inside this issue FEBRUARY 2014 / VOL. 40/ ISSUE 2
COVER STORY
34 THE GREEN ROOM
The hospitality industry can hardly be considered an incredibly sustainable one. With enormous energy costs going into such amenities as air conditioning, food preparation and waste disposal for hundreds of guests at a time, Doha’s hotels have a hard time staying green. But that doesn’t mean they’re not trying. Qatar Today checks in with this environmental-unfriendly sector.
18 THE NEW RULES OF THE GAME
Will the US Government’s ongoing move to reduce the Federal Reserve’s bond-buying programme by QR36.4 billion ($10 billion), from January throughout 2014, stunt the growth of emerging markets like Qatar and the UAE?
30 DESTINY ON A DEADLINE
The Head of PwC’s Global Cities and Local Government Network, Hazem Galal, talks about how mega events, if done well, can act as a catalyst for development of the host city and transformation of the lives of its citizens.
56 BEAT THE RETIREMENT BLUES
Putting more pressure on companies to provide mandatory end-of-service-benefits could help Qatar firms hold on to their employees, helping to increase growth.
64 3...2...1...BLAST OFF!
Stéphane Israël, CEO of commercial space transportation company Arianespace, sits down with us as we talk about his first year on the job, discuss the successful launch of Qatar’s first satellite and try to sneak a peek at the future of the commercial aerospace market.
inside this issue FEBRUARY 2014 / VOL. 40/ ISSUE 2
48 LEARNING TO RESEARCH
In order to reach the national goal of creating a “knowledge-based” economy, Qatar Foundation is using several programmes to turn Qatar’s students into the future research leaders.
54 GETTING THE BEST OUT OF YOUR BEST PEOPLE
How organisations can effectively identify, develop, retain and reward their high-potential talent.
60 ARBITRATION HELPS
Arbitration can be a cheaper, quicker and more peaceful alternative to the court system for resolving contract disputes and other legal spats that can arise out of the increasingly widespread development projects in Qatar.
68 GOING SMART, THE HUAWEI WAY
The most important pre-requisite for building a smart city is vision, and Qatar has that in heaps, says Pan En, Vice-President of Huawei Middle East.
84 THE MAKING OF A LEGACY
It’s easy to see that a collection of vintage photographs from a seminal moment in Qatar’s history is a valuable collection indeed. But preserving all those photos so they can be seen by future generations is another issue entirely.
and regulars 12
NEWS BITES
16
BANK NOTES
22
O&G OVERVIEW
23
REALTY CHECK
72
TECH TALK
76
AUTO NEWS
79
MARKET WATCH
82
SPORTS
88
DOHA DIARY
from the desk Qatar takes its sustainability agenda quite seriously. Being the country with the world's highest per capita carbon emission it has to compensate for the figures attributed to its oil and gas production and distribution. By proposing 2022 World Cup as the first carbon-neutral World Cup, Qatar has taken the first big step of becoming aware and offering to set a lead for others to follow. While the oil and gas sector has put the spotlight on Qatar for the wrong reasons, there is one industry that has never taken much flak, considering its significant carbon footprint. The hospitality industry, which is meant to pamper its guests, might not feature as a top polluting industry but it does use up a considerably large amount of resources. While eco-friendly hotels have caught the fancy of businesses and tourists around the world, Qatar, with its highly hospitable culture, doesn’t indulge in the art of refinement when it comes to using resources. Despite the paucity of incentives or even prospective business from travellers, the hospitality sector in Qatar is taking small steps towards being environment-friendly. It is these initiatives that we throw light on this month in our cover story. While eco-friendliness is not one of the country’s virtues, technological advancement surely is. Qatar Today spoke to Stéphane Israël , CEO of Arianespace, the company that helped Qatar launch its first satellite. We also spoke to Pan En, Vice-President of telecom giant Huawei Middle East about the company's universal network. For technological advancement, what Qatar needs is the power of a young population that asks questions, a culture of finding solutions of its own, of creating a research culture. Helping it find its foothold are programmes from the Qatar National Research Fund that encourage inquisitive young minds. Qatar already has several institutions through which research can be conducted, and this issue Qatar Today focuses on their role. The country is on the threshold of huge developments, all in anticipation of the 2022 World Cup and beyond. The success of that mega event could act as a catalyst for development of the host city and transform the lives of its citizens according to Hazem Galal, Head of PwC's Global Cities and Local Government Network in an interview with Qatar Today. For the success of the event, and for the country and its citizens to benefit from it, the most important component is the human element. It is how the government meets international labour guidelines and translates them into the laws of the land for companies to follow that will truly put the radar on Qatar. SINDHU NAIR
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affairs > local EXTERNAL AFFAIRS A handout picture provided by the European Commission shows European Union foreign policy chief Catherine Ashton meeting HH the Emir Sheikh Tamim bin Hamad Al Thani in Doha on January 16. The EU official was on a tour of the Gulf to discuss Syria, the nuclear deal with Iran and Israeli-Palestinian peace efforts. AFP PHOTO / EUROPEAN COMMISSION / OSAMA FAISAL
IPO FULLY SUBSCRIBED
QATAR PETROLEUM (QP) CLOSED THE INITIAL PUBLIC OFFERING (IPO) OF SHARES REPRESENTING 25.725% OF THE ISSUED SHARE CAPITAL OF MESAIEED PETROCHEMICAL HOLDING COMPANY Q.S.C. (MPHC) ON JANUARY 22. THE OFFERING COMPRISED A TOTAL OF 323,187,677 ORDINARY SHARES, ALL OF WHICH WERE SUBSCRIBED FOR DURING THE IPO SUBSCRIPTION PERIOD, WHICH RAN FROM DECEMBER 31, 2013 UNTIL THE CLOSE OF BUSINESS ON JANUARY 21, 2014. 16 > QATAR TODAY > FEBRUARY 2014
PROJECTS TO ENHANCE WATER STORAGE
Qatar has launched new projects to increase its water reserves to enhance potable water storage for emergency use and improve the flow of water in areas where the pressure is low.
E
xisting reserves can fulfil the country’s needs for a month in an emergency, and now Kahramaa has launched five water projects that will raise the potable water storage capacity of Qatar by 126% to 561 million gallons. The projects, which involve a total investment of QR3.22 billion, will be completed by the end of 2017. The Prime Minister and Minister of Interior, HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani, launched one of the projects, in Duhail. The projects include building five new water reservoirs and pumping stations
in Duhail, Umm Qarn, Mesaimeer, South Doha and Muaither and reservoirs at existing stations. Addressing media persons, HE Dr Mohamed bin Saleh Al Sada, Minister of Energy and Industry, said Kahramaa was working to implement a number of projects that would enhance the availability of water in various parts of the country through more reservoirs, pumping stations and pipelines. “Solar equipment will be installed on the surface of reservoirs to generate electricity,” he said. “This will also enable each reservoir to function independently using solar power in case of any emergency.”
500 MILLION WITH DIABETES 2 BY 2030 By 2030, there could be around 500 million people with type-2 diabetes across the world, mostly in places not well equipped to deal with the chronic medical condition, according to an expert. The increasing prevalence of obesity is driven by a reduction in physical activity in general life and working life, and this is combined with cheap, readily available and high-calorie food, said Professor Sir Stephen O’Rahilly, Head of Clinical Biochemistry and Medicine at the University of Cambridge in the UK, in a public lecture organised by Hamad Medical Corporation (HMC) as part of its Academic Health System (AHS) lecture series.
HELP ON CALL
THE JUDICIAL SYSTEM NEEDS MORE REFORMS
Ooredoo and the Indonesian operating company Indosat make a donation for flood victims in Manado, Indonesia.
A visiting top UN official applauded Qatar for recognising the independence of the judiciary in its Constitution but called for urgent measures to consolidate this freedom.
Q
atar, according to Gabriela Knaul, the UN Special Rapporteur on the independence of judges and lawyers, is determined to reform its justice system, and its leadership is much more open to suggestions on judicial reforms. The current judicial system is recently established and continues to face some challenges, especially in relation to the independence of judges, prosecutors and lawyers. The absence of a code of conduct and ethics for judges affects the independence and impartiality of the judiciary, said Knaul. The creation of a Constitutional Court should be underlined as a positive development, she said, but she wondered why this court was not operational, more than five years after the law that created it was passed and four years after its head was appointed. “I strongly encourage that the court be formed and start functioning as early as possible,” she stated. Knaul said she welcomed the establishment of the Public Prosecution as an institution independent from ministries or the judiciary, but added that the fact that the
A file picture of the UN Special Rapporteur on the independence of judges and lawyers, Gabriela Knaul AFP PHOTO/Jose CABEZAS
Prosecutor-General had the rank of minister might create confusion regarding its independence from the executive.
Talking about the lawyers’ association here, she said it had no official competence, so gradual but significant steps should be taken towards establishing an independent bar association. This association would provide an umbrella of protection for its members against undue interference in their legal work, and monitor and report on members’ conduct and apply disciplinary measures in a fair and consistent manner. The setting up of such an organised legal profession is a key element to the independence of lawyers. “In Qatar, such functions are presently entrusted to the Ministry of Justice,” she explained. Knaul underlined the need for transparency during both the investigation phase and court proceedings. She said modern technology tools should be urgently adopted and all hearings should be recorded to ensure proper, adequate and transparent administration of justice. Ten years after the adoption of the new Constitution, Qatar should not miss the opportunity to launch reforms necessary to reinforce its institutions, in particular those related to the justice system, she said. QATAR TODAY > FEBRUARY 2014 > 17
affairs > local
NON-INVASIVE SCREENING FOR DIABETES
A discovery by researchers at WCMC-Q and HMC could lead to a quick, non-invasive screening test for diabetes, allowing sufferers who don’t know they have the disease to access treatment sooner.
R
esearchers at Weill Cornell Medical College in Qatar (WCMC-Q) and Hamad Medical Corporation (HMC) have discovered a way of testing for diabetes using a swab of an individual’s saliva. The discovery means that samples could easily be taken in schools or sports associations, or even during regular visits to the dentist, making the implementation of diabetes screening programmes, and thus early intervention, much more viable. Dr Karsten Suhre, Professor of Physiology and Biophysics at WCMC-Q, said it is vitally important to diagnose patients who
have diabetes as early as possible to allow them to access treatment, and the saliva test is one way of expediting that. The researchers have discovered that people with diabetes have a reduced amount of 1,5-anhydroglucitol (1,5-AG) in their saliva. This is a substance similar to sugar. Scientists have long known that 1,5-AG can be used as a biomarker for diabetes in blood, but the discovery by WCMC-Q and HMC that it can be tested for via a simple swab of the mouth greatly increases its potential importance as a quick, non-invasive test for diabetes.
WISE LEARNERS WORK TOGETHER IN EDUCATION CITY
Students from all over the world gathered in Doha to discuss solving problems through education.
QR1.55 BILLION SECURED IN SHIP REFINANCING
Milaha, Mitsui, Nippon and Kawasaki successfully secured QR1.55 billion in ship refinancing
Q
atar Shipping, a wholly owned subsidiary of Milaha (previously known as Qatar Navigation), has secured a 12-year $425 million (equivalent to QR 1.55 billion) fixed-term ship financing facility with a consortium of the following banks: The Bank of Tokyo-Mitsubishi UFJ Ltd, Mizuho Bank Ltd, Sumitomo Mitsui Banking Corporation Europe Ltd, Sumitomo Mitsui Trust Bank Ltd, Mitsubishi UFJ Trust and Banking Corporation, Shinsei Bank Ltd, Development Bank of Japan Inc. and Standard Chartered Bank.
18 > QATAR TODAY > FEBRUARY 2014
E
ducation City played host to 35 international students as part of the WISE Learners’ Voice programme run through Qatar Foundation. The 10-day event was the first of two residential sessions where these passionate students split into small groups and discuss ways in which better educational programmes can solve global problems. The second will be in Madrid, Spain this June. Though the event’s lectures and presentations were helpful, the students agree that it’s the collaboration of students from all parts of the world, from Qatar to the Netherlands to Brazil, that is the most valuable. “It was really a lesson in perception,” says Nash Tysmans, a master’s student from the Philippines, “and that’s what I bring home.”
NATIONAL MUSEUM TO FOOTBALL HAVE AN OIL & GAS GALLERY STADIUMS NOT UP TO THE MARK, SAYS
SURVEY!
A LARGE NUMBER OF WOMEN IN QATAR FEEL THAT FOOTBALL STADIUMS IN THE COUNTRY ARE NOT SUITABLE FOR FEMALE FANS, ACCORDING TO AN ONLINE SURVEY BY THE MINISTRY OF DEVELOPMENT PLANNING AND STATISTICS.
T
he Qatar Museums Authority (QMA) has announced a partnership with the Qatar National Committee for the World Petroleum Council (QNCWPC). As organiser of the 20th World Petroleum Congress, the QNCWPC will be named the official partner of the Oil and Gas Gallery at the future National Museum of Qatar (NMoQ). Under this agreement, the committee will support the museum’s education programmes and materials related to the oil and gas industry. “We are delighted to be announcing our partnership with the QNCWPC,” said Dr Abdullah Al Sulaiti, NMoQ Deputy Director for Research and Collections. “Through its future Gallery Nine dedicated to the sto-
LAW AGAINST THOSE WITHOUT A VALID LICENCE A law paased last month to regulate the engineering profession and practice and work of engineering consultancies stipulates severe punishment for violations of its provisions. The law prescribes a three-year jail term or a fine of QR100,000 for any firm that works without a valid licence. Licensed firms that are found breaching the provisions of the legislation will have their licences suspended. The law bars Qataris owning engineering consultancies from taking up public sector jobs.
ry of oil and gas in Qatar, the NMoQ aims to educate Qataris and residents about the history of Qatar and the way the oil discovery shaped the nation since 1940.” “The reestablishment of the National Museum of Qatar in its new design will contribute effectively in preserving our national identity,” said Issa Al Ghanim, Chairman, QNCWPC. “The museum will allow visitors to learn more about our past, present and future and view our culture that reflects the authenticity of the Qatari people.” Al Ghanim added: “The discovery of oil is undoubtedly considered one of the most historic phases of the state of Qatar and which led to major changes in the country.”
SOME BLAMED CONSERVATIVE FAMILY NORMS AND TRADITIONS FOR THEIR RELUCTANCE TO ATTEND FOOTBALL MATCHES. MEN ARE EQUALLY OR MORE RELUCTANT TO GO TO A STADIUM TO WATCH A MATCH, BUT FOR DIFFERENT REASONS.
65 % 60 % 50 % 65 %
OF QATARI RESPONDENTS HADN'T ATTENDED ANY FOOTBALL MATCH LAST YEAR.
SAID THERE IS A SHORTAGE OF LOCAL PLAYERS IN THE TEAMS.
S AID THAT SPORTS CLUBS WERE
MATERIAL MONITORING HH the Emir Sheikh Tamim bin Hamad Al Thani endorsed a decision of the Cabinet (No. 3 of 2014) amending some provisions of Decision No. 32 of 2012 to set up a committee to monitor stocks and prices of basic construction materials.
NOT UP TO THE MARK.
SAID THERE IS A LACK OF SERVICES IN THE STADIUMS, LIKE MOSQUES, EATERIES AND SUFFICIENT PARKING SPACE.
65
%
SAID THERE IS NO SECURITY PROBLEM IN THE STADIUMS.
THE COMMITTEE FOR MONITORING STOCKS AND PRICES OF BASIC CONSTRUCTION MATERIALS WILL FUNCTION UNDER THE MINISTRY OF ECONOMY AND TRADE. QATAR TODAY > FEBRUARY 2014 > 19
business > bank notes “The bank has increased business volumes across all market segments, which had a positive impact on QIB’s end-of-year financial results, solidifying its position as a leading bank in Qatar. QIB has managed to implement successful risk management during 2013, strengthening all prudential ratios and building a strong foundation for future business expansion.” HE SHEIKH JASSIM BIN HAMAD BIN JASSIM BIN JABER AL THANI Chairman, Qatar Islamic Bank
INVESTMENT BANKING FEES IN THE MIDDLE EAST GREW BY 20% IN 2013. TOTAL FEES
QR
QIB PROFIT GROWS BY 7.6% 2012
2013
GROWTH
NET PROFIT
QR1.24 BILLION
QR1.34 BILLION
7.6%
TOTAL ASSETS
QR73.2 BILLION
QR77.4 BILLION
5.7%
FINANCING ACTIVITIES
QR43.1 BILLION
QR47.1 BILLION
9.3%
CUSTOMER DEPOSITS
QR43.1 BILLION
QR50.4 BILLION
16.7%
TOTAL INCOME
QR3,105 MILLION
QR3,144 MILLION
1.3%
2.63 2.19 5.0I
billion
($722 million) in 2013
QR
billion
($603 million) in 2012
HIGHEST WAS
QR
DOHA BANK NET PROFIT UP BY 0.6% 2012
2013
Growth
Net profit
QR1,305 million
QR1,313 million
0.6%
Total assets
QR55.2 billion
QR67 billion
21.3%
Loans and advances
QR33.8 billion
QR41.1 billion
21.8%
Customer deposits
QR34.4 billion
QR42.5 billion
23.6%
Total operating Income
QR2.4 billion
QR2.5 billion
5.0%
MASRAF AL RAYAN ACQUIRES IBB
MASRAF AL RAYAN, ONE OF THE SHARIA-COMPLIANT BANKS IN QATAR, HAS COMPLETED ACQUISITION OF ISLAMIC BANK OF BRITAIN (IBB). IBB WAS MAJORITYOWNED BY ANOTHER QATARI LENDER, QATAR INTERNATIONAL ISLAMIC BANK, WHICH HAD BEEN IN DISCUSSIONS WITH AL RAYAN OVER A SALE SINCE MID-2012.
billion
($1.4 billion) in 2007.
Fees from completed mergers and acquisitions (M&A) climbed 22% to
QR
775.32
million
($213 million).
Value of M&A deals with any Middle Eastern involvement rose 7% to
QR
I57.97 ($43.4 billion).
billion
M&A flows into the Middle East down 3% to
QR
22.2 ($6.1 billion)
billion
SOURCE: Thomson Reuters.
20 > QATAR TODAY > FEBRUARY 2014
Total equity increased
12%
Customer funding increased
24.3%
from December 2012 to reach QR54 billion ($14.8 billion) as on December 31, 2013.
to QR336 billion ($92.2 billion). Loans and advances grew
24.3%
to reach QR311 billion ($85.3 billion).
Net profit was
QR9.5 billion
Earnings per share reached
($2.6 billion) in 2013, up 13.7% compared with 2012.
QR13.5
($3.70), compared with QR11.9 ($3.27) in December 2012.
Total assets increased
20.9%
The capital adequacy ratio stood at
from December 2012 to reach QR443 billion ($121.8 billion).
15.6%
as on December 31, 2013.
QNB POSTS RECORD PROFIT IN 2013 MASHREQ QATAR WINS AWARD
Mashreq Qatar was awarded the “Best Internet Bank” by the UK-based International Finance Magazine (IFM). The IFM awards recognise excellence in the banking and finance industry in more than 40 countries and were presented at a ceremony in Dubai.
T
his is the second such award in a year for Mashreq Qatar, which was recently confirmed as the “Best Internet Bank” by the New York-based Global Finance magazine for a fifth year in a row. Both awards reflect the outstanding success of the online banking platform and the level of confidence felt by customers towards the bank. QATAR TODAY > FEBRUARY 2014 > 21
business > bank notes
THE NEW
RULES OF THE GAME BY V L SRINIVASAN
Will the US government’s move to reduce the Federal Reserve’s bondbuying programme by QR36.4 billion ($10 billion), from January throughout 2014, stunt the growth of emerging markets like Qatar and the UAE?
T
he two oil-rich Gulf nations have been reclassified as "emerging markets" by Morgan Stanley Capital International (MSCI), having previously been "frontier markets", with effect from May this year, and their governments are hoping to cash in on this new development by attracting more foreign investment. But fears are lurking among various organisations that the Fed's quantitative easing (QE) policy may force businesses to adopt a more cautious approach in investing funds in these countries, as the interest rates on their borrowings are likely to be on the high side. While the World Economic Outlook has expressed significant concerns over Fed tapering, including a spike in bond yields, a definitive shift into equities and possible contagion in the emerging markets, the International Monetary Fund (IMF) has warned that such re-pricing of risk could
22 > QATAR TODAY > FEBRUARY 2014
lead to potential capital flight by countries such as Brazil, Turkey, Indonesia, India and South Africa, among others. In a report in September last year, Qatar National Bank (QNB) said that the US Federal Reserve has floated the idea of tapering its stimulus package in May 2013, which turned the winds against most emerging markets as global capital flew out, leaving them with large current-account deficits and scrambling for cover. “Capital flight is likely to continue due to QE tapering and, as a result, the emerging markets will be forced to reduce their own economic growth to bring their current account deficits back to a sustainable level by tightening both fiscal and monetary policy,” the QNB report said. The Organisation for Economic Cooperation and Development (OECD) has also warned that the US decision could adversely impact the Asian economies including the emerging markets, as far as investments are concerned. In other words, there will
“With surplus budgets, strong GDP growth, a successful transfer of oil (resource wealth) into economic wealth, and limited government debt, Qatar is particularly well placed compared with other emerging market countries to withstand the potential volatility in the currency and interest rate markets due to the taper.” BRADLEY ZIFF Senior Risk Advisor, Misys
be more capital outflows from the emerging markets compared with inflows in the coming months. However Bradley Ziff, Senior Risk Advisor at financial services software firm Misys, says: “It is true that a strong US dollar will continue to worry countries in Asia and Latin America, and we would expect interest rates to rise slowly as tapering begins. However, the US decision is neither directed nor in any fashion intended to affect the growth of the emerging markets. The decision is consistent with the view that the US economy is now substantially stabilised – unemployment is dropping; growth, production and housing figures are all reflective of an economy on the rise. That allowed the Fed to begin tapering in a measured manner.” He even differs with the US claims that the move has been designed to stimulate its own economy and serve the secondary purpose of supporting financial market performance in recent years. Actually, it is quite the opposite, he contends. “By removing the stimulus, there is a concern that the robust economy in the US could falter and indeed that the prior stimulus of above QR10.92 trillion ($3 trillion)
has actually been the artificial stimulus over the past number of years,” says Ziff. As far as capital outflow from the emerging markets is concerned, Ziff feels there are a variety of reasons and they are hardly all due to the Fed’s action. “In some of these markets you have sharp political instability (in the Middle East significant across Syria, Egypt, Lebanon, Iraq and Iran), and in others you are looking at poorer rates of return on investments or structural challenges (inflation, high unemployment, production/trade difficulties). So the currency fluctuation or interest rate issues associated with the US decision to taper is only part of the EMG challenges,” he says. Though the Federal Reserve announced in May last year that it was considering tapering, markets around the world rattled, and it happened again in September 2013 when it announced that it was not focused on tapering. The announcements left investors hopping from one foot to the other in several countries including those in Asia and Latin America. “Markets moved rapidly when the first two announcements came out, but the impact was the least when the Federal Reserve QATAR TODAY > FEBRUARY 2014 > 23
business > bank notes
actually announced they WERE going to taper in December 2013. But the other two announcements were not actual decisions,” Ziff says. On the other hand, the markets in the US were generally on the upswing (better housing, solid equity returns, moderate inflation coupled with excellent growth in purchases and a reduction in unemployment) as the US economy showed signs of improving along with the Fed’s intervention. That’s likely the key question – can these improvements continue in the interim while the Fed slowly tapers? Ziff says that the US housing market has been weaker than required to ensure a steady economy for the past several years, and its return in 2013 and looking forward is one reason the US will be able to initiate tapering without damaging the recovery. However, countries like India already initiated preventive measures with regard to interest rates in September in anticipation of the Fed’s move in December, even though there was no tapering at that time. With surplus budgets, strong GDP growth, a successful transfer of oil (resource wealth) into economic wealth, and limited government debt, Qatar is particularly well placed compared with other emerging market countries to withstand the potential volatility in the currency and interest rate markets due to the taper. The UAE is in a somewhat similar situation, though inflationary pressures have reached their highest level in the past two years, and those results are a focal point for those who 24 > QATAR TODAY > FEBRUARY 2014
invest in the UAE , Ziff says. Further, the conservative nature of risk managers in Qatar is stronger than with many of their counterparts in other countries, and the QE policy should not, in any way pose a hurdle to the ongoing development programmes in the country, Ziff says. If investors are worried, one should understand that they are concerned more about the political strife in the region. The conflicts in Syria and Libya, the continued political unrest in Egypt and a nuclear Iran present a very mixed picture. “Combined with the most recent border skirmishes in Lebanon and concerns about the resurgence of Al-Qaeda-linked militants in Iraq, this can create some chill for investors in the region,” he says. “The withdrawal of the US troops in Afghanistan, which is in the periphery of the region, the concern of jihadists and the role they are playing in the uprisings in a select group of countries, does not send a reassuring signal that the region is a stable home for investments on a long-term basis,” Ziff points out. However, Ziff emphasises that there are elements that make Qatar a compelling environment at this point in time: a stable political environment, a commitment to continued economic development and success down the line with the World Cup in Doha in 2022, limited unemployment, a growing services sector and, importantly, sovereign wealth investments that have provided long-term value. “Qatar has the potential of being a growing and a dynamic country from a financial perspective. Post the FIFA World Cup 2022, I believe there is a strong appreciation that the investment leading up to that event has to have substantial carryover effects for the continuation of economic value,” Ziff adds. According to Ziff, Qatar has consistently run large current account surpluses over the past decade. The surplus is expected to reach 27% of GDP in 2013. The current account is traditionally supported by a very strong surplus of the trade balance, reflecting hydrocarbon exports. “The external debt increased to 77% of GDP in 2012 and this, however, reflects the government’s decision to finance investments through debt issuance and to develop an external yield curve, rather than any pressing need for external financing. Even Qatar’s external debts are easily offset by its external assets, largely those held by the Qatar Investment Authority (QIA), thus making Qatar a net external creditor,” he adds
business > oil&gas SHELL PROFIT DIVES
“Our 2013 performance was not what I expect from Shell. Our focus this year will be on improving Shell’s financial results, achieving better capital efficiency, and on continuing to strengthen our operational performance and project delivery.” BEN VAN BEURDEN. CEO, SHELL
HE Dr Mohamed bin Saleh Al Sada, Minister of Energy and Industry, officially opened the new Digital Core Laboratory at the Maersk Oil Research and Technology Centre (MO-RTC) in Doha.
HIGHLIGHT
Researchers at the Digital Core Laboratory use more than 13,000 X-ray images in a computed tomography (CT) scan to make a mathematical reconstruction of carbonate rock samples. The pores of oil-bearing rocks are studied at a minute level, down to a diameter of 40 times less than that of a human hair. When these data results are combined, a 3D image is produced that shows valuable petrophysical and flow-related information. 26 > QATAR TODAY > FEBRUARY 2014
MAERSK TO SUPPORT EOR RESEARCH
D
uring the opening ceremony, Dr Al Sada also witnessed the signing of a technology cooperation framework agreement between Qatar Petroleum (QP) and Maersk Oil. The Maersk Oil Digital Core Laboratory – the first of its kind in the Middle East region – will support ongoing applied research efforts in the area of enhanced oil recovery (EOR), particularly in carbonate reservoirs such as Qatar’s Al Shaheen oil field, which is one of the most complex in the world. The laboratory is part of a 10-year $100 million investment by Maersk Oil in applied research in Qatar, focusing on improved oil recovery, enhanced oil recovery and the marine environment. In comments on the occasion, Dr Al Sada said: “Qatar has made a commitment to be a leading centre for research and development, excellence and innovation. Therefore research facilities like this play an important role in fulfilling that goal. We are hopeful that the
research findings this laboratory will generate will greatly contribute to the future development of Qatar’s energy industry.” Maersk Oil’s Chief Executive Officer Jakob Thomasen said: “Working closely with our partner Qatar Petroleum, Maersk Oil has become specialists in understanding and applying the right technologies to maximise long-term production potential and unlock value from the complex Al Shaheen field. The Maersk Oil Digital Core Laboratory is a world-class facility that further strengthens our commitment to the State of Qatar and to applied research and technology development here in Qatar.” As part of the opening ceremony, a technology cooperation framework agreement was signed between the MO-RTC and the QP Research & Technology Centre, allowing QP to use the Maersk Oil Digital Core Laboratory for individual or joint research activities.
business > realty check
REAL ESTATE PRICE INDEX HIKING UP
Qatar Central Bank (QCB)'s annual update of the real estate price index for 2013 indicates the country’s real estate market prices are heading for record highs.
HIGHLIGHT
ACCORDING TO EXPERTS WHO TRACK THE COUNTRY’S REAL ESTATE MARKET, DEALS IN THE COUNTRY LAST YEAR WERE WORTH QR45.5 BILLION.
T
he QCB update shows that the index touched a high of 189.8 points in December 2013, up 21% year on year. After reporting a drop for two successive months, the index rose to a new high in September 2013. The rise in figures for September to December indicates that Qatar’s real estate market is either in recovery mode or heading to a record
price. The index, which tracks price movements in the country’s real estate market, reached a peak in April and May 2013 at 183.9 points and 190.4 points respectively before dropping to 178.8 points in June. The index slipped further to 174.2 points in July but rose marginally in August, reaching 176.9%.
AL DAFNA AND AL GHARRAFA AREAS CREATE A BUZZ
While The Pearl and West Bay remain top communities for buying property based on their range of lifestyle options from high-rise apartments to luxurious waterside villas, Al Dafna made it to the top 10 list for the first time last year.
F
ast becoming Doha’s downtown district, Al Dafna features some of the finest hotels, restaurants and shopping avenues. This is according to a report that analyses property searches and offers insights into the most preferred residential communities for investment and rentals in the country, based on user behaviour on the website propertyfinder.qa. Commenting on this trend, Monsi Rabah, Country Manager of Property Finder's Qatar operation, said: “With plans to invest billions of dollars in construction and infrastructure projects, immense opportunities
for the real estate sector are set to open up. Additionally, as foreign nationals relocate to Qatar for work as the country rolls out its infrastructure expansion programme, a significant housing demand is expected to arise.” As for the leasing market, the report reveals that while The Pearl, Abu Hamour, West Bay, Al Waab and Al Sadd remain the most searched locations in which to rent property, there has been a climb in demand for villa communities such as those in Al Gharrafa, as the community moved to 8th spot from its 12th position in Q3 2013.
LONDON ON THE RADAR
The London office development market remains at a four-year high with 9.7 million sq. ft across 71 schemes now under construction, according to the winter edition of Deloitte London Office Crane Survey.
T
he survey, by Deloitte Real Estate, describes improving sentiment in London’s commercial office development market with 28 new starts recorded across the capital. Key transactions involving Middle Eastern investors over 2013 include: St Martins Property Group, the real estate investment vehicle of the Kuwaiti
government, acquired 5 Canada Square for £383 million (QR2.29 billion) in January 2013 and More London for £1.7 billion (QR10.16 billion) in December 2013.
In July 2013 The Shard opened in London, becoming Western Europe’s tallest building, in which the State of Qatar is the majority shareholder (95%).
In September 2013 Ashby Capital, understood to be acting on behalf of a Saudi investor, acquired 200 Aldersgate, EC1 for £225 million (QR1.345 billion).
September 2013 saw the acquisition of IBM’s London HQ in SE1 from Lord Sugar’s Amsprop by a Middle Eastern investor for £120 million (QR717.6 million). QATAR TODAY > FEBRUARY 2014 > 27
news bites > regional
CAU S E FO R C E L E B R AT I O N? Egyptians celebrate in Tahrir square in the capital, Cairo, after a new constitution was approved on January 18. The new constitution was approved by 98.1%, the elections chief said, in what the government declared a popular endorsement of the army's overthrow of Islamist president Mohamed Morsi. AFP PHOTO / MAHMOUD KHALED
business > viewpoint
THE PROJECT FINANCE COMPASS
BY BEN HUGHES Director at Deloitte Infrastructure & Capital Projects, Middle East
If there is one defining feature of major public sector construction projects over the past two decades in developed economies, it is the rise of the PPP (Public-Private Partnership). The inertia behind any PPP is project finance, the key funding mechanism required to undertake a major capital or infrastructure investment.
DELOITTE The opinions expressed here are the views of the author and do not necessarily reflect the views and opinions of Deloitte & Touche (M.E.). Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Deloitte is the first Arab professional services firm established in the Middle East region, with uninterrupted presence for over 85 years, providing audit, tax, consulting and financial advisory services through 26 offices in 15 countries, with over 2,500 partners, directors and staff. 30 > QATAR TODAY > FEBRUARY 2014
A
cross the GCC, with the notable exception of Oman, PPP is at an embryonic stage, with little activity in historically core PPP sectors such as major transport, health and education projects. Using PPP in Qatar is an opportunity to share risk but also reward by driving progress through this more formal mechanism. This is a real opportunity for Qatar to deliver success by capitalising on the efficiency and experience of private sector operators, whilst also spreading the risk. Whilst the global financial system may be showing signs of a recovery, external credit markets are still in flux and the terms for developers looking to find finance are still challenging. Project finance is highly volatile, with finance rates ranging from single-digit figures to rates in the mid-teens. As a consequence, the viability of those projects funded by project finance are still susceptible to financial market swings, or by the propensity to risk afforded by lenders. In the GCC, “project finance” is largely viewed as short-term, direct funding to facilitate a construction project, typically three to five years. This short-term approach across the GCC would suggest project finance, and PPP, is not the saviour that it is so often lauded as being, particularly in a market such as Qatar. Yet ironically, at a time when the availability of project finance has been significantly hindered by the tightening of global credit markets, calling its viability into question, there are factors that could see it, and the PPP, become ever more popular. In an article dated May 2012, the law firm Al Tamimi & Co predicted a rise in foreign investment by means of PPPs in Qatar. Whilst many GCC economies have the financial resources to facilitate major schemes, they do not always have the skill base to undertake huge infrastructure projects, and may instead opt to use a PPP to harness the expertise and appetite for risk of the private sector. Moreover, the transfer of ownership and/ or operation to a third party does not always apply to a PPP, only to some variants. For
instance, a joint venture (JV) ensures that the client retains some equity stake, whilst a BOOT (Build, Own, Operate and Transfer) is essentially a concession arrangement with the asset eventually returning to the client. In real terms, the PPP may actually provide GCC clients with a number of benefits that may not have been considered. Risk transfer is one clear bonus, but there are experienced PPP operators in the market who may also bring other operational efficiencies to the fore. Lowest cost driven by market forces While a project must be economically advantageous, value for money does not necessarily equate to lowest price. The appropriateness of the client’s requirements must weigh up against the scheme’s design and projected cost. The most obvious mistake is to view the cost of a project purely in terms of a fixed price established through the bidding process. The original rate of borrowing may be re-financed, and/or may change at predetermined intervals throughout the course of the borrowing. If margins at the outset are tight, then the first place to look is often the build costs, which could have ramifications in the long term. A contractor constrained by bringing in a project on budget with tight margins might easily look for ways to cut its own costs, whereas collaboration between two parties may actually become a mutually beneficial partnership that may derive enormous long-term advantages. With the sheer volume of infrastructure investment in Qatar, this risk-sharing, knowledge transfer-focussed model might actually be a good thing over the coming years, particularly in a relatively embryonic market like Qatar that would likely benefit from experienced partners in delivering success. Against a backdrop of political cynicism about PPPs, if the public sector in Qatar can shake off the perception of diluting their control or ownership of state assets and embrace sharing the risk and reward with the private sector, there may still be hope for PPP in the region
news bites > world view
N OT A L L B L AC K A N D W H I T E Sinabung volcano spews hot ash and lava in Karo on January 14. More than 25,000 people fled their homes following a series of eruptions and lava flows from Mount Sinabung in North Sumatra, an official said on January 12. AFP PHOTO / SUTANTA ADITYA
development > listening post
DESTINY ON A
DEADLINE
BY AYSWARYA MURTHY
Leader of PwC’s Global Cities and Local Government Network Sector Hazem Galal says mega events, if done right, can act as a catalyst for development of the host city and transformation of the lives of its citizens.
34 > QATAR TODAY > FEBRUARY 2014
I
t does says something about the significance of Qatar on the global development map when a global leader who works with city governments and the private sector from around the world to revitalise or kick-start economies chooses to be based in Doha. Hazem Galal, who was previously based in Rio and has barely been in Doha for a year, is very excited about the big changes in the works and the “reforms that are going to enhance the services delivered to the citizens in healthcare, education and mobility”. In addition to working with the public sector and Qatar Foundation here, Galal’s global portfolio means working on understanding and anticipating future opportunities with local governments and businesses in cities as farflung as Astana, Beijing and Sochi. Notice a trend? It’s no coincidence that all these cities have hosted, or are about to host, one of the big three mega events – the Olympics (Winter/Summer), the FIFA World Cup and the World Expo – that often serve as catalysts for economic development and regeneration. And the deadlines don’t hurt, either. For example, one of the projects he led in Rio in connection with the 2016 Olympics was to help the investment-attraction authorities of the city identify the economic opportunities in tourism. “It’s hard to believe that a country like Brazil with its Amazon cover, waterfalls and beaches barely manages five million foreign tourists a year (when Dubai attracts 15 million a year). So in this case, the Olympics are being used as an economic stimulus to breathe life into some of the underdeveloped sectors,” he says. What might appear as polar opposites, Brazil and Qatar each have their unique challenges and advantages in getting their respective events off the ground. Curious to know Galal’s impressions, we ask him to compare the ground realities in the two countries. Is it easier for the samba-loving developing Latin American country to put on a good show compared with the wealthy Middle Eastern desert state? “You would think the decision-making cycle is quicker and more efficient in Brazil,” Galal replies when asked if the democratic state gets things done faster. “But any project in Brazil, by the time it goes through the public sector procurement cycle, agility, budgeting and all that, takes more than 1218 months. Here in Qatar, even when things are slow for one reason or the other, you can get work done within a six- to eight-month window. That’s what I have seen during my stay here.”
“Though it can go quicker still,” he adds as an afterthought. Also, Qatar is in the unique position of having almost 12 years to prepare for the FIFA World Cup. “This is unprecedented. For a lot of these mega events you typically get anywhere between six to seven years. Though this certainly is an advantage, giving Qatar a lot more time to plan, execute and deliver, there is a possibility that some of the technology that you are locking yourself in today at the planning stages may not be state-of-the-art at the time of the event,” Galal points out. Another glaring difference is in funding. “Brazil still has to deal with a lot of inequality, and we have been seeing that in the last few months, when the average Brazilian citizen demanded that the government invest just as much in healthcare, education and transportation as they are doing in World Cup infrastructure. The lack of these kinds of financial restrictions and inequalities here means that Qatar doesn’t have the same prioritisation mechanism and constraints as Brazil.” But if there’s one thing that Qatar can pick up from the 2014 World Cup host on the other side of the globe, it’s enterprise. “The private sector in Brazil has been around longer and the Small and Medium Enterprises (SMEs) have a higher contribution to the economy (though not in the same league as countries like South Korea) than in Qatar. Some of the states in Brazil like Rio have discovered large deep-sea deposits of hydrocarbons, but we advised them that despite this additional revenue they ought to maintain the momentum of their highly
It’s always important to remind yourself: 'Why did we host this event? What are the long term objectives we are hoping to get?' If you are planning the legacy in advance, are you really clear on how the infrastructure and programmes are going to impact the population after the event? – then you will be successful.
diversified economy and support high-value-added sectors like innovation and ICT. Qatar, though, is yet to develop its private sector,” he adds. Shaping the legacy These events are not just about their short duration: they can have a long-term and far-reaching impact with the proper vision. “It’s always important to remind yourself: 'Why did we host this event? What are the long-term objectives we are hoping to get?' If you are planning the legacy in advance, are you really clear on how the infrastructure and programmes are going to impact the population after the event? – then you will be successful,” Galal reminds us, citing the example of East London. “There were statistics published prior to the London Olympics that showed that the further you travelled away from the wealthy London suburbs to the east, the lower the life expectancy fell. If you go right now to where the Olympic Village used to be, it’s very different from what it was, and is still in the process of change, part of a long-term plan that’ll be completed by 2030. These games in effect revitalised the whole society in addition to the entire area where the Games were held,” he says. In Brazil, too, the legacy of the two mega events, the 2014 football World Cup and the 2016 Olympics, is starting to become clear. “Some areas of the city of Rio were no-go zones for policemen. A few of these zones were around the perimeter of Maracana Stadium, and you can’t really have a World Cup final in an area where drug lords are in control. Consequently, the pacification campaign was started, which was well received by the community. The police have come in, stayed and built their presence. That is a fact!” But it doesn’t end there. In fact, that is just a beginning. “Now that the population of these areas has law and order, they expect other services. They want jobs, now that the living provided by illegal activities from drug dealers is no longer an option. So if you don’t start replacing these with legal economic activities, the clean-up would have all been in vain. Regardless, it is a great start and might not have happened if they weren’t subjected to the scrutiny of the world.” There are some bad examples too, a few in Brazil itself, and Galal blames them on a sense of procrastination and bureaucratic delays. “A lot of the decisions that should have been made by the government at the federal level were delayed, and they have to QATAR TODAY > FEBRUARY 2014 > 35
AFP PHOTO/CHRISTOPHE SIMOM
AFP PHOTO/ MANAN VATSYAYANA
development > listening post
Rio's Pacification programme ahead of the World Cup has improved law and order situation in volatile parts of the city; Allegations of corruption and mismanagement marred the Delhi Commonwealth Games in 2010; Galal hopes an active lifestyle will become a way of life for Qataris as a legacy of the World Cup; The London Olympics served to revive whole neighbourhoods in East London;
“The infrastructure is really the easy part. It is important because it’s what people see. But I think it’s with the soft infrastructure byproducts of the World Cup 2022 that you can change the nation.” 36 > QATAR TODAY > FEBRUARY 2014
AFP PHOTO/ODA/Anthony Charlton/HO
CLOCKWISE FROM LEFT:
catch up. Some of the airports might not be ready in time. The auction of the Rio airport was won just two months ago ( jointly by Changi, who operate the Singapore airport) and this is at least a year too late. There definitely will be some improvements made in the few weeks left, but let’s not forget about the Magic Triangle – quality, cost and time. So the more you run out of time, the more it’s going to cost you to fix a problem and you might have to sacrifice the legacy you are hoping to create,” he says. A few thousand miles south-east of Brazil, an instance in South Africa reminds countries to think about the legacy in an integrated way and not just solutions that you are going to use only during the World Cup. “Pretoria started a train service before the event connecting Johannesburg and the airport. But at Pretoria itself, there are no additional linkages to public transport system. So they have only created one part of the piece. That’s why we always encourage governments to think long-term, about how the population in the city and visitors are going to use this afterwards,” says Galal. A big event will give you visibility and branding but it’s a double-edged sword, he says. “For example, the Commonwealth Games in India. The delays, allegations of corruption and the way the event was executed was very negative publicity for New Delhi.” They would have been better off not holding the event at all. So far, Qatar is on the right track and there is still time to think about and plan the legacy of the 2022 World Cup, he says. “We already have the Qatar National Vision, so
all the mega projects (airport, metro, roads) are needed and will go on regardless of the World Cup. What the event has done is given a deadline and advanced several projects like the New Port project,” he says. But the 2022 World Cup is a chance for Qatar to do so much more. “Qatar has one of the highest rates in the world for diabetes. People don’t have a healthy lifestyle in terms of physical activities, partly because of the weather and partly because there is no exercise culture. What if the legacy can be the change in the mindset of the population? Not just confining it to the one annual Sports Day but making it a part of your people’s daily life and behaviour.” Another long-term effect of the World Cup could be instilling environmental consciousness into the citizens. “Qatar, in a bid to fulfil its promise of hosting a carbon neutral World Cup, is developing new technologies for renewable energy and propelling research on zero-emission stadiums. But the country also has the highest carbon footprint per person in the world. So more helpful would be to reinforce behavioural changes related to not wasting electricity and water and make people more conscious about what it takes to save natural resources,” he says. Forget gigantic stadiums and fancy airports; what better gift can you give your people than clean and healthy living? Galal finally says what’s generally been left unsaid: “The infrastructure is really the easy part. It is important because it’s what people see. But I think it’s with the soft infrastructure by-products of the event that you can change the nation.”
38 > QATAR TODAY > FEBRUARY 2014
THE
GREEN ROOM
IT’S FASHIONABLE TO BE SUSTAINABLE. IN QATAR, IT’S DOWNRIGHT COOL. WE WANT “ENVIRONMENT-CONSCIOUS” INGRAINED IN EVERYTHING WE DO – FROM THE STADIUMS WE BUILD TO THE RESEARCH WE CARRY OUT. BUT HAS THE HOSPITALITY INDUSTRY CAUGHT UP? WHERE DOES IT STAND, WHAT DOES THE ROAD AHEAD LOOK LIKE AND WHAT ARE THE PITFALLS? QATAR TODAY CHECKS IN ON THIS ENVIRONMENTALUNFRIENDLY SECTOR. BY AYSWARYA MURTHY
QATAR TODAY > FEBRUARY 2014 > 39
coverstory > The Green Room
hotel stay has an element of suspended reality to it. The chaos of the real world is left behind at the lobby. Inside your private cocoon everything is where it should be, all the time. The towels disappear from your bathroom floor and dry fluffy ones magically take their place. You turn your back for a second and your whole room gets a cleansing rinse. The temperature is always right, the lights always work, the laundry is always done, food is always warm. It might as well be the work of thousands of elves. And we gladly pay the price for this bubble of efficiency and perfection. But it’s not until we read a sign urging us to turn the taps all the way off, or reuse our towels, or refuse a daily turndown service, that we really think about the price the hotel is paying – environmentally – to keep this bubble intact for thousands of guests throughout the year. Qatar’s position is quite unique in the global effort to go green. Energy is abundant and cheap, which subverts any financial motivation to embrace green technology. Far from resulting in savings, the payback from investing in sustainable practices is so distant that it could in fact be considered a waste of money. On the other hand, Qatar loudly and insistently champions the green culture globally, more so since hosting the COP18 climate conference in 2012 and pledging to conduct the first carbon-neutral World Cup in history. “It’d be so shortsighted to look at the financials alone, especially considering how Qatar as a nation is taking bold steps to become a global leader in conservation,” says Holley Chant, Executive Director of Corporate Sustainability at KEO 40 > QATAR TODAY > FEBRUARY 2014
International Consultants. Whether prompted by the need to follow a rating system or because of a government mandate, Chant says a lot of institutions, not just hotels, are embarking on a road to sustainability. “Qatar is driving a lot of the interest in the region; everyone is reconsidering what they are doing,” she says. In this vein, hotels in Doha will play a significant role in the carbon footprint of the World Cup 2022. Whether they will add to it or help offset it is something that will become clear in the coming years. “Although a significant amount of future hotel capacity in Qatar may be developed through temporary solutions (for example through the provision of rooms through cruise ships), there is likely to be significant development in Qatar’s hotel industry over the next five years,” says Grant Salter, Director, Real Estate and Hospitality at Deloitte Middle East. (That’s putting it mildly. The number of new rooms under construction almost equals the ones that already exist.) “The adoption of environmental sustainability programmes can be used to minimise the environmental impact of the construction and operation of planned hotel developments in Qatar,” he says. Anthony Williams, Tourism Development Consultant at the Qatar Tourism Authority (QTA), who co-chairs the Qatar Green Building Council (QGBC)’s Green Hotels Interest Group (GHIG), says the carbon tab for the 2022 World Cup is already running. “What we need to do is to motivate cutting down the 2022 World Cup carbon offsetting bill as a high-level goal,” he says. Is the hospitality industry prepared for the challenge? Among the Doha megaprojects that Chant is consulting for, like the Al Wakrah stadium, Doha Zoo and Doha Grand Park, a few hospitality clients also feature. Though she isn’t allowed to divulge names, she tells us about how a hotel would start to shape its green goals. “Usually there is an effort to follow the criteria established in a particular system, like the Global Sustainability Assessment System (GSAS), which is what’s
widely used in Qatar, also since it was developed in the country keeping in mind the specific climatic conditions of the region. Apart from this they often have their own goals and broad objectives associated with the hotel brand. For example, if a certain brand wants to be known as a leader in water conservation there is a major push in this direction, as it is an important part of the branding.” An example of this is Starwood Hotels and Resort’s goals for all its hotels across different portfolios. “Part of an overall global strategy by Starwood Resorts to reduce electricity by 30% and water consumption by 20% across all properties by 2020,” says John Davi, Director of Operational Innovation at W Hotel Doha. Consequently everything being done at W Hotel is geared to help it meet this target. But what does sustainability look like from the inside? Keeping an eye on the meter We reached out to the hotels in Doha to see what their most environmentally-expensive operations were, and it was no surprise to hear a chorus of voices saying it was the energy needed to cool the building. Salter concurs. “Among the number of key challenges for green building practices in the Middle East, what stands out is the high ambient temperatures in the region, which lead to substantial air conditioning, and subsequently power, requirements,” he says. “The principal consumer of energy in any hotel is the heating, ventilation and air conditioning (HVAC) system; an extensive amount of work is done to ensure that each system is running at maximum efficiency to cater to all the needs – for example, setting guest room thermostats to 24 degrees and increased servicing of chillers. It’s also the most expensive to maintain, requiring the daily cleaning of filters,” says Jamey Ford, Director of Engineering at Crowne Plaza Doha. There are a couple of things that can be done to maintain the temperature at your hotel. However, these require to be done
at the initial stages of design and construction, or else the energy consumed for this purpose can’t be influenced in a meaningful way by the hotel (see “Building the basics” on page 44). Sasi Gopalan, Doha Marriott Hotel’s Director of Engineering, says they maximise the utilisation of fresh air in the air conditioned area to reduce the cooling load on chillers. “Additionally, we have also carried out 950 sq. m of thermal insulation at our All’Aperto restaurant, Corniche restaurant and Restaurant Gallery,” he says. Or, as at the Renaissance Doha, a building management system (BMS) can be used to control the airconditioning systems in the hotel.
"WHAT THE HOTELS NEED IS A COMMERCIALLY VIABLE OUTLET FOR RECYCLING THEIR WASTES, OR A GOVERNMENTSPONSORED PROGRAMME THAT HELPS THEM DO SO." HOLLEY CHANT
Executive Director, Corporate Sustainability, KEO International Consultants
SWIMMING POOL BACKWASH WASTEWATER IS USED FOR IRRIGATION AND LANDSCAPE PURPOSES INTERCONTINENTAL DOHA THE CITY
QATAR TODAY > FEBRUARY 2014 > 41
coverstory > The Green Room
100
%
"THERE ARE A NUMBER OF GREEN PRACTICES THAT WE HAVE BEEN WORKING ON WITHIN THE HOTEL, AND AS A RESULT WE ARE THE FIRST HOTEL IN DOHA TO BE AWARDED THE INTERNATIONALLYRECOGNISED GREEN KEY CERTIFICATE, WHICH WE ARE TRULY VERY PROUD OF." JOHN DAVI
Director of Operational Innovation, W Hotel Doha
42 > QATAR TODAY > FEBRUARY 2014
Whether you are a luxury hotel or not, “the culinary department is always in particular environmentally expensive, as there is a high consumption of electricity in all of the outlets ranging from the ovens, refrigerators, freezers to the air conditioners,” according to Davi. Since in Qatar the water used is highly expensive desalinated water from the sea that has an energy component, water conservation becomes doubly important. While closely monitoring water usage in the Marriott's Marina and kitchen (“and repairing leaks immediately”), Gopalan says they also ensure proper maintenance of a steam heat pump in order to maximise the recovery of condensate water in the laundry. In fact the laundry is somewhere a little common sense can save a lot of energy and water. Prakash Viswanathan, Director of Engineering at Oryx Rotana, says they always ensure that the laundry's washing machines and dryers are running at their maximum load capacity. “All the pipelines in the hotel, both cold and hot water, are insulated to save more energy,” he adds. Cluster General Manager of Ritz-Carlton Doha Hoss Vetry says: “In the Ritz-Carlton Spa we aim at increasing the water pressure efficiently [so as to] use a reduced quantity of water.” Taps with sensors is the way the Grand Hyatt has chosen to go. Among the other avenues where savings in energy are possible, replacing all incandescent and halogen lamps with energy-efficient LED ones seems to be a popular choice with hotels like the Doha Marriott, Grand Hyatt Doha, the Renaissance Hotel and the Ritz-Carlton. After Radisson Blu’s
INCREASE IN PLASTIC, PAPER AND CANS BEING RECYCLED FROM AUGUST TO DECEMBER 2013 W HOTEL DOHA
QR80 million ($22 million) refurbishment of its West Wing, the new rooms were fitted with the latest energy saving devices, LED lighting and water saving devices in the bathrooms, says the hotel’s Executive Assistant Manager Simon Ramsay. “Our hotel’s engineering department, along with the technical department within the Radisson Blu Hotel Group and our lighting partners, has done a lighting audit on the whole property with a view to introducing LED lighting throughout, and this is still in the consultation process,” he says. The Renaissance Hotel has meanwhile installed timers to control usage of lighting in public areas. When it comes to front-end operations, the Ritz-Carlton's Vetry says the brand is “looking into options and alternatives that would make sense both for our performance but most importantly for our guests at both our properties – the Ritz-Carlton Doha and Sharq Village & Spa. One perspective is the installation of power switch/control inside our guest rooms, suites and villas that is activated with the use of the room keycard.” While Chant notes that a few hotels are starting to install these and motion sensors that ramp up and down the lighting and air conditioning accordingly, not enough of them are doing this, in her opinion. “In the West almost all properties have this technology; it’s very basic, not terribly costly to
upgrade, and return on investment doesn’t have to be that long.” The oldest mantra Waste is another bone of contention among hoteliers; inappropriate waste disposal has an insidious effect on the environment but alternative methods are scarce and expensive. Chant says she doesn’t see quite enough of recycling practices, but doesn’t fault the hotels for that. “The recycling industry is only just maturing and beginning to get a foothold in Qatar. What the hotels need is a commercially viable outlet for recycling their wastes, or a government-sponsored programme that helps them do so.” Once this is in place, recycling is one of the areas that could potentially see a lot of improvement. Nevertheless, it is still getting its fair share of attention in Doha’s hotels. Ramsay says that at Radisson Blu waste is segregated (into paper, cardboard, newspapers, plastic water bottles) in different rubbish bins. “This is then given to a third party who takes it to be recycled. There is an initial outlay of expenses, in purchasing the rubbish bins, for example. Also, our partner whom we use for certain waste removal and recycling is now looking to introduce a cost for this. This will in turn cost the hotel, as before this was done gratis, or the municipality would collect all waste for a much smaller cost. (“Doha Municipality recycles plastic and aluminium cans for an annual fee of QR3,000,” says Gopalan). Despite this we hope to, over the years, see a return in the amount of waste we are sending to the municipality refuse centre and the amount of trips reduced.” The W Doha has achieved a 100% increase in plastic, paper and cans being recycled from August to December 2013, according to Davi, thanks to its work with Averda Environmental Services with regards to recycling and recycling projects in the hotel and staff accommodation. It’s not just solid waste that is being given the green treatment. The Grand Hyatt Doha collects the used oil from its kitchens and sends it back to the company that supplies it with fresh oil, obtained from recycling the used oil. Hygiene Manager Mohamed Shaban, part of the Green Team at the hotel, says. “Probably our most important green practice is the in-house water recycling system, which we use for watering our large garden/green area.” This
is one of those expensive investments that make people think twice. In fact, Vishwanathan says, that the initial investment for reusing greywater from the laundry and kitchen is so high that a hotel can’t expect to see any return on investment for at least 14-15 years. James Muriithi, Chief Engineer at the Renaissance Doha, Courtyard by Marriott and Marriott Executive Apartments Doha City Center, says the hotel recycles and treats greywater to reuse for irrigation and, in some cases, for flushing water in washrooms. “This is one of the most expensive practices to make sustainable, mainly because of the amount of chemicals used to treat the water during the recycling process,” he says. The price of luxury “Luxury hotels have a distinct level of service which makes it more expensive,” says Vetry. The task of balancing sustainable operations with customer expectations is a delicate balancing act that requires a large dose of innovation. But that innovation has yet to be seen, according to Chant. “I have noticed that at many of the five-star hotels in the US and Europe all the amenities have been given a green makeover. You still get your soap and shampoo and your other little things but there is very less packaging. This doesn’t seem to have been embraced here yet. But guests here in a Middle East hotel love and expect all the little luxurious frills. I was staying at a hotel in Doha recently, I won’t name which, but it was one of the top brands, and discovered in my room water bottles from Fiji! Why?” she
"TO BE EFFECTIVE, THE GREEN HOTELS INTEREST GROUP HAS TO EVOLVE AND EXPAND TO INCLUDE DEVELOPERS, OWNERS, ARCHITECTS AND EVEN THE 2022 COMMITTEE TO FIND OUT WHAT THE HOSPITALITY INDUSTRY CAN DO TO SUPPORT THE LEGACY OF THE PROGRAMME." (left) STEVEN HUMPHREY Director, AECOM and ANTHONY WILLIAMS
Tourism Development Consultant, Qatar Tourism Authority
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coverstory > The Green Room
“AS A GLOBAL HOTEL CHAIN WE HAVE PLEDGED, IN 2012, TO REDUCE OUR ENERGY CONSUMPTION BY 25% IN FIVE YEARS, AND WE ARE ON TARGET TO REACH THIS IMPORTANT GOAL.”
exclaims. “Does that make it a better hotel? The hotel needs to initiate and be part of a cultural change.” Muriithi is aware of the problem. “Some of the most environmentally-expensive offerings at luxury hotels are the bathroom amenities like shampoo, lotion, shower gel, etc. that are designed for one-time use (compared with a wall dispenser at more budget hotels) and that are presented in branded packaging,” he says. Other ancillary activities like “limousine services, replacement of water bottles during each break in meetings/events and the heating and cooling involved in swimming pool, Jacuzzi, spa operations, etc” are all precious carbon points sacrificed on the altar of luxury, according to Vishwanathan. Does this make the shift to sustainability easier in smaller hotels? Not at all, Davi opines. “Smaller hotels will have less carbon footprint, sure. However implementing green practices does not have anything to do with a hotel’s size or cost. Furthermore, in many cases luxury hotels have invested in BMS that allow for better sustainable practices than smaller hotels, who do not have investment capacity to do so.” Crowne Plaza's Jamey Ford meanwhile believes that the size of the hotel “does not
SIMON RAMSAY
Executive Assistant Manager, Radisson Blu
AFTER THE HOTEL’S $22 MILLION REFURBISHMENT, THE NEW ROOMS WERE FITTED WITH THE LATEST ENERGY AND WATER SAVING DEVICES. RADISSON BLU
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always make for a cheaper green solution, but the return on investment can be realised far quicker in a larger operation.” The little things that matter Not every green practice has to take a huge bite out of your wallet. Every little innovation and thoughtful detour from the usual is a carbon offset earned. According to Vetry, at both the Ritz-Carlton properties the focus is on “sustainable sourcing, prioritising purchased products that are made of recycled material or products that can be recycled, as well as food that is locally or organically grown in the region”. Davi says the W would like to purchase a food processor that reduces their food waste volume to only 20%. “We are currently working with the Qatar National Food Security Programme for organic food delivery from a local farm,” he says. At Crowne Plaza, for example, they only use products that do not contain VOC (volatile organic compounds) such as paints, adhesives etc. “Also, our housekeeping department uses non-toxic cleaning products where possible. The hotel has implemented parent company InterContinental Hotel Group (IHG)’s sustainable purchasing policy, which advises the suppliers on best practices,” says Ford. While Intercontinental Doha The City is striving to achieve third-party certifications and participate in the Green Restaurant Certification Programme, Oryx Rotana encourages the use of projectors in meetings instead of distributing meeting minutes, and carpooling and use of a shuttle bus among staff. Amjad Ali, Environment, Health & Safety Manager at Oryx Rotana, also says that ozone, and not chemicals, is used for food and vegetable sanitation at the hotel, despite it not translating into savings. And speaking of ozone, after the scare a few years ago everyone seems to have forgotten about chlorofluoro carbons, but Muriithi hasn’t. “The discharge of CFC from refrigeration has a very negative environmental impact, which is why we have a refrigerator management programme whereby we monitor and control the use and disposal of CFCs,” he says. Creating green champions Even if you are unable to do a major upgrade, the least that can be done is to take the initiative of training your staff to
conserve and optimise, says Chant. “Create incentives that will convert them into green champions. This is a significant socially responsible contribution as well.” In our discussions with the hotels, it’s heartening to learn that training in sustainability practices forms a good chunk of the induction and orientation for new staff at many of the hotels. This is key to ensuring successful green operations, Davi feels, as “environment and sustainability are perceived differently amongst various nationalities”. Ramsay says: “Through our Responsible Business programme, a mandatory fourhour training, we train all our team members in our strategy. We talk and educate on why to recycle and watch our consumption with electricity and water, and the consequences of what will happen if we do not monitor and try to reduce this.” Grand Hyatt has a “Green Team” consisting of two representatives from each department who monitor savings, says Training Manager Mohamed Hebeshy. “Additionally, the training department conducts the Hyatt Thrive trainings and workshops focused on raising environmental awareness, waste reduction and energy and water conservation, led by the Human Resources and Green Team,” he says. “We have created a special “Green Wall” in front of the employee restaurant, where all the associates can follow the latest trainings and practices of saving the environment.” Crowne Plaza Doha also has a Green Team that “discusses specific challenges and solutions, issuing green projects, taken from IHG’s very own Green Engage programme, to each member,” says Ford. “Green Engage is a software-based, LEED-recognised system that helps the hotel track, measure and reduce energy, water and waste, and each colleague is trained to understand how the hotel implements and runs the programme.” The hotel also encourages its more proactive employees by recognising them and offering incentives for green ideas and suggestions that are successfully implemented. Guests and partners Creating a partnership with your guests and getting them involved in your green efforts is the best way to make sustainability an inseparable part your of brand identity. And this is something that hotels in Doha are
USING PRODUCTS THAT DO NOT CONTAIN VOC (VOLATILE ORGANIC COMPOUNDS) CROWNE PLAZA
doing really well, according to Chant. “I am happy to see that in a lot of the hotels there is signage about reusing the towels and saving water. It is consistent with international best practice.” Intercontinental Doha The City encourages its guests to be part of the solution with “educational signage and literature explaining the hotel’s features and conservation tips”. The Renaissance Doha, like many others in the city, gives its guests the option to change their bed linen less frequently through the "Sustainability Card" available in the rooms. W’s ‘Make a Green Choice’ programme rewards guests with loyalty points for the same. At the Crowne Plaza there are several guest-facing green systems like toilet and wash basin sensors, high-efficiency TVs, low energy-use refrigerators and low-e glazing. At the Ritz-Carlton, they catch them young with the new Ritz Kids programme targeted at children staying in the hotel, "edutaining" (educating and entertaining) them to become more environment-conscious and -friendly.
"WE MEASURE OUR ENVIRONMENTAL CREDITS VIA AN AUDIT PROCESS AND THE RESULTS FORM PART OF AN ANNUAL PERFORMANCE REVIEW THAT IS MONITORED BY IHG CORPORATE OFFICE WHEN COMPARING HOTELS WITHIN THE REGION." JAMEY FORD
Director of Engineering, Crowne Plaza Doha
The Green Group “Are we an association? Are we a lobby? What are we?” The question is posed. It’s been more than a year since the Qatar Green Building Council established its Green Hotels Interest Group, and in trying to get all the stakeholders in the QATAR TODAY > FEBRUARY 2014 > 45
coverstory > The Green Room
THE BACK OF HOUSE AREA HAS POWER SAVING LIGHTS THAT CAN SAVE UP TO 40% OF THE ELECTRICITY. GRAND HYATT DOHA
"GRAND HYATT HAS A GREEN TEAM CONSISTING OF TWO REPRESENTATIVES FROM EACH DEPARTMENT WHO MONITOR SAVINGS." MOHAMED HEBESHY
Training Manager, Grand Hyatt
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hospitality sector to see eye to eye on the green issue, they seemed to have underestimated the problems at hand. “About 15-20 hotels in Doha have expressed interest in being part of what we do here, and about five of the hotels make up the core group who try to meet once a month. It has fallen off the table in the past few months, mainly because though we are aware of the big issues that affect each and every one of us – waste, water, electricity, corporate social responsibility (CSR), asset management – we are unable to find a way to move forward due to the sheer size of those problems,” says Steven Humphrey, Director of AECOM and Co-Chair of the GHIG. “We have worked out what the mission is and what we want to achieve, but so much of it is beyond the hotel operators' control. To be effective we have to evolve and expand the group to include developers, owners, architects and even the 2022 Committee to find out what the hospitality industry can do to support the legacy of the programme.” Some of the participating hotels are thrilled with the work that is already being done in the group. Radisson Blu’s Executive Assistant Manager Simon Ramsay says it is one the founding hotels of the group and participates every month. During the course of several meetings, Ramsay says, it has helped chair smaller gatherings with similar interest groups at the QGBC (like
the Solid Waste Interest Group, the Water Interest Group and the Green Infrastructure Interest Group), where they have been introduced to other industries and the expertise they can provide to hotels. Davi says the Solid Waste Interest Group meeting was particularly productive. Ford says: “The Council is trying to pioneer standards for Qatar and have regular guests who discuss all manner of subjects, from air handling and quality to renewable energies. It is an honour to be involved at this early stage and be able to question the application of technology and standards. “We had a workshop with all our members and collected feedback around the major issues in order to develop an agenda on how to move forward,” Humphrey says. “We’d like to get the QGBC, Qatar foundation (QF) and QTA to join hands and create a platform to bring all the stakeholders together. We want to create a vehicle to implement change or at least demonstrate projects; we have a good mix of hotels to be able to show the impact of a certain practice across all tiers and types. For example, instead of getting the flowers for the hotels air freighted in from Holland, they can be sourced from local farmers producing them in greenhouses. This will not only cut down the carbon footprint but also help the agriculture sector. Other recommended practices included operating a central nursery for the landscaping needs of all the hotels, central waste collection, smaller hotels utilising under-used laundries in big hotels etc. Hotels, irrespective of their different brands, can work and learn together, to back sustainability and the country. These are not issues where they are head to head, and if they work together they can come up with a solution that’s better for the economy, the country and for them.” A matter of metrics As recently as last year the International Tourism Partnership, along with the World Travel & Tourism Council, released Version 1.1 of the Hotel Carbon Measurement Initiative (HCMI). “Developed in partnership with 23 global hotel companies, this provides a consistent way of measuring and reporting on the carbon footprint of a hotel stay or meeting,” says Fran Hughes, Head of Programmes at the International Tourism Partnership. “To date over 17,000 hotels globally are using this voluntary
methodology, and the figure continues to rise.” Curiously, none of the hotels we spoke to mentioned this system of keeping tabs on their carbon output, so we quizzed the GHIG as to whether the HCMI has found its way into the appraisal and audit practices of hotels here. What Humphrey says is worrisome, to say the least is that right now there is no reliable way to even measure what many individual hotels use in terms of energy and other utilities. With water and electricity available at relatively low prices, or in the case of some government-owned properties entirely free, most hotels don’t keep a close enough eye on their usage, says Humphrey. “The utilities are not always metered and/or monitored, and often they don’t know how it is distributed within the hotel – what part goes to the rooms, meeting rooms, public areas and towards back of house operations.” In this scenario, the point of reporting through recently-established standards like the HCMI becomes moot. Though QTA's Anthony Williams is sceptical that the HCMI is a robust and true third-party assessment of a hotel’s operations, citing the example of a European system under development where hotels have to report the percentage of renewable and non-renewable energy sources in their consumption. Nevertheless the fact that many hotels in Doha are unable to come up with the data to fill up even this basic report is something that needs to be given long and hard thought. However he is clearly in favour of ensuring there are proper measurement systems in place for future developments, warning that unless a strategy is devised to resolve this, “it will definitely come [home] to roost, because the government has committed to a carbon-neutral World Cup. We have to be able to implement good systems that generate accurate data on each hotel’s environmental practices and carbon footprint, starting from now and then targeting to reduce it going forward in all the new buildings.” Now, there is no denying that metrics are the foundation for implementing green practices. “Hotels need to know what is driving their emissions, and measuring them is the first part of setting a benchmark for an environmental management system which looks at not just how much energy is used but where this is used and if it can be reduced,” says Hughes. But only a few
hotels in Doha are alive to this fact. Ford says that at Crowne Plaza they measure their environmental credits via an audit process, and the results form part of “an annual performance review that is monitored by IHG Corporate Office when comparing hotels within the region”. Many other hotels like the Renaissance Doha and the Ritz-Carlton use Green Hotels Global, “an online environmental sustainability dashboard that collects data and calculates each hotel’s carbon footprint, water footprint and waste diversion rate as well as featuring a comprehensive list of each hotel’s environmental practices”, according to Muriithi. A few others have an internal audit. Many don’t. “The awareness is there and the desire to do good is there, but in the absence of financial motivation and lack of consequence it’s very difficult to drive that level of change,” says Humphrey. “Yes, they are making changes,” he concedes. “Installing LED lights and sensors, for example, but not doing so would not hurt them financially. The general feedback we get from hotels is that they are willing to make a few capital investments (wisely), but they are not going to change every single bit because there is no payback.” Vetry echoes these concerns,
THE RITZ KIDS PROGRAMME TARGETS CHILDREN STAYING IN THE HOTEL FOR ‘EDUTAINMENT’ ABOUT THE ENVIRONMENT
"THE FOCUS IS ON SUSTAINABLE SOURCING, PRIORITISING PURCHASED PRODUCTS THAT ARE MADE OF RECYCLED MATERIAL OR PRODUCTS THAT CAN BE RECYCLED, AS WELL AS FOOD THAT IS LOCALLY OR ORGANICALLY GROWN IN THE REGION." HOSSEIN VETRY
Cluster General Manager, Ritz-Carlton Doha
RITZ-CARLTON
QATAR TODAY > FEBRUARY 2014 > 47
coverstory > The Green Room
"THE DISCHARGE OF CFC FROM REFRIGERATION HAS A VERY NEGATIVE ENVIRONMENTAL IMPACT, WHICH IS WHY WE HAVE A REFRIGERATOR MANAGEMENT PROGRAMME WHEREBY WE MONITOR AND CONTROL THE USE AND DISPOSAL OF CFCS."
saying there is no collective incentive to go green unless it is being done, as in their case, to generate positive emulation between organisations. So what is the solution? Unthinkable as it may be, considerations of profit need to be set aside, not just because “it is our moral responsibility for our future generations to act in such a way whenever possible”, as Davi puts it, but also since this is a special case. Chant points out why: “If I were the chief sustainability officer of a major hotel in Qatar anticipating the FIFA World Cup, the excuse that there is not enough return on investment is not going to save the reputation of the hotel when it comes to light that the hotel’s sustainability practices are in stark contrast to the top-notch ones in the stadiums and World Cup facilities outside. All the eyes of the world are going to be on the country; environmental journalists will be thronging to the event; the reputation risk is significant. Even in the absence of the World Cup, people are more and more internationally educated and environmentally sensitive now; they will notice. It will end up on Trip-Advisor, who now have a ranking system that looks at what hotels are doing behind the scenes,” Chant points out. She also urges the powers that be to think long-term and large-scale. “Hotel chains, at the very highest corporate levels, need to have an understanding of the macro-ener-
JAMES MURIITHI
Chief Engineer, Renaissance Hotel, Courtyard by Marriott and Marriott Executive Apartments Doha City Center
INSTALLATION OF TIMERS TO CONTROL USAGE OF LIGHTING IN PUBLIC AREAS RENAISSANCE DOHA CITY CENTER
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gy economics. Look at Saudi; by 2030 they are going to be using a significant part of their hydrocarbons internally rather than exporting them. This is a disaster waiting to happen. It is the job of every citizen at the top of every industry to be aware of these things and prepare for them as best as they can. Yes, energy is cheap now, but who’s to say in the run-up to the event the government might not start targeting the business sector by putting a pricing curb on energy, so that after a certain level of energy usage the cost becomes significantly higher. They have done this in Dubai, and this has resulted in a major overhaul at many of the hotels,” she says. Building the basics But the LEDs and solar heaters are still relatively “peripheral issues”, Williams says, compared with the build quality of the assets and refurbishments. “An average building produces 300 million tonnes of carbon in its lifecycle, with 80% of it being produced during operation. Though the construction phase contributes maybe just 15% to the footprint, the majority of energy consumption is driven around decisions made around design and construction, and you can reduce carbon emissions due to operations down to 60% in real terms.” So if had compromise on quality at the beginning, it will always be challenging to operate an energy-efficient building. “Ninety-nine percent of the hotel brands here have moved into inherited buildings not built for them specifically, and in some cases not even designed originally as hotels. A few are actively involved in the development process and might be able to influence it, but often they have to make do with what the developer builds for them. If equipment has been installed during construction that consumes too much power, or an inefficient design has been implemented, there’s nothing the operator can do about it. We know a hotel building which, if it were turned by 45 degrees, would have reduced energy bills by a quarter,” Humphrey says. “There is a limit to what operators can do,” he goes on. “When they are retrofitting and refurbishing at their own cost they can influence the technology, but when the owner is the one footing the bill they can only make recommendations.” Older buildings can be refurbished and retrofitted to achieve green standards,
MAXIMISE THE UTILISATION OF FRESH AIR TO REDUCE THE COOLING LOAD ON CHILLERS MARRIOTT DOHA
Diaa El Masry, Co-Founder and General Manager of Qatar Green Leaders, says, provided you bring in the right people for the job. “We can’t just hire one contractor who’ll come in, replace a couple of things and stick you with the bill. You’ll need a consultant who can study the building as a whole and give customised recommendations. There are no generic, one-size-fitsall solutions for hotels. And what makes financial sense for one property may seem completely not-worth-the-effort for another one.” The more challenging task is, of course, getting the owner or developer to even consider a “green” refurbishment. New but better? Which is why, the QTA's Williams reminds us, the message has to seep into the whole value chain, from the owners to the operators and the regulators. “Some of the oldest hotels in Doha are more than 30 years old, but the environmental build quality of hotels that have been finished over the last five years has not necessarily moved significantly forward in all cases.” The GHIG is working with the upcoming hotels, Humphrey says, and having discussions about sustainability. “But what it boils down to is: Are you prepared to spend a 10-15% premium on your capital which will then generate 20-30% reduction in overall usage and utility cost over the lifetime?” How do you convince a developer, who may or may not have any return from energy saving, to sink this arbitrary sum into a project?
And arbitrary it is! Qatar Green Leaders provides a green certification management service – currently using either LEED or GSAS standards – to developers who are building sustainable buildings, so there is no one better than El Masry to help us understand the cost of going green. “This is a very contentious topic,” he says. “There are a lot of studies and analyses that show varying results across the world. In fact there is a study in the US which claims that if you start off at the early design stage with the intention of applying LEED specifications then you’ll be able to get the minimum LEED certification level without spending anything extra. This seems a little farfetched to me. It’s definitely unthinkable in Qatar. Due to various reasons like the non-availability of materials, scarcity of professionals with the right knowledge and general lack of awareness among developers, to have a LEED-certified building in your hands, even the most basic one, would cost on average 10% of the original amount with a payback period of 7-15 years.” It’s not surprising that developers here are unwilling to invest in this bizarre new concept with lengthy payback periods. “It’s all relatively new," says El Masry, "LEED was first heard of in Qatar only around 2007-2008. Then in 2010 Qatari Diar and Barwa got together to develop the Qatar Sustainability Assessment System (QSAS) (later rebranded as GSAS in a bid to spread the standards globally) for all local developments, namely Lusail and Barwa projects. So except in the cases where it’s mandated (like, for example, in Lusail, where all buildings must have a minimum 2-star GSAS rating), developers are not very keen to invest that extra amount.” It is clear that while the need to build sustainably is becoming increasingly important for Qatar, so long as it is not mandated it will remain an afterthought. “The government is pushing for regulation through LEED and GSAS but it’s not law, it’s just a desire,” says Humphrey. Though he is optimistic that new GSAS specifications, which are expected to be released soon, will help the cause, he is doubtful they will get a legal mandate, as resistance from the private sector might be very high. To El Masry’s knowledge, there are no hotels in Doha that have attained the green certificate under any of these systems. But there is hope on the horizon, as a few
"THERE IS ONE HOTEL UNDER CONSTRUCTION IN EDUCATION CITY, DEVELOPED BY PREMIER INN HOTELS QATAR, THAT IS BEING BUILT ACCORDING TO LEED SPECIFICATIONS." DIAA EL MASRY
Co-Founder and General Manager, Qatar Green Leaders
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coverstory > The Green Room
GRAND HYATT'S GREEN TEAM AT WORK
upcoming ones seem to have applied for it. “For example, there is one under construction in Education City, developed by Premier Inn Hotels Qatar, that is being built according to LEED specifications,” he says. Which means, apart from the basic tenents of any green building system – energy and water savings – other factors like the materials used, where they are sourced from, what type of land and ecosystem the building is situated in, how it complements the neighbourhood, indoor environmental quality improvement, waste generation reduction, minimising impact of private transportation etc. will also be given due diligence. To encourage operators and developers to embrace green technologies despite the limited returns, the government should adopt the carrot and stick approach, El Masry says. “In the latest version of the Qatar Construction Standards, the green practices are mentioned as recommendations rather than mandates like the rest of them. This makes sense, because this is not something you can force on developers; then they’ll start to look for a back door around it. You should give them some kind of incentives. How did LEED proliferate in the US and Europe? The government would give tax rebates to developers who get the certification. But in my opinion, that alone wouldn’t be enough here – taxes are already low to non-existent, and a rebate might not produce the desired effect. Other innovative incentives are in order. Like in Lusail, developers who agree to go higher than the mandated 2-star GSAS rating get a higher percentage of area; which translates into bigger, taller buildings and hence more rentable area.” El Masry says he has been approached by a few existing hotels in Qatar who were looking for certification, but the lengthy process and the cost of implementation often put them off. “Issuing LEED certification for existing buildings is not easy – usually we’d have to study their operations for the period of one to three years,” he says, adding however that many hotels, even if not seeking certification, are meeting their green obligations in order to make their operations more sustainable. Wooing green corporations One of the many reasons why going green makes business sense is that it attracts
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USE OF OZONE FOR FOOD AND VEGETABLE SANITATION INSTEAD OF CHEMICALS ORYX ROTANA
other corporates who have a green leaning too. “Being perceived as a green hotel could increase business by attracting more environment-friendly clients worldwide,” admits Oryx Rotana's Amjed Ali. In fact, according to Hughes, the HCMI was born out of the need for hotels to be able to respond to corporate customers' requests for this information in a consistent manner. “More and more companies are asking for this information, and this is only going to increase. As Qatar is a key destination for business travellers, are hotels there prepared?” she asks. The industry is certainly aware of the value of the green tag. “Nowadays most corporate companies ask about green initiatives in the hotel before booking guest rooms or meeting halls,” says a representative from the Intercontinental Doha The City. “Our Level-3 Green Engage certification helps us get more business from corporate groups.” Or as Vetry puts it elegantly: “Today, it is not only a responsibility but a demand from our guests, our corporate office and our owning company, the local authorities of Qatar and our international partners, to act and think sustainably. The most important is that we see this demand emerging not as a trend but as a real component of the travel experience itself, and of the business relationship we hold with our various stakeholders.”
development > tag this
LEARNING TO RESEARCH
BY CONNOR SEARS
In pursuit of the National Vision 2030, Qatar is raising up the next generation of home-grown scientists and researchers.
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P
roducing scientific research is a hallmark of advanced nations. A reliable way to tell when a country is becoming highly developed is to see when its contribution to the world theatre is no longer limited to manufacturing goods and exporting physical resources, but rather its main export comes in the form of knowledge. When a nation begins to traffic in research, it begins to actively advance the state of the world instead of only being a part of it. Through research, a nation can become a hotbed of innovation, producing new processes and technologies that help improve the lives of people across the globe. Qatar is in the middle of creating its own research culture. The National Vision 2030 calls for Qatar to evolve into a “knowledge-based economy”, a point at which Qatar can rely on its advancement of science and technology for income and is no longer dependent on the export of hydrocarbons. An increase of research production in Qatar could also help to find solutions to some of the problems the country faces today, such as water security and food security. Qatar already has several institutions through which research can be conducted. Qatar University and the collection of international institutions in Education City both receive generous support from Qatar Foundation to conduct research, especially research that is aligned with helping to solve national needs. The infrastructure is largely present. What Qatar lacks, though, is the human element. “Qatar’s population is small, but we are ambitious and we have this vision for 2030,” says Dr Abdulnasser Al-Ansari, Deputy Executive Director for the Qatar National Research Fund (QNRF). “Of course, a lot of things are happening at the same time, very
fast and quick economic development. So the first challenge is we need researchers in Qatar. First of all, Qatar has a low population. Second, most Qataris tend to avoid research and development as a profession.” Encouraging research According to Al-Ansari, most of these scientists and research managers are going to have to come from outside Qatar for now. Several programmes under the Qatar Foundation umbrella, however, are already focusing on developing the next generation of scientists and researchers right here in the country. “There is a mechanism for creating this research culture and encouraging the people to enter this research activity. QNRF has an undergraduate research programme named UREP [the Undergraduate Research Experience Programme] that supports the faculty and the students to apply for research, oriented only for undergraduate students,” says Dr Haitham Abu-Rub, who is researching renewable energy conversion at Texas A&M University at Qatar. “Many of the students, Qatari and non-Qatari, were even able to publish in journals, including Qatari and non-Qatari students. So there really is a mechanism, and excellent funds, to support the students.” QNRF offers many different programmes aimed at building the human capital that Qatar’s research culture will need to
“Our first challenge is finding researchers in Qatar. First of all, Qatar has a small population. Secondly, most Qataris tend to avoid research and development as a profession." ABDULNASSER AL-ANSARI Deputy Executive Director, Qatar National Research Fund
QATAR TODAY > FEBRUARY 2014 > 53
development > tag this basically award prizes; we don’t award funding. And it has been successful.” For all the grants it awards, however, the QNRF looks for competitive candidates whose research subjects align with the Qatar National Research Strategy. “We want good quality applications because everything is competitive and goes through a process of peer reviewing,” Al-Ansari says. “We take these applications and send them to peer reviewers outside Qatar so that we avoid any conflict.”
develop in order to achieve the national vision. UREP is the agency’s largest programme that hopes to encourage young people to strive for careers in research. The next-largest of these development programmes is the Junior Scientists Research Experience Program (JSREP). This offers funding for younger researchers who feel they cannot quite compete for the grand QR3,275,000 ($900,000) prize of QNRF’s primary research grant. QNRF also offers programmes meant to support graduate students and post-doctoral students. QNRF’s third-largest programme is actually a prize rather than project funding. The Secondary School Research Experience Program (SSREP) attempts to inspire research aspirations in high school students. “This programme basically aims at supporting high school students with their teachers,” Al-Ansari says. “It is the concept of doing research under the mentorship of the teachers at schools. For this we
“There is a mechanism for creating this research culture and encouraging the people to enter into research activity. QNRF has an undergraduate research programme named UREP that supports faculty and students to apply for research." DR HAITHAM ABU-RUB Texas A&M University at Qatar
QR2.37
billion
Total amount of funding given since the creation of QNRF
54 > QATAR TODAY > FEBRUARY 2014
QR455 Money given in QNRF grants in 2013
million
Leading the way Another programme Qatar is using to build up the next generation of researchers is the Qatar Science Leadership Program (QSLP), run by Qatar Foundation. QSLP encourages science-minded students who have graduated from local universities to continue their education and eventually come back to Qatar to do research. The programme supports both Qatari students and resident students who have been educated in Qatar. Misam Jaffer applied to QSLP after graduating from Texas A&M University at Qatar in 2010. Once he was admitted into the programme, Jaffer obtained his master’s in mechanical engineering with a specialisation in energy systems from Stanford University. After finishing his education, QSLP connected Jaffer to the Qatar Energy and Environment Research Institute (QEERI) where he became a research associate working in the water security and desalination department. Throughout the whole programme, Jaffer says the financial assistance it provided allowed him to continue his education and was an important part of the experience. “After graduation from undergrad, I had good grades – and I did have an interest to study further – but finances also play a pretty big role,” Jaffer says. “That could be the difference between attending a very good university and a university that is not as good as the one that you could possibly have gotten into. So obviously the funding is a big portion.” QSLP’s assistance doesn’t stop at the
QR12
million
Money given to undergraduate students in 2013 via UREP
1,700
Total number of students who have participated in QNRF’s Undergraduate Research Experience Program
820
Total number of students who have participated in QNRF’s Secondary School Research Experience Program
24
Number of projects funded under QNRF’s Junior Scientists Research Experience Program
chequebook, however. “They try to connect you with local researchers,” Jaffer says. “In my case, when I had finished the first year in my master’s, they introduced me to a few people at QEERI, where I am currently working. They introduced me to scientists there, and that was good for me because I could talk to them and see what they’re doing. I could streamline my research interests with them or see where my research interests fit within the organisation. So it was nice. In a way, it was like making connections even before you came here.” Outside of QEERI, QSLP also helps place students at the Qatar Computing Research Institute and the Qatar Biomedical Research Institute, Jaffer says. According to Jaffer, the relationship between students and QSLP doesn’t even necessarily end when he or she begins work at a research institute. QSLP continues to keep in contact with both the student and the workplace, making sure that their new partnership is still productive, and taking feedback to help refine its own programme for the next cycle of applicants. A bump in the road One of the main challenges that stand in the way of building Qatar’s next generation of researchers is the allure of industry work. For many graduates, the opportunity to take their newly-acquired knowledge to large firms is an enticing one, and not easily turned down. “We have a lot of competition,” Al-Ansari says. “This is also another challenge. Qatargas, Qatar Petroleum and other
institutions, they will draw in those new career graduates. So we want to implant this love for research at an early stage.” “I think a great majority of students who graduate in science fields, they still prefer to go into the industry and work for a bit,” Jaffer continues. “At least that’s what I’ve seen from students in my year, students ahead of me and some who have graduated from after my year as well.” This challenge isn’t enough to derail the cause, however. For this new year, QNRF is planning to expand its operations and inspire research-minded youngsters at an even earlier age with their new Middle School Research Experience Program. “We want to change the environment, make more people attracted to science and research at a lower age, so that we in the next generation will be a generation that is familiar with research, a generation that we hope wants to do research,” Al-Ansari says. “And we probably will go lower. You never know.” Challenges aside, Qatar has made enormous strides in developing a national research culture over the past decade. And if these institutions have their way, Qatar will be even closer to its ultimate goal of a knowledge-based economy ten years from now. “I think they’re headed in a good direction where there will be more significant growth in the coming years,” Jaffer says. “I think it’s a good time for students like me to be here. We have a lot of support and a lot of guidance, too.”
“QSLP continues to keep in contact with both the student and the workplace, making sure that their new partnership is still productive, and taking feedback to help refine its own programme for the next cycle of applicants." MISAM JAFFER Research Associate Qatar Energy and Environment Research Institute
QATAR TODAY > FEBRUARY 2014 > 55
business > bottom line
SOCIAL RECRUITING
THE HR BUZZWORD FOR 2014
As social media continues to develop and morph today, its impact on HR and the recruitment process is inevitable.
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M
ost companies who have some kind of presence on the Internet have wisely got themselves an account on popular social media platforms like Facebook, Twitter and Google+. Social media platforms offer companies a unique opportunity to brand themselves better and give their brand a personality, thus connecting at a more individual level with their customers. When
you harness the power of social platforms to drive your recruitment efforts even further, what you get is “social recruiting�. According to the Bayt.com "Corporate Usage of Social Media in the Middle East" poll of June 2012, 65.5% of professionals in the Middle East and North Africa (MENA) say that their company has a Facebook page, making it the most popular social media platform for corporate use in the region. However, only 6.6% of professionals
Bayt.com’s "Personal Branding in the Middle East and North Africa" poll in September 2013 revealed that
61 % 50.5 %
of professionals in the MENA agree that their company does check the profiles of new recruits online before hiring them. Additionally,
of professionals polled in the Bayt.com "Hiring Management in the MENA" poll of August 2012 said that they recruit senior management online.
say that their company uses social media for recruitment purposes, which shows that companies in the region have yet to get on the social recruitment bandwagon. Bayt.com’s own People and Specialties platforms have helped millions of professionals successfully make the leap to professional networking. While professionals benefit greatly from discussions on the hyperspecific forums on Specialties, employers also have a chance to spot potential talent on both these new, powerful platforms. Here are some aspects of social recruiting suggested by the HR experts at Bayt. com for employers to consider and factor into their recruitment process:
important to make sure job posts are always engaging. 3. Customer service Companies should treat their job applicants just as they would treat their customers, i.e. with respect. While it may not be practically feasible to call each of the 500 applicants who applied for your job, you can always automate an e-mail notification system. Bayt.com offers employers many customisable templates so that jobseekers are notified about their job application status at each step of the hiring process.
1. Employer branding Branding efforts shouldn’t be confined to the time when you are advertising your products or services. To attract the best talents, hiring companies need to put their best foot forward. Make sure your company page is well maintained. Just as employers don’t want to see typos on candidates’ CVs, the same applies to your online corporate page.
4. Selection Seventy-one percent of professionals in the Bayt.com "Personal Branding in the Middle East and North Africa" poll say that a candidate’s social networking activities have made them change their mind about that person. Doing an online audit of the candidate is a step that companies need to build into their recruitment process if they don’t want to come across unsavoury details about their new hires.
2. Engagement All job posts on Bayt.com have social sharing buttons, making it easy for professionals to share interesting jobs with their network. Once they have posted their vacancy, companies can also go a step further and share jobs on their social accounts (Facebook, Google+ and Twitter). Using a consistent voice and the right tone is also
5. Social spokespersons Hiring is an ongoing process and so companies should not halt their branding efforts after they have finalised the hire. Your new hires and existing employees are the best spokespersons to promote your employer brand. Share your hiring success stories on social media, as this will also encourage fresh talent to approach you
BAYT.COM Bayt.com is a leading Middle East job site, with more than 40,000 employers and over 14,500,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. QATAR TODAY > FEBRUARY 2014 > 57
business > bottom line
GETTING THE BEST
OUT OF YOUR BEST PEOPLE
BY DR MARKUS WIESNER
Bill Gates famously said: “Take my 20 best people, and virtually overnight Microsoft becomes a mediocre company.” This is a thought that resonates with most heads of organisations and businesses today. 58 > QATAR TODAY > FEBRUARY 2014
O
rganisations talk about many workforce-centric challenges, but perhaps the one that concerns them the most is the mandate to ensure that they have the right people – not only those who can help achieve organisational goals today, but also those who can grow along with the organisation and drive the long-term goals. This challenge has created urgency for organisations to effectively identify, develop, retain and reward their high-potential talent. "Potential" is an often-repeated term in
organisations today, but it is interpreted and applied differently by different organisations. At Aon Hewitt we define a highpotential employee quite simply as one who demonstrates the ability as well as the aspiration to move to a more senior and/or expanded role in the near future. Our clients most frequently ask us two things regarding "potential": one how can organisations identify, develop and leverage high-potential talent across the organisation; and two, what can employees themselves do in order to be seen as high potentials by their organisations?
While there is a wealth of research and perspectives on the topic, let me try and share a few key insights on this from our flagship global study on leadership, the Top Companies for Leaders and extensive consulting experience with clients across the world from different industries. We believe that there are four pillars of effective high potential management – strategy, assessment, development and calibration. Strategy The starting point of managing high potentials effectively is a clear strategy outlining the what and the why. Almost 100% of the companies identified as being top companies for leaders have a clear business case and criteria to define and identify their high potentials at each level in the organisation. The criteria typically include a combination of the following aspects: the employee’s performance, character, capability and motivation. While these might sound like generic criteria, each company needs to define these clearly and specifically within their business context, linked to the business imperatives. Assessment Till a few years back, potential was equated with performance. Best-in-class organisations today emphasise the use of a variety of inputs to assess employee potential, and vary the tools they use to evaluate talent by level/grade. The assessment inputs that we come across frequently include performance ratings, executive/ HR nominations, competency-based assessments, and multi-source feedback like 360-degree etc. The key is to move away from one input to multiple inputs in order to have a comprehensive view of an individual’s performance, culture fit, collaboration skills and engagement within the organisation. Development Leading companies today also focus on the use of multiple modes of development instead of excessive reliance on one. We observe a move away from conventional development modes, like stand-alone classroom training, towards those like
action learning, job rotations, coaching and mentoring, and acting in expanded roles to name a few. These tend to be more customised to each individual’s needs and ensure that line managers share the responsibility for development of their staff with the human resources teams. Calibration Periodic calibration of the high-potential talent pool is a key activity in the HR’s scorecard today. This involves continually assessing not only who should be added to this pool, but also who should be taken off. Talent pool calibration helps organisations build and maintain the talent pipeline in a sustained and consistent manner. Top companies periodically undertake rigorous assessment of the talent pipeline, actively involving their senior management in order to take key succession, development and hiring decisions. So what does this mean for the employees? What can you do in order to increase as well as showcase your potential within your organisation? First, understand how your organisation defines and identifies "high potential." Even if there are no articulated criteria, ask questions of your manager and senior leadership to understand what aspects they see as being critical for moving to the next level, beyond just performance. Second, seek constant feedback from multiple sources – your manager, peers and subordinates – on how they believe you fare on those aspects and how you can improve further. Enrol trusted colleagues as your sounding boards through this journey. Third, take your development into your own hands. Instead of waiting for the company to send you on training programmes, seek out learning opportunities – spend time shadowing seniors you admire, ask colleagues to teach you new skills, offer to take on learning projects, and request senior trusted colleagues to coach you on skills you need for the next level. Only when organisations and employees jointly work together to enhance the potential of employees can talent become a true competitive advantage for the organisations
BY DR MARKUS WIESNER CEO, Aon Hewitt Middle East and North Africa
ABOUT DR MARKUS WIESNER AND AON HEWITT Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aonhewitt. com. "Top Companies for Leaders" is the world’s most comprehensive longitudinal study of leadership and talent management, examining the link between leadership practices and financial results. The study, recognised for its global scope and research rigour, attracts hundreds of companies around the globe that seek outside-in insights on leader building and how the best develop and sustain their leadership pipeline.
QATAR TODAY > FEBRUARY 2014 > 59
business > bottom line
BEAT THE
RETIREMENT BLUES BY V L SRINIVASAN
Implementing end of service benefits will help companies in Qatar, which are planning to increase their headcount in the next three years, to reduce rates of attrition.
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A
financially secure retirement is the desire of everyone, but many end up in penury when their companies avoid paying end of service benefits (EoSB) to their staff. Though the laws are very clear and obligations are laid out in many countries including Qatar to end this pernicious practice, some companies still resort to denying employees these benefits. According to a survey entitled “Employment Trends and Managing End of Service Benefits in the Middle East” conducted among 90 organisations by SEI, a leading global provider of investment processing, fund processing and investment management business outsourcing solutions, the companies are under pressure to implement the benefits as employment is gaining momentum in the region with confidence returning in the economy. The survey findings show that 50% of respondents with employees in Qatar are large companies with over 1,000 employees, and the sectors that dominated the responses in Qatar were oil and gas and conglomerates. Likewise, 100% of respondent companies in Qatar are expecting headcount to grow over the next three years. Expressing strong confidence in economic development, 37%
of human resource decision-makers rank retaining staff as first or second highest in their list of priorities. While 81% of the Qatari companies account for EoSB on their balance sheets, 68% of the firms co-mingle the assets with their working capital; 68% want a more proactive approach to EoSB; and over 37% would be happy to outsource management of the whole scheme to a third party. Though there is no rule in Qatar that prohibits co-mingling the assets, the law states that companies have to accrue for their liability on the balance sheets, but doesn’t tell them how to handle that accrual. Due to this, many employers use the funds as part of their working capital and for operating their businesses. “EoSB are compulsory by law already. So this is not a choice. In growth markets like Qatar and the UAE, the reputational risk to the local sponsor and employer is growing rapidly, and hence a professionalised approach has become much more the way forward. What a number of the leading firms are doing is working with companies like ours to turn what has historically been a burden into a benefit, and creating additional incentive structures,” says Jahangir Aka, Head of SEI Middle East in Dubai. “The gap between perception and reality is narrowing quite rapidly, but the current
“The gap between perception and reality is narrowing quite rapidly, but the current perception by companies in the region is that somehow they can avoid paying the EoSB. They look for ways to reduce the payment, e.g. by reducing the proportion of basic against total compensation; they try and terminate employment to pre-empt resignation; and they just refuse to pay it in some cases." JAHANGIR AKA Head of SEI Middle East, Dubai
perception by companies in the region is that somehow they can avoid paying the EoSB. They look for ways to reduce the payment, e.g. by reducing the proportion of basic against total compensation; they try and terminate employment to pre-empt resignation; and they just refuse to pay it in some cases. “The law is very clear and the obligations are clearly laid out. Increased employee awareness and online and offline vocalisation by disgruntled employees, plus media support to increase awareness, is definitely closing the gap between reality and perception,” Aka says. According to him, a professional approach to EoSB is increasingly required, especially in growth markets like Qatar and the UAE to attract and retain talent. There are three stakeholders in most companies in the region: Local sponsors are demanding that the companies ensure this money is set aside to avoid the risk of them having to personally fulfil this liability. As companies grow, sponsors are getting concerned about the size of the potential liability on them personally. Employers want to give employees confidence that they will be paid, as evidence of being a good employer and also in line with their global practices. This helps retain
staff, but also is becoming much more important in attracting new staff. Employees are increasingly aware of their rights and are looking for employers that will be transparent and fair. The reputational impact from disgruntled employees expressing their cases online and offline is making the firms more careful of their reputation. It is not that the companies are wilfully violating the law, as the funds may have been locked up in inventory or a project and there is no cash to pay out EoSB to departing employees. In fact there have been such cases, when a long-serving and senior employee of a subsidiary of a multinational was leaving after 26 years and the company did not have enough cash flow to pay the employee his gratuity, the company had to borrow from banks to pay the EoSB to the employee. In another case, a large Australian construction firm got into difficulty back in Australia and repatriated cash from all its global subsidiaries to help its parent, leaving no cash in their local business. The parent went bust, the cash had been removed, and employees were left without their EoSB. Ultimately the local sponsor, as majority shareholder, was called upon by the courts to pay the EoSB. Aka says the EoSB payout rate in the UAE QATAR TODAY > FEBRUARY 2014 > 61
development > tag this REASONS FOR PROVIDING ENHANCED END OF SERVICE BENEFITS 0 5 10 15 20 25 COMPETITIVE PRESSURE 8 INDUSTRY BEST PRACTICE 18 BUSINESS CLOSURE 1 EARLY RETIREMENT 1 LOCAL BEST PRACTICE 18 CONTRACTUAL REQUIREMENT 8 RESTRUCTURING/ELIMINATION OF JOBS 6 RETAIN KEY TALENT 20 OTHER 6 SOURCE: EOS BENEFITS IN THE MIDDLE EAST IN 2013
“There is a clear growth in interest to set up savings plans, either alongside or integrated with EoSB." MICHAEL G BROUGH Director of Consulting Services, Towers Watson.
62 > QATAR TODAY > FEBRUARY 2014
has increased by 43%, and the liability could be much higher In Qatar depending on the service of the employee with the company. For example, an employee with up to five years' service receives 21 days' per year of service, and an employee with between six and 10 years’ service receives 28 days, but there are cases of higher payout rates for even longer-serving employees. “As the business grows, so do the revenues and not just the costs. So if you are adding employees, it is because your business is growing. Globally, organisations contribute to pension schemes for their employees and this is a cost of doing business and will not impair their growth. The only difference in the Middle East is that companies have got used to not separating this cash from their balance sheet and using it for their business. There is a transition period, which has clearly started, that companies need to start moving these assets off their balance sheets and into separate accounts/trusts,” Aka says. The number of firms, both local and multinational, working with companies like SEI to turn what has been a “burden” into a “benefit” and create additional incentive structures is on the rise, and fiduciary management services offer a solution to EoSB. “This allows employers to have greater insight into their liability (both current and future), develop investment strategies to grow these assets, offer employees matching savings plans and provide employees with website access to regularly review
EoSB entitlement and many other features,” Aka adds. Another international consulting group, Towers Watson (TW), which conducted a similar survey entitled “EoS Benefits in the Middle East 2013,” found too that the results of the SEI survey were “generally consistent” with its own. “Most organisations still accrue for the EoSB within their business and co-mingle with working capital, although the trend is to look at some funding at least of the EoSB,” says Michael G. Brough, Director of Consulting Services with the UK-based Towers Watson. According to him, TW’s survey indicates that 47% of companies enhance their EoSB, waive the one-year waiting period, use a different (more generous) definition of salary, enhance their formula (for some) or adopt a GCC-wide formula (more generous than the UAE). Also, some companies have a separate and additional savings plan but do not see this as an enhancement to EoSB, even though it is a supplementary savings plan that complements and is provided on top of the EoSB. “There is a clear growth in interest to set up savings plans, either alongside or integrated with EoSB, and the use of either a trust to ringfence or a contract to maintain employer investment control are the preferred approaches,” he says. “Investment of the EoSB monies that are funded is typically cautious (low risk) and this ties up in both surveys,” Brough adds
development > tag this
ARBITRATION
HELPS
BY V L SRINIVASAN
Arbitration can resolve disputes, and the concept is set to play a crucial role in the timely execution of mega infrastructure projects in Qatar.
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P
roject spending in Qatar, which was QR43.68 billion ($12 billion) in 2012, is expected to be around QR123.76 billion ($34 billion) in 2014, and this is likely to increase as Qatar’s National Development Strategy is planning to invest an estimated QR666.12 billion ($183 billion) for key infrastructure projects between 2011 and 2016. However, along with the increase in project spending expenditure, litigations are also likely to climb, resulting in delays in the execution of projects, thus pushing up their costs. While the parties involved in disputes prefer to seek legal recourse to find a solution, arbitration is increasingly displacing litigation as the most common method of finding a solution. Companies like Qatar Rail, the New Doha Port and Hamad International Airport have arbitration clauses in their contracts, and most of them have adopted the International Chamber of Commerce (ICC) Rules, with Doha as the seat of arbitration. Where arbitration is provided for in a contract, it is usually handled by the Qatar International Centre for Conciliation and Arbitration (QICCA), the Qatar International Court and Dispute Resolution Centre (QICDRC) or the International Chamber of Commerce (ICC). Disputes can be due to various reasons, such as escalation in the project cost over a period of time, disagreement among the litigants (if more than two parties are involved) following some development locally, or failure of either party to fulfil the contractual obligations.
Since court cases can take a long time, arbitration is viewed as a God-sent opportunity for the parties in litigation, as it not only saves time and money but also resolves issues in an amicable manner. ADR methods Alternative dispute resolution (ADR) methods such as conciliation, mediation and adjudication have yet to gain currency in Qatar, but there has been considerable increase in these methods, as most major projects are now being tendered and awarded with suitable arbitration clauses. Detailing the various options to settle disputes, QICCA Executive Director Dr Minas Khatchadourian says there are numerous methods available to avoid the time and expense of litigation before a judge if the parties to a dispute wish to do so but are unable to resolve their differences by direct negotiation. “Mediation and arbitration are two examples which can be very useful in this effort, while early neutral evaluation is another tool that has been employed with success in certain areas and can be adapted to assist the parties in focusing their efforts on the real issues in a dispute and in achieving settlement if they wish to do so,” he says. Sometimes the parties may request a neutral evaluation of one issue that is impeding the resolution of their dispute. Foreign investors generally prefer to have their disputes resolved through arbitration instead of the local courts. “In fact, early neutral evaluation is a confidential process in which each party presents the factual and legal basis for its claims
“Mediation and arbitration are two examples which can be extremely useful in this effort, while early neutral evaluation is another tool which has been employed with success in several countries and can be adapted to assist the parties in focusing their efforts on the real issues in a dispute and in achieving settlement if they wish to do so.” DR MINAS KHATCHADOURIAN Executive Director, Qatar International Centre for Conciliation and Arbitration
QATAR TODAY > FEBRUARY 2014 > 65
development > tag this
“Unless specific circumstances demand otherwise, we would always recommend alternative forms of dispute resolution to our clients. Not only do they offer cost and timing advantages, but they can also provide risk mitigation benefits, in particular for international clients.” PATRICK GEARON Partner and Head of Intellectual Property Group, Charles Russell Middle East
and defences to a trusted neutral with expertise in the substantive area of the dispute. The neutral then renders a non-binding written evaluation of the positions of the parties in the dispute. The parties can then proceed to negotiate a resolution of the dispute on their own or with the assistance of the neutral as a mediator,” he adds. Though litigation in the Qatari courts is a common formal dispute resolution method on public sector contracts, the parties in disputes are looking at arbitration to settle the issues at the earliest. If either party does not agree on the outcome, they can always approach the Qatari courts. Even the Tender Law of Qatar says that the disputing parties can go for arbitration if it is mentioned in the contract.
66 > QATAR TODAY > FEBRUARY 2014
Saves time and cost Patrick Gearon, who is a partner and head of the intellectual property group of law firm Charles Russell Middle East (which opened an office in Qatar recently), says that they always suggest to the parties that they opt for arbitration to resolve differences among the litigants, for obvious reasons. “Unless specific circumstances demand otherwise, we would always recommend alternative forms of dispute resolution to our clients. Not only do they offer cost and timing advantages, but they can also provide risk mitigation benefits, in particular for international clients,” he says. According to Gearon, dispute resolution clauses in contracts require meticulous drafting to ensure that they function as intended, including careful consideration of the method, process, rules and supporting legislation. These clauses usually adopt a multistage process commencing with amicable negotiation for a predetermined period, failing which the parties move on to the next preferred method. “While the intended project will often dictate the preferred method, arbitration is the most prevalent alternative method used in the Middle East for construction disputes. Formal mediation is not uncommon, and notably the Qatar International Court and Dispute Resolution Centre is currently developing an adjudication process,” he says.
“Experienced companies doing business around the globe expect arbitration as the preferred method of resolving disputes, especially on high-value commercial transactions. Companies run the risk of increased time and cost pressures if a dispute is not resolved quickly, and this can effectively damage business relations.”
There could be thousands of such cases, but the majority will have been dealt with by arbitration because of the prevalence of arbitration clauses in construction contracts, Gearon adds. More comfort and security Dispute resolution by arbitration is likely to give international companies greater comfort and security, and actively encourage them to do business in Qatar. Doha-based partner in the international law firm Pinsent Masons LLP James Elwen says experienced companies doing business around the globe expect arbitration as the preferred method of resolving disputes, especially on high-value commercial transactions. Companies run the risk of increased time and cost pressures if a dispute is not resolved quickly, and this can effectively damage business relations. “Cases in the courts in Qatar take time for resolving disputes, and this may put off certain companies from doing business in Qatar if they have to go to the local court to have a dispute resolved. This can often take years,” he says. The types of dispute they frequently see relate to commercial arrangements and agency agreements. “We anticipate a lot more disputes relating to the construction sector, although in our experience parties tend to use alternative dispute resolution techniques to resolve these kinds of dispute where possible,” Elwen says. The parties involved in large-scale infrastructure projects seem to be more open to negotiation and commercial settlement than is often the case in other sectors, where disputes may be less common. Amendment needed Elwen feels that the Civil and Commercial Procedure Law – Law No. 13 of 1990 ("the 1990 law"), which underpins the court process and covers arbitration, needs a major overhaul to update it in order to allow cases to be dealt with in a cost-effective way. The most important anticipated change is to recognise that arbitral awards will be final and binding, with limited grounds for overturning or appealing an arbitral award. “Currently, under the 1990 law, arbitral
JAMES ELWEN Partner, Pinsent Masons
WORLD BANK REPORT IN ITS REPORT ON EASE OF DOING BUSINESS IN 2013, THE WORLD BANK PLACED QATAR IN 48TH POSITION AMONG 189 COUNTRIES, AND RANKED THE COUNTRY 93RD AS FAR AS ENFORCING CONTRACTS IS CONCERNED. HOWEVER, WHAT SHOULD BRING CHEERS IS THAT QATAR OCCUPIES THE TOP POSITION IN THE GCC REGION AND IS RANKED SIXTH ON ENFORCING CONTRACTS AMONG COUNTRIES IN THE MIDDLE EAST AND NORTH AFRICA (MENA) REGION, AHEAD OF THE UAE (7TH), OMAN (8TH), KUWAIT (9TH), BAHRAIN (10TH) AND SAUDI ARABIA (13TH), ACCORDING TO THE WORLD BANK REPORT. THIS MEANS THE CHANCES OF FOREIGN INVESTORS PREFERRING QATAR AS THEIR DESTINATION IN THE GCC IS HIGH COMPARED WITH OTHER MEMBERNATIONS IN THE REGION.
awards may be challenged in Qatar on questions of fact or law in the local courts. Due to this, arbitration in Qatar has become less appealing when compared with other international arbitration centres, as the losing party effectively has a ‘second bite of the cherry’ to challenge the finality of an arbitral award,” he points out. Elwen hopes that this shortcoming in the 1990 law will be removed by the new arbitration law, thus giving greater comfort and certainty to international companies looking to do business in Qatar QATAR TODAY > FEBRUARY 2014 > 67
development > tag this
Picture Courtesy: Arianespace
3...2...1...
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BLAST OFF!
ON AUGUST 29, 2013, ES'HAIL 1 WAS LAUNCHED INTO SPACE ON AN ARIANE 5 ROCKET BELONGING TO ARIANESPACE. THE COMPANY’S CEO STÉPHANE ISRAËL, WHO WAS IN DOHA RECENTLY, TAKES US INTO THE BUSINESS OF SPACE TRANSPORTATION WHILE TALKING ABOUT THE EXCITEMENT OF HELPING QATAR LAUNCH ITS FIRST SATELLITE. BY AYSWARYA MURTHY
W
e had assumed that in the course of getting Es'hail 1 off the ground (literally),Stéphane Israël would have made several dozen trips to Doha already. But he surprises us with the information that this is his time in the city and he is still in fresh awe of it. “I arrived at night and caught sight of the lights of West Bay and The Pearl. It’s obvious that the country is booming. It was such a contrast from Europe, where the situation is vastly different. That’s a long story,” he says with a sigh. “But here, you can actually see that many big things are happening.” By the time Israël took over as the top man at Arianespace in April last year, the contract with Es'hailSat was already signed and the technicalities ironed out. All that was left to deal with was a deadline and the hopes of a tiny nation making its first grasp at space technology. “This was one of the first contracts that came to my attention as soon I joined. I had to take care of it because it was such an important one for Qatar. A
country’s first satellite is always special. We had a deadline (before the end of August last year) and a promise that we’d deliver on time and in quality,” he mentions. Added to this pressure was the fact that Israël greatly admired and was on cordial terms with the previous Ambassador of Qatar to France, Mohammed Al Kuwari, and Es'hail 1 was jointly owned by Eutelsat, one of Arianespace’s key customers. Thankfully, the satellite was launched without a hitch, and during the very first launch window, top-level dignitaries and media from the country descended on the launch station at the Guiana Space Centre to witness the monumental event. “We had the opportunity and honour to have HE Hessa Al Jaber, the Minister of ICT with us along with Es'hailSat CEO Ali Al Kuwari and a contingent from Al Jazeera, so fortunately there were no delays,” he says. “It was an emotional moment, not only for them but for us also, when we got to see how much the satellite matters to Qatar. As an important nation and emerging power, having a satellite was important. It was an QATAR TODAY > FEBRUARY 2014 > 69
development > tag this
“With Es'hailSat’s announcement that it has already started defining Es'hail 2 (the first one only began broadcasting a month ago), the satellite company will start looking at finalising the launch service provider soon. Probably beginning as early as the first part of 2014, Israël predicts.” STÉPHANE ISRAËL Chief Executive Officer Arianespace
70 > QATAR TODAY > FEBRUARY 2014
honour to be part of the success story which took place in the framework of a very strong relationship with our friends in Qatar,” he says. And he was here to continue that friendship and strengthen their working relationship. With Es'hailSat’s announcement that it has already started defining Es'hail 2 (the first one only began broadcasting a month ago), the satellite company will start looking at finalising the launch service provider soon. Probably beginning as early as the first part of 2014, Israël predicts. “We are currently still in the discussion phase. But we are surely highly motivated about the second launch as well. All we have to do is convince our customer that we are the best solution for Qatar, and we have several good arguments,” he says confidently. And why shouldn’t he? – history and hard numbers are on his side (see next page). So how soon and how deeply does a space transportation company, responsible for the rocket, and launch preparation and operations and the commercial and customer relationship, get involved in the satellite launch process? Israël breaks it down for us. “The manufacturers, customers and launchers are involved in the discussion
very early because the type of rocket has to be matched with its payload capacity. Also, the customer would want to know about the choice of rockets available to them. After this the satellite company will narrow down on the technical solution and freeze the definition of the satellite with manufacturers before checking back again with the launchers to choose the right rocket and its availability for the launch. So if they want to launch in 2016, the contract has to be signed during the first half of 2014, giving us the 18-36 months we need to prepare for the launch.” Israël says that when it comes to commercial satellites, Arianespace is aware of the purpose of the satellite (“We knew Es'hail 1 was for broadcast, would be used by Al Jazeera primarily and also some government usage”), unlike when it is a government or defence one. “We don’t enter into details in that case, and we are not supposed to have all the information on what the satellite will be used for,” he says. Arianespace provides three different complementing rockets for its customers to suit their individual launch needs. Vega is for small payloads; Soyuz, an intermediate one, is used for traditional satellite constellations; and finally the Ariane 5 is a heavy rocket that has a maximum capability to put a 9.5-tonne satellite into orbit. Each of these are bought from different rocket manufacturers – the A5 from Astrium (part of Airbus), Vega from Avio, an Italian company, and Soyuz from the Russians. The space transportation market is a strange and complex one to read. Every year there are more than 100 satellites launched, Israël says, and the competition is open for – and companies like Arianespace can bid for – only about of quarter of these. And yet new companies are entering the field (Elon Musk’s SpaceX comes to mind; NASA has given it a sizable contract to deliver supplies to the International Space Station, wanting a new choice of rockets, and as a means to introduce competition in the internal market) while several countries are starting to develop their own launch capabilities. “India, for example, is a very big space power with 30 years of experience in space. They have decent capacity in the form of its PSLV (Polar Satellite Launch Vehicle),” he says. But through all this, and with the relatively slow progress of space technology (the first Soyuz rocket was sent into space in 1957 and is still in operation), Arianespace has managed to retain its market leadership for over 30 years. “Space technology is complex. Sending a satellite into geostationary
Picture Courtesy: Arianespace
orbit is not like manufacturing a car. Everything has to be checked and rechecked a million times. After developing the rocket, you have to manufacture it and then you need a launch pad to operate it. For example SpaceX, which was established 10 years ago, is just testing its new rocket. [Since the time of the interview, SpaceX has launched its first rocket] To master the rocket system requires a lot of capacity, and once you enter the market you can’t just launch one rocket a year. Either you have to be part of a huge internal institutional market like that in the US or, like Arianespace, have a big presence in the commercial market.” Even though Israël maintains that Arianespace's competitors are limited, and he counts them off with one hand, the extremely niche nature of the market puts a lot of pressure on the company, he admits. Current competition includes ILS, a US-Russian joint venture that operates the Proton rockets, SpaceX and the Indian Space Research Organisation (for the smaller rockets), Japanese H2 rockets and occasionally ULA (a consortium made up of Boeing and Lockheed Martin), who make Atlas and Delta rockets. Brazil is working on a small launcher and India is looking to expand. “India’s upcoming GSLV will be a competitor for bigger satellites as well. But right now their big satellites are launched with Arianespace. In fact, we recently signed on two satellites for India to be launched by end of 2014 and 2015,” he says. Though China has the rockets and huge launch capacity it is not in the game. “There is American legislation against buying Chinese rockets even if there is an American component in the satellite,” he says.
ARIANESPACE STATISTICS
Es'hail 1 arrives at the launch station
ARIANESPACE HAS BEEN IN OPERATION FOR 30 YEARS AND HAS MORE THAN 50% OF THE COMMERCIAL SATELLITE LAUNCH MARKET. IT HAS HAD 57 SUCCESSFUL LAUNCHES IN A ROW WITH THE A5 OVER THE PAST 10 YEARS. THE COMPANY HAS MADE 12 CONSECUTIVE LAUNCHES AT THE VERY BEGINNING OF THEIR LAUNCH WINDOW.
What has been working for Arianespace is that the A5 is far more reliable than any of the rockets of their competitors. “For an operator, especially when you don’t have many satellites, you don’t want to take the risk of failure, which is the worst situation to happen, though it’s part of the business. When you have a failure, insurance will cover the customer’s loss. But we, as the launcher, must understand what happened and it then can take three to five months to return to flight. Proton had an important failure in July last year, and they returned to business only in October. It’s not the end of the story but for sure it is far better for a launch service provider to show that the risk of failure is relatively insignificant,” he reminds us. All in all, Israël is optimistic about the market. “In Europe and the US there might be a plateau, but Asia, South America and, tomorrow, African countries will need more and more satellites for governments, telecommunications, internet connectivity and television broadcast.” The commercial market is only bound to increase, and Arianespace is sitting pretty to meet this growing need QATAR TODAY > FEBRUARY 2014 > 71
development > tag this
GOING SMART, THE
HUAWEI WAY L BY AYSWARYA MURTHY
The most important prerequisite for building a smart city is vision, and Qatar has that in heaps, says the Vice-President of Huawei Middle East, Pan En.
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ast year you couldn’t move anywhere in the Middle East without stumbling into a smart cities conference. In Doha alone there have been two such events within a year. Why is there so much buzz around this concept in this region? We thrash this out with Huawei’s Pan En, Vice-President for the region and Head of Technical Solution Marketing. The Chinese telecom giant was one of the platinum sponsors of the two-day Middle East Smart Cities Conference hosted in Doha in December 2013, so the company is obviously bullish about business prospects in Doha and wants to get in on the ground floor. “As we understand it, Smart Cities is a trend today globally. After the economic crisis, all countries are focused on kick-starting their economies, and urbanisation is always a good way to do so. It fact it was the theme of the 2010 Shanghai Expo (“Better Cities, Better Life”). Our motive behind sponsoring this conference is to ensure that more people from the public sector come to grips with this trend. The awareness shouldn’t just be limited to industry players,” he says. According to En, not only is Doha on a par with the likes of Dubai and Abu Dhabi in the global Smart City race, but it will also find it much easier to realise that status compared with other cities. ”For older cities to become smarter a lot of these things need to be replaced or added," he says . "It’s a big job. It can be done faster here because the city is relatively new. The infrastructure coming up is already incorporating some of these new ideas. Look at Lusail City. We have been hearing so much about it; they are ready to be a Smart City because they started construction with that idea in mind.” That, he emphasises, is the most important of the five factors that’ll help a city go smart – vision (the other four being integration capability, innovative technologies, enterprising business and collaboration between the public and private sectors). “The government here has a clear thought
about the future and a good vision to address those ideas. The 2030 Qatar National Vision is a great example of this.” While private sector enthusiasm and competency is important, only governments can bring about the standardisation that is so critical for the growth of Smart Cities. Unlike the computer industry, there are no standards yet for Smart Cities anywhere in the world. “It’s not easy to establish standards unless there is public sector vision and confidence behind it because we are talking about linking the city to everyone’s life – millions of people and enterprises with their own ideas, devices and systems. The government can drive standardisation with each and every individual project, keeping in mind the total picture they have of future development. Though difficult, the benefits are definitely worth the effort,” says En.
massive business interests in the rest of the GCC (“We have partnered with some of the biggest telecom providers in the Kingdom of Saudi Arabia – STC, Mobily – and the UAE – Etisalat and Du”), the potential here is huge for future business, En says. “Every time our president returns from a trip to Doha he tells us: ‘I see something new being constructed every time I am there. There is building after building coming up, and if there is a building, there is business, there are people and there are connections.’ And that’s what Huawei does; it connects machine to machine, people to people and people to machines.” En sees the company playing a bigger role in the efforts of the two telecom operators in trying to build better network infrastructure for Smart Cities in addition to building data centres for enterprises and communication and security systems for stadiums.
The job at hand A Smart City, as we understand it today, is moot without the ICT component. It is connectivity and real time data dissemination that lie at the foundation of this concept. Huawei, with its “leading position in some of these solutions and very strong capabilities in this field, especially in the communication and platform layers (storage/server/ network connectivity)”, is keen to connect with the governments, consultancies and operators in the region and showcase their ability to be deployed as consultants and solution providers and to participate in these Smart City projects, according to En. “We are not sure what stage of planning the government is at, but we are in constant touch with them to see what opportunities develop. We definitely push for and support this endeavour from an ICT vendor point of view.” Since they entered the market in 2002, Huawei has been helping lay down almost all of Ooredoo’s fixed-line and fibre networks, the first of its kind to completely cover an entire country. “Initially we constructed some networks for Qtel and then gradually set up a partnership with them. In 2010 we signed the first phase of nationwide FTTH (Fibre-to-the-Home) projects with them, and signed the second phase at the end of 2012, becoming the sole vendors of the project. After the deployment of these two projects, Ooredoo will be able to provide 100% of the households and businesses in Qatar with fibre communications,” En says. Though Huawei’s business in Qatar makes up a relatively small percentage of its
Branching out Last year Huawei’s range of smartphones were introduced in Qatar, three years after the company brought out its very first smartphone. “We have had a solid year so far with the launch of some good products like the Ascend P6 that brought us to the notice of the public,” En claims. “In the first half of 2013 alone our global smartphone shipments increased by over 80% from the same period in 2012.” But why this detour into an already crowded and competitive market? “Before we launched our first smartphone, we were already producing customised feature phones for operators like Vodafone. When we started to recognise that smartphones will be the future and will be required by each and every individual, we decided that this was another direction we’d like to contribute to and invest in. Gradually we set up our design, R&D, manufacturing and branding systems and
"We always put network security at the highest priority, even beyond our company’s profits." PAN EN Vice-President for the region and Head of Technical Solution Marketing, Huawei
we are glad to see a growing market share, especially in the Middle East,” he says. “We not in a competitive mode currently,” he said when we pressed him about the other big players they have to beat, with a giant like Samsung right in their backyard. “The space of the market is big enough, and with millions of users with their own different kinds of needs, we are trying to find a niche suited to Huawei. Soon we’ll be big enough, but for now we are still a young brand and have to first provide the right line-up to meet consumers' requirements.” Unfair reputation The company, with its meteoric global rise, has had to battle deep suspicion, especially in countries like India and the US, which share a rather sensitive and tense relationship with China. The pervasive nature of the Chinese government’s dealings with private businesses in that country has consistently raised concerns their networks might not be entirely secure. Uneasiness about data security could have been the death knell for any company, but Huawei has dealt with this through “commitment to openness and transparency” and going the extra mile. Huawei already discloses a large amount of voluntary information about its management and teams, En says, and although a private company, it also chooses to reveal detailed financial and performance information with the public. “Besides, security is not an issue of a specific company,” he says. And that’s true too. In the light of the NSA revelations, the Americans have as much, if not more, reason to distrust homegrown companies like Cisco. In fact, Huawei announced last year that it will no longer be bidding for any of the large contracts in the US. Fortunately the sailing has been smooth in the Middle East. “We got friendly treatment here because of good communication with our customers and our work with governments and industry partners to address the issues that concern us all,” he says. “We always put network security at the highest priority, even beyond our company’s profits,” En says emphatically. “We give this commitment to our customers all over the world, wherever they may be.” En also points out the globalised nature of Huawei. Though born in China, its supply chain snakes across the planet: “chipsets from the US, designs from Europe, software development from India, manufacturing in China and installation and commissioning from local subcontractors”. By sheer logistics alone, Huawei is as universal as they get QATAR TODAY > FEBRUARY 2014 > 73
development > tech talk
14
MOBILE STORIES TO START 2014
February sees the annual Mobile World Congress take place in Barcelona. This huge four-day event – last year’s conference was attended by 72,000 people including over 4,000 CEOs – offers a valuable insight into the latest mobile innovations and trends, from the latest handsets to new apps and announcements from many of the industry’s biggest players (2014’s headline speaker is Facebook CEO and Founder Mark Zuckerberg). BY DAMIAN RADCLIFFE
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ith mobile already proving to be a huge catalyst for changes in the way we communicate and consume content, we can expect this momentum to be sustained in 2014. Qatar Today will be giving you updates on our social media from the conference followed by an in-depth report in our next issue. Hotly-tipped developments for the next 12 months include curved and flexible mobile screens, bigger iPhones (the phablet is already pretty popular in parts of the Middle East, and the growth of China as a major 4G market, with China Mobile alone planning to sell about 100 million 4G smartphones in 2014. Ahead of these developments – and any announcements to come out of the latest Mobile World Congress – here are fourteen mobile stories and data points that caught
penetration in the world, just ahead of South Korea. Saudi Arabia comes third; 72.8% of Saudi’s population owns a smartphone.
my eye over the past couple of months. Seven developments from the Middle East 1. Of the 56 million active users on Facebook in the Middle East and North Africa (MENA), 28 million log on daily, with 15 million doing so via a mobile device. Over the course of a month that figure increases to 33 million. 2. At the end of Q3 2013 there were 354 million mobile subscriptions in MENA, according to research from Ericsson. Of the 6 million new mobile subscriptions in MENA in Q3 2013, 4 million of these new connections were in Egypt. 3. Nearly 75% of people in the UAE own a smartphone: data compiled by online statistics portal Statista show that the UAE enjoys the highest level of smartphone
one in four
4. In MENA two phones in five are smartphones, reports market research company IDC, with 45.2% of all phones in the region being produced by Nokia. 5. Thirty-seven precent of consumers in the UAE use the mobile web for 6+ hours a day, software solutions company Netbiscuits has found. 6. Mobile is an increasingly important means for people in the Middle East and Africa to get online. Analysys Mason’s survey of mobile Internet users in 20122013 found that “87% of surveyed mobile Internet users use a mobile phone as the main means to connect to the Internet...”
of their working life on the mobile web
spend % of consumers who use the mobile web for 6+ hours per day
22% USA
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22% UK
15%
FRANCE
28%
GERMANY
53%
CHINA
35%
BRAZIL
22%
SOUTH AFRICA
37% UAE
29%
INDIA
16%
AUSTRALIA
GROWING UP MOBILE In the two years since Common Sense Media first reported on the media use of 0 to 8- year-olds, its latest survey in the series Zero to Eight: Children's Media Use in America 2013, shows the media environments and behaviours of young kids have changed. More than ever, they're growing up mobile.
Western Europe
North America
3
million
Central and Eastern Europe
3/4
1
million
Latin America Asia-Pacific (excluding China and India)
8
million
24
6
million
million
of all kids have access to mobile devices at home.
Smartphones
are still the most common device (63%, up from 41%), but tablet ownership is 5 times higher (8% to 40%)than it was in 2011.
Africa
New mobile subscriptions in 2013
25
million
30
The number of kids who've used mobile devices has nearly doubled since 2011 (38% to 72%).
6
million
Average daily use of mobile devices has tripled, from 5 to 15 minutes a day.
2011
Middle East
2013
million
10
million India
7. Multinational knowledge company Informa predicts that sales of tablets in the region are expected to increase almost fivefold in the next four years, from 6.5 million in 2012 to 32.1 million in 2016.
What are kids doing on their mobile devices? 33%
playing games
Seven global developments 1. By 2017 there will be more phones on the planet than people. That’s just one of the many memorable stats from Benedict Evans’ memorably-entitled presentation “Mobile Is Eating The World”. He outlines some fundamental differences in the scale and usage of the PC and mobile industries. For example, 1.7 billion phones were sold in 2012 compared with 350 million PCs. 2. Separately, Ericsson has stated that there will be 9.3 billion mobile subscriptions by 2019, of which 60% will be smartphones. 3. Facebook, Ericsson, MediaTek, Nokia, Opera, Qualcomm and Samsung are the driving forces behind Internet.org, a global partnership that will focus on mobile to bring the Internet to those not yet online. Their efforts will include trying to reduce the data needed by apps in a bid to make the mobile Internet more affordable. Will Zuckerberg say more about this development in Barcelona? 4. The number of US children aged 0-8 who
using apps
63% 16
50% 20%
watching videos
watching TV/movies
reading books
%
47% 11% 38% 4% 30%
2011 2013
use mobile devices has nearly doubled since 2011 to 72% (up from 38%), reports the US-based organisation Common Sense Media. In fact the same research notes that 38% of under-2s have now used a mobile device, the same number as under-8s only two years ago. 5. Kenyan teens use their mobiles as the primary means to get online, according to a report by UNICEF. As a result, young people in Kenya don’t differentiate
China
Source: Ericsson (November 2013)
between mobile and Internet use, instead viewing it as an integrated digital experience. The ability to meet new people, access entertainment-related content and learn about new things of interest were all key drivers to getting online. 6. Fifty-six per cent of all UK adults claim to have "media stacked" while watching television – a term refers to the practice of using tech devices such as their phone or tablet to engage in activity unrelated to what they are watching. Internet browsing and communicating with others, e.g. by calls, e-mail or text, were the most popular activities undertaken while also watching TV; watching or listening to other content at the same time was the least popular. 7. Video calling via mobile has tripled in the USA since 2011. Data from the Pew Research Centre shows how over the past four years phone owners have become increasingly likely to use their mobile for activities such as getting directions, listening to music or video calling. Next month we will say more about the implications of these developments for employers, especially amongst younger members of the workforce. In the meantime, if you’ve seen any other mobile developments that caught your eye don’t forget to write to Qatar Today or tell us via our various social media channels QATAR TODAY > FEBRUARY 2014 > 75
development > tech talk
RIDESHARING APP HITS DOHA
Uber offers prompt and comfortable rides using only your smartphone. You don’t even need your wallet.
KEEPING AN EYE ON GLUCOSE LEVELS
N
avigating Doha’s roads isn’t exactly simple, but at least you can now find a ride without much hassle. Uber, as it is known today, first launched in San Francisco back in 2010. Now, only four years later, the app has surged in popularity, offering services in 69 cities across six continents, and Doha is now in its network. Using the app is easy. Just one tap, and the app uses your phone’s GPS to get your pickup location and connect you with their nearest driver. The app then provides you with your driver’s contact information, in case you need to get in touch, and will even text you when your ride has arrived. Then, once you’re at your destination, Uber automatically charges the fare (plus tip) directly to your credit card, simple as that.
Google’s recently-unveiled contact lens concept could allow diabetics to check their sugar levels using only tears.
G
oogle has revealed that it's now testing a smart contact lens that uses miniature sensors to check the glucose levels of a diabetic wearer without the need for finger pricking. The functional eyepiece uses a tiny glucose sensor and wireless chip alongside an ultra-thin antenna, all embedded in a contact lens, to read the wearer’s glucose level based on his or her tears alone. Google announced that its prototypes could even generate a reading every second. The development team is also considering adding a way for the lens to immediately let the wearer know via small LEDs when these levels are abnormally high or low. The technology is still in its infancy, and Google has a lot of refining to do before this kind of thing could be available for every diabetic. The concept of leaving finger pricking behind in favour of simply wearing a lens, though, is one worth waiting for.
LOCK UP YOUR LAPTOP
Learn how to keep your online profile safe from harm with two days of virtual security discussions.
D
oha is hosting the GCC Digital Security Forum from February 4-5. The two-day event is organized by Meeza, a tech agency under the Qatar Foundation umbrella, and is sponsored by HE Dr Hessa Al Jaber, Minister of Information and Communications Technology. The forum offers talks by industry professionals about how governments and individuals alike can take further precautions in the name of cyber security. The event includes a discussion on the costs of digital crime and even a live hacking demonstration. In an age where more and more of our lives is being transferred online, digital security is an increasingly important concept to understand.
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DATE SET FOR 2014 ICT CONFERENCE TRACK YOUR TRENDS WITH EASE
Sony’s new entry in the wearable tech market does more than count calories.
The third QITCOM conference and exhibition will aim to further advance information and communications technology in Qatar.
Q
ITCOM 2014 will take place from May 26-28 at the Qatar National Convention Centre. The convention allows companies and consumers alike the opportunity to showcase and celebrate new ideas in the field of communication. Germany-based communication leader fischerAppelt has been chosen to manage the event after sponsoring several other events in Qatar. “Today information and communication
technology is an integral part of our daily lives,” says Feda Al Barghouti, Acting Market Development Manager for the Ministry of Information and Communications Technology. “In order to remain in the forefront, and always remain at the level of the global competition, we have to continue to learn and adopt the best and latest technology that will facilitate our lives and our businesses.”
T
he concept of wearable gadgets, those handy bracelets you can strap onto your wrist to help you keep track of your eating and exercise habits, is nothing new. But the Core from Sony could be changing the way these devices are viewed. Shown at this year’s Consumer Electronics Show, the Core itself is not wearable; it’s only a small computer. By plugging it into the sleek SmartBand, however, the Core can do so much more. If you connect the device to your Android phone, the Core can start tracking what music you listen to, and how much you listen to at a time. It can track the weather of wherever you travel. It can also subtly vibrate on your wrist to let you know when you have an incoming call. The most exciting aspect of the Core, though, is its capability to plug into several different devices. Though we haven’t yet seen what some of these second devices might be, the versatility of the Core is still something to look forward to once this technology starts rolling out later this year.
FLYING WITH STYLE
Become a pro at air travel the next time you fly, with Doha International Airport’s new mobile app.
W
ith operations at Doha International Airport (DIA) quickly growing larger and the new Hamad International Airport now set to open up some time this year, navigating through Doha’s gates and terminals can become an intimidating proposition. But with DIA’s new mobile app, available for iOS, Android and as a mobile website, making your way to your flight is a piece of cake. The app can be operated either offline or via the airport’s Wi-Fi. The power to check the status of your flight, look up other departures and arrivals, make your way to the nearest dining location and contact airport authorities can now all rest in your pocket, in both English and Arabic. The app is free both in the App Store and on Google Play, and is still being updated with new features and functions. QATAR TODAY > FEBRUARY 2014 > 77
business > braking news
“ELECTRIC CARS NOT REALISTIC FOR THE REGION” BY CONNOR SEARS
Thomas Milz, Managing Director for Volkswagen Middle East, talks about eco-friendly cars that will work in the Middle East, while he recounts the success story of the brand in the region.
T
homas Milz has worked for Volkswagen for more than 20 years, and he has done so all over the world. After years spent in various manager and director positions in North America and northern Europe, Milz made the move to the warmer climate of Dubai in late 2012 when he became Managing Director for Volkswagen Middle East. Selling cars in the Middle East comes with its own challenges and quirks. Fortunately for Milz, his experience selling Volkswagens in many different regions has him used to figuring out how a new market ticks. For instance, Milz recognises that the Middle Eastern automotive market is noticeably different from the European market, in which smaller hatchbacks are the preferred
78 > QATAR TODAY > FEBRUARY 2014
cars. He can tell you right off the bat that the Middle East region has many similarities to the American car market, both areas tending to focus on two distinct types of cars, the sedan and the SUV. Some issues, however, are unique to the Middle East. The recent movement toward electric cars in Europe and other markets, made even more public by the German government’s resolve to put 1 million electric cars on the road by 2020, is unlikely to find any traction in this area, Milz says. “The move to electric cars in this region would especially be in the summer months very, very challenging,” he says. “An electric car needs to have the power for driving from the batteries. If those batteries are also used for air conditioning, that would drain the batteries dramatically.”
Milz notes that other forms of “eco-friendly” cars could make their way to the Middle East. Technologies like compressed natural gas engines and hybrid cars, which use a combination of fuel and electricity to run, are both viable options for greener driving in the region. “There are huge natural gas resources here in the Middle East,” he says, “and that may be an opportunity in the future if we find the right compromise between customers, governments and manufacturers.” Purely electric cars, however, just might not be feasible for this area. The Middle East’s special combination of high temperatures and low petrol prices significantly decrease the benefits of switching to an electric car. “The situation still in this region is that with fuel prices that low, the customer advantage is very, very little, and all of those technologies – electric mobility or the hybrid technology – are definitely more expensive than a regular petrol engine,” Milz says. “A premium has to be paid by somebody. In Europe, you have tax advantages, so pretty much the government is paying for the additional cost of such technologies, which is not the case here in the Middle East.” Passat drives growth Volkswagen is coming off a very successful year in the region. The German car company reported year-on-year growth of 30% across the Middle East and 58% in Qatar alone. This growth can be attributed to many different factors, but a huge part of the equation is the Passat, Volkswagen’s spacious sedan that made impressive sales numbers in Middle Eastern markets last year. The Passat’s success wasn’t just a lucky break for Volkswagen, though. Rather, it was the result of careful research and planning, according to Milz. “We launched it at the end of 2012. What we have done is we had done really in-depth customer analysis in the Middle East, and so as a result we decided to bring the Passat, which is actually the US version of the Passat, to the Middle East,” he says. “We have done the research, and the customer demand in the Middle East is about space, affordability and reliability. And this is where we were then able, within the entire Volkswagen product portfolio, to look for the right car, and the Passat did a great job.” Service after sales Once growth is achieved, the next step is
FACT FILE:
30%
The year-on-year growth from 2012 to 2013 for Volkswagen deliveries in the GCC.
4I5%
The year-on-year increase for Passat deliveries from July 2012 to July 2013.
I4,000
The approximate number of 2013 Volkswagen deliveries across the Middle East.
58%
The year-on-year growth from 2012 to 2013 for Volkswagen in Qatar.
to sustain it. One of Volkswagen’s global values is “service after sales”, the idea that quality customer service doesn’t stop once a customer drives the car off the lot. Volkswagen is investing heavily in this concept here in the Middle East by bringing trained service and salespeople into the area. They’re also investing in facilities as well as people. Doha will see a new Volkswagen showroom and a new workshop within the first few months of this year. “I think we are in the beginning of a success story,” Milz says. “We’ve invested over the last couple of years a lot into the infrastructure, into people, into training facilities and technicians, and we are now harvesting the fruits.” So what is on Volkswagen’s docket for 2014? Customers can look forward to the regional launch of the all-wheel-drive Golf R, which will make an appearance at the Qatar Motor Show. The end of the year will see updates to the Jetta and Touareg. Milz also teased another launch for “something more emotional and sporty” for midyear, though he wouldn’t give away too many details. Most of all, though, 2014 will be spent investing in people and making sure customer service comes first. “It’s quite simple, and every one of us has experienced it,” Milz says. “Once you understand the customer and once you treat the customer right, the customer satisfaction will basically help you to become successful as a brand.”
“There are huge natural gas resources here in the Middle East, and that may be an opportunity in the future if we find the right compromise between customers, governments and manufacturers.” THOMAS MILZ Managing Director, Volkswagen Middle East
QATAR TODAY > FEBRUARY 2014 > 79
business > auto news The five-day event will showcase the latest developments across the auto industry.
THE MOTOR SHOW ARRIVES IN LATE FEBRUARY
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he fourth Qatar International Motor Show (QMS) will be held from February 21-25 at the Qatar National Convention Centre. The free event is an opportunity for professionals in the automotive industry to show off the latest and greatest makes, models and technologies from the world of cars. The show is being put on through a collaboration of the Qatar
Tourism Authority (QTA), q.media, Ooredoo, Airlink and, for the first time, event organisers Fira Barcelona. “QMS plays an important role in cementing Qatar’s position as a leading events destination in the region,” says Hamad Al Abdan, Director of Exhibitions at QTA. “It combines trade and consumer interests in Qatar’s events calendar.”
PORSCHE PICKS UP THE PACE IN QATAR
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he fifth Porsche GT3 Cup Challenge Middle East rolled into the Losail International Circuit for two weekends in January for the high-octane race’s Qatar section, sponsored by QD-SBG. Not only did the race bring in some of the region’s top racers, but it also showed off the new race model from Porsche, the Porsche 911 GT3 Cup. Based on the GT3 road model, the GT3 Cup packs some serious power beneath its graceful exterior. Optimised for the track, the engine now puts out 460 horsepower with a revamped brake
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The Doha leg of the Porsche racing series brought a fleet of the company’s slick new race cars to Qatar. system that lets drivers take turns tighter and faster than ever. All this power goes into the ultimate goal of effortlessly propelling this little car to speeds well in excess of 200 km/h, though the racers don’t seem to even notice. “I honestly don’t know how fast we’re going,” Saudi Falcon driver Abdulaziz Al Faisal says, smiling. “When I’m racing, I’m only focusing on the speed of the engine, so I know when I need to shift, and the turn ahead of me, so I know when I need to start braking.”
ALFARDAN HOSTS ANNUAL AMATEUR GOLF TOURNAMENT Qatar’s top amateur golfers teed up for 18 holes to see who will represent the nation later this year.
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ate last year Doha Golf Club played host to the third annual BMW Golf Cup International for amateur players. The event was organised by Alfardan Automobiles, Qatar’s BMW Group importer. The competition was split into three tiers, two for men of different skill levels and a third for women. The three winners will fly to Thailand in March for the world
RENAULT SEES GROWTH IN REGIONAL SALES
The French automaker can attribute much of its success to the impressive performance of the Duster SUV.
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enault Middle East announced a sales increase of 19% in 2013 for the GCC market. The Renault Duster SUV was the star of the year, seeing a sales increase of more than 200% from January to November of 2013. Renault Middle East reported a total sales number for all models of 55,517 units for the year.
“With 19% growth in the GCC in 2013, we are reaping the benefits of our sustained strategy to expand the Renault brand in the Middle East region,” says Peyman Kargar, Managing Director for Renault Middle East. “This remarkable growth... is the result of a range of high-quality Renault models and competitive pricing.”
finals. “Golf enjoys a special relationship with BMW, and we are committed to holding the BMW Golf Cup every year,” says Alfardan General Manager Mohamed Kandeel. “Both the sport and BMW are exclusive, elegant and stylish – a perfect match for our brand’s premium character. We are proud to see our annual tournament grow.”
NISSAN CELEBRATES FIVE YEARS OF GT ACADEMY
In 2008, Nissan launched a partnership with PlayStation called GT Academy. The goal? Find one of the best players of the racing video game Gran Turismo and turn him into a real race car driver. The winners of an online tournament of the game were then tested for the endurance and mental strength needed to race in the real world, the winner getting the opportunity to further refine his skills through intensive training. Three years later, the first GT Academy winner went on to finish second in his class at Le Mans 24 Hours, proving that Nissan and PlayStation were on to something after all. In 2012, GT Academy made its way to the Middle East, where Salman Al Khater was declared the first GT Academy Middle East champion. QATAR TODAY > FEBRUARY 2014 > 81
business > auto news
INFINITI UNVEILS HIGH-PERFORMANCE SEDAN Consumers got their first look at the new Infiniti Q50 Eau Rouge, first with an image released early this year and then in person at the North American International Auto Show about a week later. The sedan is heavily inspired by the aerodynamic design of Formula One cars.
ROLLS-ROYCE COMES HOME
MINI GOES TO THE DARK SIDE Channel your inner masked vigilante by cruising around in Mini’s Black Knight Edition cars, now available in the Middle East.
Experience the pinnacle of human craftsmanship with these limited-edition luxury models.
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olls-Royce Motor Cars Doha showed off two special edition models from the Home of Rolls-Royce Collection late last year. The collection offers a unique new look for the Ghost and Phantom sedans, of which Rolls-Royce Motor Cars Doha will receive one each from the collection. This exclusive limited edition celebrates a decade of production at the Rolls-Royce plant in Goodwood, England, which was founded once BMW acquired the Rolls-Royce brand. Parts for the cars are precision-cut then hand-assembled, providing a delicate balance of new technology and time-honoured handiwork. The collection’s motif includes a compass pattern expertly embroidered
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into the armrests and console lid, celebrating the brand’s worldwide reach, and a set of coordinates engraved on the famed RollsRoyce bonnet ornament to reinforce the collection’s tribute to Goodwood. “We are proud to be among the few RollsRoyce dealers in the world who have the opportunity to offer the Home of RollsRoyce Collection to our discerning clientele,” says Mohamed Kandeel, General Manager of Rolls-Royce Motor Cars Doha. “This collection celebrates the craftsmanship, design and engineering at the heart of the Rolls-Royce brand, and represents the intricate details that make RollsRoyce the unrivalled market leader in the ultra-luxury segment here in Qatar.”
business > marketwatch NOKIA LUMIA 1320 ARRIVES
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onsolidated Gulf Co. (CGC), the distributor for Nokia in Qatar, has launched the new Lumia 1320, which brings many of the high-end Lumia innovations into a 6-inch-screen smartphone at a lower price point. “Building on the success of the Lumia 520, we are bringing the best Lumia experiences from Nokia and the latest from Windows Phone to a large-screen smartphone, at a more affordable price,” said Vithesh Reddy, General Manager, Nokia Lower Gulf. Nokia Lumia 1320 allows people to take advantage of Nokia’s rich and powerful imaging experiences to have more fun with pictures. The new Nokia Camera integrates the most popular imaging modes – Pro, Smart, and Video – into one seamless picture-taking experience on the Nokia Lumia 1320. Offering the world’s best navigation and mapping services and featuring augmented reality view through the suite, Here Drive and Here Maps preloaded on the phone and Here Transit available in the Store help people discover everything around them in an even more intuitive way. On a larger screen, finding places and navigating to destinations are even easier. Nokia 1320 is available in Qatar at CGC and other stores and is priced at QR 1,338.
AFT IS CASTROL’S DISTRIBUTOR
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uto Future Tech, the latest company to be added to the Alfardan Group portfolio, was established to bring new automotive product offerings and extraordinary service to the Qatari market. The appointment by Castrol includes distribution of Castrol’s latest generation of automotive lubricants for cars and trucks, including the premium product brands Castrol Edge, Castrol Magnatec and
Castrol, one of the world’s leading premium lubricant companies, has appointed Auto Future Tech as the exclusive distributor for Castrol automotive products in Qatar. Castrol GTX. The appointment was announced and a signing ceremony was held at a press conference at the St Regis Hotel attended by Alfardan Group President and CEO Omar Alfardan, Auto Future Tech General Manager Mohamed Kandeel, Castrol’s Regional Sales Director Mike Phillips, Castrol’s Middle East Business Development Director Rick Capoccia and others.
In his comments, Omar Alfardan said: “We are pleased to form this relationship with Castrol, which shares the same values and ethos as ourselves. The driving force behind Alfardan Group’s efforts is to offer our valued customers the best products and services, and Castrol has positioned itself as a leader in the lubricants industry, providing world-class, cutting-edge technology and customer service.” QATAR TODAY > FEBRUARY 2014 > 83
business > market watch
JAYASURIYA VISITS CENTREPOINT Sri Lanka’s cricket legend Sanath Jayasuriya unveiled the Splash "In Love With Fashion" limited edition calendar 2014 for Centrepoint customers at Al Asmakh Mall.
SPLASH “IN LOVE WITH FASHION”
The UAE-based high street retailer Splash has launched its 2014 limited edition calendar, enitled “In Love With Fashion,” in Qatar.
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t was unveiled by Chairman and Vice-Chairperson of Landmark Group Micky and Renuka Jagtiani along with Splash and Iconic CEO Raza Beig. Celebrating this high fashion calendar, Beig invited fashion and art enthusiasts to a display of 12 visuals. Weaving around the concept of love, and drawing inspiration from the multifaceted heart logo introduced earlier this year in the business, the calendar brings together the virtues of seasonless fabrics, the glamour and beauty of textures and the love of design. Capturing and interpreting contemporary fashion culture, the calendar is shot through the lens of renowned fashion photographer Tejal Patni and styled by international designer Furne One of Amato. “Expression of style and emotion for fashion has driven multitudes of consumers to Splash, and it was this thought that inspired the theme ‘Splash In Love With Fashion’ for the 2014 Splash Calendar. The calendar is a beautiful summation of fabrics and design aesthetics, styles and silhouettes that have been constant in the brand’s 20-year journey. Bound to tickle the creative urge, this fascinating combination of art and fashion brings together Tejal Patni and Furne One, both of whom are stalwarts in their respective fields, to present the 2014 Splash Calendar, which will have direct access to the realm of your emotions,” said Raza Beig. All through the 12 images, six key fabrics emerge that have had the longest-standing history in the world of fashion, namely lace, denim, plaid, leather, florals and monochrome.
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OFFERS FOR SOUQ WAQIF IN SPRING
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ouq Waqif Boutique Hotels launched a number of specially-designed offers for families to make the most of the Souq Waqif Spring Festival. The annual festival, sponsored by Souq Waqif Boutique Hotels and organised by the Souq Waqif administration and Sawt Al-Rayyan Radio, ran from January 24 to February 6 and is now in its third year. The festival took place in the souq and attracted thousands of visitors, and featured two weeks of family-friendly fun including parades, shows, plays, music featuring top Arab stars and children’s entertainment. During the festival Souq Waqif Boutique Hotels had special offers in each of its seven hotels located throughout Souq Waqif. The offers includde two nights in one of the hotel collection’s uniquely-styled suites for two adults, where children up to six years of age could stay for free and children from six to 15 years could enjoy a 50% discount (with a maximum of two children per room); limousine collection from the airport; a Spring welcome package of fruit or handmade cupcakes and pastries on arrival; and full buffet breakfast with traditional Arab and continental delicacies on both days.
QATAR TO HOST AFC SUMMIT 2014 Doha will once again play host to the third edition of the Arab Future Cities Summit under the patronage of HE Sheikh Abdul Rahman bin Khalifa Al Thani, Minister for Municipality and Urban Planning, on April 7 and 8.
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ver 300 experts are expected to attend the summit to discuss the progress and future requirements of constructing smart cities across the Middle East and North Africa (MENA) region. With a focus on knowledge-sharing and networking, the summit will showcase best practice strategies and opportunities in the pipeline for city development, through presentations from local thought leaders and international smart city experts, and the innovative solutions that will integrate citizens, systems and services.
The summit will address key challenges in water and energy supply, transport and mobility, sustainable development and citizen engagement through technology and intelligent urban policy. Exponential growth in ICT, product innovation and smart water and electricity grids are a few of the topics that will connect government authorities, developers, urban planners, investors and academics among others interested in contributing to the development of Qatar’s cities. To learn more about the summit, visit www.arabfuturecities.com.
THE RITZ CLUB LOUNGE
For all business executives comes an offer from the RitzCarlton that is not to be missed.
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roviding the highest level of personalised service, the Club Lounge caters to all the needs of a discerning traveller with the added advantage of privacy. Complimentary access to the Club Lounge includes wireless connectivity and two-hour use of the club meeting room, a selection of guests' favorite beverages at the bar and continuous culinary offerings served throughout the day. An advantage of being a club member is having keyed entry to the elevators to the Club Lounge on the top floor for private checkins. With a separate entry that is still within the Ritz, this is intimacy and privacy at its best. “With a personal chef de cuisine and dedicated concierge, the Ritz-Carlton Club Lounge is at the avant-garde of service excellence in Qatar,” says General Manager Hossein Vetry. Beginning this year, he says, guests staying at the Club level can enjoy the special privilege of getting an additional complimentary night for a minimum stay of two nights with the “Treat You” package starting from QR1,915 per night (the rate includes airport transfer). QATAR TODAY > FEBRUARY 2014 > 85
focus > sports file
SERGIO’S THE PEARL OF QATAR Sergio Garcia said he was relieved finally to get a win in Qatar after many years of trying.
CELEBRATE QATAR THROUGH SPORT
AFP PHOTO / KARIM JAAFAR / AL-WATAN DOHA
Qatari table tennis star Aya Magdi says that National Sport Day is a fantastic opportunity for families and friends to celebrate their national identity together.
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he Spaniard – who moved into the world’s top 10 courtesy of the victory – beat Finland’s Mikko Ilonen with a birdie on the third extra hole. “I’m thrilled to finally be able to win here,” said the 34-year-old, who last year finished joint runner-up for his sixth top10 finish in Doha in seven years. “I’ve been close several times, so it feels great to finally get through the finish line and go home with the trophy. “It’s a place I’ve been coming for a while now and that I’ve always enjoyed playing. I’ve been coming here for eight straight years, so the crowd are used to seeing me, which is nice. “That always makes you feel comfortable. The crowd really made me feel that, and hopefully they felt the same way. It was an exciting finish and you could see the crowd also got excited.” Garcia, who started the day three shots behind the leaders, shot a bogey-free seven-under-par 65 to post the clubhouse lead with a 16-under total of 272, which was matched by Ilonen with a 66. After both players birdied the shortened par-five 18th twice in succession, Ilonen hit his second shot into a greenside bunker on the third playoff hole before Garcia put his approach to about 40 feet from the flag.
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Ilonen hit his bunker shot to 20 feet before Garcia applied the pressure by rolling his long eagle putt to the edge of the hole. The Finn needed to hole his birdie putt, but after missing it left, Garcia tapped in and the 34-year-old Spaniard shook his fist in delight at the large crowds surrounding the 18th green. One of the world’s best-known and most popular players, Garcia was all smiles as he lifted the Mother of Pearl Trophy, collected the $416,660 (QR1.5 million) winner’s cheque and moved to second place in the Race to Dubai after his 11th European Tour victory, and his first since October 2011. “I hope this is the start of an amazing year. Last year we had a lot of close calls, starting here, so I’m very excited to be able to get my hands on this beautiful trophy – this beautiful and heavy trophy,” he smiled. “It’s great to kind of set up my year a little bit, to win again on the European Tour,” said Garcia, who made his first appearance in the Commercial Bank Qatar Masters in its second edition in 1999, when he was only 19. Garcia is the second Spaniard to win the Commercial Bank Qatar Masters, following Alvaro Quiros in 2009, and is the 15th different winner in 17 stagings, with Adam Scott and Paul Lawrie winning twice.
ENDURANCE IN A DESERT CARAVAN IN THE PERFECT MERGER OF CULTURE, SPORT AND TOURISM, THE QATAR TOURISM AUTHORITY (QTA) HAS ANNOUNCED THAT IT IS REVIVING THE AGE-OLD ARAB TRADITION OF THE DESERT CARAVAN. IN CELEBRATION OF NATIONAL SPORT DAY 2014, TWO CARAVANS WILL EACH UNDERTAKE A 15-KM ENDURANCE RIDE IN THE NORTH WEST OF QATAR. QTA HAS LINED UP SPORTING ACTIVITIES FOR ITS EMPLOYEES ALONG WITH LAUNCHING THE PIONEERING DESERT CARAVAN CHALLENGE, WHICH WILL PROVIDE PARTICIPANTS WITH AN AUTHENTIC EXPERIENCE AND SHOWCASE QATAR’S RICH HERITAGE AND CULTURAL SPORTS. OPEN TO ALL QATARI CITIZENS AND RESIDENTS OVER THE AGE OF 18, ONE CARAVAN WILL SET OUT ON EACH OF FEBRUARY 7 AND 8. THE RIDE WILL BEGIN AT THE FAMOUS AL ZUBARAH FORT AND WIND ITS WAY THROUGH THE SCENIC DESERTSCAPE FOR THREE TO FOUR HOURS BEFORE ENDING AGAIN AT THE SAME LOCATION. THE RIDERS WILL ALSO GET TO EXPERIENCE GRACIOUS QATARI HOSPITALITY AT THE CAMPS.
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he annual public holiday, which emphasises fitness and well-being, will be held on February 11. Dozens of venues around the country will be staging tournaments, games and exhibitions and everyone is encouraged to get involved as much as possible. Magdi said: “The National Sport Day represents a golden chance and a new step to break the routine of life through sport by meeting all friends and family members in a festive sport scene.” In only its third year, the holiday was organised to promote a culture of sport in Qatar and to increase awareness about the importance of keeping active. Organisers are hoping to provide everyone with an opportunity to participate in a sport of their choice. Former footballer Mansour Muftah, Qatar’s leading goal-scorer of all time and also a National Sport Day ambassador, said: “Sports have changed my life and enabled me to learn the best human values. I
believe that the day will inspire the nation (men, women and children) to gain physical fitness and create the new generation of stars for the Qatar sport movement.” Kick-starting the festivities will be the opening of the Qatar Olympic Committee’s specially-built Sport Zone, which will welcome all from February 6 onwards. The exciting day will feature free sport events and physical fitness and weight reduction programmes, making the event the greatest sport gathering at national level. Official event locations include Aspire Zone, Katara, The Pearl-Qatar, Souq Waqif and Al Rifaa street, but you can log on to http://www.sportday.qa/events for more information on when and where the various activities are taking place. The QOC has also announced that its Sport Zone will remain open to the public for the weekend after National Sport Day, from 3 p.m. to 10 p.m. on Friday, February 15 and from 9 a.m. to 10 p.m. on Saturday, February 16.
DATES FOR YOUR DIARY WHAT QATAR TOTAL OPEN 2014 WHEN FEBRUARY 10-16 WHERE INTERNATIONAL TENNIS AND SQUASH COMPLEX MORE INFO HTTP://WWW.QATARTENNIS.ORG/
WHAT DOLPHIN ENERGY DOHA DASH WHEN FEBRUARY 11 WHERE LOSAIL INTERNATIONAL CIRCUIT
ENGLISH PREMIER LEAGUE TROPHY FLIES INTO DOHA
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The Barclays Premier League trophy and a Manchester United football legend came to Qatar as a part of the United Trophy Tour.
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ozens of football fans packed into an event room at Sharq Village to get a glimpse of the 10-kg silver trophy awarded to the winner of the English Premier League. To celebrate Manchester United’s 20 title wins, the football club teamed up with DHL to send the trophy on a trip to 25 countries. After several photo opportunities with the trophy, guests were treated to a Q&A session with famed Manchester United striker Dwight Yorke, discussing the experience of playing in the Premier League, the state of football today and the retirement of United manager Sir Alex Ferguson. “It’s never going to be the same with Sir Alex Ferguson leaving after 28 years,” Yorke said. “There’s always going to be big shoes to fill.” Yorke also briefly touched on the challenges of Qatar’s upcoming FIFA World Cup. “There’s talk about moving the games to later in the year, but I don’t think the
heat’s going to be a problem,” Yorke said. “It seems like you guys can do anything in this part of the world.”
QATAR TODAY > FEBRUARY 2014 > 87
affairs > doha diary
THE MAKING OF A LEGACY
Mention Salam International Investment Ltd, and many will know the family who founded the group. Perhaps less well known is the fact that the founder of Salam worked on the first oil pipeline laid in Dukhan, playing a dual role as both a pipe welder and a photographer who captured that particular moment along with thousands of others, thus creating a reservoir of memories of Qatar.
MAKDESSI ENLIGHTENS OFFICIALS AT THE OPENING OF THE EXHIBITION
BY RIAD MAKDESSI
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eople who possess huge collections of historical photographs are often unable to estimate their value. Issa Abdul Salam Abu Issa, Chairman and CEO of Salam International Investment Ltd, was different. He knew right away that his family had in its possession a priceless archive. He approached us at ADabisc, a leading Qatari advertising agency and part of the Salam Group saying: “I know I have a treasure in hand but I have no idea how to
go about preserving it or sharing it.” That marked the beginning of a near-obsessive two-year-long project for ADabisc: the organising, restoring, exhibiting, preserving and storing of a historical archive of photographs covering over six decades of Qatar’s memories. The Abu Issa family was well aware that archiving a collection of thousands of images was no mean task. The photographs lay in multiple forms, including ancient 6 x 6 cm rolls that are no longer in use today,
Remember, there isn’t a "best way" or any single way that is better than another. The sorting of an archive can be a multiple focal point process. negatives, positives, 35mm and 8mm reels, some in black and white print, others in colour, some on paper, some on film, some decaying and in terrible shape, others preserved and in good condition. The collection was also stored in assorted ways: some images were in marked envelopes with handwritten notes, while others had no references at all, and some were numbered but with sequences missing. We had boxes and bags, albums and containers. The work was clearly a museum job, high on expense and time, with painstaking sorting, coding, restoring and countless other excruciating processes that simply could not be hurried. But ADabisc couldn’t resist it. Because, to us, it was a project that called for a fine balance of skill, ingenuity, creativity and a whole lot of heart. Gathering a collection Over time the Abu Issa family had unfortunately lost certain parts of their collection, which were stored at homes located outside Qatar. One of the first things to do when organising an archive is to attempt to access as much of the collection as possible. ADabisc made notes, asked questions of the family and others who might have any useful information, and tracked the collection as far as we could. Digitising Having integrated into the digital world of today, few realise that old photograph collections can’t be handled frequently. We had to minimise physically touching the originals. Respecting the fact that physical material has an expiry date, we opted for a quick scan to digitise everything. While digitising we began numbering, coding and tagging files, so we could always track the original. This step was crucial so we could not just sort but also match the original physical archive with the digitised one. It also offered us the key advantage of accessibility while decisions were being made. Subsequently we began inputting
descriptive metadata, making future viewing, selecting and theme creating easier. It saved effort and avoided repetition of tasks, making our contextual research a betterinformed process. Sorting Sorting a collection is a mammoth task! Following a quick overview of the digitised collection, from the outset we looked at sorting from multiple angles and avoided making any decision on who or what took precedence in each picture. For instance, should it be the person, the place, the event or the timespan? ADabisc knew the possibilities were endless. We were also keenly aware that committing too early to concrete organising dictums might derail the project before it got off the ground. However, we also knew that a (flexible) process was essential, inclusive of clear thinking and a sense of order to manage this huge collection. If one didn't possess this clarity of thinking and meticulous planning one would fall into the trap of holding a disorganised physical archive and simply transforming that into a disorganised digital archive, helping no one in the process. To assist us in sorting we used digital asset management software for identifying and tagging images, keying in metadata inclusive of multiple keywords and descriptions. We employed approaches such as the creation of themes, smart albums, and virtual albums in order to give ourselves more sorting options. We also utilised contact sheets for easier decision-making. Having completed sorting we standardised storage containers and tagged, numbered and isolated some to ensure minimal environmental contamination or effect. Now we had an organised archive in hand.
WHY DIGITISE? Moving or transporting a digital copy of the archive will not damage it, change it or affect it. Digitising makes multiplication possible without over-handling. It provides an opportunity for researchers and interviewers to access it from an unlimited number of locations. Information can be embedded in the image, and once recorded it stays for ever. Film can decay due to chemicals; paper can decay because of its natural lifespan. But digitising immortalises moments, enabling truth to be captured and saved.
PRESERVING HISTORY
Studying the collection Studying a digitised collection with an exhibition in mind is one of the most demanding steps. It literally takes over the mind of the creative director. Makes you constantly ask questions, evaluate, re-think. To give the effort authenticity one must allow the collection to lead, while waiting patiently for a storyline to emerge, so that you can be true to it. For instance, when we studied the Abu Issa collection we could see how the personal story of Salam's founder, CEO Issa's father Abdul Salam, dovetailed neatly with the growth of Qatar as a nation. When we allowed the images to speak, they brought out a precious part of this country’s memories, shared amazing details, challenged preconceived notions. We saw that this nation was committed to education and sport decades before those values were articulated in Qatar’s 2030 Vision. We saw that the commercial history of Qatar is far longer than is popularly perceived. When planning the exhibition, ADabisc didn’t construct an idea and try to force the images to fall in line. We actually did the opposite. That is why "Qatar My Country" was so successful in capturing the spirit of Qatar. Apart from that, close study also revealed a huge treasure trove of hidden data. The images showed us that the Emiri Diwan was constructed three times, and that Doha offered its residents the environment for peaceful demonstrations at the time of Egyptian leader Gamal Abdul Nasser’s return to power. This type of information found in images helps contextualise the QATAR TODAY > FEBRUARY 2014 > 89
affairs > doha diary images simply on the basis that they didn’t offer enough diversity. Some images were so hard to kill that we worked around our exhibit limitations and used digital screens to display a multiple number of them. I strongly believe that a creative director’s role in an exhibition is not to display the "best" image but to ensure that every image chosen creates a total experience, a journey that makes every moment the viewer spends worthwhile.
image, throwing up evidence that enables us to fix it in a timeline dating it. It also leads us to learn incredibly valuable historical facts. Decision-making A public exhibition calls for a complex matrix of decision-making. The selection of images leads to close scrutiny and intense debate, setting in motion a sort of auditioning process for the photos. Beginning from the basics of who is in the picture? what are they doing? when was it taken? where was it taken? why would anyone need to see this in a collection or an exhibition? right through to more technical considerations like the composition of the photo, light, colour, shades, resolution – the debates rage on. Specific to an exhibition are decisions such as how will one particular image fit with its neighbour? Can they be organised in zones or themes? In a massive project such as this, one must be willing to be brutal in decision-making, since sentimentality or artistic preference becomes an ill-afforded luxury. We looked through an unsorted, duplicated, muddle of 35,000 photographs; we focused closely on 10,000 and eventually chose just 250 for display. We had to ensure that the 250 reflected the spirit of the whole collection. At the outset we organised the collection under 50 different themes at least, but at the point of exhibiting we had to settle for far fewer. We were keenly aware that audience attention had to be earned and held. We respected viewers enough not to subject them for instance to a stream of images where people were seen shaking each other’s hands. We were willing to kill amazing 90 > QATAR TODAY > FEBRUARY 2014
Security and confidentiality The guardianship of a collection is a sacred trust. The collection we worked with covered countless family events, private gatherings, state events, historical moments and royal family members. We not only had to ensure our client had the assurance of confidentiality and safety in the handling of the material but also had to guarantee server security and built-in privileged access to a trusted team. We controlled access for instance by making viewing possible, but not copying. Maintaining the original feel A project of this nature isn’t about beautifying images; it is about respecting and revering their context. Our team ensured that the technology in our hands didn’t distort the image by transforming it. Our goal was to restore the photographs as closely as possible to their original state and feel. We focused our efforts on removing age destruction and scratches. Since we wanted to respect the moments of yesterday, we didn’t try to give them a face of today. At certain points we stopped the work and started afresh with certain images just because we didn’t want to cross that line. We were meticulous, harsh and very exacting. But that’s what it took to honour and respect the integrity of each image. We fought to maintain that because restoration is ultimately an artist’s work and not a gimmick that can be performed by a computer operator. Irreplaceable human touch Even as huge fans of technology, this project reiterated a truth to our team. There is supremacy in the human touch that technology cannot supplant. While technology is a tool, it can never replace a human’s capability. Technology is an enabler and not a decision-maker. While an eye takes in detail the brain makes complex connections, it cross-checks and creates associations that machines can’t. That human aspect, or the human touch, is what will determine a
project’s success. The human mind is capable of curiosity; a heart is capable of love, respect and reverence and makes no mistake. Unique touches A project of this nature cannot be completed by conventional approaches. We had to build bridges between technology and people, ingenuity and intelligence. At certain points we used face recognition software, but we employed it in combination with human intelligence. When we found reams of now-obsolete 8mm film among the collection, we refused to give up on reviving those images. We took our search out of Qatar and located someone in the West who worked with us to come up with some special equipment built to convert 8mm film into a viewable form. We used an 8mm projector, connected that to a digital camera with a sensor on a motor, locked the speed of the camera with the speed of the motor, and that’s how we captured what was on the 8mm film. An exhibition that touched a chord "Qatar My Country" was eventually an exhibition that connected the community, bringing them together. For nationals and long-term residents it brought back the past. Families recognised their ancestors
in the images. We came across really old pictures of a Scottish wedding in Qatar and we had to find out whose it was. Eventually we discovered that it was that of the son of Ronald Cochrane, a Scotsman who was the commandant of the Qatar police force. The recognition was made by a retired member of the Salam Studio team. For him it was an opportunity to revisit the early days of his career in Qatar. For younger and newer residents the exhibition showed a side of the nation they had no way of knowing about: the spirit of this country, its leaders and its people. For the Abu Issa family it was an opportunity to share a treasure with their fellow countrymen and with the rest of the community, which they generously did. Now the archive is accessible to many more than the closely-knit family group. For ADabisc, it was an amazing experience. The project challenged us to give it the commitment of patriots, the obsession of artists, the mind of meticulous planners, and the heart of those who love and respect the material they work with. I believe ADabisc was brought on board not only for our technology and expertise but also for the spirit we possessed, the vision we had to do the painstaking, complex, exhaustive work to show off this amazing archival collection, reflecting it in its true light
FROM ANTIQUITY TO EXHIBITION
The recently-concluded "Qatar My Country" photography exhibition was born at the hands of Riad Makdessi and his team. Riad is the Co-founder, Managing Partner and Creative Director of the ADabisc Group. Qatar Today invited Makdessi to share his experience of transforming Qatar’s Abu Issa family’s personal collection of photographs into a historical archive, celebrating the memories of this nation. QATAR TODAY > FEBRUARY 2014 > 91
culture > doha diary
SMOKERS, PE TEACHERS AND ROMANIANS, BEWARE At the Punchline Comedy Club’s stopover in Doha, three British
comedians doled out non-stop laughter, and the packed crowd at the Hilton Hotel couldn’t get enough of them.
LEFT TO RIGHT: PHIL BUTLER, ALEX BOARDMAN AND JONNY AWSUM
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was a night of many firsts... It was probably the first time “Khalid in hospital administration” ever played the triangle to a rap number (and in full traditional attire, too), probably the first time “the madam in the blue scarf” got so much grief for being a PE teacher, and very likely the first time that “AJ” had lent someone a cigarette only to have it handed
back to him after being thoroughly licked. All in all, a very productive way to spend two hours. In Doha as part of their five-day Middle East tour, Phil Butler, Jonny Awsum and his trusty guitar (we are still not sure if that’s his real name or not; that’s how awesome he was) and Alex Boardman kept the crowd in stitches, covering a wide range of gags from
GEARING UP FOR NATIONAL SPORT DAY RASGAS COMPANY LIMITED (RASGAS) IS PARTNERING WITH ASPIRE ZONE FOUNDATION FOR THE THIRD CONSECUTIVE YEAR TO HOST A FULL DAY OF SPORTING AND FUN ACTIVITIES FOR NATIONAL SPORT DAY 2014 FOR ITS EMPLOYEES AND THEIR FAMILIES AT THE ASPIRE ZONE ON FEBRUARY 11. RASGAS’ THEME FOR THIS YEAR’S NATIONAL SPORT DAY, “GET POWERED 2014”, IS ALIGNED WITH THE COMPANY’S CORPORATE SOCIAL RESPONSIBILITY PROGRAMME’S FOCUS ON PROMOTING AN ACTIVE AND HEALTHY LIFESTYLE.
92 > QATAR TODAY > FEBRUARY 2014
fifty Shades of Grey and iPhone’s Siri to a disturbingly hilarious version of Cinderella. No one in the audience was spared and, as promised, they “blew the roof off this conference room”. You can catch the tour again on March 4, when they are bringing three Irish comedians – Chris Kent, Colm McDonnell and Andrew Stanley – to ring in St Patrick’s Day.
SEEING DOHA IN A BRAND NEW WAY
AL GHARAFA STARS SUPPORT ROAD SAFETY
Al Gharafa Football Club and players Nene and Fahid Al Shammari made a visit to Williams Advanced Engineering in Qatar to experience cutting-edge simulator technology and to lend their support to the “One Second” road safety campaign.
Jaidah Group revealed the winners of their “SeeMyDoha” photography competition as they inaugurated a new exhibition at the Katara Art Center featuring the top photos of the contest.
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E Dr Hamad Bin Abdulaziz Al Kuwari, Minister for Culture, Arts and Heritage, led a group of guests through the exhibit’s three small rooms, each displaying the work of the competition winners, finalists and other participants. Winner Ghada Ali Al Khater received a fully paid trip worth up to QR15,000 to a surprise location. The four runners-up won prizes such as a new camera or an aerial tour of Doha. The winners were selected by a panel of jurors composed of photographers and “iPhoneographers,” photographers specialising in mobile phone photography from across the globe. “SeeMyDoha” is one project of the larger organisation “SeeMyCity,” a Netherlands-based company founded to promote the marketing of cities through social media. Participants in the contest used their mobile phones to take pictures in Doha then uploaded them through the social media platform Instagram. “SeeMyDoha” lasted from April through September 2013. The exhibition at the Katara Art Center ran throughout the last week of January.
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he players received a first-hand look behind the scenes at the only Formula One research and development facility outside Europe. Williams Advanced Engineering has engineered and built a state-of-the-art simulator in Qatar. Taking over 12 months and 10,000 man-hours to complete, the simulator will provide students and young people the opportunity to experience a fully immersive driving experience, based on the roads of Doha, to better understand the importance of correct driving habits and road safety. Damien Scott, General Manager of Williams Advanced Engineering in Qatar, added: “Road safety is an important issue for Williams. Our team principal, Sir Frank Williams, was paralysed as a result of a road traffic accident, and so we understand just how quickly a life can change. It really does only take one second for an accident to happen. “In the months ahead our mobile simulator will be touring schools throughout Qatar as part of the Students for Road Safety initiative in association with Maersk Oil, the National Traffic Safety Committee and Qatar Petroleum. I hope as many students as possible, just like the Al Gharafa stars, will seize the opportunity to get behind the wheel and learn something that could one day save their life.”
"DESIGN BEYOND TRADITION" HOSTED AT VCUQ AS PART OF THE CROSSING BOUNDARIES LECTURE SERIES, VIRGINIA COMMONWEALTH UNIVERSITY IN QATAR (VCUQ) PRESENTED A LECTURE BY KOREAN DESIGN CONSULTANT AND CURATOR BYUNG-SOO EUN ON JANUARY 22. QATAR TODAY > FEBRUARY 2014 > 93
culture > doha diary
SOME SCENES FROM THE SOUQ WAQIF SPRING FESTIVAL
DAMIEN HIRST ART CHALLENGE WINNER ANNOUNCED
Under the patronage of HE Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani, the Qatar Museums Authority (QMA) announced Hana Al Saadi and her installation "Snail Print Factory" as the winning piece in the Damien Hirst Art Challenge, a competition set up to complement Relics, Damien Hirst’s first solo exhibition in the Middle East, attended by a record-breaking 50,000 visitors and 5,000 students. Hana Al Saadi, a Qatari art student at Virginia Commonwealth University in Qatar, will be going on an all expenses-paid trip to London to meet Hirst and have a guided tour of Gloucester Studios, having beaten 61 other submissions to the competition. On the work, Damien Hirst commented, “I love art like Hana’s that asks questions and makes you think and is difficult to define, and I love art that involves a living element; it makes the art feel more real. It looks simple, too, and is universal and communicates across international boundaries, which all great art should.” In order to win a chance to meet the world’s most successful contemporary artist, participants were asked to create and submit a photo of an artwork inspired by Hirst’s exploration of life and death. Since the late 1980s, Hirst has shocked and delighted the art world with works exploring the complex relationship between art, life and death. 94 > QATAR TODAY > FEBRUARY 2014
FIRST ART ATELIER OPENS
MOHAMMED AL ATIQ (fifth left), General Manager of Regency Art, and AYMAN LOTFY (right), General Manager, Wyndham Grand Regency, with artists of Al Asmakh Art Atelier at Wyndham Grand Regency Doha.
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he Wyndham Grand Regency hotel in Doharecently launched the city's first art atelier. The organisers hope to make this a monthly affair. The ongoing Al Asmakh Art Atelier sees the participation of eight artists from the region, including Karieemh Hussain and Najibah Al Saihati from Saudi Arabia, Areej Rajab (Bahrain), Ali Azzam (Egypt), Bashir Al Ansary (Syria), Noura Abdulhadi (Kuwait), Ebtisam Alsaffar (Qatar) and Islam Kamil Ali (Sudan). The organisers hope that the artworks produced from art ateliers will be housed in a new art museumbeing built by Regency Art, a subsidiary of the Regency Group.
AIM FOR WELL-ROUNDED DEVELOPMENT
Hissa Al Suwaidi is a TV producer as well as the Assistant Manager, Learning & Training Coordination at Al Rayyan TV. She was also a guest at one of the How Women Work (HWW) conferences and who has been inspired by it. From being a guest of HWW in 2011, Al Suwaidi went on to participate as a trainer in workshops organised during the HWW conference in 2013 and will do so again in 2014.
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he says the first HWW conference she attended caused the real transformation for her. “I started to benefit from my participation as a guest right from the beginning, as the atmosphere was conducive, thanks to the participants, who were very responsive. Such participations provoke you to seek change,” she explains. “My first participation stimulated me to participate once again and more effectively. I applied to join their work team, and they accepted me as a trainer, which has further energised me.” Al Suwaidi is now certified as a trainer to deliver the Springboard Programme. She is also a certified professional trainer and Accelerated Learning Practitioner as well as an NLP (Neuro-Linguistic Programming) Practitioner. She creates and teaches training classes for soft skills and academic curriculums as well as supplemental instruction for school teachers, students and corporate staff inside and outside Qatar. Talking about the personalities and the diverse mix of cultures and nationalities at the conference, she says: “When you reach a particular level of intercultural and multinational thinking and interaction, you tend to look at that from a personal, Qatari or Arab perspective, and it gives you more awareness and understanding in this responsive and harmonious atmosphere that the conference provides.” She adds that it is because of this that the conference has been so popular for the past five years. Al Suwaidi also feels that the conference helps in refining the character of women and developing their capabilities. How then does she see the effect of these participations on the position of Qatari and Arab women, and on opening the way to be more acquainted with more Arabs working in this field? The answer to that is the turnout to the conference, she argues. “What I have seen was a gradual progress in terms of quality
that the organisers of the conference kept achieving until the organisers and the participants became very well known by most institutions and companies.” She says that when you attend the conference year after year you get used to some faces, but you see them each time in a different light, higher positions and much more eloquent. She cites her own example. “I personally started my participation in a particular designation and level, which was upgraded in subsequent participations,” she says. “In three years of attendance I roughly passed through three jobs, all of which had a tangible impact in the workings of the conference.” On the various topics that the conference touches, Al Suwaidi feels the fact that the subjects are meant to touch on the allround development of women makes it the most beautiful. “The beautiful part of the How Women Work Conference is that it works on all women's affairs. It deals with psychological, personal and social aspects of women’s lives, and moves gradually to touch their professional life, which is the core theme of these conferences. The conference has a strong impact on the
decision-making process. It opened wide avenues of knowledge for me and provides me with practical and useful information. The technique it is following is very effective at all levels and deals with the issues of women in all age groups.” Encouraging Qatari and Arab women to come and experience the HWW conference, Al Suwaidi says: “You attend it to be encouraged and inspired by the conference.” Describing how she has developed as a person, she says, “The most important thing is that Hissa Al Swuaidi has found herself in this environment. She is giving and taking without denying herself the benefit or withholding it from others. The most important thing is to continue the effort. Continuation is the key word for the success of Hissa Al Suwaidi.”
ABOUT HOW WOMEN WORK The fifth annual How Women Work conference is coming up in March 2014, with the theme “To inspire joyful and fulfilling careers”. The HWW community offers events every month, which you can find out more about on hwwqatar.com or on Facebook: “How Women Work”. QATAR TODAY > FEBRUARY 2014 > 95
Qatar Today looks at two expatriates from everyday life, one who has lived here for a significant amount of time and another who has just made Doha his home, for their take on life in this city.
MY HOME IN QATAR NICOLE UNGUREANU
Marketing & Sales, Poltrona Frau Design Center Here since: 2005 (nine years) LOVE AT SECOND SIGHT My coming to Doha was such an unexpected decision. I had never been to the Middle East before but I had a good job offer and I wanted to check it out. However, soon I found myself wanting to leave. All these rules were new and strange to me and I just wanted to go home, until I met someone and that changed my world. We got married, had a son who is the joy of my life and the reason for my stying back here. Now my life is here. Going back to Romania feels like a vacation. Returning to Doha feels like coming back home. DOHA THEN AND NOW It feels like I have lived a lifetime in Doha. And yet nothing is what it was when I first came here. The city is different every year. It has become as open as you could wish for. And the government is now more thoughtful about the different kinds of people living here. There are now more avenues for the arts and different activities and consequently people are becoming more active.
A SEA OF CHANGE I see a lot of personal changes since I came here, too. It was a fresh start for me to show my abilities. The interaction with so many different kinds of people from different nationalities and cultures has really helped me evolve and taught me to adapt to every kind of environment. Also, it’s still a little less competitive here than, say, Europe, and it was relatively easy to climb the career ladder.
NEW BEGINNINGS
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OLEG POLYANSKIY
Concert pianist and Piano Instructor, Qatar Music Academy Here since: October 2011 (two years) FIRST IMPRESSIONS I had come to Doha in 2008 for a month, and when I came back here for my job I was shocked to see how everything had changed. Katara, where I am working now, hadn't even been built then. I was lucky enough to get a job with a great organisation, and I love the way life is becoming more and more intense here every day. Everything, from infrastructure to opportunities, is on its way up. CLOSER TO HOME I haven’t had the chance to miss home yet. Sure, I miss the food sometimes and definitely my family and friends, but my job allows me to travel home frequently so I never miss them too much for too long. All those little breaks throughout the school year are perfect for mini-vacations, and there are so many places accessible from here. ASPIRATIONS When I came here I wanted to perfect my music and teach good music to children, both of which, I am happy to say, are happening now. I have had the opportunity to give a lot of performances, at small venues and private parties to the large hotels and the Doha Opera House. The classical music scene here is pretty good, and I had the chance to perform with the Qatar Philharmonic Orchestra, which was an amazing experience. There are already a lot of decent opportunities for musicians here but more music festivals need to be organised. Dubai has so many and across varying genres, from rock to jazz. It would be amazing if they hosted those kinds of special events here that would attract more accomplished performers to the country. 96 > QATAR TODAY > FEBRUARY 2014