to put in that effort. But if the company is competent and able to do a task, then you have the right to ask for preference.” Lack of support Speaking for SMEs, Qatariat T&D Founder and Chairperson Buthaina Al-Ansari says there is not enough support or guidance. “If you only support the well established, and the giants only support each other, what happens to the rest of us? I need someone to guide me and teach me. The small and medium enterprises get left behind; we are forced to take on competition in a different

cover story league. We don’t have the wherewithal for that." She voices a thought shared by another entrepreneur, Bassam Al-Ibrahim (see interview on pg 48). “The larger corporations need to back us up. I would like to highlight and speak for this middle generation. This generation needs to put in triple the effort to succeed like the rest. The younger generation on the other hand, those 16 and below, they have everything – education, linguistic skills, techno-awareness. But those of us from the 70s, we need to work very hard to align with the economic development happening now.” Al-Ansari is of the firm opinion that the effort to build oneself should come from the person or company itself. “Then again, not everyone has the ability to do so and many require a bit of hand holding. Now the government has two programmes - one is the QDB-run Al-Dameen (financing), and the other for SMEs through Enterprise Qatar. These support you financially, and they educate you on how to set up. But what about the next step, when you roll out your business, and you want to sell your services or products?” The consultant complex There is not sufficient belief in our abilities, bemoans Al-Ansari. “I will educate you, finance you, incubate you, but beyond that how do you buy people’s trust? You, as an entrepreneur, a business owner, need to take responsibility to earn that trust. The Government can’t really do that. What we need from the government is to influence larger, established players to buy into us.” She quotes a traditional proverb to strengthen her argument: If the leader does not believe in his people, then his people will not believe in him. “If you see the decision-makers approach consultants and foreigners, then you’ll do the same.” Taking a dig at a common practice, she

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says,“big corporates love ‘consultation’ and what do the consultants do? They take information from us and make a presentation out of it. And they walk away with a million riyals in their pocket. Look at the ads in the magazine and on the billboard – even small things like the abaya and the thobe are depicted wrong – we laugh at this.” She underlines the need to tap into local knowledge. “You need our inputs, consult us. We know what we want, what appeals to us, not the consultants. Use our expertise.” She also echoes her peers’ views: “We have to promote ourselves. There is no other choice. You have to squeeze yourself – don’t wait for things to be handed on a platter. You’ll be stamped out if you don’t do that.” Future perfect Omran Al-Kuwari is very upbeat about the growth of the private sector. He says the road map is available, and it’s just about getting in sync with it. “Keep in mind that this is a huge country economically, even if it’s small domestically. The Qatar National Vision (QNV) has already identified areas where it needs more private participation.” As for Brand Q, he says internationally it’s already extremely strong. “You think of Qatar, you think of progress, you think of innovation, transparency, good governance.” But isn’t that based more on diplomacy and the functioning of the Sovereign Wealth Fund (SWF)? Isn’t the lack of separation between government and private sector an issue? “It could be an issue, but could it also be an opportunity?,” he asks. “If Qatar has a strong image, even one built on the government’s activities, you can use that as a springboard. Take advantage of the situation we are in. We are well placed to improve the ‘Made in Qatar’ brand. There is no reason why this can’t happen. The important thing is to identify areas we want to focus on.”

"It is important to upgrade the Central Tenders Committee and Audit Bureau, and to review and apply tender rules and regulations accurately."

Yousuf Jassim Al-Darwish chairman, al-darwish united group

*Generally, a non-Qatari national, whether natural or juristic, may engage in commercial activities provided the foreign participation in the entity does not exceed 49 %. In October 2000, the Government enacted a new Foreign Investment Law aimed at promoting foreign investment in specific business sectors including agriculture, manufacturing, health, education, tourism, power and projects which develop and utilise the State’s natural resources. The new law permits up to 100 % foreign ownership in these business sectors. The law does not allow a non-Qatari to participate in banking, insurance, commercial agency or real estate trading activities. If non-Qataris are partners of a Joint Venture Company, then the company is allowed to carry out only those business activities stipulated by law for non-Qataris.

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Desperately

Seeking:

Angels, guidebooks and flexibility. Khalifa Saleh Haroon and Bassam Al-Ibrahim are the Co-founders of iLoveQatar.net, and the closest THING Qatar has to serial entrepreneurs. They draw from their experiences to discuss issues facing entrepreneurs, offer insights on why Brand Q is often a hard sell, and CONSIDER how best to change that.

H Bassam Al-Ibrahim

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ow can local companies compete better with regional and international players? Bassam: Khalifa and I have discussed this so many times. We believe that if you want to compete with international firms you need to set standards. This means that the global standards set today are not the ones that Qatar follows, but that Qatar creates its own standards that the world follows. Itâ&#x20AC;&#x2122;s about exporting instead of importing. Khalifa: I agree with Bassam, we definitely need to get into the business mentality of wanting to export Qatari brands rather than

focus on opening up franchises. I think this question depends on the company trying to determine whether it wants to be the best in Qatar or the best in the world. There are many challenges: Companies do not seem to want to employ local talent or the services of local businesses because of the belief that a foreign company means higher quality. Right now there isnâ&#x20AC;&#x2122;t that much competition in the market, for local companies to be able to improve and compete on a global scale; they need to improve the quality of their services and nothing does that better than good old fashioned competition. Owning a niche or segment is also a key factor. People try to do too much. If you want to succeed pick a product or service and work hard at becoming the best there is. Spreading yourself too thin (and itâ&#x20AC;&#x2122;s easy to get distracted with so much potential here in Qatar) is your fast track to being JUST another anonymous company.

cover story Why are local corporations reluctant to use local services and products? Bassam: The local market is a vast one, and in recent years the economy has really stepped up its game to provide the service and product requirements needed to realise Qatar’s National Vision. Unfortunately the quality of these services and products cannot meet the standards required by these corporations. The labour or white collar workers placed in these businesses do not provide the SME quality required to ensure a Grade A project delivery. Khalifa: It’s hard to get people to start searching locally. It’s one of those ‘Catch22’ situations. Local companies need to be given the opportunity to grow and improve, and those that are hiring want the best from Day 1. Another reason is that many people in the past would simply go ahead and set up a company, bring in the cheapest labour/employees they could find, and the corollary of this was usually an extremely low quality of service. People have been burned too many times. When I look at the new generation of start-ups and growing SMEs, I’m very impressed with how they apply themselves. In this situation, how can home-grown industries make their mark and compete with fly by night ‘consultants’ from outside? Khalifa: There are a number of different ways; the government could intervene and try to force the market to look locally. That’d probably help but it might make the local market lazy and uncompetitive. Either way, I think when it comes to companies that try to get a slice of the pie for a quick buck and run off, it’s something that the government has to solve. Otherwise it’ll demotivate the local market. The groundwork for nurturing talent is being laid through Education City and other such initiatives. Yet buying local is seen as infra dig? Khalifa: You made me whip out the dictionary there. Infra dig, meaning beneath one’s self. Hmm, I don’t think I would go as far as saying that buying locally isn’t seen as being valuable, I just think that the framework isn’t completely there yet. I’ll use an example. Take a simple game of connect the dots, – draw the lines from 1-10 and you get an image. Sadly we’re missing a few numbers, so nobody can really see the big picture. The younger generation now have the education needed to start thinking outside

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the box to create a new company. But the requirements from the Ministry of Business and Trade (MoBT) are quite strict for startups. If they do manage to tick all the requirements, where are they going to rent? Will it be easy to get the licences they require? Where are the angel investors and venture capitalists to invest in great ideas? If they take a loan from the bank then they’re stuck with a strangling interest rate. It’s just not really business-friendly for start-ups and SMEs. Bassam: That situation is simply based as of today. Education city will educate and create a culture based on learning and knowledgesharing so that Qatar can be a knowledgebased economy. These concepts will create the new generation of Qataris who will create products or services that other young Qataris will thrive on. These businesses will create high quality products; young entrepreneurs in Qatar are taking things to a new level. I personally know of a young Qatari who wants to create handbags from material purchased from Italy and London to eventually create a designer handbag collection based out of Qatar. The process has already begun based on the fact that we wish to create a new image of quality products made by Qataris for the Qatari market. It truly is an uphill task for an entrepreneur. Despite that, how do we get interested people to take the leap and become entrepreneurs? What can be done at policy level, and at an educational level? Bassam: This is something we both discuss regularly. Firstly entrepreneurs need to believe in themselves and not quit when “the going gets tough”. They need to believe in their idea and stick with it, as we have. The policy makers need to ease the process of creating a business entity. To create a “WLL” in Qatar you need start-up capital of QR200,000, which does not even include the funds required to create the business or the additional funds to rent a location. So to start your business you would need a minimum of QR400,000, which most aspiring young entrepreneurs simply don’t have. Additionally most banks won’t provide funding since you need some form of collateral such as more funds or real estate - just one barrier after another. These busy minds may have an amazing idea but don’t know where to start when creating a business plan or how to sell their business once it’s up and running. Educating these entrepreneurs in the ways of business etiquette is so important to ensure they’re comfortable with interna-

Khalifa Saleh Haroon

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cover story tional business standards to drive Qatar’s economy forward.

Bassam Al-Ibrahim is an engineering graduate from the UK, majoring in telecoms. He is currently with Vodafone Qatar, and is actively involved in various sustainability programmes in the country. Khalifa Saleh Haroon is a law graduate from the UK and is currently with Vodafone Qatar. He is also the founder of Haroon United Group. He recently won the Entrepreneur of the Year for 2011 and is working on a number of unique projects, foremost of which is ILQ, with the aim of encouraging start-ups and to spruce up the Qatar brand. iLoveQatar.net was an initiative started by the two in order to change the way people run businesses in Qatar and to promote a new way of thinking through encouraging a deep partnership model. Other projects in the pipeline include ILQ Radio, Creative Minds, and Identity Qatar, a joint venture partnership with PJ Media, founded by famous BBC star Peter Jones.

Khalifa: Well, it’s all about taking the plunge and just giving it a go. Did you know that – on average in the Middle East – 70% of people with great ideas have full-time jobs and work while trying to set up their business? They’re giving it a go (albeit without being able to give it their full attention). Even as they innovate and come up with great ideas, we need to remind people of RISK. Risk implies that someone has something to lose. When you’re a young person trying to get your project off the ground, what do you really have to lose except time? And let’s be honest, your time isn’t really that valuable until you’re actually achieving something worth risking in the first place. At a policy level, more flexibility is required to start up a business. Looking at it from an educational level, I believe it’s not just talking about theories, but presenting success stories to give young entrepreneurs the confidence to give it a go. Look at us. We didn’t start off with much.. We decided that we were going to do everything on our own, invest whatever we could in ourselves, and just give it a go without sweating over the small. Now we’re trying to encourage and support other young guys, especially now that Qatar is the place to be. Once off the ground, what in your mind is the single most disabling factor when it comes to local companies selling themselves? Bassam: A company needs to understand that to reach the wider community you need to show yourself off, and since Qatar is now (besides other focuses) becoming a tech hub for the Gulf, these companies forget the online space and just create a solution to fill a void rather than innovate. The MoBT and ictQatar are promoting businesses and other requirements to be completely online-based. So being online is not only an amazing way to reach your target market and wider community, it is playing a role in the 2030 vision. Khalifa: To sell yourself, you need to invest in your idea, take a risk to develop it and then sell that product to prospective clients. I think that people aren’t willing to take those risks most of the time. If I had to look at it from a simplistic point of view though, I think it’s the cost of advertising and marketing in this country. To be honest, the cost of advertising in any medium, be it in print, roadside ads or the radio, is just ridiculously high. How can smaller com-

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panies afford it and market themselves? Actually, forget small companies, I know large corporations that can’t afford it! So should the onus of building SMEs be on the government? Or on the private sector? Bassam: Both. The government should assist financially and educate the private sector to ensure their growth. A mentor told me that great leaders stand on the shoulders of giants and not dwarfs and the same applies to businesses. These business powerhouses in Qatar should assist the SME industry to ensure their growth and in turn the SMEs will push the powerhouses to the next level. Khalifa: It starts with the government. Properties need to be cheaper, requirements for setting up a business need to be simpler, acquiring licences needs to be straight forward; there needs to be one central area to get everything done (rather than running around like a headless chicken trying to figure out what to do), and there needs to be support from the baladiya (Central Municipal Council) to help reduce the cost of advertising in the country. It boils down to transparency at the end of the day. The problem we have with SME growth isn’t with one department or area, it’s a joint effort between the Central Bank, the need for competitively priced commercial districts, reduced requirements by the MoBT. The list goes on. In closing, as a businessman, what is the one thing you wish could be done, so you have fair access to the economic pie? Khalifa: I can’t say one thing, but if I absolutely had to select one, I’d say we need more angels, venture capital (VC) funds, and reduced business start-up rates from the banks. If I could slip in one other thing that we wished for when we first started up, it’s a guide or road map. It’s great hearing theories and listening to inspirational speakers, but the question I believe 99% of entrepreneurs have is, “What’s the road-map?” or “what do I need to do to get started?” Maybe a beginner’s guide to setting up a business in Qatar? Where to go, who to speak to, what to do? Bassam: More assistance in capital to ensure the growth of SMEs in the form of VCs and angel investors. This will allow great minds to launch their great ideas and enlarge the economic pie to ensure more opportunities for more entrepreneurs Interviewed by Vani Saraswathi

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Greater Consumer Awareness Required

Rashed Nasser Sraiya Al-Kaabi, Chairman of the Industry Committee and Board Member of the Qatar Chamber of Commerce and Industry (QCCI), talks about the poor sales performance of Qatari products, the obstacles to the development of local industry, and the reluctance of local companies to leverage local products.

hat is QCCI doing to enable the private sector to sell its services and products better? Weâ&#x20AC;&#x2122;re delighted with the launch in January of the Export Development Agency, known as Tasdeer, which is dedicated to supporting, encouraging and stimulating Qatari exports of various products and commodities. It will serve to boost sales of Qatari-made goods and help Qatari industries establish a strong presence in world markets, thus bolstering the local private sector. The agency will help local companies in all sectors of activity to create strong enterprises offering high quality products capable of competing abroad. The government is taking great pains to tackle any obstacles or barriers to the export of Qatari goods, and we would likewise urge local consumers to buy Qatari products, as this is what will help local businesses to compete with others. Thereâ&#x20AC;&#x2122;s also the matter of setting up industrial areas with low interest rates, including one

for food processing enterprises. All these things will help to bring about a competitive local industry. Whatâ&#x20AC;&#x2122;s the main reason people are unenthusiastic about Qatari products, and how can this change? There are a number of things hampering the appeal of Qatari products in the marketplace, perhaps the main one being that some of these goods fail to meet the required specifications or measure up to the standards of their foreign rivals. Also, some of our industries face extra charges, in addition to the customs duties on exports, which increase their production costs and thus lower their sales potential. As for helping them, the government has to clamp down on the producers of counterfeit goods, and punish traders who manipulate prices. Secondly, the Consumer Protection Department has to do more to promote local products so that people become familiar with them, because a lot of it is down to consumer awareness and patterns of consumption. So they need to run publicity and advertising campaigns for a whole group of products to get people familiar with them. The government has to support local producers, both food manufacturers and others, by means of a support fund to subsidise local industry so that consumers can access quality products at the best possible price.

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cover story What’s the biggest constraint on the sales of local products? Right now the obstacles we face are in the process of being eliminated. The QCCI’s fifth annual consultative meeting with HE the Prime Minister resulted in a reduction in interest rates on industrial loans to a maximum of roughly 3%, and then there was the setting up of the Export Development Agency, Tasdeer. So there are very few remaining problems, and all we need now is to come up with some quality local products that conform to hygiene regulations. Tasdeer is meant to secure its objectives of helping local industry boosting its export capacity in a clear and open manner, which will necessitate bringing representatives from the

the Consumer Protection Department has to do more to promote local products so that people become familiar with them, because a lot of it is down to consumer awareness and patterns of consumption

Rashed Nasser Sraiya Al-Kaabi,

Chairman of the Industry Committee and Board Member of the Qatar Chamber of Commerce and Industry (QCCI),

august 2011

Interviewed by Ezdhar IBRAHIM

Invest in Qatar. For all our futures Anthony Ryman joins the Buy Qatar discussions, and speaks of the role local creative agencies can play in enhancing the local economy.

he knowledge economy represents a paradigm shift in our ability to guarantee the future prosperity and legacy of nations and peoples. Creating intellectual capital is the main form of wealth creation today, account-

54 Qatar Today

private sector into the agency’s management structure. At present Qatari products suffer from weak sales even in the local market, let alone overseas markets, so Tasdeer should work first on marketing Qatari products at home before promoting them abroad. And even before that, it has to help entrepreneurs develop Qatari products to become competitive in export markets. Similarly, the Export Development Agency should maintain a permanent exhibition of all domestic products so that it stays fully upto-date with what Qatari enterprises have to offer, which will help with their promotion and development

ing for 7.3% of GDP in the UK, for example. In essence this means that of the five ‘capitals’ - human, social, financial, economic and intellectual - it is intellectual capital that is going to provide the opportunity for success and longevity. It’s a renewable asset! Intellectual capital (IC) provides the roots to nourish and cultivate the future wellbeing of nations and organisations. At the corporate level, intangible investments (intellectual capital) e.g. reputation and brand management, innovation, knowledge creation and incubation, marketing and advertising spend, are now unanimously considered the most important determinants of performance and competitive advantage. At the macroeconomic level, new growth theories have already

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demonstrated the importance of knowledge in the performance of nations. (Source: The World Bank) Today, knowledge management is the currency for trade and growth, and this requires a new kind of creativity, approach and critical thinking. This means there has to be a sea change from a trading and pricesensitive mentality towards a value-based mindset that promotes the wealth-creating potential of people, focusing especially on their ideas. In other words, focus on value rather than price, and people rather than product. Historically, higher levels of intellectual capital have been associated with higher standards of living. However, the power of knowledge and ideation are not often associated with the long-term prosperity of a nation. This disparity highlights the need to value intellectual capital and place it at the centre of a nation’s value system. It is people and their ideas that form the potential for countries and companies to prosper. Systems and processes can capture this knowledge and provide the storage systems to enable further research and development. This creates a feedback loop to further develop human capital, thus leading to more marketable intellectual wealth resulting in higher financial well being. If Qatar and Qatari companies can embrace intangible investments (Intellectual capital) and put them at the centre of their business environment, they can leapfrog older, more entrenched economies. The enlightened leadership of Qatar has set out its vision in the QNV 2030. This ena-

bles investment in intellectual capital (creativity), education and entrepreneurialism (human capital) as central to the nation’s future. It’s time to invest in Qatar’s creativity to promote inward investment, not just in companies, systems and processes, but the intellectual capital that goes with it. It’s time to protect intellectual copyright in the form of ideas and designs that safeguard the inspiration and capital creation of the ideas and their owners. It’s time to invest in legacy, knowledge transfer, training and being part of the conversation.

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In the intangible world of creativity and intellectual capital, it is hard to evaluate creativity in technical terms – this coupled with the “price factor” have led companies to purchase sub-standard thinking and creativity or import expensive ideas from abroad that have not necessarily resonated with the local population.

Fostering creativity There is no doubt that the green shoots of creativity are being nurtured and fostered, from QSTP (Qatar Science & Technology Park) to QMA (Qatar Museums Authority) and from Enterprise Qatar to the DFI (Doha Film Institute). The proliferation of worldclass universities and the rise of graduates seeking to make their mark and find the right livelihood in Qatar mean creative economy is growing. Creative agencies, whether in advertising, events, PR or brand communications, provide the energy and environment to create and foster the brand reputations of Qatari companies, creating a unique tone of voice, look and feel, and brand story to communicate within Qatar and globally. This will create a virtuous circle, firstly in attracting global talent - if you’ve got a powerful differentiator, you’ll attract top people. This talent will create the added value to support and grow your business. Your brand

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I would put it to the powers that be – investing in your country means investing more in your people and their ideas. You engender loyalty, goodwill, passion and progress by nurturing local creativity. And if we need to cross-fertilise with international creative talent, then let them invest in offices and set up here, hiring locallybased designers and committing to training and education,

with its inherent value becomes the facilitator to lower costs and increase margins. However, there is an inherent blockage in the system. The growth of the economy to date has been primarily focused on the tangible world of hydrocarbons, to process and distribute oil and gas. In this world, once technical competencies have been evaluated, price became the determinant factor. In the intangible world of creativity and intellectual capital, it is hard to evaluate creativity in technical terms - this coupled with the “price factor” has led companies to purchase sub-standard thinking and creativity or import expensive ideas from abroad that have not necessarily resonated with the local population. There is the fundamental DNA or soul story to the country and its people that is forever changing and growing. It’s hard to quantify, but it’s very real. On one side, you have heritage and tradition fused with religion and family as the primary motivators. On the other you have youth, vitality, and enormous ambition brimming with ideas, hopes and dreams. It is this fusion of left and right that is forming and developing in Qatar. We need to help this process along a little bit by promoting a “Buy Qatar” campaign to really focus everyone’s attention on investing in this nation’s inherent creativity. Take our agency. If you invest in “Buy Qatar” – trust us with your business – we can invest in bigger and better. Yes, we’ll import people with real and measurable award winning talent, but we’ll also invest in and train the local creative population, hiring more designer alumni from Virginia Commonwealth University, and maybe one day, they will start their own creative businesses. We’ll invest more in creating systems and processes that help to educate and inform our clients, thereby raising the bar again and again. Through global thinking and creative local design we’ll be able to grow your brand and your business, increasing your market share while reducing your customer acquisition costs. It’s a self-perpetuating cycle of constant improvement. It facilitates better creative work and faster output, because client trust is there, derived from increasing aptitude, knowledge, experience and intelligence. Creating a legacy The knowledge economy starts thriving and manifesting in myriad small businesses, thus fostering the entrepreneurial instinct in the local population, a virtuous circle.

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Empowering and protecting our homegrown creative potential has never been more important than now. Starting this journey by changing the rules governing the hiring of creative agencies, promoting a “Buy Qatar” quotient and incentivising local creative agencies to hire locally will engender and foster a creative renaissance in Qatar. What would help is raising the withholding tax on international agencies working in Doha. What would also help is some kind of formula which rewards agencies that have been here in Qatar for a significant period of time and are employing designers in Qatar. Qatari-based companies, especially the bigger quasi-governmental organisations, have no real incentive to commission local design and advertising companies, especially for the larger, more prestigious accounts. In fact the opposite is true – they get kudos for working with an international agency where they can possibly plant the seedlings for their future career. Where is the legacy, transfer of knowledge, skill-set or training for local creatives? Where is the reinvestment of those fees in the local economy or in the raising of creative standards? Moving forward, there has to be a radical rethink of what is important for the longterm viability and success of Qatar Inc. And I would put it to the powers that be - investing in your country means investing more in your people and their ideas. You engender loyalty, goodwill, passion and progress by nurturing local creativity. And if we need to cross-fertilise with international creative talent, then let them invest in offices and set up here, hiring locally-based designers and committing to training and education, taking the lead example of Qatar Foundation who have a joint venture with Fitch. So “Buy Qatar” is the rallying cry. It’s also the means whereby we can ensure the longterm sustainable future of Qatar by investing in local creativity and talent

Anthony Ryman is a branding expert, and the managing director of grow, a Doha-based creative agency.He has years of branding experience in UK and Middle East.

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The Value of Conversations Talk isn’t cheap. Meaningful exchanges between managers and employees boost the bottom line.

ow are you?” At the start of every shift, Loft Store Manager, Gale Ford, asks her store associates that simple question. It seems like an off-hand courtesy or something not particularly significant; it certainly doesn’t seem like a key element of great managing. But Ford has reasons for asking that question. For one thing, the answer tells her the emotional temperature of each associate, and that can be very useful. “Managers don’t see associates every day,” Ford says. “Maybe there’s something going on in their lives that we should know about.” There’s another reason: “A ‘chat-in’ for

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each associate when they first come in is our opportunity, as managers, to show our associates we care about them,” says Ford. “And they can tell we care because we listen to their answer.” That second reason – “to show we care” – actually is a principle of great managing. Caring is one of the elements Gallup has identified that predicts employee and workgroup performance and that links powerfully to crucial business outcomes, including productivity and profitability. Employee engagement is based on an employee feeling that they matter, that they contribute, and that the people they work for, and with, value her as a person and an employee. Engaged workers are capable of exceptional performance, so managers who successfully engage employees in their workgroups are vital to their organisations’ success. Ford is on the right track with her question because it shows she cares. But it also invites her workers into a meaningful conversation – the kind that brings engage-

ment to life. Talk it out In many companies that actively manage engagement, managers are encouraged or required to schedule meetings with their employees to discuss the group’s engagement, and to create strategies to improve the workplace. But when workgroups treat these interactions as a mere check-list review, engagement doesn’t necessarily improve. “Fancy action plans don’t create engagement; ongoing two-way dialogue creates engagement,” says Kurt Deneen, a Gallup consultant. “Managers need to listen to their employees, not just talk at their team. Managers create a sense of engagement through conversation.” Of course, managers don’t have to schedule a formal meeting to talk with employees; they can look for and think about the day-today things that affect engagement, then talk with employees about them. As Tom Rath noted in How Full Is Your Bucket?, “The results of our encounters are rarely neutral;

b o t t o m l ine they are almost always positive or negative. And although we take these interactions for granted, they accumulate and profoundly affect our lives.” Great managers know this and see every interaction as an opportunity to engage. The best way to do that is to meld conversations about engagement into the culture – to marry talk about engagement to the work itself. Asking questions like “What are we trying to accomplish today?”, “Do we have what we need to accomplish our goals?” or “Are we all contributing in a way that is most efficient or effective, or both?” in a meeting with employees, brings to light key elements, such as expectations, materials, recognition, or development. This kind of dialogue keeps the conditions of engagement related to the work and goals. “What’s in front of us is the task at hand, and that’s what we need to talk about,” says Deneen. Topics of conversation A good example of how a manager can maintain a “listening post” for engaging conversations comes from Susan DeProfio, an Ann Taylor store manager. DeProfio has a remarkably useful method for sparking meaningful conversations that really matter to her associates – and her store. One way that ANN, Inc. – the parent company of Ann Taylor and Loft Stores – measures success is through a set of metrics that evaluates progress toward goals. DeProfio keeps the metrics in a loose-leaf binder under the cash register and circles numbers that are relevant for each associate. “Our associates look through [the binder] when they have a minute, and it shows them exactly how they’ve done, what they’ve done, and how it compares to other stores,” she says. “But it also shows me what they need. I can tell from the numbers where we’ve got a gap, and that helps me fill it.” Those gaps tell her a lot about whether or not her associates have the materials they need, if her people are learning and growing, and if they feel they’re progressing. DeProfio doesn’t get all her conversation

check out www.omsqatar.com

ideas from a loose-leaf binder, of course. But her method is an innovative way to make conversations meaningful – and focused on elements that create engagement. What DeProfio has discovered, just as many other great managers have, is that elements of engagement can provoke the best kinds of conversations. Strengthening engagement When managers get their team’s engagement report, most of them look at the overall numbers first because those results show the broad picture of a team’s engagement.

Nothing managers talk about will affect engagement, if they don’t listen to what associates tell them.

Then they focus on results for the individual engagement items. “Think about what the results say about the team culture,” says Deneen. “If the results show that the team has low scores on the item ‘my opinion counts,’ there’s likely a problem with communication. When that happens, the employee feedback programme needs to be leveraged, and people need to be heard. If your workgroup’s score on the ‘mission and purpose’ item is low, you need to consider if you’re helping employees see how their work relates to the goals of the company or – in retail – to the goals of the store.”

Each of the elements matter, and they are all inter-related. For example, Gallup has discovered that when teams focus on improving recognition or boosting opportunities for learning and growing, strong workplace friendships are more likely. The same research showed that leveraging employee strengths is the biggest predictor of improved clarity in expectations and that this is strongly related to an employee’s connection to the organisation’s mission and purpose. Clear expectations and connection to mission have a profound impact on engagement and efficiency. So how do managers know employees’ strengths, gauge their sense of connection, and know if they understand what’s expected of them? They talk with them. DeProfio is so good at this that if there isn’t a role in the store that captures an associate’s strengths, she invents one. “One of my associates is really good at creating parties and event planning, so I made up a title for her, ‘Hostess of Parties.’ Look for where your people have the most ‘glow’ – there’s always something people lean toward.” By giving her associate a special role in planning the store’s customer promotional events, DeProfio gives her an opportunity to shine while encouraging additional business at her store. Walking the talk When meaningful conversations are part of the way an organisation manages, work cultures change. Yes, engagement plans and strategies are necessary, and following through on them is predictive of stronger engagement in the future, but action doesn’t have to wait for a planning session. Great managers who have meaningful ongoing discussions with their employees also take real-time action based on what they hear in those everyday conversations. They ask good questions, including disarmingly simple ones, and they pay close attention to the responses. They keep the wheels of engagement turning all the time, just by talking. “Ask questions and listen closely,” DeProfio says. “They say business isn’t personal, but it is.”

BY Jessica Tyler is Practice Leader, Employee Engagement and Wellbeing Copyright The Gallup Organisation, Princeton, NJ. All rights reserved. Reprinted with permission. Visit the Gallup Management Journal at gmj.gallup.com

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fight back against stress STreSS can ManifeST iTSelf in phYSical anD pSYchoSoMaTic ailMenTS Such aS hiGh blooD preSSure, SToMach DiSorDerS, SleepleSSneSS anD General feelinGS of faTiGue anD anXieTY. here are five waYS of recoGniSinG The conDiTion anD acQuirinG The capabiliTieS To Deal wiTh iT.

1. Face the Problem: Do you have trouble sleeping? Does your heart start palpitating as you approach the office or as you hear your boss’s voice? Do you have trouble concentrating and moving forward with anything? If the answer to these or related questions is ‘yes’ and has been for some time, chances are you are experiencing stress. The first task is to admit to yourself that you are stressed out and to genuinely confront the magnitude of your stress and decide to do something about it. Sit down with a pen and paper, document each and every matter that causes you stress and try to see it in proportion. Once you have come to terms with the sources of your stress and can see matters somewhat in proportion, you may be able to confront them. 2. Ask the Right Questions: If the stress you are feeling is severe, you may well be in an unsuitable job. Are you over/ under qualified for the job? Did you take this job because there was nothing else out there or because you were in a hurry? Do you really not see any way to improve your disastrous relationship with your boss? Is the environment hostile and the criticism unconstructive? Do you see yourself going nowhere in this job even though you have taken various

action steps to move your career forward? If the answer to some of the above is a resounding YES, then you may want to consider looking around for a different role, either in the same company or elsewhere, or making other real changes such as taking courses or undergoing counseling to make you more confident in your career.

your limits and strengths really are. You can then invest in yourself and concentrate on building your unique areas of strength. There is nothing like constant education and self-advancement to give you that extra confidence you need to face your job and peers on a relaxed footing.

3. Take Control: Take control of your career! Do so by: Confronting your problems – This includes course-work you need, asking for the raise you deserve, telling your boss of something that bothers you or communicating better; Setting goals – To optimse your success and build a future, you need to plan forward and set personal and professional milestones at specific dates which you can work towards accomplishing; Prioritizing tasks – Get into the habit of having a ‘to-do’ list and approach every task by assigning it a priority. Your list may include the following priority columns: Top Priority, Today, This Week, On-going. A clean organized approach to your tasks is a great start to achieving overall success; Investing in ‘Brand You’ – Get to know yourself and come to terms with what

4. Set Reward Milestones: Set yourself reasonable reward milestones and at every opportunity, reward yourself with something that truly makes you happy. Having something positive to look forward to can really make a difference in your overall emotional well-being. 5. Incorporate ‘Stress Busters’ into your routine: Effective stress busters range from incorporating regular exercise into your routine to meditation to special feel-good treats, such as aromatherapy and massage. Creative endeavors and other hobbies help to take your mind off stressful aspects of your life and channel your ‘stress energy’ in a more positive direction. Music is a wonderful way to unwind. Talk therapy also helps a lot. The latter need not be with a professional; you can find a mentor to talk to about your daily difficulties or a peer who is a good listener

booKmaRK www.issuu.coM/oryxMags

about bayt.Com: Bayt.coM is the #1 JoB site in the MiddLe east with More than 40,000 eMPLoyers and oVer 5.5 MiLLion registered JoB seekers FroM across the MiddLe east, north aFrica and the gLoBe, rePresenting aLL industries, nationaLities and career LeVeLs. Post a JoB or Find JoBs on www.Bayt.coM today and access the Leading resource For JoB seekers and eMPLoyers in the region.

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t a g t his

Youth,

take charge Since its inception in 2007, INJAZ Qatar has been empowering the youth to make an impact in the business world by inspiring a culture of entrepreneurialism and business innovation. Executive Director, Ayesha Al-Mudehki speaks to Qatar Today.

By casse y ol i v e i ra he MENA region records the highest unemployment rate in the world, according to the Global Employment Trends Report by the International Labour Office, 2011. Two possibilities stem from this scenario: either there is a dearth of ‘qualified human capital’ among the youth or a lagging SME (Small-Medium sized Enterprise) culture in the region. Both share a common link – an absence of entrepreneurship among the youth. “Qatar’s National Vision 2030 states human development, social development, economic development and environmental development as the four inter-related pillars. These pillars constitute the spirit

of entrepreneurship as well. After all, entrepreneurship is about how our innovative ideas can contribute to the social, economic and environmental aspects of the country,” says Al-Mudehki. Unfortunately, the education system in Qatar doesn’t provide the required exposure that students need to enter the challenging business world, feels Al-Mudehki. “We need to start thinking outside the box. We need to think about what our economy really needs and how we could fill this gap.” This is where INJAZ Qatar steps in. An affiliate of the Junior Achievement

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Qatar Today 61

taG tHIS inJaz al-aRab has pledGed to ‘sponsoR a million youths by 2018’. beinG a membeR, inJaz QataR is ContRibutinG to the biGGeR piCtuRe steadily.

oVer 5,000 students GRaduated

FroM inJaZ qatar courses since 2007.

independent sChools, as weLL as qatar uniVersity, ParticiPate in inJaZ PrograMMes.

CouRses foCusinG on woRK-Readiness, entrePreneurshiP, and FinanciaL Literacy skiLLs are oFFered: PersonaL econoMics, More than Money, success skiLLs, entrePreneur Master cLass, coMPany PrograMMe and Banks in action

national student Company Competitions oRGanised annually to seleCt the best student Company of the yeaR, as an outcoMe oF the coMPany PrograMMe. ayesha al-mudehKi, executiVe director, inJaZ qatar eMPowering the youth

(JA) world-wide, and a member of INJAZ Al-Arab, INJAZ Qatar connects corporate volunteers from the private sectors to students from local schools to teach them elements beyond the school curriculum, such as financial literacy, entrepreneurship leadership and work readiness. Since many of these key concepts are not taught to students at an early age, the result is a pool of ‘unqualified human capital’ among the youth. “Our students are educated but unprepared to face the challenging work force. This doesn’t mean they are not bright.” Most universities offer a graduate training programme for students to enroll in once they are out of school. But Al-Mudehki doesn’t find that motivating. “Instead of having, say a two-year graduate training programme, it would be beneficial if the school curriculum would teach the same to students. In that case, students would be ready to join the workforce instantly

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without the need for spending those two years in a programme,” she explains. Ready to work Not just entrepreneurship, INJAZ Qatar also focuses on work readiness and financial literacy as the core of understanding what it is to be in a workforce – be it in local markets or international. “What we teach at INJAZ Qatar is taught world-wide, including 14 Arab countries, through JA curriculum. We do localise a few of these programmes according to the markets here. But skills of finance, work readiness or entrepreneurship are universal. You need to learn about them whether you are working in Qatar or in the United States. We teach core elements that can be adapted to any work environment.” Entrepreneurship Vs Qatarisation Another challenge that the country faces is meeting Qatarisation targets, while also

250

VoLunteers deLiVered an inJaZ course to students,

27% were qataris.

31%

VoLunteer retention rate For 2010-2011.

coMPanies haVe Partnered with inJaZ. soMe oF theM incLude idarat, araMex, Boeing, VodaFone, citiBank, Badri & saLiM Meouchy Law FirM, the royaL Bank oF scotLand, Barwa, PricewaterhousecooPers, ras gas, state street, qatar uniVersity, hiLL & knowLton, qnB caPitaL, BMi Bank and queen MedicaL centre.

t a g t his

Team Spirit Recycling Team Company from Amna Bint Wahab Secondary Independent School who won the 'best company of the year' with volunteer Hala Al-Hariri (fourth from left)

Company of the Year

Volunteers: Hala Al-Hariri and Christie Solomon from Deloitte.

INJAZ Qatar hosted its fourth annual ‘Student Company National Competition’ that got five teams of student-led companies to present their business ventures before a panel of judges. Qatar’s winning team will then compete at the regional competition in Dubai in October against the winning teams from 13 MENA countries.

Recycling Team is an eco-friendly organisation that sells recycled frames and greeting cards.

Qatar Today speaks to the Recycling Team Company that was awarded the ‘Best Company of the Year’.

Challenges:

School: Amna Bint Wahab Secondary Independent School.

encouraging young Qataris to branch out on their own. Al-Mudehki, does not see it that way, and feels Qatarisation is a leverage, not an obstacle. “But the Qatari government is also supportive about the development of SMEs. The Qatar Labour Market Stratergy focuses on economic diversification with an emphasis on creating a dynamic private sector and increasing employment opportunities for Qataris. Setting up enterprises will create more jobs and this will eventually foster a culture of employing more Qataris. “Entrepreneurship and Qatarisation go hand in hand; with both, you’re contributing to society.” There is a surging interest in entrepreneurship among the youth in Qatar as seen

About the company:

Mission: To change people’s comprehension on the word ‘waste’ – what is considered a waste can be re-used.

Communicating one’s ideas to the team.

Motivation: Everybody talks about the environment, but we don’t see any real steps being taken. It was a good opportunity for us

“We need to think about what our economy really needs and how we could fill this gap

to do something instead of only watching.

Winning factors: Our team spirit, cooperation, responsibility and hard work.

Motto: We must become the changes we want to see.

Lessons learnt: Business is not only about money, but how one can contribute to the society. For a successful business, the right employees need to be employed at the right positions.

How did this programme help? We choose careers and build our future, but we don’t have an actual experience in any of it. A programme like INJAZ Qatar helps us gain experience of the real world.

in the Silatech Index 2010. While 75% had a favourable opinion of entrepreneurship, 50% had thought about starting their own business. Has INJAZ Qatar contributed to the visible change in mindset? “INJAZ Qatar doesn’t tell the youth what to do; we only guide them. For the economy to grow, the youth have to start thinking for themselves. “Entrepreneurship is in the spirit of a person, it doesn’t depend on age. A little push, hard work and guidance are all that’s needed for young, creative minds,” concludes Al-Mudehki follow

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t a g t his

FAME is the application, or suite of tools, that allow enterprises to use their visual or audio assets to enable analysts or security personnel to do more, faster, by using the visualisation of real-time or video stored data.

Co-creating a

safer environment As technology’s love affair with gaming and social networking continues unabated, it’s refreshing to note that there is still progress being made in making the world a safer place to live in.

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By Ro ry C oe n e’re definitely entering an age where a pragmatic approach to business ventures is a paradigm. We’re hearing more and more about eco-systems and co-creation, where inter-vendor ideation and expertise needs to be exercised. To cultivate a vision, it’s now common for corporations to join forces to realise the potential of a service or a product. One may be a jack of a trade, but cannot master them all. Harris Corporation – an international communications and information technology company – signed a joint-venture (JV) with regional Telecommunication Company Atlas Telecom last year to deliver mission critical systems and services to this region. Atlas has been an agent of Harris in this region for 30 years now, but this JV has rubber-stamped their commitment to produce the most effective and efficient specific software for the Middle-East. Vice President and Managing Director of Middle East Operations for Harris

t a g t his Corporation, Leon Shivamber, says: “Both parties bring financial investment and expertise to the venture. Atlas contributes a wealth of insight and expertise in the region, which is integral to the success of the venture; whereas Harris has a long history of developing best-in-class assured communications products, systems and services. “What we are trying to do is deliver mission critical networks and systems that require more localisation for them to be effective solutions,” he adds. “In general, the systems are so critical to the security of nations, because they contain sensitive information about assets and activity, that it is unlikely that this sort of trusted information could be handled without a trusted partner that has local or regional expertise.” FAME Specifically designed for intelligence applications by experts in the broadcasting field, the Harris Full-Motion Video Asset Management Engine (FAME) features an open platform to integrate third-party and custom applications for use by military analysts. “Location technology is critical to just about everything we do today, whether it’s planning, urban development, measuring environmental impact, understanding statistics about healthcare, accidents demographics, or a simple case of obtaining directions to a restaurant,” explains Shivamber. “It is particularly important to mission critical customers, when they think about planning missions, managing emergency situations or deploying assets. A simple example of this is being aware of the closest hospital to an accident, which has the capabilities to deal with a specific injury. The difference could be life or death for the injured party.” FAME is the application, or suite of tools, that allow enterprises to use their visual or audio assets to enable analysts or security personnel to do more, faster, by using the visualisation of real-time or video stored data. Common applications for visualisation technology include facial recognition, license plate recognition, security an event or handling crowd analysis. In essence, video tools link GIS (Geographic Information System) or location technology with video and audio, or other data, to increase the value of what is being collected, and expedite the decision making process about the issue at hand.

Public Safety Harris is unique in the sense that it preserves the highest quality of video, minimises the bandwidth required to get the data to the appropriate user, and the networks are deigned to transmit that data with the low-

Leon Shivamber, Vice President and Managing Director of Middle East Operations for Harris Corporation

“When an accident occurs, a sensor can indicate its specific location, determine the closest location of a responding vehicle, and develop the fastest response route to that location”

est latency so it reaches the right decision maker quickly, and in life and death scenarios, this cannot be under-estimated. “When an accident occurs, a sensor can indicate its specific location, determine the closest location of a responding vehicle, and develop the fastest response route to that

location,” says Shivamber. “Fused databases allow the first responder to be assisted by a medical specialist viewing the incident remotely to help assist with the diagnosis and advice the paramedics on the best course of action. This can help save lives without the need of a specialist on the scene. “For a fire-fighter, in the midst of a blaze, radios must work so the team can communicate efficiently. The difference between a radio that can clearly communicate in a loud, hot environment and one that cannot is a life and death situation.” Who can take advantage of this technology? “They are relevant to government agencies and other institutions that have mission critical needs – energy, health-care, news gathering and reporting,” says Shivamber. “However, we are aiming less at a type of industry and more at a type of problem. Some companies by nature have the type of problem that fits the mission critical definition. If it cannot fail, it is probably an appropriate space for us to be playing in.” Shivamber also points out that the technology isn’t exclusively for large enterprises, but can be useful for smaller businesses in Qatar who want to leverage their video and audio data so they can ultimately make better business decisions. “At its core, FAME is an architecture used for exploiting video and other data for analysis purposes. It makes it possible to merge video, audio and other data gathered by a variety of sensors and databases,” he says. “For example, a retailer might use video to track customers in a store to find the best locations for merchandising, or use virtual fences in the video imagery to identify when someone is encroaching into certain areas where valuable merchandise might be stolen. Fusing the video with store sales records could ensure that store inventories are accurate, and all these add up to a more profitable retail environment.” Shivamber concludes by saying that their technology is not mass produced but it is customised for the needs of each specific enterprise with the help of Atlas Telecoms. This is something which Harris would not be able to achieve on their own. “There is limited competition in this space, because of the deep technology expertise, intellectual property, and breath of skill required. Not many businesses can build this type of eco-system.” follow

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t a g t his

Online

Reputation

Management Brands are becoming more and more susceptible to abuse and inaccurate charges on the web, which cause untold damage to their reputation in the market. Are these threats irrepressible? What can be done to negate their influence?

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By Kapil Bhati a n June 17, 2010 @sandeepgeetla tweeted the below rumour which led to a slide in India’s ICICI Bank shares by 3.5% during the intraday trading hours. However, within hours the stock price recovered due to prompt action by the bank. @gulpanag ICICI committed 3k crore fraud in US. Sebi fined 1 billion dollar on ICICI bank as the news goes. ICICI bank is known to monitor 3000 to 5000 tweets per day via its Twitter handle @icici_care. The bank also monitors online conversations on Facebook, Blogs and other

social mediums, to help quell rumours. The bank responded to the tweet: @sandeepgeetla These r baseless rumours abt ICICI Bank, request u to not pay heed to them & also not spread them further.” ICICI then went ahead and filed a complaint against the person with the cyber crime cell of the police and market watchdog SEBI (Securities and Exchange Board of India). This is just an example of how a false rumour could damage your brand’s reputation online.

taG tHIS yoU CaN USE SomE oF tHE BEloW lIStEd toolS WHICH arE aVaIlaBlE oNlINE For FrEE:

WHat IS tHE ImPaCt oF SUCH oNlINE PoStS? oNE Bad CUStomEr ExPErIENCE CoUld WEll CoSt tHE BraNd maNy otHErS. do bRands monitoR these tweets/posts? it Could be CompetinG bRands spReadinG RumouRs. many oRGanisations have inteRnal CommuniCation depaRtments who monitoR pRint media foR news, but disCount online ConveRsations. what Can a bRand do to minimise the impaCt? haVe a coMMunications teaM to Monitor onLine conVersations and tackLe ruMours/ coMPLaints.

haVe a strong e-Marketing teaM that can create a PositiVe PercePtion oF your Brand onLine.

hire a Pr/Marketing agency that can Monitor the weB 24x7.

bloG monitoRinG

a negatiVe reView/ coMPLaint deMands sPeciaL attention. Post PuBLic resPonses to aPoLogise and try to win the custoMer Back. you can PriVateLy Message the reViewer to get detaiLed FeedBack.

BLOGPULSE is a BLog search engine with seVeraL coMPLeMentary tooLs such as trend search and conVersion tracker that anaLyses the data it coLLects.

twitteR monitoRinG MONITTER is a reaL-tiMe twitter Monitor For uP to three keywords at a tiMe.

otheR tools GOOGLE ALERTS your keyword search resuLts are sent Via e-MaiL For keyword Mentions in news, weB, BLogs, Video and grouPs categories.

But, how many brands in GCC monitor Social Media Conversations? The person may have had a bad experience with your brand; however there is a possibility that he or she was never heard. However, customers have found the web an effective way to share this experience with people. There are many groups on Facebook, where customers share their experiences with other potential bank customers, which do influence choices to an extent. Many people resort to share their personal experiences about anything on the web, as it is a feasible medium to voice their opinion. This makes many brands vulnerable to online abuse, as some of these opinions may be rumours, which further emphasises the need to have online monitoring tools. When Qtel was pulled up... Recently there have been a spate of campaigns initiated by Twitter users in Qatar. Most notably is when many Qtel users vented their anger against the poor customer service of the telecoms company on using the hashtag #qtelfail. Qtel (@QtelQatar) immediately responded to customer complains on Twitter to address issues. In fact, Qtel’s Execu-

DIGIMOND an onLine coMPetitiVe inteLLigence soLutions coMPany has Forecasted that By 2013, Four MiLLion sMes wiLL Be using an onLine rePutation PLatForM to Monitor their Brands. according to digiMond, 58% oF the executiVes BeLieVe that risk rePutation shouLd Be addressed By the ManageMent, howeVer onLy 15% oF theM Monitor it.

twitter@kaPiLkB

tive Director, Group Communications (@ adel_almutawa) was holding fort online, responding to the complaints. I personally witnessed a change in the customer service of Qtel when I tweeted them about my Internet issue. I was called back by a service representative to understand my issue and a technician was at my home within a few hours. Recently a regional magazine reported that Qatar Airways (@QatarAirways) was facing a series of complaints, supposedly from Qatari nationals, about its services on Twitter using hashtag #qatarairwaysfail. Negative comments about your brand can hang an albatross around your neck if they appear frequently in online searches. A positive comment about your brand by clients is traditionally the best source of new business; online forums and recently sites like Twitter and Facebook act as a powerful ‘word-of-mouth’. Having an online presence is a must, but tackling rumours/complaints is a challenge. Brands will have to bear the brunt of online conversations if they continue to ignore this medium. Online conversations will make or break customer relations in the future as more and more people seek feedback from peers on the web

By Kapil bhatia kaPiL Bhatia is an e-Business executiVe, working in the FinanciaL serVices industry. his work ranges across digitaL Marketing, e-channeLs and deVeLoPMent oF onLine strategies, with a sound inForMation technoLogy Base. he wiLL Be writing a reguLar technoLogy coLuMn For QaTaR ToDaY. he is an aVid BLogger @ httP://iweP.BLogsPot.coM.

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Qatar today 69

taG tHIS

nfc The nexT Big Thing iT WAsn’T so Long Ago When Your moBiLe’s soLe funcTion WAs To mAke And receiVe cALLs; noW iT’s Your PersonAL And finAnciAL orgAniZer As WeLL. jusT When You Think There’s noThing eLse iT cAn PossiBLY AchieVe, There’s more.

an you remember your first phone? Mine was a Nokia 1611. While certainly not the smallest of devices, I loved it and couldn’t wait to start making calls whenever I wanted, from wherever I was. Original handsets only had telephone calling capabilities. Internet came years later and even texting took a while to take off. Fifteen years later, and boy have things changed. We are all permanently connected, via a portable talk and text world, to just about anyone who wants to get hold of us whenever they want and wherever we are. Add to that, the advent of social networking and we can even live a virtual social life through our handsets via the likes of Facebook, Twitter, BBM and WhatsApp. So what's next?

The Mobile Handshake? But manufacturers and developers are constantly looking at new ways for us to use our mobiles. One of the most exciting and radical new pieces of software that we can expect to see hit the market in the next few months is Near Field Communication (NFC). NFC is the technology that will allow users to carry out transactions, data exchanges and connections by simply touching devices together. All it requires is an initiator (within the phone) and a target, such as a credit card terminal. The initiator generates a radio frequency (RF) field with a range of about four centimetres. The target picks up the RF field and receives the data it contains. You should be able to share, pair or transact from one NFC enabled device to another in a completely safe and secure way. Users will have the ability to share files, such as photos or videos; read NFC enabled tags at, for example, a museum or an art gallery to see more about a particular piece; or even make a credit card payment just with one simple touch. And this is just a start. Once the technology has been fully developed, it will

change the way we use social networking, will make connecting to Bluetooth and WiFi easier, and speed up personal and business E-commerce. Imagine being able give your CV or business card to someone, connect to the WiFi in Starbucks or pay for your groceries in the supermarket just by simply tapping your mobile device against another! Analysts are already predicting that sales of NFC enabled devices will top $75 billion by 2013 with one in five mobile phones worldwide using the technology. Predictions also indicate that the value of NFC transactions alone will reach $50 billion by 2014 and will eventually begin to slowly replace the humble credit card. NFC devices are just around the corner, with manufacturers such as Nokia and Samsung planning to bring them to market as early as October or November this year which will bring about another evolution of the mobile phone. And while the lightweight, slim-line designs of today’s mobile phones don’t make them an obvious defense weapon, you can always download ShakeAlert, an app that sends out a screeching siren and a flashing light once activated!

@starLinkworLd

By Rob KeRRy the writer is Purchasing and Logistics director at starLink.

70 Qatar today

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GrEEN SCENE

gPs rides high WiTh suPPorT The Green proGraMMe for SchoolS (GpS) – an iniTiaTive of MSheireb properTieS in aSSociaTion wiTh QaTar ToDaY MaGaZine – iS GaininG MoMenTuM wiTh new orGaniSaTionS ShowinG SupporT for The Green cauSe.

to Know moRe about Gps,

contact 44550983

72 Qatar today

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ending major support to the programme is the Supreme Education Council (SEC) who will provide assistance in identifying 30 of the most appropriate and potential local and international schools to be part of the programme and facilitate registrations with them. Meanwhile, iloveqatar.net (ILQ) has been selected as one of the media partners. While the programme has a student-based target audience, ILQ being the foremost digital media experts in the country, will provide the ideal platform to reach out to the wider community through daily

tweets, blogs and posts on various social media platforms. Through this tie-up, the community will soon be engaged in a series of exciting contests through the social media. In addition, GPS has invited Mission20, a youth-centric body, as one of its activation partners in charge of strategically placing pledge-boards, suggestion boxes and creative stickers inside the campuses to constantly remind and encourage students to utilise resources carefully. “We are proud to welcome new committed partners to join the GPS as their visit ouR faCebooK paGe:

www.FaceBook.coM/gPsqatar

GREEN SCENE

Partners’ speak “At SEC, we have always believed in incorporating best-practices in the education system, and in every child through education. We are pleased to partner with a noble initiative such as GPS to further promote eco-friendly practices in schools. We believe that children can influence the community and family best and by educating them on living greener, we are actually reaching out to the entire community. We are paving the way for a more empowered and engaged generation, that will treat this planet with greater care.” Aisha Al-Kuwari: SEC, Communications Manager,

“We’re proud of the fact that an initiative like the GPS has been put together by some very caring companies. One of ILQ’s goals is to make Qatar a better place to live and promoting the GPS means that we can help educate future generations about the importance of environmental care.”

Ravi Raman, Vice President, Oryx Advertising Company W.L.L with Jawaher Al-Khuzaei , Communications Manager of Msheireb Properties at the signing ceremony between SEC and GPS.

Khalifa Saleh Haroon: Founder of ILQ,

“We believe that educating youth about the environmental issues is important to have a better tomorrow. We are happy to be involved in this prestigious long-term campaign that has been supported by various established organisations in Qatar. This campaign will bring together the youth of the nation and give them an opportunity to work for the community. We will give our best for the success of the campaign.” Amanat Solanki: Mission20 and Kainat Foundation, Founder Chairman,

insight and support will be profoundly helpful,” said Jawaher Al-Khuzaei, Communications Manager, Msheireb Properties. “This new eco-schools initiative forms part of our extensive corporate social responsibility programme and underlines the very core of Msheireb Properties’ belief in sustainability and the environment. By encouraging the next generation to commit to becoming fully eco-aware, we are investing in the future of our nation and our urban development.” Launched on June 5, 2011, GPS is the largest and most engaging environmental initiative for students in Qatar. This unique programme aims to Reach, Inspire and Reward students and schools by meaningfully engaging the youth and inculcating in them the importance of building green equity. For a year, the 30 schools will be carefully monitored by GPS, involving officials from

Qatar Green Building Council, Msheireb Properties, Qatar Today Magazine and other technical members. The school which reduces water and electricity consumption the most will be awarded the ‘Eco School of the Year’. The entire programme will be operated by Msheireb Properties and Oryx Advertising Company, publishers of Qatar Today, Qatar Al Yom, Woman Today, GLAM and CAMPUS. GPS is one of the many CSR community outreach initiatives that Msheireb Properties has rolled out since its launch in March 2009. From the company’s first initiative ‘Paint the Doha of Our Dreams’ competition to its year-long initiative ‘Future Affiliate Club’ and the Msheireb Enrichment Centre on the Corniche, they continue to deliver commitment towards knowledge sharing within the community To know more about the programme,

visit the GPS page at http://www. facebook.com/GPSQatar.

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braking news

ONLINE REPUTATION MANAGEMENT

BMW Leads the Way in Sustainable Mobility

or the BMW Group, one definition of "premium" is leadership in the development of sustainable mobility. The manufacturer that offers the most efficient resource-friendly production and the most visionary solutions for eco-friendly individual mobility will have the edge. BMW Group understood this change early on and has been able to act accordingly. One of the main environmental aspects it focuses on is reducing fuel consumption and CO₂ emissions. In addition, the careful use of resources has always been a strong element in BMW’s corporate philosophy - it is a concept that is lived and implemented not only in its cars but also in the way that they are built. Efficient Dynamics Short-term, BMW introduce engine-related technology solutions that have been integrated on all models since 2007. For the medium term, the BMW ActiveHybrid X6 and the BMW ActiveHybrid 7 were launched last year and integrate the latest electric and petrol engine technologies to further reduce fuel consumption and emissions. BMW ActiveHybrid X6 Looking in greater detail at the BMW ActiveHybrid X6, the model is the most pow-

erful hybrid vehicle in the world. Through its combination of a V8 gasoline engine and electric drive, the BMW ActiveHybrid X6 offers a significant increase in dynamic performance together with a reduction of fuel consumption and emissions by approximately 20%. BMW ActiveHybrid 7 The BMW ActiveHybrid technology featured in the 7 Series luxury saloon is a mild hybrid offering significantly more power and, at the same time, more than 15% low-

er fuel consumption and emissions than the standard BMW 750Li without hybrid technology. BMW i3 and BMW i8 From 2013, the BMW i3 and BMW i8 from the new BMW i sub-brand will be launched. The BMW i3 will be the BMW Group’s first all-electric car designed for use in major cities, while the BMW i8 is an extremely fuel-efficient plug-in high-performance sports car with the fuel consumption and emissions of a small vehicle. Both of these cars will be produced with a passenger cell made from carbon - a first in the automotive industry. Sustainable Production The BMW Group has anchored sustainability in its production process through a “Clean Production” philosophy. As part of this philosophy, the target is to reduce resource consumption of energy, water, sewage and solvent emission levels per vehicle by 30% by 2012 compared to 2006. The environmental efficiency figure for 2010 improved by 6% during the period under report and the improvement since 2006 is 26%, surpassing the original target of 20% for 2010.

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b r a k ing news

Come “C” For Yourself

ollowing a fascinating revelation at Katara, Mercedes-Benz' latest C-Class is now at Villaggio Mall for fans to get up close and personal with a range of mind-blowing features, unparalleled looks and first-class technology. The new generation C-Class now includes a 3-year – or what is equivalent to 60,000 kms – free service package. A special pavilion facing the Mercedes-Benz boutique has been built to showcase the captivating and powerful 2012 model. Khaled Shaaban, General Manager of NBK Automobiles, said: “The C-Class is captivating and confident in appearance with a powerful masculine exterior. Incorporating outstanding technology, premium features, design and materials, it is a new generation with its own rules. We’re sure that everybody will enjoy a wonderful experience at our pavilion at Villaggio Mall as they take a closer look at what makes the C-Class truly unique.”

Mannai Launches Special Edition Sierra

n June 2011 Mannai Automotive Group, the exclusive franchise for GMC vehicles in Qatar, unveiled the customised Special Edition GMC Sierra. The 8-cylinder, 5.3 litre special edition pick up truck comes with 6-speed automatic transmission, fully equipped with MCM package, custom stripe, lift kit, dual exhaust with stainless steel tips, and many other luxurious options and accessories. “We are happy to unveil the new MCM Package, which offers unmatched choice for customers looking for both functionality and look. At Mannai there are a lot more options available, starting with the basic work truck and working up to a very luxurious one. The GMC Sierra will always be best known for combining a quiet ride with a very strong performance - definitely one of the most versatile trucks on road,” said Mr Mohammed Helmy, Group General Manager of Mannai Automotive Group.

Big Excitement About Mini Coupe

riving enthusiasts across the Middle East can look forward to a level of agility unmatched in the small car segment, with the launch of the new MINI Coupé, a model specifically geared to maximising driving fun. This October, MINI’s newest addition will give the small car segment further variety with the launch of the first two-seater in the brand’s diverse model range. The MINI Coupé sees the brand’s sporting DNA transferred into a cuttingedge vehicle concept with a new interpretation of the supercompact sports car class. The MINI Coupé can be ordered with powerful petrol engines with outputs ranging from the 122 hp of the MINI Cooper Coupé, all the way up to the MINI John Cooper Works Coupé, a thoroughbred beast producing 211 hp. The new MINI Coupé will be available for sale through BMW Group importers across the Middle East from October 2011.

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b r a k ing news

GMC Ranks Among Industry’s Top 10 Brands

MC moved up 15 ranking positions to 10th overall in the 2011 J.D. Power Initial Quality Study (IQS). It attributes its performance to new quality improvements across the portfolio and a strong performance by Sierra in the full-size pickup segment. The GMC Yukon XL was placed second in the large crossover SUV segment, exceeding the segment average score by 7%.“We believe GMC’s initial quality performance and

Yukon’s placement in its segment demonstrate GMC’s commitment to deliver highquality vehicles that command respect,” said Luay Al Shurafa, Regional Brand Manager. “We’re celebrating these accomplishments on the run, as we continue to improve quality across our portfolio and exceed the expectations of our GMC customers.” The 2011 IQS is based on responses from more than 73,000 purchasers and lessees of new 2011 model-year vehicles surveyed after 90 days of ownership. The study includes

a 228-question survey designed to provide manufacturers with information they can use to quickly identify problems and drive improvement. In June, GMC delivered its second best sales month in 32 months on strong demand for crossovers, SUVs and full size pick ups. Sales in the Middle East witnessed an increase of 39% in June 2011 compared to June 2010, and their year-to-date sales in the Middle East witnessed an increase of 15% compared to the same period last year.

Centenary Year For The Spirit of Ecstasy

olls-Royce celebrated the centenary of the Spirit of Ecstasy as 100 Rolls-Royce motor cars, from 1911 until the present day, were displayed in the courtyard at Goodwood, England – the home of the super luxury car manufacturer. The cars were presented by members

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of the Rolls-Royce Enthusiasts’ Club, who joined VIPs, media representatives and neighbours from the three local parishes for a day of celebrations. Over 500 guests enjoyed seminars on the production of the Spirit of Ecstasy and Bespoke Design; an exhibition by celebrated photographer Rankin inspired by the Spirit of Ecstasy, a manufacturing plant

walkabout; a picnic lunch; and English afternoon tea. Torsten Moller-Olvos, Chief Executive of Rolls-Royce Motor Cars, said: “We were delighted to welcome our guests, and particularly our friends from the Rolls-Royce Enthusiasts’ Club and their magnificent motor cars, to the home of Rolls-Royce for our historic celebratory day.”

MARKET WATCH

IRISH GOLF ON TOP

CGC Goes Global

onsolidated Gulf Co (CGC) has won the first ever technology project in India from Oil and Natural Gas Corporation Ltd. (ONGC), Asia’s largest oil exploration and production company. This is a significant breakthrough for the Qatari technology giant, as it enables CGC

to enter the international market, which was a calculated decision made by them this year. After establishing its firm presence in Qatar across technology, engineering and mobility domains, this year CGC decided to go global to uncover their potential and prove its capabilities overseas. Anil Mahajan, COO, CGC, had this to

say about the new venture: “Working with ONGC would be a stepping stone for CGC, to be introduced into the Indian market and work with other public and private sector companies. We have made a timely entry into the Indian market as India is developing fast with many large industrial and infrastructure projects in store.”

The Face of Farfasha

amas, the Middle East’s leading international jewellery and watch retailer, renewed its contract with Lebanese singer Nancy Ajram the brand ambassador for its popular jewellery brand Farfasha. Anan Fakhreddin, the CEO of Damas In-

Anan Fakhreddin with Nancy Ajram Damas CEO

QatarToday Today 7878 Qatar

a u ga u gs tu s2t0 1210 1 1

ternational Limited, said: “We are extremely pleased to announce the return of Nancy Ajram as the face of Farfasha. Ajram is someone that consumers connect to very well, as she embodies the core attributes of this fast-growing brand – youthfulness, vibrancy and success. Her popular face will further energise Far-

fasha and position it as an iconic brand internationally.” The Farfasha brand launched in 2006 was the first major jewellery collection in the Middle East to incorporate a wide variety of colours and shapes in the jewellery design, and went on to become Damas’ most popular brand.

markEt WatCH

lG laUNCHESPENtoUCH

G Electronics (LG) in Qatar launched its new Pentouch TV, an innovative plasma set that offers all the advantages of PCs and the internet, while letting viewers control content directly on the screen using a special pen. The Pentouch TV offers a more sophisticated slim design at a lower price than conventional units. “The Pentouch TV brings all the excitement of touch displays, computers and the internet to the world of TV, with functions and programs that are great fun and educational. Families, in particular, will have more to enjoy on our Pentouch TV sets.” said H.S. Paik, President of LG Electronics, Gulf FZE. The Pentouch TV uses a protective scratch-free glass screen and an eye-catching four-leg stand that designed to ensure the TV doesn’t tip over when using the Pentouch feature. LG also launched its range of Cinema 3D TVs and SmartTVs that incorporate the very latest technology, in Qatar last month. Watching television will no longer be a passive experience as viewers will never be short of top quality content with an advanced 2D to 3D conversion feature, and smart features included in LG’s range of SmartTVs. “LG is opening a new chapter in the quality of home entertainment by bringing CINEMA 3D TV to consumers in the region. It is the absolute pinnacle of 3D TV entertainment and incorporates the latest breakthrough technologies from LG,” said Paik. “The end result is a superior product that is sure to place LG at the very forefront of markets around the world.”

FIFty oNE EaSt PICkS lUCky FIVE

fifty one east showRoom

ifty One East, the premium retail chain in Qatar, ended its sizzling annual Summer Promotion with five lucky winners. The top prize was won by T Saleem, who hit the jackpot with a brand new Porsche Boxster 2012. The four 60” Sony 3D TV sets were won by AR Sanaullah, Ajay Nair, Jan Vincent Mejia and Amira Mohd. Rachi. Maha Sarkis, Retail Operations Manager at Fifty One East, said: “Our Fifty One East Summer promotion has scaled new heights this year with five lucky winners walking away with the most amazing prizes ever seen. Our seasonal promotional campaigns are how we like to reward our customers’ loyalty, and delight and surprise them with exciting offers and wonderful prizes.”

Manager with winner oF the Porsche

august 2011

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MARK E T W AT C H

Lagoona: The New Lifestyle

agoona, a Darwish Malls development, is set to welcome its first visitors beginning August 2011. Lagoona is Qatar’s newest retail avenue offering an exciting assortment of lifestyle brands. Taking the elements of life and senses as its muse, and nestled in the heart of Doha’s prestigious West Bay district, Lagoona will bring home a unique mix of new international and regional brand-names. Chairman of Darwish Holding Bader Abdullah Al-Darwish said: “A labour of love for Darwish Holding, Lagoona is really the future which we envisioned for Qatar’s retail industry. When the idea of Lagoona first came to light, we made sure to craft a shopping concept which will bring home an attractive fusion of retail and lifestyle, combined with the elements that make this development truly unique, given its fabulous natural surroundings. When we first envisioned Lagoona, we wanted it to be a retail experience beyond the ordinary.”

SAMSUNG GALAXY S2 HAS BEEN LAUNCHED

tarlink and Qtel have started selling the Samsung Galaxy S2 with software that will allow for the use of Arabic characters. The Galaxy S2 is an 8.49mm ultra-thin phone featuring a 4.3” screen using bright Super AMOLED Plus technology. The phone, which is powered by a 1.2GHz dual -core processor, features Android 2.3, which promises faster speeds and power management for applications to extend battery life. Commenting on the deal, Keki Ashburner, Starlink’s CEO, said: “Samsung’s latest smart phone has proved extremely popular in other markets around the world and is all set to be one of the biggest sellers here in Qatar too. “This is a top-of-the-range handset with some outstanding features including a superb touchscreen, HD video and enhanced

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Android OS providing immediate access to endless great apps. It’s a beautifully styled, powerful little phone that will really hold its own against some of its more established competitors. We fully expect this phone to fly off the shelves and we are delighted to be able to offer this phone specifically for our Arabic-speaking customers,” Ashburner concluded. The 8-megapixel camera offers a number of image enhancing capabilities such as autofocus, LED flash, face and smile detection and touch-concentrate, which results in still-images of high quality. The camera also provides the ability to shoot video footage in HD. A Reader’s Hub will allow access to books, magazines and newspapers, while the phone also provides Adobe Flash player capabilities, which translates to easy viewing of YouTube videos.

MARK E T W AT C H

Back to the Future at

Nokia

The General Manager of Nokia for the South Gulf Region, Tom Farrell, feels we’re going ‘back to the future’ in terms of technological innovation. He was in Doha last month to share his views on the market and Nokia’s position in it.

“It’s

like we’re back in 1989 again,” said Farrell. “We’re on the brink of a new era, in terms of growth and opportunities in the sector. I would summarise it as no longer being device versus device, or company versus company; it’s more about raw ecosystems now, and this has fundamentally changed business models, i.e. how we should develop products and the skills we need.” It takes this ‘ecosystem’ to develop a worthy product now, of course. One company cannot dream of developing a marketable smart phone on their own; they need to find alliances and partners who share the same vision. Partnership with Microsoft “Co-creation - such as our partnership with Microsoft - is very much tied to the aspect of change and disruption which we face today at Nokia,” Farrell continued. “The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, e-commerce, advertising, search, social applications, location-based services, unified communications and many other things. “Our competitors aren’t taking our market share with devices; they are taking our market share with an entire ecosystem. And the competitive pressure is intensifying all the time. In such a scenario, one needs to decide how to build, catalyse or join an ecosystem. As markets and industries converge at an accelerating rate, no one company will have sufficient financial resource ideas and human talent to ‘do it all’. At Nokia we recognise and acknowledge this new reality and, based on our pragmatic challenger mindset, we have decided to join forces with Microsoft.” Microsoft and Nokia complement their primary assets to enable a unique partnership. Nokia provide mapping, navigation and GPS services, whilst also bringing forth their expertise in hardware design, imaging and aesthetics. Meanwhile, Microsoft deliver their

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Bing search engine and their experience as the world’s leading software developer. N9 Smart Phone Nokia recently announced their new N9, which Farrell was proclaiming as “the best way to design and use a phone. It’s so smart, it doesn’t have any buttons”. “We’re focusing our efforts on the materials – the look, the feel, the touch and the hardware – and the whole human aspect of technology,” added Farrell. “The home key is replaced by a simple swipe of the screen. We figured we’d prioritise the user experience. The three home views are designed to give fast access to the most important things people do with a phone: using apps, staying up-to-date with notifications (e-mails, texts, social networking) and switching between activities.” The industrial design of the N9 is an example of extreme product-making and craft. The body is precision-machined from a single piece of polycarbonate and flows seamlessly into beautifully curved glass. The laminated deep black display means that the user interface just floats on the surface of the product. Near Field Communication Near Field Communication (NFC) allows N9 users to share images and videos with each other simply by touching the devices together. It removes the need to ‘send’ such content by Bluetooth, and connects users simply and quickly through the NFC microchip inside the device. NFC also allows the N9 to connect instantly with other accessories like the new NFC-enabled Nokia Play 360° wireless music speaker. Connect once and great surround sound music can happen with just a tap. Other examples could be the sharing of information, electronic business cards and documents between N9 users follow

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SPort FIlE

irish goLf on ToP of The WorLd. aS IrISH GolF rIdES oN tHIS UNPrECEdENtEd WaVE oF SUCCESS, rory CoEN WoNdErS IF tHErE’S morE to ComE From tHE QUartEt WHo HaVE BroUGHt SIx maJor CHamPIoNSHIPS to IrElaNd IN JUSt FoUr yEarS.

daRRen ClaRKe BecaMe the Fourth irishMan to win a goLFing MaJor in FiVe years when he won the recent oPen chaMPionshiP.

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am sure the irony isn’t lost on the marketing team at Three, a high-speed broadband company who have sponsored the Irish Open golf tournament for the last couple of years; in the year they decide to terminate their association with the tournament, Northern Ireland produces its third Major winner in the space of 13 months. This comes after Padraig Harrington claimed a triple in 2007 and 2008 himself. Ireland will now be gunning for three-in-a-row in Atlanta this month. In 1947, Fred Daly became the first and only Irishman to win a golfing Major, until Harrington won his first at Carnoustie. Since that win, Irishmen have claimed five

S P ORT F I L E tions on the European Tour until 2018 and with the USPGA until 2016, and includes all the Majors and World Golf Championships. At 42, he’ll have the opportunity to close out his career on a high, if he chooses to focus on golf for the next five years. It’s not uncommon for golfers to find their true-form at the tail-end of their careers, so we may still see the best of him yet. His ball-striking and control were incredible to watch last month and had his short-range putting been of the same standard as the rest of his game, he could have enjoyed as relaxing a final round as his compatriot did at Congressional; he missed some very makeable birdie putts over the weekend. That said, he was gifted with a lot of luck as well and his sheepish grins told their own story a number of times

of the 16 majors on offer – same as the US – and will have a real chance of another at the USPGA this month. So the 60 year famine has ended with this feast, and they’re not likely to want to leave the table just yet either. Rory McIlroy The sky seems to be the only limit for the youngster, whose game is very well suited to where three of the four Majors are held annually. He said he wasn’t going to abstractly change his game for the sake of one week every year – after his disappointing performance at Sandwich – and such was his dominating form at Augusta (Back-9 on Sunday aside) and Congressional this year, he should go from strength to strength in US-based competitions. You would expect he’ll need more experience to be able to handle Open conditions. It was Darren Clarke’s 20th attempt after-all. Graeme McDowell Interestingly, it was McDowell’s win at Pebble Beach last year which started this run of Major wins by non-Americans. Since his win, two South Africans and a German have also won their first titles; all members of the European Tour. They seem to have gained a sense of confidence from each other. It took 'G-Mac' a while to come down off his incredible high, but McIlroy’s win – and now Clarke’s – will place his own achievement in a fresh perspective. He’ll be aware that many of the guys on Tour have one Major to their name, but only a handful of the current generation have a brace. He’s still relatively young at 31 and has another 10 good years ahead of him. His form in the States this year has been patchy, at best. He was T6 at the Honda Classic in March and T14 at the US Open in June. He easily made the cut at the Open last month, but a devastating third round saw him fall right out of contention. Padraig Harrington Harrington has historically come into form in the latter half of the season, so it wouldn’t be a surprise to see him contending in Atlanta; he won the Open and USPGA in 2008 and had an incredible late-season surge in 2009, where he was in contention at Firestone, the USPGA and in the four Fed-Ex Cup Play-offs, but ultimately ended the season without a win. He has three top 10s in the States so far this year, but the consistency which bore him those three Majors has never quite returned. Still, he’s just 39 and has a wealth of experience, so you’d expect

Graeme McDowell 2010 US Open Champion.

Padraig Harrington 2007, 2008 Open & 2008 USPGA Champion.

him to be contending for a few more years at least. Darren Clarke Clarke came out of nowhere to win the Open last month, make no bones about it. Everyone thought his best days were well and truly gone. He won the Iberdrola Open in May, which was possibly some indication of form, but that was against a very ordinary field. This win gives him exemp-

Golf in August Choosing the winner of a golf tournament is a lottery, such is the level of competition among the leading players. We seem to have a new winner every weekend; a new champion to proclaim as the next ‘big thing’ in the sport. Golf has a new aspect since Woods’ dominance subsided; dozens of players now feel they have a chance of winning every Thursday morning. So it’s a crying shame the season-ending Fed-Ex Cup Play-offs don’t include all the leading players. They are an exciting and novel way to conclude the PGA Tour season, but unfortunately we won’t see the likes of Lee Westwood, Martin Kaymer or McIlroy, because they choose not to be PGA Tour ‘members’. It’s likely they’re making a stand against the expectations the PGA Tour have of them. The WGC-Bridgestone Invitational begins August 4 at Firestone CC, Ohio, followed by the USPGA in Georgia. The Barclays begins on August 25 in New Jersey, so if they kept qualifying through the play-off events until East Lake on September 25, they’d be in the United States for almost two months. It’s easy to understand their point; they play so much golf in the United States as is, that these play-offs seem too much to bear. But by being the world’s top golfers, do they not owe the sport and its supporters their presence and their passion. Surely while they are at the top of their game, they should be maximizing their game-time against the best? follow

www.twitter.com/rorycoen

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SPORTING RICH 88

doha diary

Summer festival at Hyatt Plaza

his summer, Hyatt Plaza has turned into a perfect family destination with the launch of its 14-day Summer Festival. The launch had popular cartoon characters SpongeBob, Barney, the Smurfs and Lulu Caty entertain kids and parents alike with a variety of activities including play, dances and interactive games.

The evening concluded with a colourful array of fireworks. Addressing the gathering, Hyatt Plaza, General Manager Feroz Moideen said: “We believe that the Hyatt Plaza management team has created yet another benchmark by organising this exciting, fun-filled summer festival. We are honoured and delighted that our social obligation to society is well

received, as seen by the huge turnout in our mall.” Meanwhile, Marketing Consultant S.M. Naseem said: “As a responsible family shopping mall in Qatar, we believe it is our responsibility to provide society with safe and exciting programmes. The Summer Festival is our attempt to make summer in Qatar delightful.”

JCC launches new game show

l Jazeera Children’s Channel (JCC) has introduced a new programme series called Bait Al Eila (Family Trivia) to enhance interaction between family members. The interactive game show with two competing families will have three segments of games. The first round, ‘Oasis of knowledge’, includes general knowledge questions that are to be answered by a chosen family member, while in the second round, ‘Hand in hand’, comprises the fam-

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ily to work as a team to perform different chores. The final segment, ‘Family ties’, involves contestants writing down answers to questions about a particular family member. These answers would then be compared with the answer of the member in question. “This programme is directed for children to engage with their families for recreation and fun. We plan to produce at least eight seasons with 45 episodes for each season,” said Ziad Dandan, Producer of Bait Al Eila. “The programme is open to all families in

Qatar and children aged between nine and 15 will be selected.” JCC General Manager Mahmoud Bounab said: “This is the first family-oriented programme by JCC that allows children to spend time with other family members on air. Families today are isolated in their own ways, so we focus on awareness to build strong family ties.” Contestants will receive prizes ranging from video cameras, electronic games, and home theatre systems. The broadcast will commence on September 9, 2011.

D o h a Di a r y

CMUQ presents robotics expertise

t the 7th World Conference of Science Journalists (WCSJ2011), students from the Botball Educational Robotics Programme of Carnegie Mellon University in Qatar (CMUQ) showcased their expertise in the field of robotics and competence in building autonomous robots that are programmed to perform specific tasks - from building towers to transporting ping pong balls. “CMU is recognised for being a worldclass research institute whose programmes emphasise innovation and critical thinking, so we thought this would be a great opportunity for us as it brings together science writers from around the world to discuss issues and topics related to various fields of science, and showcase one of CMUQ’s most notable programmes - robotics,” said

Bruce Volstad, Manager of Pre-College Programmes at CMUQ. “The robotics programme is a great tool to teach students

HSBC invests in local talent

innovation while integrating technology, math, science and engineering, and most importantly, problem-solving,” he added.

Summer Camp graduation ceremony at QSTP

Abdul Hakeem Mostafawi CEO of HSBC Qatar interacts with students.

s part of the HSBC Scholarship Programme, eighteen participating students had the opportunity to engage in a discussion with Abdul Hakeem Mostafawi, CEO, HSBC Qatar, regarding their progress and development throughout the programme. “It is encouraging and exciting to meet with these students, knowing that the pipeline of talent for HSBC, as well as the country, is very strong. I can look forward to a skilled workforce for the future and many of these students are already showing great potential,” said Mostafawi. “HSBC has a global commitment to in-

vestment in education, ensuring that we support education across the world to help give young people hope, a positive attitude, opportunities for success and, above all, a better future. This commitment extends to supporting accomplished students in gaining work experience to develop and contribute to a real work environment within the banking sector,” he added. HSBC Qatar is actively enforcing the Qatarisation strategy in line with the Qatar Vision 2030 and implemented by the Ministry of Labour. HSBC’s Scholarship Programme provides students with financial support and internship opportunities to establish a long-term relationship with the Bank.

atar Science & Technology Park (QSTP) held a celebratory graduation for the first batch of participants in the Future Scientists Summer Camp 2011; in collaboration with Qatar Scientific Club (QSC.) The two-week summer camp had more than 160 children participating in a series of workshops and interactive learning experiences linked to science. Several contests were designed to enhance the engaging learning experiences and bring in an element of fun and competition to the camp. QSC Secretary-General Rashid AlIbrahim said:“Fostering a love for science was one of the aims of the camp and QSC is very pleased with the response we have seen. This graduation ceremony is partly to encourage the children and partly to recognise and show them that we value their achievements. We believe that the summer camp has inspired many children and some of them will one day enter the field of science as professionals.”

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SPORTING RICH

a tournaMent doesn’t Just cuLMinate with the winners LiFting the troPhy, But aLso the PLuMP Paychecks they waLk hoMe with. we List the toP 10 richest sPorting eVents Based on the PriZe Money they oFFer, and FootBaLL takes the First three sPots.

r ComPEtItIoN 1

uefa Champions leaGue

uefa euRopean football Championship

fifa woRld Cup

PrIzE moNEy $43.4 (qr158)

orIGIN

tHE GamE FootBaLL

initiaLLy, ueFa were keen on estaBLishing a nationaL teaM knock-out coMPetition. But it was the French sPorts daiLy L’equiPe, and their then-editor gaBrieL hanot, who stressed on haVing the current euroPean-wide cLuB coMPetition ForMat instead. CURRENT CHAMPIONS: BarceLona oF sPain (2011)

FootBaLL

unLike the ueFa chaMPions League, this tournaMent Features onLy euroPean nationaL teaMs, goVerned By ueFa, Vying For the titLe. Prior to entering the tournaMent, aLL teaMs other than the host nation(s) - who quaLiFy autoMaticaLLy - coMPete in a quaLiFying Process. CURRENT CHAMPIONS: sPain (2008)

FootBaLL

the FiFa worLd cuP is onLy a tad Lower in the PriZe Money it oFFers, But it undouBtedLy reMains the Most wideLy Viewed tournaMent. it’s contested By the senior Men’s nationaL teaMs FroM the 208 MeMBer associations oF FiFa. the PreLiMinary coMPetition - which takes PLace oVer the Preceding three years - deterMines which teaMs quaLiFy For the tournaMent together with the host nation(s), which again quaLiFy autoMaticaLLy. qatar hosts the cuP in 2022. CURRENT CHAMPIONS: sPain (2010)

1955

MiLLion

$33 (qr120)

1960

MiLLion

$31 (qr113)

1930

MiLLion

goLF

fed-eX Cup

$10 (qr36)

2007

MiLLion

FootBaLL

uefa euRopa leaGue

$9 (qr33)

1971

MiLLion

Poker

woRld seRies of poKeR

the supeR bowl

the woRld seRies

$8.9 (qr32)

1970

MiLLion

$8.5 (qr31)

$6 (qr22)

iCC CRiCKet woRld Cup

$4 (qr15)

the worLd series is an annuaL chaMPionshiP series organised By MaJor League BaseBaLL, which Faces oFF the winners oF the aMerican League and the nationaL League. teaMs Must PLay 162 reguLar season gaMes, as weLL two PLay-oFF series to reach the worLd series. CURRENT CHAMPIONS: the san Francisco giants (2010)

horse racing

duBai worLd cuP night is a series oF six thoroughBred horse races heLd annuaLLy at Meydan racecourse in duBai. thoroughBreds are a ParticuLar Breed oF horses known For their agiLity, sPeed and sPirit. the races are organised By the oFFice oF hh sheikh MohaMMed Bin rashid aL-MaktouM, Vice President and PriMe Minister oF the uae, and ruLer oF duBai. CURRENT CHAMPIONS: JaPanese horse naMed Victoire Pisa with Jockey Mirco diMuro (2011)

cricket

the icc cricket worLd cuP is the PreMier internationaL chaMPionshiP oF Men’s one day internationaL (odi) cricket. the worLd cuP is contested By aLL ten test and odi-PLaying nations with other nations that quaLiFy through a series oF quaLiFiers. CURRENT CHAMPIONS: india (2011)

1903

1996

1975

this worLd-renowned series oF Poker tournaMents - heLd annuaLLy in Las Vegas - inVites thousands oF the Best Poker PLayers FroM around the worLd. ParticiPants need to Be 21 though, which is the LegaL age For gaMBLing. in addition to the cash PriZe, the winner goes hoMe with a BraceLet which has BecoMe the Most coVeted award a Poker PLayer can win. CURRENT CHAMPION: canadian Jonathan duhaMeL (2010)

BaseBaLL

1967

MiLLion

aFter the ueFa chaMPions League, the euroPa League is the next Most Prestigious euroPean cLuB FootBaLL coMPetition organised By ueFa For eLigiBLe euroPean FootBaLL cLuBs. cLuBs quaLiFy For the annuaL coMPetition Based on their PerForMance in their nationaL Leagues and cuP coMPetitions. CURRENT CHAMPIONS: Fc Porto oF PortugaL (2011)

the suPer BowL is the chaMPionshiP gaMe oF the nationaL FootBaLL League (nFL) coMPrising 32 teaMs PLaying the highest LeVeL oF ProFessionaL aMerican FootBaLL in the us. so huge is the craZe For the gaMe that the day on which the suPer BowL is PLayed is now considered an aMerican nationaL hoLiday caLLed ‘suPer BowL sunday’. CURRENT CHAMPIONS: the green Bay Packers (2011)

MiLLion

the dubai woRld Cup niGht

the Fed-ex cuP is a year-Long Men’s ProFessionaL goLF coMPetition in which PLayers accuMuLate Points throughout the Pga tour season (January - august) and carry theM into the season ending “PLay-oFFs”, which uLtiMateLy cuLMinate in the toP 30 PLayers Fighting it out at the season-ending tour chaMPionshiP For the Loot. CURRENT CHAMPION: JiM Furyk (2010)

aMerican FootBaLL

MiLLion

$7.9 (qr29)

BrIEF SUmmary

source: www.ForBes.coM