Qatar Today November 2015 by Oryx Group of Magazines

inside this issue November 2015 / Vol. 41 / Issue 11

COVER STORY

40 THE CHINESE CONUNDRUM

Qatar Today takes a look at China’s economic slowdown and its impact on the GCC, which is already reeling due to cheap oil prices.

18 GCC BANKS TO SEE SINGLE-DIGIT GROWTH IN EARNINGS Standard & Poor’s predict a dismal growth in earnings for banks in the GCC.

34 ISLAMIC SIGNPOSTS

At the Research Center for Islamic Legislation and Ethics, the work being carried out is as much about weighing contemporary thought against Islamic principles as it is about erecting moral signposts along the unrelentingly, and sometimes frantic, path of scientific progress.

54 THE BIG ENERGY QUESTIONS "This energy think tank will initiate change." This is what The Abdullah bin Hamad Al Attiyah Foundation for Energy & Sustainable Development, launched on November 1, promises.

70 FIFA VS THE LAW

Qatar Today spoke to a team of professors at the College of Law at Qatar University to find out if Qatar as a nation is legally prepared to host the world cup.

94 THE MEMORY BOARD

Msheireb Downtown Doha gives a glimpse of what to expect of the biggest real estate project in the centre of the city at the launch of Msheireb Museums.

inside this issue November 2015 / Vol. 41 / Issue 11

SPOTLIGHT

76 ENERGY WORLD QATAR

Join the Energy Generation and explore the possibilities of the future of energy together with your family and friends. Held for the first time in Qatar, the exhibition promises to be an exciting journey of Science, Technology, Engineering and Math (STEM).

50 BECAUSE I AM HAPPY

Where does Doha stand vis-à-vis other cities in the Middle East when it comes to happiness?

60 E-COMM WAKE-UP CALL

Qatar Today takes stock of the country’s strengths and weaknesses in the e-commerce sector.

66 SUKUK HEADING FOR MARKET CORRECTION?

and regulars

Contrary to reports that sukuk issuances are likely to decrease in 2015 as Malaysia has stopped issuing the bond, experts tell Qatar Today that the market is not dependent on one particular country.

NEWS BITES

BANK NOTES

O&G OVERVIEW

REALTY CHECK

74 BEHIND PINK OCTOBER

TECH TALK

For this team at Qatar Biomedical Research Institute, demystifying breast cancer research to the general public is just as important as the work itself.

84 SPORTS 86

AUTO NEWS

MARKET WATCH

DOHA DIARY

from the desk We scanned through an old issue of Qatar Today, and it seemed almost a paradox that the concerns written about four years ago – the non-achievements of the country when it comes to labour rights in the face of its accomplishments in other fields – has finally been drafted into a law, last month. A law that has been signed off by HH the Emir Sheikh Tamim bin Hamad Al Thani but which will still take a year to be promulgated. But has the bone of contention, the concept of sponsorship, or Kafala and the restriction of mobility, really been abolished? Or is it the same old system served in a refined manner? There is definitely cause for some celebration: while the law abolishes the requirement that employees have to leave the country for two years before seeking new employment in Qatar if an employer refuses to grant a no objection certificate, employees who want to switch jobs before the termination of their labour contract would still need to obtain permission from their sponsors as well as the ministries of interior and labour. While the new law does streamline procedures it does not fundamentally change anything. In some cases it makes the procedures more challenging. The law inserts the government into the procedure to obtain an exit visa by obliging employees to inform the Ministry of Interior three days before their planned departure. The law seems to be an act to keep protestors at bay while at heart it still maintains the kafala system. Even with all eyes on the sponsorship law, the Chinese meltdown which at first seem ed far removed from us cannot be discounted because of its impact on Qatari soil, and this is discussed in detail in our cover story. In the region, banks are faced with serious repercussions, not just from the Chinese meltdown but also from the oil price calamity which seems to have put the whole region except for Dubai on the back-foot. Read our inside report from Standard & Poor’s analysts on the banking sector to understand why 2016 could be a year of reconciliation, of understanding the new oil economics. It will also initiate a deeper look into Islamic ethics necessary to create a link between modern science and Islam – ranging from media and bioethics to economics and political science, and this is being pushed by the Research Center for Islamic Legislation and Ethics, discussed at length in the magazine. In this period of reversals, an energy think tank headed by the grandfather of Qatar’s oil and gas sector, HE Abdullah bin Hamad Al Attiyah, has boldly proclaimed that it is time that the Middle East oil producers relook at their own consumption, and reduce subsidies that have paved way for a profligate population. We bring you an exclusive story from the ex-oil minister of Qatar and also publish the first report prepared by his foundation. As you read about this new age of caution drawing up on us, let’s not forget that the centre of all such change is humanity. And for initiating real change, we can start with the simplest of actions: respecting all people, rich and poor, labourer and leader, national and immigrant, alike. The sponsorship law could have taken off from this simple step. SINDHU NAIR Managing Editor

PUBLISHER & EDITOR-IN-CHIEF YOUSUF JASSEM AL DARWISH CHIEF EXECUTIVE SANDEEP SEHGAL EXECUTIVE VICE PRESIDENT ALPANA ROY EDITORIAL MANAGING EDITOR SINDHU NAIR DEPUTY EDITOR IZDIHAR IBRAHIM SENIOR CORRESPONDENTS AYSWARYA MURTHY KARIM EMAM CORRESPONDENTS AARTHI MOHAN KEERTANA KODURU ART SENIOR ART DIRECTOR VENKAT REDDY DEPUTY ART DIRECTOR HANAN ABU SAIAM ASSISTANT ART DIRECTOR AYUSH INDRAJITH SENIOR GRAPHIC DESIGNER MAHESHWAR REDDY PHOTOGRAPHER ROBERT F ALTAMIRANO MARKETING AND SALES BUSINESS HEAD FREDRICK ALPHONSO MANAGER – MARKETING SAKALA A DEBRASS ASSISTANT MANAGERS – MARKETING HASSAN REKKAB MATHEWS CHERIAN DENZITA SEQUIERA SONY VELLATT A H M IRFAAN ASSISTANT EVENTS MANAGER JASMINE VICTOR MARKETING COORDINATOR REENA LEWIS SENIOR ACCOUNTANT PRATAP CHANDRAN DISTRIBUTION SR. DISTRIBUTION EXECUTIVE BIKRAM SHRESTHA DISTRIBUTION SUPPORT ARJUN TIMILSINA BHIMAL RAI BASANTA POKHREL PRADEEP BHUSAL

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DO YOU THINK YOU’LL BE IN QATAR LONG ENOUGH TO WITNESS THE COMPLETION OF PROJECTS LIKE MSHEIREB, LUSAIL, QATAR RAIL, ETC?

TRAILBLAZER Seeing an Indian woman come out of her comfort zone and enter Qatar’s hospitality sector with clear strategy and phased planning, Amruda Nair is truly an inspiration. All the best to Aiana Hotels & Resorts! YASSIR A T COMMUNICATION IS KEY When talking about the leadership in this part of the world, it is important to get a clear idea of who the top management are. It will be an excellent way of communication and a great means to bridge the gap between Arabs and expats if the former interacted more with their employees on a regular basis. CARL MENDONZA YEMEN IN CRISIS Saudi Arabia, being the largest participant in the intervention of the Yemeni situation along with coalition from other GCC countries, will hopefully end the war and its wastage and also support the country in the development of its mountainous terrain. MICHAEL R THINK TANKS IN QATAR I’d expect finding tangible connections between think tanks and government policy is difficult enough in more open societies. I don’t think we’d be able to get the full picture here in Qatar. It’s a shame too because it is a very interesting dynamic. The delicate balancing act between sponsors, researchers and policymakers is a treat to watch and comprehend. NADIA HUSSEIN IRAN'S LNG AMBITIONS All I seem to be reading about now is how Iran is going to give Qatar a run for its money with a revamped gas production. I hope this comes to pass. A little competition is good. It’ll give the country’s o&g sector the kick in the pants it clearly needs. As an insider, I know how hard it is to get them to innovate.

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AFP PHOTO / MIGUEL MEDINA

affairs > local

TIME OFF HH the Emir Sheikh Tamim bin Hamad Al Thani and Paris Saint-Germain’s President Nasser Al Khelaifi are pictured ahead of the UEFA Champions League football match Paris Saint-Germain vs Real Madrid, on October 21 at the Parc des Princes stadium in Paris.

EMIR ISSUES LAW ON RESIDENCY

HH the Emir Sheikh Tamim bin Hamad Al Thani issued Law Number 21 of 2015 regulating the entry and exit of expatriates and their residency.

GULF NATIONS UNDER SEVERE THREAT FROM CLIMATE CHANGE

Expatriate workers with limited-duration employment contracts, can change the employer at the end of their contract period provided they have approval from their existing employer, the Ministry of Interior and the Ministry of Labour and Social Affairs. Before the end of a job contract, an expatriate worker can take up another job if he has approval from his present employer and both ministries. If the job contract is open-ended, a worker can change his job after five years with approval from his current employer and both ministries. An expatriate worker can leave Qatar either getting approval from his employer or from the authorities concerned. In emergency cases, the Grievance Committee, based on an expatriate’s request to leave Qatar, must take a decision within three working days. Residency permits of expatriates must be renewed within 90 days of expiry. The employer cannot keep his worker’s passport or travel document except with written permission from him (the worker). Within 30 days of arrival of an expatriate here, his RP should be processed. The law is to be implemented one year after the date of its publication in the Official Gazette.

18 > QATAR TODAY >NOVEMBER 2015

A study released by professors at Massachusetts Institute of Technology says that if climate change goes unchecked the region may become uninhabitably hot by the turn of the century. The heatwaves resulting from climate change will push temperatures in the Gulf beyond the limit of human survival, say MIT professors Jeremy Pal and Elfatih Eltahir, writing in the journal Nature Climate Change. This will affect Abu Dhabi, Dubai, Doha and coastal cities in Iran as well as posing a deadly threat to millions of Hajj pilgrims in Saudi Arabia when the religious festival falls in the summer, the report said. It warned that temperatures above 45 deg C will become the norm throughout July, August and September in many of the region’s low-lying cities while urban areas such as Kuwait City and Al Ain will see temperatures hit 60 deg celsius in some years. The authors also say that Qatar is especially vulnerable. “Doha is uniquely geographically positioned to receive hot dry air from the desert interior to the west and hot moist air from the Gulf,” they said in the report.

HE THE PRIME MINISTER INAUGURATES LABOUR CITY

QDF SIGNS DEAL WITH THE GATES FOUNDATION

Labour City at Musaimeer near the industrial zone, reported to be the largest one in Qatar and the Gulf region, was opened by HE the Prime Minister and Interior Minister Sheikh Abdullah bin Nasser bin Khalifa Al Thani.

he Labour City is located 14 kilometers from central Doha and 13 kilometers from the Hamad International Airport. The Special Engineering Office oversaw its completion and implementation over almost three years. Built over an area of 1,100,000 square metres, the city accommodates 100,000 workers and is divided into two parts: the entertainment

and business district. The latter includes a commercial centre and a market with 200 shops, a cricket ground, a theatre that can accommodate 17,000 people and four modern cinema halls. The second section of the city hosts the residential complexes for workers and contains 55 residential buildings, three mosques, a medical clinic and parking lot for buses.

KEEPING AN EYE ON THE POPULATION THE MINISTRY OF DEVELOPMENT, PLANNING AND STATISTICS RELEASED THE RESULTS OF ITS INTERIM POPULATION CENSUS, CALLED ON ACCOUNT OF THE UNPRECEDENTED ARRIVAL OF EXPATS IN RECENT YEARS AND THE NEED TO UPDATE PROJECTIONS ACCORDINGLY. QATARâ&#x20AC;&#x2122;S POPULATION HAS GROWN BY MORE THAN

700,000

PEOPLE IN THE PAST FIVE YEARS

1.7

MILLION PEOPLE IN 2010

Qatar Development Fund has signed a framework agreement in New York with the Bill & Melinda Gates Foundation. The Minister of Foreign Affairs, HE Dr Khalid bin Mohammed Al Attiyah and Bill Gates, co-chair of the Bill & Melinda Gates Foundation, have signed the agreement which aims to develop innovative and effective means to fight disease and extreme poverty in the Arab and Muslim world and the whole world.

RATIO OF MEN TO WOMEN STABLE AT AROUND

2.4

3:1

MILLION IN 2015

40%

GROWTH SINCE 2010, WITH AVERAGE ANNUAL GROWTH RATE OF

TOTAL POPULATION COULD PEAK IN THE FIRST HALF OF 2017 BEFORE STARTING TO DECLINE

7.2%

2.4 587,000 MILLION MEN AND

WOMEN LIVING IN QATAR IN 2015

QATAR TODAY > NOVEMBER 2015 > 19

THE VILLAGGIO VERDICT AFP PHOTO/FAISAL AL-TAMIMI

affairs > local

The US investment impetus continues Released by the US Chamber of Commerce in collaboration with the American Chamber of Commerce in Qatar and Ernst & Young, “U.S. Business Outlook in Qatar: 2015 Report” provides a barometer of US business sentiment in the State of Qatar and “includes a series of goal recommendations for the bilateral relationship between the US and Qatar, including agreeing on a list of economic issues in the near term that could immediately and favourably impact bilateral economic ties and identifying concrete steps that both sides can take over the next six months to bolster trade and investment.”

QATAR’S COURT OF APPEAL HAS EXONERATED ALL FIVE INDIVIDUALS HELD RESPONSIBLE FOR THE DEADLY 2012 VILLAGGIO MALL FIRE, ONLY FINDING THE COMPANY THAT OWNS THE SHOPPING CENTRE GUILTY OF INVOLUNTARY MANSLAUGHTER (WHICH ALLOWS THE VICTIMS TO SEEK FINANCIAL COMPENSATION). THE TRAGEDY LEFT 19 DEAD, INCLUDING 13 CHILDREN. THE OTHER VICTIMS WERE FOUR STAFF OF THE GYMPANZEE DAYCARE AND TWO FIREMEN.

CELEBRATING THE HUMAN SPIRIT Dancers perform during the opening ceremony of the Doha IPC 2015 Paralympics World Championships in Doha on October 21. AFP PHOTO / AL-WATAN DOHA / KARIM JAAFAR - QATAR OUT

STEPPING UP AID FOR SYRIAN REFUGEES QA’S FOURTH UK DESTINATION Qatar Airways announced an expansion in its network in the UK with a new service between Doha and Birmingham from March 30, 2016. The destination is an addition to its existing services to London Heathrow, Manchester and Edinburgh. 20 > QATAR TODAY >NOVEMBER 2015

Qatar Charity in cooperation with Islamic Development Bank announced an initiative to allocate $14 million, to be funded equally by both parties, to support education efforts for Syrian refugees and displaced people. The announcement was made during the opening session of a conference on the Syrian humanitarian crisis, which kicked off in Doha with the participation of 50 local, regional and international organisations working in humanitarian, relief and development affairs.

business > bank notes IN A ROUGH THIRD QUARTER FOR CBQ, THE BANK POSTED A 43% DROP IN NET PROFITS COMPARED TO THE SAME THREE-MONTH PERIOD LAST YEAR.

“Commercial Bank’s UAE associate partner, United Arab Bank, has experienced difficult market conditions resulting in prudent provisioning during the period, which has affected our net profit.” HUSSAIN AL FARDAN Vice Chairman and Managing Director, Commercial Bank Qatar

QDB bullish about Qatari exports at WEDF

DB’s Chief Executive Officer Abdulaziz Al Khalifa, who addressed the press on both days of the forum along with ITC Executive Director Arancha Gonzalez, said that more than 50 Qatari companies participated in the event which was a strategy by the bank to put Qatar on the world export map. The Halal food industry was an important focus at the forum along with plastic, aluminium and medical products as well as tourism, construction and engineering services.

LOCAL ISLAMIC BANKS LEAD GLOBAL RANKINGS

The World Islamic Banking Conference Leaderboard announced the global rankings of Islamic banks and four Qatari banks feature in the top 15. The banks were ranked in terms of cost-to-income ratio, which is one of the financial performance subindicators of the Leaderboard and a key financial measure used to gauge the efficiency of a bank. It is calculated based on non-interest operating cost divided by the sum of net interest income and noninterest operating income. 22 > QATAR TODAY >NOVEMBER 2015

Qatar Development Bank, which hosted the World Export Development Forum along with the International Trade Centre, is optimistic about increasing nonhydrocarbon exports by Qatari SMEs. Meanwhile, Gonzalez said they were happy to hold the event in Qatar because of the value the country places on trade and investment and the “fiscally responsible way that it is developing”. She also complimented Qatar’s decisive policies in support of SMEs while commending QDB’s good work in this regard. She mentioned that in ITC’s benchmarking of global development banks, QDB was in the top 10 thanks to its incubation, financial and go-to-market support for SMEs.

S&P PREDICTS SLOW GROWTH FOR ISLAMIC BANKS Standard and Poor’s latest report gives a lukewarm forecast for the growth of the Islamic finance industry. In the report entitled “Islamic Finance To Still Grow In 2016 But With A Sag”, the ratings service said that growth is set to slow down next year over the sharp fall in oil revenues and regulatory changes.”The industry has achieved critical mass - Islamic finance assets worldwide exceed $2 trillion by our estimate. But we now think the industry faces challenges from the decline in oil prices, changes in the global regulatory framework for banks and insurance companies, and its own fragmented nature,” said Standard & Poor’s Global Head of Islamic Finance Mohamed Damak. It is expected that Islamic finance growth will drop to single digits in 2016 from between 10 and 15% over the past decade.

2 QATAR INTERNATIONAL ISLAMIC BANK

MASRAF AL RAYAN

20.60 4

24.47 12

QATAR ISLAMIC BANK

BARWA BANK

31.78

39.56

Rank Name of Financial Institution Cost-to-Income Ratio (%)

business > bank notes

GCC BANKS TO SEE SINGLE-DIGIT GROWTH IN EARNINGS

STANDARD & POOR’S PREDICTS DISMAL GROWTH IN EARNINGS FOR BANKS IN THE GCC. BY SINDHU NAIR

24 > QATAR TODAY >NOVEMBER 2015

imucin Engin, Director, Banks, at Standard & Poor’s Ratings hasn’t seen a major decline in credit growth in the region though there are early signs of it. “An important driver of credit growth is infrastructure spend by the governments. In 2015, we have not seen major cuts in infrastructure spending but 2016 looks uncertain. We also expect banks to be generally more selective about loans for huge projects, which require long-term funding,”

says Engin. S&P had forecast 8.5% to 9% credit growth in 2015 and 2016 for the GCC banks, compared with 9.8% in 2014, and 10% growth a year earlier. As of now, the prediction for Qatar banks is a credit growth of 9%. If the oil price decline is to persist over a longer period, the rating agency expects a much stronger impact on domestic credit growth through reduced government spending. Infrastructure spending by

cash-rich Gulf governments is traditionally an important driver of corporate activity and domestic credit growth in the region. “Given that the GCC sovereigns are highly dependent on hydrocarbon revenues, they could arguably reduce infrastructure spending to contain widening budget deficits, if oil prices are lower than we assume or for longer,” said Engin. The long-term prediction for Islamic banks is more positive as they have more supporting strategies, even though there is a slowdown in the economy. “Islamic banks have historically performed better than their counterparts. There are certain drivers behind it like government initiatives. For example, a few years ago the authorities in Qatar prohibited conventional banks from having an Islamic arm. If you look at the GCC region over the past decade, we see that most of the new banking licences have been in the Islamic banking space, while we also saw some local banks converting from the conventional banking model to Islamic banking. With such supporting activities, even with the slowdown in the economy, we expect to see the Islamic banking in the region to continue to grow faster than the conventional banks in the coming years,” he says. Still, Islamic finance will have the impetus to continue progressing and maintain some growth. Governments in core markets see in Islamic finance a tool to maintain their investment spending, somewhat countering the negative impact of oil prices on their budgets. The regulatory changes could help the industry in resolving issues related to the lack of liquidity management instruments and applying more stringently its principle of profit and loss sharing. Standardisation of documents and Sharia rulings could enhance industry integration and free stakeholders’ capacity to focus on innovation. The 'debt'side story More than the credit story, the most important story is the deposit rates, according to Suha Urgan, Associate Director, Credit Analyst of S & P. “We have seen early tightening of liquidity rates across the GCC. This is emphasised when you look at the recent rise in inter-bank lending rates particularly in UAE and Saudi. In the big picture, it was not a dramatic move. But it gives us early signs of liquidity tightening,” he says. “There are two important aspects that give rise to this. One is the government deposits; we can see a decline in government

deposits coming to the banking system due to low oil prices. A recent example was the contraction in government deposits in the UAE,” says Urgan. Government deposits in the UAE showed a 16.4% decline in the first eight months of 2015. Qatar has been more resilient. “But going forward with the oil prices predicted, we expect government deposits to soften and the ramifications in terms of liquidity tightening also to happen across the board in the GCC,” predicts Urgan. The Central Bank of the UAE announced in June 2015 a set of new regulations on liquidity risk management for the banking sector as part of compliance requirements for the Basel III rules on capital and liquidity requirements for UAE banks. The objective was to ensure that liquidity risks are well managed at banks by keeping a minimum level of liquid assets to meet short-term liquidity stress. Banks should also structure their funding profile to limit the impact of long-term market disruptions. “The second part of liquidity tightening that is gaining importance is a potential re-emergence of sovereign debt issuances. Obviously GCC governments are tapping into their reserves to address the emerging fiscal deficits. In order to diversify the funding of the deficits, we might see some of the governments look into debt issuance. For example, the Saudi and Omani sovereigns recently tapped into this space. It is important because it will absorb the excess liquidity that is available in the banking systems, which means relatively less liquidity will be available for private sector lending. That also gives rise to some price increase in corporate lending,” he adds. Asset quality The role of asset quality for GCC banks is an important point in 2016, according to Urgan. “If we look at the last five years, the decline in credit losses has been an important driver of earnings. Recoveries play a big role in this. Real estate and equity are two important asset classes as they feed into the recoveries as collaterals. Price increases in these two collaterals feed nicely on earnings. Going forward that will decrease and will be the cause of the slowdown in earnings growth,” he says. “We expect a mid-to-single digit earnings rate and that compares to the double digit earnings growth in previous years in the GCC banks. In 2016 there will be further slowdown,” he predicts QATAR TODAY > NOVEMBER 2015 > 25

business > oil&gas “Currently, six out of Qatar’s 14 LNG trains have the capacity of producing 7.8 million tonnes each per year, making them the world’s largest LNG trains ever to be built.” HE ABDULLAH BIN HAMAD AL ATTIYAH addressing the Science and Technology in Society Forum in Kyoto, Japan.

SIEMENS GETS EXTENSION ON DOLPHIN CONTRACT

A signing ceremony was held at Dolphin Energy’s headquarters in Abu Dhabi during which Adel Ahmed Albuainain, CEO of Dolphin Energy, and Fatih Sakiz, CEO of Siemens Qatar, signed the contract in the presence of senior representatives from both companies.

iemens has signed a contract with Dolphin Energy Limited, headquartered in Abu Dhabi, to extend for an additional 18 years the existing service agreement for aero derivative gas turbine trains operating at the Dolphin Gas Project. Under the terms of the new agreement, Siemens will provide service and maintenance for the nine industrial Trent 60 aero derivative gas turbines operating at Dolphin Energy’s gas compression and processing plant, located at Ras Laffan, Qatar. The project was the world`s first Trent gas turbine mechanical drive installation. The contract will be managed locally through the Siemens Qatar team both at Dolphin Energy Tower in Doha and at the main operational site at Ras Laffan Industrial City.

GLOBAL SERVICE MARKET FOR MAINTENANCE, REPAIR, AND OPERATIONS OF EQUIPMENT IN THE OIL AND GAS SECTOR GROWING AT AN AVERAGE ANNUAL RATE OF

2%. $200 $210

IN 2016, THE VOLUME IS EXPECTED TO REACH

BILLION AND IN 2019 AROUND

BILLION,

ACCORDING TO AN INDUSTRIAL INFO RESOURCES PROJECTION FROM MAY 2015.

26 > QATAR TODAY >NOVEMBER 2015

THE RENEWABLE ADVANTAGE

WIND POWER IS NOW THE CHEAPEST ELECTRICITY TO PRODUCE IN BOTH GERMANY AND THE UK, EVEN WITHOUT GOVERNMENT SUBSIDIES, ACCORDING TO A NEW ANALYSIS BY BLOOMBERG NEW ENERGY FINANCE (BNEF). IT’S THE FIRST TIME THAT THRESHOLD HAS BEEN CROSSED BY A G7 ECONOMY. DENMARK WHICH IS NOT PART OF THE G7 ECONOMY CROSSED THIS THRESHOLD LAST YEAR.

THE PRICE WAR AMONG OPEC MEMBERS

uppliers from the Organization of Petroleum Exporting Countries have always moved together, raising or lowering prices in tandem. Now, Kuwait is undercutting Saudi Arabia by the most on record and Iraq is also selling its oil more cheaply than the group’s biggest member. Qatar is pricing cargoes at the biggest discount in 27 months to competing crude from Abu Dhabi. While the group that accounts for about 40% of global oil supplies maintains a collective strategy of flooding the market with crude, the semblance of unity has vanished when setting monthly selling prices. With Asia forecast to account for most of the growth in global oil demand this year, competition for the region’s buyers is trumping historical allegiances. Kuwait’s official price for its Export Blend crude to Asia was a record 65 cents cheaper than Saudi Arabia’s similar-quality Arab Medium crude in October and 60 cents for November. The difference has widened from 40 cents at the beginning of 2014.

oil & gas > viewpoint

Reversing the trend What are the consequences of the success and failure of reversing domestic energy consumption in the GCC.

audi Arabia’s King Faisal once said, “In one generation we went from riding camels to riding Cadillacs. The way we are wasting money, I fear the next generation will be riding camels again.” Substitute the word “oil” for “money” in this gloomy prophecy and you have a succinct summary of the gathering quandary affecting much of the Gulf. Surprising as it may seem, the Gulf States are facing an energy crunch that stems not from “peak oil” as was feared a decade ago, but from their own internal consumption. When King Faisal reigned in the 1960s and 1970s, the Gulf States were underdeveloped and underpopulated. Their oil demand was a mere rounding error on global consumption. It was only natural that, given the lack of demand at home, these countries became ideal suppliers for the importing world. At the time, it also seemed natural to share the oil wealth with countrymen emerging from countless generations of poverty. Why shouldn’t

28 > QATAR TODAY >NOVEMBER 2015

ordinary Gulf citizens share in the riches? Cheap gasoline, cheap electricity and cheap desalinated water became part of the plan for national development in these embryonic states. Since populations were so small relative to the prodigious resource base, there was no inkling that domestic demand might someday interfere with the exports that provided the economic lifeline for these newly independent states. Those days are gone. Compounding annual growth rates of 6% to 9%, fueled by increasing population and wealth, have raised Gulf energy consumption to some of the highest levels in the world, measured on per capita basis or – more importantly - in terms of oil consumed per unit of GDP. As the rest of the world grows more energy efficient in economic terms, most of the GCC is going the other way, using ever more energy to produce a unit of economic growth and becoming less competitive in the process. Research from a Saudi investment bank found that the kingdom uses 10 times the oil to produce a unit of

GDP than the global average. The situation in neighbouring states is no less stark. If these long-term consumption trends continue, the Gulf States are forecast to be just a few decades away from relinquishing their long-held roles as global energy suppliers. At the same time, the prodigious burning of fossil fuels in the Gulf and neighbouring exporting states of the Middle East has also caught the world’s attention as a major and fast-growing source of greenhouse gases. Since 1990, GCC carbon dioxide emissions have grown by an average of 5% per year, versus 2% for the world as a whole. In 2015, the International Energy Agency joined the chorus of prominent multilateral organizations calling for reductions in Middle East oil consumption and associated emissions from its production. Global climate goals cannot be met without a major change in behaviour in the Gulf. What is driving this inefficient growth and waste of resources? After all, many of the world’s countries have experienced similar growth in population and income, but do not exhibit the same energy inefficiency as that of the Gulf States. What makes the Gulf countries different? Part of the answer, it appears, is price. Energy is sold more cheaply in the Gulf than almost anywhere else on the planet. Prices that appeared munificent in the 1970s have remained constant – or even been reduced, in a few cases – despite the eroding effects of income and inflation. Energy prices have thus fallen dramatically in real terms, growing so cheap relative to income that consumption decisions in the Gulf have become an afterthought.

In the OECD countries, where energy prices more closely reflect market values, consumers have strong incentives to reduce their use of air conditioning, heating or lighting when their homes or offices are unoccupied. As a matter of course, buildings are designed with insulation and other features that minimize energy consumption. Fuel efficiency is a key variable in car and appliance purchase decisions. In some countries, electricity prices are high enough to encourage building owners to generate their own electricity by investing in rooftop solar panels. Consumers in the Gulf are simply not subject to the same incentives. Even the prodigious natural resource endowments of the GCC States have their limits. While reserve sizes remain large in the big producers, levels of production have not increased at the same pace as domestic consumption. The GCC’s role as reliable supplier of crucial commodities to world markets is coming under challenge. Maintaining this status depends on GCC citizens, and the flexibility in their sense of entitlement to cheap energy and willingness to submit to reform. It also depends on measures the state is willing to take to ensure the continuity of exports. Governments and their national utilities need to move toward a more balanced energy policy, with diversification of supply and simultaneous efforts to address demand, including through price reforms. As demonstrated above, abolishing the subsidies that encourage overuse of oil and gas resources represents an effective and underutilised step toward reaching these goals

ABOUT THE REPORT These assertions form the central argument of the first research report by The Abdullah bin Hamad Al Attiyah Foundation for Energy & Sustainable Development, to be published on November 1. QATAR TODAY > NOVEMBER 2015 > 29

business > realty check “Our new office in Doha will enable the company to focus more squarely on the NRI populace living in Qatar and introduce well-structured real estate investment deals from India, GCC and other parts of the globe to prospective investors and home buyers. We see massive potential in Qatar which has over 500,000 Indians with nearly 30% qualifying in the middle/ uppermiddle Income category” KANIKA GUPTA SHORI COO of real estate aggregator, Square Yards

Al Fardan ups Qatar’s real estate game

Alfardan Properties has unveiled its new real estate proposition, Alfardan Elite Collection, an assortment of bespoke properties that promise luxury lifestyle and personalised services for tenants.

he collection includes residential and commercial properties like Alfardan Gardens, Laguna Beach, Alfardan Towers, Burj Al Gassar, One Porto Arabia and Al Gassar Resort. Mohamed Sleiman, General Manager at Alfardan Properties commented, “Utilising two decades of experience in the luxury property market, we have designed a unique offering that is unprecedented in the region. Alfardan Elite Collection is unique in its attention to detail. Over the past three years we have listened to tenants, conducting satisfaction surveys, attending to their needs and tailoring the Alfardan Elite Collection’s array of properties and personalised services to

match.” The collection, through its Smart Living solutions, incorporates three core pillars - safety, security and service - in addition to offering entertainment and well-being activities for guests to enjoy at their homes. Tenants at Alfardan Elite Collection are able to take advantage of value-adding services such as music, ballet, martial arts and dance classes, as well gym amenities with hands-on fitness instructors. The service aspect includes a 24-hour call centre that can assist tenants any time of the day, that promises to take care of any maintenance, engineering or customer care queries within one hour (“One Hour Promise”).

OBEROI GROUP TO MANAGE TWO DOHA PROPERTIES

The Indian hospitality group has entered into management contracts for two new luxury properties in Qatar. The two projects – a 250key hotel in West Bay and 148-key serviced apartment in Lusail – are expected to be completed in mid 2018, with construction commencing early next year. 30 > QATAR TODAY >NOVEMBER 2015

GULF SWFS STEP UP GLOBAL REAL ESTATE INVESTMENTS Qatar is responsible for the lion’s share of outgoing real estate investments from the Middle East, says a report by global property advisor CBRE Group. Qatar invested $4.9 billion in the international commercial real estate sector in 2014, making up a sizeable chunk of the Middle East’s capital outflow into the global real estate sector last year ($14 billion). The report estimated that in 2015 the total real estate investments from the region will climb to $15 billion. While London remained a popular destination, it’s dominance is waning with a greater proportion of the capital starting to target the US, especially since the beginning of the year. The report also predicted that while offices will remain the largest sector, hotel acquisitions, which are the second most popular investments, will continue to grow.

AIANA ANNOUNCES RESORT IN INDIA

Doha based global hotel management company, Aiana Hotels & Resorts, announced the expansion of its portfolio with ‘Aiana Munnar - A Moonriver Resort’. With this signing of a management agreement with Moonriver Resorts (founded by design duo Alex and Tsarina Vacha who have worked on several prestigious interior design and architecture projects in the Middle East), Aiana’s first property in India is expected to open in 2016. The niche, all - suite villa resort is spread across 20 acres of lush greenery and is set amongst natural springs and scenic views, featuring authentic dining experiences and an extensive Ayurveda-inspired spa. Each suite offers a private, heated plunge pool overlooking the hills of Munnar.

affairs > Arab snippets

32 > QATAR TODAY >NOVEMBER 2015

T H E WA R T H AT N E V E R E N DS?

Palestinian protesters pull a rubbish bin as they clash with Israeli security forces in the West Bank town of Al Bireh, on the northern outskirts of Ramallah, on October 20. UN chief Ban Ki-moon warned of a "dangerous escalation" and urged Israelis and Palestinians to move quickly to calm nearly three weeks of unrest during a visit to Jerusalem. AFP PHOTO / ABBAS MOMANI QATAR TODAY > NOVEMBER 2015 > 33

development > viewpoint

We must secure the GCC’s defining decade The spotlight is on the Gulf thanks to two upcoming megaevents. While the multi-billion dollar infrastructure projects being pursued by both Qatar and the UAE are impressive, it’s doubly important to secure them from threats.

34 > QATAR TODAY >NOVEMBER 2015

atar’s FIFA World Cup and Dubai’s Expo 2020 may prove to be defining moments in the social and economic development of both Qatar and the United Arab Emirates. The events will take place within two years of each other and the momentum from one will surely have a positive effect on the other. To think of these mega events in isolation would be a missed opportunity for those seeking to build a long-term reputation in the GCC. For 24 months the eyes of the world will be focused intensely on GCC nations at the turn of the decade, and while that attention will bring opportunity, both nations and the wider GCC would do well to consider the threats that such a spotlight represents. Both the UAE and Qatar’s governments

will spend billions of dollars on metro and train infrastructure, required to carry visitors quickly and safely between destinations. Being aware – and a step ahead – of those who threaten such infrastructure will be crucial. To put a number on it, Qatar has embarked on a $200 billion infrastructure programme including a metro project that will be a main source of public transport for visitors traveling between stadiums, to and from hotels, city attractions and general places of interest. The UAE too is well advanced in its domestic transport plans. Dubai recently announced that it will extend its current metro line to connect the site of Expo 2020 with the emirate’s most populated and accessible locations. To supplement these domestic

programmes, a transnational megaproject is in the making. GCC Rail is a 2,117 kilometre network that will for the first time connect the Saudi Arabia, Bahrain, Kuwait, Qatar, Oman and the UAE to one another. The network will be transformational, positively boosting pan-regional trade, travel and economic activity. It supports a positive global image of modern, progressive, business-friendly nations and improves the visitor experience for media, tourists and fans. But the success and popularity of well-connected train and metro systems that are set to attract dense crowds, will also be its most potent threat. The time for mitigation strategies is now. We do not have to look too far back for painful examples of what happens in the absence of preemptive steps. The coordinated Madrid bombings in March

2004 took place on a commuter train system, just three days before Spain’s general elections, killing 191 people and wounding 800. In July 2005, bombings on London’s underground occurred just a day after London won its bid to host the 2012 Olympic Games. The recent bombings in Turkey, which occurred at two exits of the main train station in Ankara, also claimed 99 lives in what should have been a calm peace rally, in country’s pre-election period. The message is that the spotlight brings with it great challenges. And only with adequate risk assessments and broad recognition of the new threat paradigm faced, can such threats be equalized. The analysis must be thorough and complete. Authorities must embark on a threat vulnerability risk analysis that identifies the threats specific to individual assets and analyses the risks, so that tailored countermeasures can be drawn up. A cost benefit analysis must be done to make sound risk management decisions. In addition, emergency management and crisis preparedness need to be woven in to event preparation. Simulating a situation on a form of transport that as yet does not exist is not a simple task, but the drills must happen. Crisis management exercises, testing the chain of stakeholder command and layering in a culture of emergency preparedness are all critical. A business continuity plan needs to be in place to ensure minimal disruption of critical functions. Other crucial factors such as enlisting competent train operators, outlining appropriate evacuation procedures and installing asset management, infrastructure and system integrity functions must be looked at. True resilience stems from anticipating and managing negative events and predicting future threats. This is of course relative, but we know that the impact of these threats can be grave – and at times fatal. And in less severe cases the negative public perception created by a poorly managed travel experience or inadequate safety measures may impact a nation for a lifetime. Let’s consider the worst-case scenarios as we prepare for the best-case ones to ensure that the legacy of the 2020s is one of a true coming of age for Gulf nations

BY NICK BAHR, Principal at Booz Allen Hamilton MENA, and ECE KANER, Associate at Booz Allen Hamilton MENA

QATAR TODAY > NOVEMBER 2015 > 35

markets > viewpoint

THE ROLE OF SPEED IN TODAY’S

FINANCIAL MARKETS

IT-ASSISTED INFORMATION ANALYSIS HAS LED TO A DRAMATIC INCREASE IN THE SPEED AND NUMBER OF TRADE TRANSACTIONS TAKING PLACE ON TODAY’S FINANCIAL MARKETS. JOHAN HOMBERT AND HIS CO-RESEARCHERS, THIERRY FOUCAULT AND IOANID ROSU, HAVE CREATED A NEW MODEL FOR TRADING THAT TAKES INTO ACCOUNT THESE GAMECHANGING FACTORS. 36 > QATAR TODAY >NOVEMBER 2015

uring the past decade, financial markets have undergone two major changes. There has been a tremendous increase in the amount of information available to traders, and trade transactions are being carried out at a very rapid pace. Traders make their buying and selling decisions based on news. Traditionally, it was sourced in quarterly reports and specialised press, but now, the plethora of contemporary news sources includes online press, blogs, Twitter, other social media, and so on. To deal with today’s massive quantity and constant inflow of news, traders (in small banks and hedge funds) rely on computers featuring algorithms that rapidly sort and process information,

allowing them to reach relevant insights faster than ever before. “High-frequency traders” (HFTs) are using quickly accessed information to act fast, making decisions and carrying out transactions in a fraction of the time it used to take. The result is a fast-paced trade market and a huge increase in the amount of trades taking place. Why speed matters In comparison to traditional frameworks, the model designed by my co-researchers and I features “the assumption of speed,” which we show to have a major impact on optimal trading strategy. Every piece of new news constitutes a trading signal, so every time there is news, traders try to react. Basically, they try to buy an asset if the

related news is good, and to sell if it is bad. Since news is now processed so quickly, there has been a huge increase in the volume of trade transactions. In addition, the composition of trading activity has changed significantly. A mere decade ago, trading was primarily conducted by traditional investors like mutual and pension funds. Now, even though thousands of these parties are still active, they account for just half of trading volume. The bulk of trading volume is produced by mere dozens HFTs. The combination of HFTs and high trade volume has two major implications. The first is increased costs for finance infrastructures. Trade structures like the NYSE and Euronext have to invest heavily in IT systems capable of handling massive amounts of data available online. The second implication is increased transaction costs for traditional investors like retail investors, mutual funds and pensions funds. The reason for this adverse selection is that when news is good and indicates an asset price is about to increase, HFTs react by buying just before this happens. At this point, slower traditional traders are still selling. And by the time they react, the price increase will already have occurred, so they will have to spend more to acquire the same asset. Similarly, when news reveals an imminent price decrease, fast-reacting HFTs will sell just before the price falls, while slower reactors will still be buying, and when they are ready to sell, prices will already have dropped. In short, traditional traders’ lack of speed places them on the wrong side of the market. The impact of HFTs on price precision In addition to speed, we were interested in an issue that has intrigued theorists for some time: the real or imagined difference between speed and precision. When we started this research, we were unsure whether there was truly a conceptual difference between the two. Our model enabled us to isolate speed from precision and consider them independently, and we found they are, in fact, distinctive forces. When it comes to precision, it is said that prices are precise when a market is efficient, and vice versa. Currently, HFTs claim that their presence increases price precision, while traditional traders claim the opposite. We therefore inserted the question “Does the presence of HFTs make prices more

or less precise?” into our model. While we did not reach a clear-cut answer, the model clarified the two conflicting economic forces in play. We saw that in the short term, HFT's fast actions and reactions help to integrate up-to-date, relevant news into market prices. As a result, their activity enhances price precision. On the other hand, their predominant focus on the shortterm and rapid action means that they do not take information relevant for the long term into account as much or as effectively. Consequently, in the long run, HFTs are responsible for decreases in precision. As far as we are concerned, the lack of a clearcut answer to the traditional traders vs. HFT debate is hardly problematic; what matters most is the new insight into the matter. Theory is useful because it tells us where to look. It provides a road map. Our model highlights two phenomena and makes it possible to describe the effects of both. Empirical researchers can insert data into the model and find out which behaviour dominates in the real-life circumstances they are interested in. Tighter regulation for HFTs? The presence of HFTs on trade markets has raised the issue of potential regulation of this type of activity to give traditional traders a balanced chance. One proposal is to slow the market down; for example, instead of allowing trading to happen continuously, transactions might be restricted to once a minute or once every ten seconds. In that case, there would no longer be any point to being fast, and the playing field would be leveled. Such a solution would imply considerable technical complications, because technical adjustments would be necessary to ensure coordination among markets. The counter-argument to this type of proposal is to point out that if it were really better for investors for trade markets to be regulated or for speed to be kept in check, market forces would have taken care of it by now. Many believe that market forces should be enough to establish the “right” transaction speed, and the fact that this has not happened suggests that it should not. Also, stock exchanges earn most of their profits from selling HFTs' fast access to data. In fact, this is their main source of profit. They are hardly likely to push for speed regulation, because it would not be in their interest

BY JOHAN HOMBERT Professor of Finance HEC Paris

ABOUT THE AUTHOR Johan Hombert joined HEC Paris in 2010 after working for INSEE and teaching at ENSAE (National School of Statistics and Economic Administration), from which he himself graduated. He graduated from Ecole Polytechnique in Paris and holds a PhD in Economics from the Toulouse School of Economics. His research is about frictions in financial markets, corporate finance, and industrial organisation. QATAR TODAY > NOVEMBER 2015 > 37

research > listening post

ISLAMIC SIGNPOSTS

AT THE RESEARCH CENTER FOR ISLAMIC LEGISLATION AND ETHICS, THE WORK BEING CARRIED OUT IS AS MUCH ABOUT WEIGHING CONTEMPORARY THOUGHT AGAINST ISLAMIC PRINCIPLES AS IT IS ABOUT ERECTING MORAL SIGNPOSTS ALONG THE UNRELENTINGLY, AND SOMETIMES FRANTIC, PATH OF SCIENTIFIC PROGRESS. 40 > QATAR TODAY >NOVEMBER 2015

ducation City has no shortage of inspiring buildings – and the EC mosque is especially so. One would expect that getting in touch with one’s spiritual side would come easy for those inside its hallowed walls. There is a certain quality in the air that bids you to ponder higher things. Unsurprisingly, it is the home of the Qatar Faculty of Islamic Studies and the Research Center for Islamic Legislation and Ethics (CILE). We are there to meet CILE’s Academic Director Dr Mohammed Ghaly, who also specialises in Islamic biomedical ethics. In an engaging hour-long discussion, he tells us how the centre is working towards filling in gaps in knowledge about the Islamic perspective on the modern sciences. “CILE has identified 12 fields where a vision for Islamic ethics is necessary to create a link between modern sciences and Islam – ranging from media and bioethics to economics and political science,” Dr Ghaly says. “These fields have developed enormously in the last century outside the Islamic tradition; we were not part of what was going on in these sciences and today they shape our lives. Now we need to address them. We believe Islamic thought can enrich the discussions on the discourse on ethics in all these fields.” While as academic director Dr Ghaly oversees all the research that happens at CILE, he speaks most passionately about Islamic bioethics. There are two dimensions to his work: first, identifying and changing what must be changed (as opposed to what can’t be changed) and second, and more importantly, making the discourse more accessible to the people with the religious and cultural background unique to the region. “For instance, organ donation is acceptable worldwide for a variety of reasons but we can’t use the same reasoning here. Islamic ethics has its own vocabulary and its own models of reasoning.” This has meant studying how Islamic scholars have addressed medical ethics in the past and finding a better way to do it. Modern Islamic bioethics “In the West, biomedical ethics are significantly advanced – the technologies were born there and so they started earlier. We were the receivers. First it shocked us and we rejected everything; then the march of progress meant we had to accept everything and now we are trying to

FAITH AND THE RESEARCHER

“Not all of the few people who are currently working on Islamic bioethics are Muslims – some just have respect and wonder for Islam. For them it is a scholarly inquiry into how to reconcile this huge tradition with modern science.”

reach a middle ground; it all takes time. Contemporary Islamic bioethics is an emerging field. Until the 80s we had been approaching bioethical issues like any other issue in the life of a Muslim – prayers, fasting, pilgrimage – but this proved to be problematic. In these other cases, you could check the sources and manuals of Islamic jurisprudence and come up with an answer. But how do you find out what Islam says about cloning or IVF? You can look but you are not going to find any direct answers,” he says. Which is why today, Islamic bioethics research has two parts – informative and normative. “First you should have information about the issue and then you go look for the norms in your sources.” But religious scholars addressing the issue in isolation had an inherent problem with the very first step of the process – the informative – due to limited or no background in biology or science, their education largely restricted to religious texts. “So their knowledge about the theme of the questions was almost non existent. They could be the most accomplished scholars but if they didn’t know what was being talked about, their answers could very well be wrong. This created a problem in the 70s-80s with the outright rejection of issues like birth control, contraceptives, organ transplant, etc. It became clear that this traditional way of addressing the questions on medical ethics was not working.” The solution was to address them collectively, in two senses. First, making it interdisciplinary and involving biomedical scientists, and then making it democratic, by expanding the discussion to groups of scientists sitting with groups of scholars. “The questions raised are so sophisticated that there is no one way of understanding and answering the questions,” Dr Ghaly explains. This has served the purpose well and several councils based in the Gulf and outside, having discussed almost all the standard bioethical questions that are to

THE RISK OF SUBJECTIVITY AND THE IVF CASE STUDY “YES, SUBJECTIVITY IS AN ISSUE, ESPECIALLY WHEN THE TOPIC IS BEING DISCUSSED FOR THE FIRST TIME. WHEN THE ISLAMIC RELIGIOUS SCHOLARS FIRST STARTED TALKING ABOUT IN VITRO FERTILIZATION (IVF), THEY WERE SHOCKED; THEY COMPLETELY REJECTED IT BECAUSE THEY FELT BEING CONCEIVED IN A TEST TUBE OR A PETRI DISH VIOLATED THE DIGNITY OF A CHILD. THEY ALSO SAID PROCREATION WAS RELATED TO SEXUAL INTERCOURSE AND IVF WILL MARGINALISE THE INTIMACY BETWEEN COUPLES. BUT LATER, AS THE COLLECTIVE DISCUSSIONS STARTED HAPPENING, WE DIDN’T SEE THESE ARGUMENTS RESURFACE. IT WAS DECIDED THAT IT IS ACCEPTABLE IN PRINCIPLE AS LONG AS IT’S BETWEEN A MARRIED COUPLE. AND THAT’S HOW IT’S BEEN DONE FOR THE LAST 30 YEARS EVEN THOUGH MOST COUNTRIES DON’T HAVE ANY SPECIFIC LAWS ABOUT THIS. WHEN I STARTED STUDYING ABOUT GENOMICS, SOME OF THE PROCEDURES INVOLVING INSERTING HUMAN GENES INTO LAB ANIMALS WERE QUITE SHOCKING. LATER YOU CALM DOWN AND BETTER UNDERSTAND THE DETAILS. THAT’S HOW YOU MINIMIZE SUBJECTIVITY – AN INFORMED AND COLLECTIVE APPROACH.”

QATAR TODAY > NOVEMBER 2015 > 41

research > listening post

NOT JUST AN IMPORT

“I have noticed that much of the legislation in this region is influenced by that in the US and Europe and it has similar inhibitions though they aren’t necessary. For instance, according to the Islamic tradition is it perfectly acceptable to conduct research on a human embryo until it is 40 days old, before it is thought to be ensouled." So stem cell research might not be as controversial here as it is elsewhere.

be found in western bioethical literature, coming up with appropriate resolutions. There is rich material and an impressive list of publications. But this continues to be less than ideal. “Till now we have been addressing issues piecemeal, repeating the process for each distinct topic. But the informative part is continually being updated. The advances in biomedical tech are producing sophisticated ethical questions every day and we need a consistent way to deal with these. Which is what we are working on at CILE – building a methodological framework and zeroing in on the guiding principles that can help us address any issue systematically,” he says. Islam and the cultural identity Dr Ghaly can’t point out exactly why he was attracted to the esoteric field of Islamic biomedical ethics. “After I finished my studies in Egypt, I went to the Netherlands. There, at Leiden University, I worked on how Islam says we should treat the elderly, and then those with disabilities. When I was doing my doctorate on the latter, I was writing a chapter on medical treatment for disabilities and realised that this field needed some work. I received a grant to 42 > QATAR TODAY >NOVEMBER 2015

work on the interplay of bioethics and Islam in the West,” he says. “I remember in Leiden, our professors told us that when they were students in the 60s, their teachers told them they would probably be the last ones to be studying religious perspectives on bioethics. That they were here switch off the lights. That this was going to be the end of religion and everything was going to be secularised. But this hasn’t come to pass. Religion will never be irrelevant; but in some societies it’ll be more central than in others.” Having spent most of his academic career in Europe, we ask Dr Ghaly if he finds himself working or thinking differently now that he is studying the same things but from the heart of the Islamic world. “In the Netherlands, Islamic bioethics was hardly needed. Now we speak in terms of global ethics because these questions are global in nature. Of course, it can’t be truly global without taking world religions like Islam into consideration. And when I taught in the faculties of medicine and biology, physicians wanted to know how to handle certain issues with their Muslim patients. But here there is an added value – it is extremely significant to the local moral world. In bioethics, the most important element in making decisions related to biomedical technology is how it fits into everyone’s own local moral world that each person consults when making difficult decisions. The composition of this world at the individual and societal level is very

complicated. When we speak of the Muslim world, particularly the Arab world and even more particularly the Gulf, religion is a very significant part of the local moral world and important to the identity of the person. In Qatar today there is a huge drive to import the most advanced biomedical technology and be at the forefront of medicine, but we are as concerned about the compatibility of these technologies with the cultural and religious identities of the society. So the demand for an Islamic bioethical perspective to check these technologies is higher than in the West where it is merely an ethical issue and not also concerned with identity. Here there will be a strong backlash from society if some therapy is found to be contradictory to Islamic principles. In fact, the team working on the genomics project says they are grappling more with the ethical than the scientific part.” For Dr Ghaly, and the team he will be putting together in the near future to study the compatibility of Islamic principles with genome research, this is a lot of pressure. Complicated questions about active research for which there are no quick answers. “While CILE has received an award from Qatar National Research Fund to study this, we will need at least three years for well-constructed, informed answers. Genomics has been discussed and approved in principle before by scholars. Now we have to prioritise issues and delve into the details – editing the genes, using animal embryos – and also work on the general framework.” A question of authority CILE currently is concentrating on a handful of the dozen issues on its agenda, all the while putting together the team. Over the last three years they have done extensive work on bioethics, political ethics, migration and human rights. There are three ways they disseminate their research. “Our research is directed to the scientific/academic elite of the world who want to know what Islam says about a certain subject; I work closely with Qatar Biobank who are leading the Qatar Genome Project. Then we also target what is known as the educated public – PhDs and Masters students; we give lectures on several campuses in Education City and Qatar University. Thirdly, we talk directly to the general public through public lectures, blogs, articles, etc,” he says. In Qatar, Dr Ghaly works with almost all stakeholders. “On an administrative level we are

THE WESTERN LEAD

“There are people who believe we can just borrow from Western bioethics. But Islam is rich, diverse and deep enough to produce answers which will renew these fields themselves and help them grow further.”

represented in the Institutional Review Boards at Hamad and Weill Cornell. No research involving human subjects can happen without approval from these IRBs, which are made up of scientists and ethicists. On the legislative level, we have close collaborations with the Supreme Council of Health and have participated in committee working on drafting a law governing conducting research on human subjects, a pioneering law in the Muslim world.” Does he think that there are/might be some issues where Islam might be at odds with progressive thought, similar to how the Catholic Church is fighting abortions? “We don’t have a binding authority in Islam and there hasn’t been one since the Prophet who received divine revelation. So all that religious scholars are doing is exerting their utmost efforts to discover divine law – what would God have said about this issue? That’s why in Islamic law we speak in terms of probabilities. And no one group of people has the right to speak about Islam and this has never been the case anytime in history. So the only body that can speak about Islam is the society, and the religious scholar who gets the most support from the society will represent Islam. The very internal structure of Islamic authority will not allow it to end up like the Catholic Church.” “As a state you might create an Islamic authority who has control of the religion in your state, but all you’re doing is isolating the body and its followers from the mainstream. It’s a disservice to the group. Even in Shia Islam, the [Ayatollah] Khomeini has authority only over political issues and not necessarily religious ones. There are instances where his views on medical issues like IVF were not followed when drafting legislation because he was in the minority. So in Islam, while you might have to consult an authority, you also have the right to choose that authority.” QATAR TODAY > NOVEMBER 2015 > 43

affairs > world view

44 > QATAR TODAY >NOVEMBER 2015

T H E S C E N E ST E A L E R

Canadian Liberal Party leader Justin Trudeau and his wife Sophie greet supporters in Montreal on October 20 after winning the federal elections. AFP PHOTO/NICHOLAS KAMM QATAR TODAY > NOVEMBER 2015 > 45

THE CHINESE CONUNDRUM

46 > QATAR TODAY >NOVEMBER 2015

COVER STORY

QATAR TODAY TAKES A LOOK AT CHINA’S ECONOMIC SLOWDOWN AND ITS IMPACT ON THE GCC, WHICH IS ALREADY REELING DUE TO LOW OIL PRICES. BY V L SRINIVASAN QATAR TODAY > NOVEMBER 2015 > 47

THE CHINESE CONUNDRUM

he stock markets of China, whose real GDP growth averaged more than 7% and has been a major engine of global expansion for many years, witnessed a correction on June 12 this year, thus ending a-year-long rally of spectacular 150% gains. As developments started unfolding and the corporate world woke up to reality, the Shanghai Index lost more than 30% of its value. The markets remained stable till August 24 when another crash took place and the index fell by another 8%, making it 38% since the June 12 peak. This resulted in a panic reaction sending the emerging markets around the world into turmoil and oil prices falling more than 4% to a fresh six-and-a-half year low, intensifying worries over the outlook for global oil demand. According to a Bloomberg report, the selling pressure in China was so severe that on July 8, nearly 1,300 companies halted trading in their stocks on mainland exchanges,

OIL EXPORTS TO CHINA, 2014

SAUDI ARABIA

REST OF THE WORLD

I6%

67%

OMAN

I0% UAE

KUWAIT

Source: Reuters

“Even the events over the last few weeks have not led us to seriously question it [a growth rate between 6.5% and 7%], partly because China has rolled out fiscal measures and expanded infrastructure spending, which we think will lead to a 2015 growth rate that remains in that range. Our range for next year is lower, in line with the structural transformation that is ongoing. It is 6% to 6.5%, with a midpoint of 6.3%.” Maurice Obstfeld Economic Counsellor and Director of the Research Department International Monetary Fund 48 > QATAR TODAY >NOVEMBER 2015

freezing $2.6 trillion (QR9.46 trillion) worth of shares, or 40% of the stock market capitalisation. In order to contain the crisis, the Chinese government devalued the yuan three times within a week which sent the stock markets around the world into a tailspin. This also caused further worries about China’s economy and doubts surfaced in several quarters about its growth. However, Yi Gang, Alternate Governor, International Monetary Fund for China, sought to allay fears by asserting that the stock market volatility had limited impact on China’s real economy. “The impact of market corrections on China’s financial system is minimal because financial institutions are generally well capitalised. In addition, equity financing has not been a significant source of funding for China’s corporate sector which is mainly financed by bank credit and bond issuance. Several researches have also shown that the wealth effect of market corrections on consumption seems muted in China,” Yi Gang told delegates at an IMF meeting held in Lima, Peru last month. “We will review and improve the regulatory framework of the market, strengthen supervision, and take measures to restore the functioning of the equity market, when appropriate. Furthermore, we will resolutely push through market-oriented reforms and stay the course of further opening the capital markets,” Yi Gang added. China also feels that the volatility in the global market has added new uncertainties to world economic recovery and put new pressure on its economic performance. Nevertheless, the government feels that its economy has been operating in a reasonable range and its growth rate is still leading the world. IMF confident The International Monetary Fund (IMF) is optimistic as far as China’s economic growth is concerned and says that the country will register a growth rate of between 6.5% and 7% in 2015. The Fund’s Economic Counsellor and Director of its Research Department, Maurice Obstfeld,

COVER STORY said: “Even the events over the last few weeks have not led us to seriously question it, partly because the Chinese authorities have rolled out fiscal measures and expanded infrastructure spending, which we think will lead to a 2015 growth rate that remains in that range. Our range for next year is lower, in line with the structural transformation that is ongoing. It is 6% to 6.5%, with a midpoint of 6.3%.” He further said that China was undergoing transformation and its economy has been rebalancing from exports and public investment to consumption, from manufacturing to services. “This is both healthy and necessary in the longer term, but in the near term there are implications for China’s growth and for its trading relationships with foreign countries,” said Obstfeld. Amid these claims, the six member-states of the Gulf Cooperation Council (GCC) have been keenly watching the developments as China is their second largest trading partner (after Japan) and expected to become the largest export market for the GCC by 2020. China accounted for 12.1% of total GCC trade in 2013. In fact, the Chinese Academy of International Trade and Economic Cooperation says that GCC nations are also keen to support the Chinese initiatives of building the Silk Road Economic Belt and 21st Century Maritime Silk Road. The establishment of a free trade zone would strengthen multilateral cooperation on agriculture, energy, tourism and culture, the Academy feels. Impact on GCC The GCC’s economies have seen trade links with China grow substantially over the last decade. The concern of a Chinese economy slowdown was clearly reflected in the performance of crude oil, which lost 23.9% and GCC equity markets during Q3 2015. Though many of these losses were due to the drop in oil prices, the decline accelerated on the news of the devaluation of the yuan and slowdown of the

“The oil prices are not driven only by Chinese developments, though it has had an impact on oil prices. If the global economy revives based on improvement in growth in the US and India, it can give a boost to oil prices.” Dr R Seetharaman Group CEO Doha Bank

EXPORTS TO CHINA (2000 - 2014)

45%

40%

Saudi Arabia

Kuwait

UAE

Qatar

Oman

Bahrain

GCC

35%

30%

25%

20%

10%

Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-14 Jan-14 Apr-14 Jul-14 Oct-14

Source: Asiya Investments

15%

QATAR TODAY > NOVEMBER 2015 > 49

THE CHINESE CONUNDRUM

Chinese economy. The reaction of the GCC equity markets to the Chinese index rout clearly establishes the deeper trade and investment relationship between the GCC countries and China. GCC-China trade was more than QR334.88 billion ($92 billion) in 2010 and exceeded QR626 billion ($172 billion) in 2014. Exports from the GCC to China jumped from QR205.66 billion ($56.5 billion) in 2010 to QR393.12 billion ($108 billion) in 2014 and imports by GCC from China rose from QR131.04 billion ($36 billion) in 2010 to QR233.32 billion ($64.1 billion) in 2014. Qatar’s sovereign wealth fund received permission to invest in China’s capital markets in 2012 and Qatar Investment Authority (QIA) holds shares in Agriculture Bank of China. As part of its Look East policy, QIA signed an agreement in November 2014 with CITIC Group Corp to launch a $10 billion fund that will invest in the region. “The growing synergies have contributed to a surge in GCC-China bilateral trade and investments. Even if there is a slowdown, it can impact the bilateral trade and investments in the near term. However, we can expect it to recover on account of the synergies which have been built in recent years,” says Doha Bank’s Group CEO Dr R Seetharaman. Some 13 Chinese companies have been operating in Qatar and another 181 joint ventures are also actively engaged in various businesses in both countries. Trade

“The cheaper yuan will make Chinese exports less expensive, potentially boosting overseas sales. However, at the same time the new Chinese investments in the GCC region are likely to cost more in yuan.” Raghu Mandagolathur Senior Vice President - Research Markaz (Kuwait Financial Centre)

50 > QATAR TODAY >NOVEMBER 2015

“Co-operation in the fields of financial services, aviation, and tourism is also proceeding well, and has become the new highlight of China and Qatar’s economic and trade relationship. Qatar has become one of our most important business partners in the Middle East and the Gulf region.” Cui Bin Head of Economic and Commercial Office (ECO) Embassy of China Qatar

between Qatar and China more than tripled to around QR41.86 billion ($11.5 billion) between 2008 and 2013. China is also a huge market for Qatar’s LNG in view of its growing consumption. Cui Bin, who is Head of the Chinese Embassy’s Economic and Commercial Office (ECO) in Qatar, said that China signed more than QR29.12 billion ($8 billion) worth of contracts in various infrastructure projects in 2014. Addressing a meeting on the eve of launching the “Made in China Exhibition 2015” in Doha, Cui Bin said Chinese companies were participating in many projects relating to Qatar’s civil construction works and the building of roads, bridges, ports, and telecommunications infrastructure. “Cooperation in the fields of financial services, aviation, and tourism is also proceeding well, and has become the new highlight of China and Qatar’s economic and trade relationship. Qatar has become one of our most important business partners in the Middle East and the Gulf region,” said Bin. Effect on oil prices Dr Seetharaman says that the oil price has been struggling to recover on account of excess supply in the oil market and concerns of a global slowdown. In relation to such a slowdown, China is also one of the factors and any slowdown in China impacts the global demand for oil and thereby the prices. The struggle for a revival in oil prices has impacted GCC economic growth and financial markets. The GCC economies have already initiated fiscal reforms taking into consideration the fall in oil prices. Saudi Arabia had tapped local markets in June and August and has raised at least SAR35 billion from local bond markets this year. The UAE is working on a draft of the corporate tax law and the value-added tax (VAT) law is being discussed with the local and federal governments. Qatar issued QR15 billion worth of bonds in September 2015 as it took advantage of low borrowing costs to replenish funds eroded by the decline in oil prices. Kuwait has also kept its option to fund the fiscal deficit of 2015-16 with bonds. “The 2016 GCC budgets will be more pragmatic taking into consideration the expansion required for growth and the funding necessary to manage fiscal deficits,” says Dr Seetharaman. Group Head of Research & Chief Economist at Emirates

COVER STORY NBD Tim Fox says that lower oil prices are the result of a combination of factors; weaker demand from China is one, but not the main driver. The main factor has been a supply/demand imbalance with supply exceeding demand by almost 3 million barrels per day according to the International Energy Agency (IEA). That gap needs to close for oil prices to adjust. “The impact on regional budgets will be a significant one, as oil is the key source of income for budget funding. However, governments across the region have built up considerable reserves that they can draw on to fund expenditures. Thus we expect 2016 budgets to continue to focus on priorities and rationalise non-essential expenditures. We forecast GCC economies will run a fiscal deficit of 9.1% in 2015 and 5.9% in 2016,” says Fox. “Apart from oil, GCC countries have significant trade links with China and GCC investors have exposure to the Chinese capital markets,” says Raghu Mandagolathur, who is Senior Vice President–Research with Markaz (Kuwait Financial Centre). As far as the impact on GCC budgets in 2016 is concerned, Mandagolathur says that the substantial fiscal buffers and low sovereign debt levels enable these countries to finance the expected fiscal deficits. They are also exploring measures to undergo fiscal reform in the form of reductions of subsidies and implement tax measures to minimise the pressure on budgets.

“Financial repression is widespread in China. Investors are not free to bring money out of the country, and the number of assets available for investment is limited. Because the Chinese save massively, any asset that has been made available for investment has suffered the creation of bubbles.”

Decelerated, not tumbled Asiya Investments’ Head of Research Francisco Quintana says that the Chinese economy has not “tumbled” but “decelerated” gradually and has been still one of the fastestgrowing regions in the world. China’s GDP grew 7.3% in 2014 and will end 2015 slightly below 7%. That’s more than twice faster than global growth, which the IMF expects to be 3.1% this year.

Francisco Quintana Head of Research Asiya Investments

GCC-CHINA TRADE

% of total GCC exports

% of total GCC imports

Since 1984

15.0

15 GCC imports from China

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

0.0 1992

0 1990

5.0

1988

1986

10.0

1984

Source: Asiya Investments

GCC exports to China

QATAR TODAY > NOVEMBER 2015 > 51

THE CHINESE CONUNDRUM

On the other hand, Chinese stock markets did tumble, but the reasons are more or less unrelated to the Chinese deceleration. “Financial repression is widespread in China. Investors are not free to bring money out of the country, and the number of assets available for investment is limited. Because the Chinese save massively, any asset that has been made available for investment has suffered the creation of bubbles,” he says. According to him, the investments suffered with the shadow banking system, as well as real estate sector. Now, with the ongoing liberalisation of the stock market, less strict regulation to leverage, and the general belief that China’s Central Bank would not allow stocks to collapse, the attention of Chinese savers shifted toward the stock market, explains Francisco. In mid-June, the Shanghai Stock Exchange had a 150% year-on-year growth. Many new investors were uneducated and financially illiterate and have suffered from the corrections that took place in the last three months. But the initial corrections in the stock market were largely a domestic affair. It was not until the renminbi devaluation in August that global markets started to panic. “That decision did impact GCC markets, just like it impacted every single emerging market in the world. Global investors realised, all of sudden, that the world’s economy

“We will review and improve the regulatory framework of the market, strengthen supervision, and take measures to restore the functioning of the equity market, when appropriate. Furthermore, we will resolutely push through market-oriented reforms and stay the course of further opening the capital markets.” YI Gang Alternate Governor International Monetary Fund for China 52 > QATAR TODAY >NOVEMBER 2015

“Weaker growth will also mean weaker demand for energy products from the GCC region. However, this is only likely to be temporary as China’s longterm growth will depend on securing enough energy supplies from the GCC region and other markets.” Tim Fox Group Head of Research & Chief Economist Emirates NBD did not warrant high asset prices, and there was a global sell-off. But the GCC was just another emerging market suffering in the global panic bout,” Francisco points out. The state of oil imports Will China’s slowdown impact its purchase of petro products from the region leading to further depression in oil prices? Despite economic headwinds, China’s crude oil imports are expected to grow over the next five years at an average annual rate of 3.2%, from 6.6 million barrels per day in 2015 to reach 7.7 million b/d by 2020. This will be a result of higher refinery run rates to produce gasoline and continued strategic stockpiling activity, which will help to override macroeconomic headwinds to domestic crude demand, a study by BMI Research shows. However, owing to sustained economic weakness, China’s LNG consumption is likely to be subdued till 2017. According to China’s National Development and Reform Commission, gas consumption increased only moderately by 1.5% y-o-y through the first seven months of the year in 2015, a markedly lower figure compared to 6.5% over the same period in 2014. “We expect gas demand to remain subdued over the coming two years, but to pick up post-2017, in line with China’s continued commitment to lower carbon emissions by reducing coal use 60-65% from 2005 levels by 2030 and promoting greater adoption of cleaner energy sources in the power sector,” the BMI Research adds. Francisco says China will not only be able to buy the same quantity of oil, but will buy more. China imported 9.2% more oil than before in August 2015 and the demand increased by 6% between January and August this year. The country is taking advantage of cheaper prices to step up demand. “On the other hand, what is being revised down is how much more oil will China buy in 2016. 2015 saw the largest increase in oil demand on record. Demand was 1.8 million of barrels per day higher than the year before. Demand will continue to expand in 2016, but less rapidly. The International Energy Agency just cut its forecast to 1.2 million. OPEC also did it. In its last revision it cut the expected increase for 2016 by 40,000 barrels per day, to 1.25 million, citing soft growth in China,” says Franscisco. In absolute terms, demand from China is going up. Exports are collapsing because they are measured in nominal terms, and prices halved, reducing the value of

COVER STORY exports between 40% and 50% for most countries. So, of course, it will impact trade, but not the actual volumes being traded. Francisco says that the bulk of Qatar investments in China are energy-related. Gas prices have suffered enormously, and Asian prices lead the decline. The collapse of oil prices has made LNG a financially less attractive alternative and the demand for LNG has therefore weakened. “Also, LNG contracts tend to be long term with prices linked to oil, so exporters suffer the same trend in nominal exports than oil exporters. The price of spot LNG, which was close to $20 in early 2014, has now declined to around $7 and is likely to continue to fall. These numbers feed directly into the profitability of gas projects. So my guess is that Qatar will probably slow down its investment plans in Asia, and shelve some of the projects in the pipeline,” he adds. Mandagolathur says that China consumed around 11% of the world’s oil, out of which 33% of oil was imported from GCC countries (KSA - 16%, Oman - 10%, UAE - 4% and Kuwait - 3%) during 2014 and slowing growth in China

would not only impact the demand for oil but could further depress the oil prices. However, despite recent concerns regarding the strength of the Chinese economy, Chinese oil demand remained remarkably resilient. The US Energy Information Administration (EIA) estimates that China’s oil consumption will increase by around 300,000 bpd in 2015 and the demand is forecasted to grow by 0.3-0.4 million bpd in 2016. Based on the forecast it is unlikely that Chinese demand for oil would be an influencing factor depressing oil prices in 2016, says Mandagolathur. Dr Seetharaman, who visited China recently, says that the government and the Central Bank are working on various reforms to revive its growth. It has got financial stability and will be an economic engine in global growth in years to come. “Any slowdown in economic growth might lead to reduction in oil purchases. However, it again depends on how long the slowdown persists. The oil prices are not driven only by Chinese developments, though they have an impact on oil prices. If the global economy revives based on

PERFORMANCE, Q3 2015 Shangai Composite

Saudi Tadawul

Brent

S&P GCC

Dubai

Kuwait

Qatar

0% -5%

-7.5%

-10% -15%

-14.2%

-20%

-12.1%

-18.5%

-25%

-23.9%

Source: Reuters

-30%

-6.0%

-28.6%

-35%

USD per barrel, Brent-oil June 2014 = 100, Exports

OIL EXPORT METRICS IN THE GCC

130

120

110

100

90 80 80

40 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Brent-oil price

Oman-Exports of crude oil

Kuwait-Exports of oil

UAE-Exports

KSA-Exports of goods

Qatar-BoP goods net balance

Bahrain-Exports

Source: Asiya Investments

QATAR TODAY > NOVEMBER 2015 > 53

THE CHINESE CONUNDRUM

12.0%

36.0% 19.0%

TRADE LINKAGES

OMAN

SAUDI ARABIA

KUWAIT

12.0%

5.4% 15.0% 6.4%

2.8% 5.9%

QATAR UAE

EXPORTS TO CHINA

(as % of total exports)

IMPORTS FROM CHINA

BAHRAIN

7.4

16.0%

(as % of total imports)

17.0% Source: MIT Economics Observatory; Data as of latest available

improvement in growth in the US and India, it can give a boost to oil prices,” says Dr Seetharaman. Fox also says that China’s economic growth has been slowing and its economy experiencing a structural shift as it changes from being an export-oriented economy to one more driven by domestic consumption and services. “This shift is a positive one in the long term, but is taking away from near-term growth dynamics in China. Thus weaker growth will also mean weaker demand for energy products from the GCC region. However, this is only likely to be temporary as China’s long-term growth will depend on securing enough energy supplies from the GCC region and other markets,” he says. Impact on investments Fox says that in the current scenario of weaker economic growth and a weaker yuan, investment flows are likely to moderate. Chinese investments in the region, for example in the energy sector, look at energy security as the primary driver. Many Chinese firms take a long-term view to investing in the region. “They will, but in absolute terms the impact will be irrelevant, because China is not investing heavily in the region. There is a Chinese $40 billion plan to build infrastructure along the Silk Road, which includes part of the GCC, but its implementation will not take place any time soon,” says Francisco. According to him, the GCC countries do not offer the sort of investment possibility that interests China. China wants equity, ownership to secure long-term supply, but GCC countries do not accept those types of engagements. Iraq, for instance, accepts sharing ownership of the resources and that stance made China the largest foreign investor in the country, overtaking the US, he adds. The devaluation of the Chinese currency, interpreted as a sign of a slowing Chinese economy, heightens fears of weakening demand for commodities and lower prices in the global markets, says Mandagolathur. However, an important point to be observed is that

54 > QATAR TODAY >NOVEMBER 2015

the commodity prices have been declining from the mid2014, therefore the impact of the devaluation of Yuan should not be exaggerated. The cheaper yuan will make Chinese exports less expensive, potentially boosting the overseas sales. However, at the same time the new Chinese investments in the GCC region are likely to cost more in yuan, says Mandagolathur. GCC-China FTA China and the GCC are in talks to have a Free Trade Agreement (FTA) for many years and to resolve the nittygritty issues one by one. While fears are expressed over implementing the FTA in the near future following China’s slow economic progress, Francisco sees no reason why a slowdown should hurt the FTA discussions. “They have been ongoing since 2004. It is unclear how much progress has taken place or the difficulties for this to materialise, but the reasons why it’d be of interest for both regions are unchanged. Both regions are forced to work together. In a world in which the US is pumping more oil than at any time in the past, the GCC needs China and India to survive,” he says. Likewise, China takes its energy strategy very seriously and, even though it tries to minimise exposure to any single producer, it still relies on the GCC for a third of its energy imports. “Since the beginning of the negotiations in 2004, China has more than doubled its share of GCC exports from 5% to 11%. China buys 40% of Omani exports and 14% of Saudi’s. And the interest goes both ways. Only 7% of GCC imports came from China in 2004. Today it is almost 15%. In spite of the slowdown the mutual interest is enormous,” says Francisco. Mandagolathur also shares the same view and opines that the slowdown would unlikely prove to be a hurdle in the China-GCC efforts to have such a pact. “Huge potential lies in trade ties between the GCC countries and China and talks have been ongoing. However, the talks have not resulted in an effective outcome due to the risk of cheap GCC imports to the Chinese petrochemical industry,” he says

business > bottomline

Because I am happy Where does Doha stand vis-à-vis other cities in the Middle East when it comes to happiness?

56 > QATAR TODAY >NOVEMBER 2015

appiness is a relative term, as one person’s definition of happiness might not match another’s. There are many facets of life which contribute towards happiness – such as health, career success, personal relationships, and so forth. The World Happiness Report 2015 uncovers the top happiest countries in the world based on several factors, including life expectancy, freedom to make life choices, and the level of social support. Our main focus in this article, however, will be happiness in relation to professional prosperity and career success. A holistically satisfying career is undeniably a major part of living a wholesome life. And since people are at work for the most part of the day, the salary and benefits, career growth opportunities, colleagues, and so forth, make a huge difference in their life. Bayt.com research has revealed over and over again that, overall, countries in the GCC region are happier than others.

According to the Bayt.com ‘Top Cities in the Middle East and North Africa’ released in October 2015, Doha consistently scored in the top 10 cities in the Middle East and North Africa (MENA) region across all considerations – including economic factors, labour rights, environmental factors, standard of living, socio-cultural factors, sports, arts and recreation, and entrepreneurship. In fact, Qatar emerges as one of the top three destinations in the MENA for a high standard of living and is among the top 10 cities in the region for sports, arts, culture and recreation, labour rights, and entrepreneurship. The availability of jobs in Doha is either good or excellent according to four in 10 respondents; only 8% believe it is bad. 40% of Doha respondents believe that competitive salaries in their city are either good or excellent. These results mirror results from the August 2015 Job Index survey by Bayt.com in which 73% of employers of Qatar said that they will be

hiring in a year’s time. But are pay and the availability of jobs the only contributors towards happiness? As a matter of fact, no. Labour rights, safety and stability, socio-cultural and environmental factors also matter. The Bayt.com ‘Top Cities in the Middle East and North Africa’ has revealed that Doha is among the top 10 cities in the MENA region in terms of labour rights. Respondents from Qatar believe that they enjoy good to excellent end-of-service benefits (36%), termination rights (25%), vacation allowances (45%), parenthood allowances (21%), wage protection system s(36%), health insurance and social security systems (48%), and a proactive policy making process (28%). Environmental factors also form a set of important aspects related to comfort and cleanliness that affect the overall quality of life in a city. The vast majority of respondents in Doha (77%) say that the cleanliness of their city streets is either good or excellent. Moreover, the majority of respondents rate Doha as good to excellent on most of the key factors affecting their standard of living. These factors include the feeling of stability and security (70%), the availability of healthcare facilities (65%), water/ electricity/sewage systems (72%) and the quality of education (54%). When it comes to socio-cultural factors in Qatar, low crime rates were rated as good to excellent by 83% of Doha respondents; a stable political environment by 71% of them; and effective law enforcement by 68% of respondents. Respondents in Doha ranked culture and arts offerings (42%), the availability of family-friendly activities (48%), and

the availability of world heritage sites/ preserved old towns (43%) as good to excellent. Entrepreneurship has an impact on a city’s prosperity, and Doha ranked as the sixth top city in the MENA for starting a business. The city ranked either good or excellent among respondents on the following factors: the ease of starting a new business (29%), lack of bureaucracy in procedures and paperwork (31%), ease of finding finances to start a business (28%), market willingness to accept new ideas and innovations (39%), market saturation (31%), ability to find local talent to employ (36%), and affordability of taxes and fees (53%). Not leaving out the basic need for livelihood, having a good salary also plays a major role in happiness and workplace gratification. Overall, professionals in Qatar find their pay to be fair and competitive. At the same time, having a low base salary has been identified as one of the main reasons for professionals to quit their jobs across the MENA region. Tools such as Bayt.com Salaries can assist employers in comparing and paying competitive rates to their employees, and thus preventing high turnover rates. While the majority of Doha residents (65%) say they are happy living in their city, we still advise professionals to focus on their career growth and personal savings. The time is also ripe for employers to deploy their best strategies and resources to make the most out of a flourishing economy and a positive job market in a country that is bound to boom and prosper with the key events and infrastructure projects undertaken and the advent of the FIFA World Cup 2022

ABOUT BAYT.COM Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 22,250,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com today and access the leading resource for job seekers and employers in the region. QATAR TODAY > NOVEMBER 2015 > 57

business > bottomline

Strategising careers

How can companies make career management pay off for both the employer and the employee?

58 > QATAR TODAY >NOVEMBER 2015

or companies in the Middle East who want to stand out as attractive employers, running a career management programme is a nobrainer. Our research consistently throws up ‘career opportunities’ as a top driver of engagement, across all age groups and nationalities in the region. Our Qudurat study reveals an intense desire for career progression: up to two-thirds (66%) of employees in Qatar report that they see their current role as a stepping stone to their next job, and only 10% of employees feel that they are being promoted fast enough. Both young nationals as well as expats vote for career progression as a top criterion when selecting a job, and the expectations of both groups put heavy demands on the organization’s talent management approach. Despite this, only a small proportion of organizations in the region are successfully running structured career programmes. Those that do, however, reap the benefits. These include the ability to develop and place talent where they really need it;

the removal of stumbling blocks which can impede the development of both the individual and organisation; and the creation of a robust pipeline of future talent. Here are three common talent issues faced by companies in the Middle East, and how proactive career management can address these: 1. Strategic moves that end up decimating your talent base Strategic moves such as mergers, outsourcing, focus on new markets and so on risk alienating high-performing employees who may incorrectly perceive that the changes narrow their career options within the company. Savvy employers don’t expect employees to put their careers on hold while the organization rights itself out. And they don’t scramble to make offers (involving inflated pay packages and impressive job titles) when they receive a notice of resignation from their most valued people. As they go through strategic decision-making, they identify the

likely impact on their employees’ career objectives, identify the key talent they want to retain and draw up retention plans and packages that would go beyond monetary incentives to include substantial new roles or projects that would attract and energize their ambitious employees. They take the first step in communicating a career vision to their valued employees and support them in making key career decisions and transitions. They also affirm the value of the employee by providing mentorship, rewards, development opportunities, exposure to senior management and other initiatives designed to maintain engagement even through difficult times. 2. Managers who ‘hoard’ their highperformers High-performing employees are typically hungry for challenges. However, companies that do not actively manage career development typically leave it up to managers to cultivate talent in their business units. These managers understandably make decisions aimed first at benefiting their business unit. As a result these high performers are often offered narrow development opportunities that frequently do not comprise the broadbased skills the organization needs for its future development. Employers who want to avoid this pitfall typically institute a culture of sharing talent by assigning responsibility for high performers’ development to very senior managers or an influential human resources specialist. They assess employees for development potential (not just at the point of recruitment) and use it to support deployment decisions for their valued employees. 3. Employees who feel blocked in their career The expectations for progression up the organization ladder are an established feature of workplaces in the Middle East, but demands for rapid promotions are often billed as unrealistic. While employers may be correct in their assessment of an employee’s readiness (or lack thereof ) for the next step up, they may be missing the opportunity to wisely guide, and in the

INVITATION TO PARTICIPATE IN QUDURAT WAVE 3 TAKE PART IN AON HEWITT’S QUDURAT STUDY, THE LARGEST OF ITS KIND DEDICATED TO UNDERSTANDING THE REGION'S CURRENT AND FUTURE WORKFORCE. THE STUDY WILL PROVIDE INSIGHTS INTO:

BY DR MARKUS WIESNER Chief Executive Officer Aon Hewitt Middle East and Africa

HOW ORGANIZATIONS IN QATAR ARE ATTRACTING, RETAINING, DEVELOPING AND ENGAGING NATIONALS FACTORS THAT INFLUENCE CANDIDATES’ JOB CHOICES, PERCEPTIONS OF THEIR WORK ENVIRONMENT AND ATTITUDES TO DIVERSITY STUDENTS’ PERCEPTIONS OF JOB OPPORTUNITIES AND FACTORS INFLUENCING CAREER DECISION-MAKING PARTICIPATION IS EASY AND FREE. ALL PARTICIPATING ORGANIZATIONS GET A COMPLIMENTARY DETAILED REPORT. TO FIND OUT MORE VISIT WWW.AONHEWITTME.COM/QUDURAT

process retain, their best employees. Employers who employ a systematic career management approach help employees develop realistic expectations of career progression and provide support to develop the necessary skills and experiences. This includes career pathways that define skill and experience requirements, training, mentorship, job rotations and challenging assignments. There is no one-size-fits-all approach to career management: the specific policies, development activities and career paths differ. But the basis of good organizational career management lies in a structured approach, owned by the firm’s senior management and based on strong insights into the workforce’s performance and career objectives. On the other hand, employees need to take on the responsibility for driving their progression. Ambitious employees need fire in their bellies as well as patience, persistence and insight to understand their position in the organization and their strengths and weaknesses. They need to be open to wise guidance to make judicious career choices that help them fulfill their dreams

ABOUT AON HEWITT Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aon.com/middle-east

QATAR TODAY > NOVEMBER 2015 > 59

development > tag this

THE BIG ENERGY QUESTIONS

60 > QATAR TODAY >NOVEMBER 2015

"THIS ENERGY THINK TANK WILL INITIATE CHANGE." THIS IS WHAT THE ABDULLAH BIN HAMAD AL ATTIYAH FOUNDATION FOR ENERGY & SUSTAINABLE DEVELOPMENT, LAUNCHED ON NOVEMBER 1, PROMISES.

QATAR TODAY > NOVEMBER 2015 > 61

development > tag this

“I am a man who smells energy, lives energy. I cannot change!” says HE Al Attiyah, “I would like to see the Foundation become the leading think tank in the region and one of the world’s leading institutions in the areas of energy and sustainable development.” 62 > QATAR TODAY >NOVEMBER 2015

they say and this is further validated by their first report that talks about fuel subsidies that have made the Gulf countries huge consumers of their own wealth. (Excerpts from the report carried in Page <...>) The board of the Foundation will consist of a group of distinguished individuals from the past and present leadership of Qatar Petroleum, including Saad Al Kaabi, President & CEO of Qatar Petroleum, and HE Dr Ibrahim Ibrahim, Economic Advisor to HH the Emir of Qatar. All the board members, who currently hold multiple directorships in Qatari oil and gas companies, financial institutions and the diplomatic service, served with HE Al Attiyah during his 20 year-tenure leading the transformation of Qatar’s oil and gas industry. HE Al Attiyah says, “We want people to knock on our door with questions which we will aim to answer based on our vast experience. The Foundation will have leading experts from around the world, thinking clearly without the burdens and pressures of bureaucracy, budgets or politics. Some of them might have retired from their government or corporate jobs, but they had played big roles in the advancement of the international energy industry and policy and they have a lot to contribute.” The Foundation will host leading experts from around the world, many of whom will have retired from senior energy positions in government and industry where they would have played an active role in the advancement of the international energy industry.

AFP PHOTO/Karim JAAFAR

e were intrigued when we received the press release announcing the launch of the first local think tank committed to energy by Qatar’s former Minister of Energy and Deputy Prime Minister HE Abdullah bin Hamad Al Attiyah. What will make this think tank – The Abdullah bin Hamad Al Attiyah Foundation for Energy & Sustainable Development – different from the whole body of such organisations already present in the region? Qatar Today talks to the Foundation to get answers to some pertinent questions. The mission of The Abdullah bin Hamad Al Attiyah Foundation for Energy and Sustainable Development, according to the Foundation, is to provide information, programmes, research and publications so that the knowledge, insights and wisdom of HE Al Attiyah may be preserved and built upon for the benefit of future generations in Qatar and for a global audience of stakeholders. “The Foundation will look to help tackle such challenges as energy efficiency. As the rest of the world grows more energy efficient in economic terms, most of the GCC is going the other way, using ever more energy to produce a unit of economic growth and becoming less competitive in the process. If these longterm consumption trends continue, the Gulf States are forecast to be just a few decades away from relinquishing their long-held roles as global energy suppliers,”

In an exclusive, Qatar Today brings to its readers, the personal journey of HE Abdullah Bin Hamad Al Attiyah, in his own words.

OPEC: A LONG TURBULENT JOURNEY

went to my first OPEC meeting in 1972, shortly after joining the oil ministry. It was an interesting experience sitting in the back seat, learning from the people who were creating oil policies. Since then I attended OPEC conferences regularly for 40 years. The challenge for OPEC then was how to confront the International Oil Companies (IOCs) which controlled the industry and benefited from keeping prices low because it owned the concessions and the refineries. The main focus was how to create a lobby to put pressure on the IOCs to increase prices and how to set up national oil companies. In 1973 an oil shock followed the embargo by OPEC and Arab producers in response to US support for Israel in the Yom Kippur war. Prices began rising from two to three dollars to over 36 dollars in 1981. That was a turning point for producers who started to control their own assets and the IOCs started to lose control. By 1975 producers started setting up their national oil companies, but could not get rid of the IOCs totally because they needed their technical help. It was a marriage of convenience. Producers thought the high oil prices would go on forever, so they were shocked when by 1985 the prices started to crash and never exceeded 17 dollars a barrel until 2000. OPEC started to talk for the first time about cutting supply and I found that there was no trust amongst the members. They would commit to cutting supply, but some never did. We met many times and meetings started getting longer, from three days to more than three weeks. One OPEC conference in Geneva lasted one month! We had one meeting and the rest was all bilateral talks on how to convince members to respect production quotas and how much to cut from each country. That made the market nervous and prices went

Qatar Minister of Energy HE Abdallah bin Hamad Al Attiyah arrives for a meeting of the Organisation of Petroleum Exporting Countries on October 24, 2008 in Vienna. AFP PHOTO/DIETER NAGL

down more. We had to break meeting for one week over Christmas because Swiss security told us they would be too busy to provide us with full security. In the 1990s, non-OPEC producers were beginning to have a bigger market share, so we started talking to them to persuade them to cooperate. I was elected OPEC president several times, and visited some of those countries. I said, “You have to support OPEC.” But they never did. In fact, when we cut production to try and control prices, they increased production. OPEC was always open to them, always wanted to work with them. OPEC – The Day the Jackal Hijacked the Peace I almost never missed an OPEC meeting, except for one in 1975. Maybe I was lucky. I had just got married and my wife had a medical problem so I had to take her to London. That year Carlos hijacked the meeting at OPEC’s Vienna headquarters and took

ministers and delegates hostage. Initially we had no idea who was behind it, but then we heard about this man called Carlos the Jackal from Venezuela, who had ties with a radical movement. It was suggested that the late Libyan leader Muammar Gaddafi had hired him. Libya was an OPEC member, but Gaddafi had another agenda. It was suggested that the hijacking was not to ask for a ransom, but to assassinate the ministers of Iran and Saudi Arabia. In the end, after three people were killed, Carlos took a ransom. OPEC changed in some ways after Carlos. Before, meetings did not have much security, ministers came and went without security and they would sit in cafes during breaks. But after 1975, the building became like a police headquarters, more security than delegates! Everybody was concerned and worried about another attack. Finally, the Saudi Arabian Oil Minister Zaki Yamani said he no longer trusted the security at the headquarters in Vienna and insisted the ministers’ meetings be moved QATAR TODAY > NOVEMBER 2015 > 63

development > tag this to Geneva, which was very costly. So when I became minister in 1992, I told other ministers that we have to change, we have to go back to Vienna because it was more economical. In 1995, Ali Al Naimi became Saudi Arabia’s oil minister, the first to come from a business background after working his way up at ARAMCO. I really appreciated him and I told him we have to change OPEC, we cannot have these long meetings, it will affect the market which needs us to send a strong signal that we are not in dispute. So after 20 years we moved back to Vienna and agreed that meetings should not exceed two days. QATAR – Building a Start-Up Energy Industry When I became oil minister in 1992, Qatar was a very depressed country. Our oil production was 350,000 barrels per day and the oil price was below 10 dollars a barrel. The government at the time had no money to finance any projects and told us “Go do it your own way, don’t come to us asking for funding”. I felt I was in the middle of very troubled waters and faced a big challenge. I knew we had to focus on gas; it was our only hope because we had this huge, untouched but potentially lucrative gas field. The challenge was how to attract customers. So we decided to focus on one customer and believed that if we succeeded in attracting one customer, others would follow. We went to Japan and chose to negotiate with Chubu Electric. Japan, Korea and Taiwan were already in the Liquefied Natural Gas (LNG) business at that time, but Japan which had been involved in the sector since the early 1970s, was the biggest potential customer. It was important to convince a big customer of the benefits of buying Qatari LNG. The most important outcome of that first 25-year contract was not just the amount of LNG, which was six million tonnes, but the fact that after the Japanese signed the deal other customers had confidence and followed, like Korea, Taiwan, India, China and Europe. Financing was difficult, but we have to thank the Japanese who played a strong role in convincing the banks to finance the downstream by almost $2 billion dollars. The first export to Japan was in 1997 and I am happy and proud that we never defaulted on any cargo. I can write a book about how to negotiate with the Japanese. You should not put

A hostage taker looks through the window of the OPEC building on 21 December 1975 in Vienna, after a group of four men and a woman took hostages at the OPEC, which included eleven oil ministers.

pressure on them; you have to give them time to think; you should talk to them and build confidence. I am very proud of my friendship with the Japanese, which I still have to this day. I was very proud when in 2008 His Majesty Emperor Akihito gave me the highest decoration in Japan, called the Order of The Rising Sun – I went to the palace and received this decoration personally from the Emperor. I believed that it was vital to have a good team working with me and to have good relations with our foreign partners. So we were shocked when in 1992 BP decided to walk out of its gas deal with us. Unfortunately, instead of walking out silently, BP made an official announcement which was a big mistake in my opinion. Years later, the CEO of BP Lord John Browne surprisingly asked me if there was a possibility for BP to come back. My reply was to tell him “the postman never rings twice”. I told him BP had the opportunity but it walked away and did not do it quietly. But even after BP walked out in that way, we never changed our policy; we always respected our partners and our obligations. QATAR ENERGY INDUSTRY – The Role of HH Sheikh Hamad The Father Emir His Highness Sheikh Hamad bin Khalifa Al Thani had a big role in developing Qatar’s energy industry. He always kept very close, always asked questions, discussed our plans and always asked me to explain everything in detail.

I received his full support and protection. He was a visionary and had a lot of confidence and trust in me, without which we would never have succeeded. He gave us the confidence to succeed. I believe that His Highness is the man who changed the history of Qatar. When he became Emir in 1995 the oil price averaged $16 a barrel, but it was his policies, confidence and vision that changed Qatar very dramatically, from a small, very depressed country to one of the richest countries in the world. Under his rule, Qatar also became one of the most important countries politically and socially. He created from this small country one of the most influential countries in the region and he forced the rest of the world to respect it. I remember one night His Highness was driving on the Corniche in Doha, when he saw the lights were still on at the Qatar Petroleum building, so he came in and joined us in the conference room, taking us all by surprise. He asked questions, listened and gave us his support. At the time we were working day and night, seven days a week. We had the challenge of how to utilise a huge gas field and how to get customers after Japan. We were also involved in many other projects, from oil exploration to future energy strategies, not just LNG. I am proud that in less than 10 years after I became minister, Qatar became the biggest gas producer in the world.

(THIS IS AN EXCERPT FROM THE BOOK ‘INDUSTRY MEMORIES AND FUTURE SOUNDINGS’ BY HE AL ATTIYAH) 64 > QATAR TODAY >NOVEMBER 2015

The members of the OPEC attend a meeting aimed at discussing the oil prices and production on 24 September 1975 at the organisation's building in Vienna

Will the think tank work only when directed by the oil companies or provide information-based research to all of them? The think tank will conduct its own research, commission such research from outside bodies or work with other organisations on joint projects. The Foundation will start a membership scheme with various levels of membership. Such research will be made available to appropriate levels of membership. It will not work exclusively for oil and gas companies unless a given piece of research is commissioned by such a company. Is the think tank meant to benefit only the country or will it provide advanced learning to other countries on a needs basis? The think tank will not work exclusively for Qatar. Its expertise allows it to focus regionally (GCC area) in its work. What will be the main areas the think tank will focus on? The think tank, as its name suggests, will focus on energy issues. Of course, sustainable development and such issues as climate change, carbon dioxide emissions, energy conservation and non-fossil fuel types of energy form part of the general topic of “energy”. There has been a consensus among the existing think tanks that the research findings are not carried forward

through agencies or even through reporting to finally help the government take notice and to affect change. Will this connect be easier for this think tank? I would dispute the inference that the work of the regional think tanks is ignored by government. The whole region is going through enormous changes in many areas. The government has to manage those changes. Much good work by think tanks has been and continues to be implemented. I would point out the work done within the Qatar Vision 2030 and the Qatar National Development Strategy 2011-2016. Whilst the work was carried out under the auspices of a National Steering Committee, regional think tanks had considerable input. Only time will tell whether think tank connections with government will improve.

“The whole region is going through enormous changes in many areas. The government has to manage those changes. Much good work by think tanks has been, and continues to be, implemented.”

What are the first few important issues that you will focus on and how will that be put into action? This is a time of great change in the field of energy. Obviously the effect of low prices on regional economies is something we have already commented upon. In the medium term, we are concerned about the increasing demands for energy regionally and the effect this will have on the ability of the GCC countries to export energy. In the long term we are concerned with the high cost of production of water, the very high consumption levels of water, and the amounts of subsidy that it attracts and the economic effects of that subsidy QATAR TODAY > NOVEMBER 2015 > 65

Photo courtesy of Umer Shabib

development > tag this

A panel discussion with Qatari e-commerce start-ups

QATAR TODAY TAKES STOCK OF THE COUNTRY’S STRENGTHS AND WEAKNESSES IN THE E-COMMERCE SECTOR AND THE SERENDIPITOUS COMING TOGETHER OF SEVERAL NATIONAL AND PRIVATE INITIATIVES THAT MIGHT MARK THIS YEAR AS A TURNING POINT IN THE WAY THE COUNTRY TRANSACTS ONLINE. BY AYSWARYA MURTHY

66 > QATAR TODAY >NOVEMBER 2015

THE E-COMM WAKE-UP CALL

he first Qatar e-Commerce Forum held recently was rare and refreshing, and unlike anything we have been to before. Not one bit like the “all talk, no action” affairs that you’d expect. Apart from the top-calibre speakers and big presence of local e-commerce startups, we were most pleasantly surprised by two things – a very honest introspection of what is impeding Qatar’s e-commerce push and the important initiatives that were announced at the event to counter these. Not a promise of something to come someday, but very concrete steps in the form of the Qatar National e-Commerce Roadmap, which gave real momentum to the discussions which took place there that day. At first glance, it is hard to imagine why e-commerce in Qatar isn’t doing as well as it should, considering the high disposable income of its citizens, the strong and secure ICT infrastructure and its highly connected society. According to ictQatar, while transactions worth QR3.67 billion ($1 billion) are conducted annually online in Qatar (which is poised to reach QR7.34 billion ($2 billion) by 2020), this accounts for only 14% of the total retail spend of

the population. However, online shoppers in the country are the highest spenders in the region ($3,453 per user per year), with an average single transaction valued at QR970 ($264). These numbers will grow organically in the years to come, but as keynote speaker Charbel Sarkis, Google MENA’s Sector Lead for Retail, e-Commerce, Technology and Telecom, said, “We should be asking, how do we grow 10 times?” Numbers show that the issue is not exclusive to Qatar. Around the Gulf and the larger MENA region, e-commerce is struggling to pick up. In fact, Qatar is doing really well when compared to its neighbours, with increased awareness especially among home-based businesses which are trading and marketing through social media channels and large retailers like Lulu and IKEA who are also going online. That’s why this is the perfect time for a concentrated push in the right direction to line-up all the components of the ecosystem and become a regional leader in this space. “With global highs in Internet/smartphone penetration and time spent online, the region has so much potential,” Sarkis explains. “The GCC has 10 million digital shoppers while the MENA has 25 million; this is excluding online purchases of travel and hospitality

Photo courtesy of Umer Shabib

“We need a comprehensive and integrated ecosystem, unlike the one we have today where every party is responsible for a small part of the network.” HE Dr Hessa Al Jaber Minister of Information and Communications Technology

products and services. So we are transacting online but we are not transacting as much. The question is how do you enable more supply and create an ecosystem that offers more options and incentives.” According to CEO of Payfort, launched in Qatar at the forum, Omar Soudodi, the four pillars of e-commerce have to come together to establish a thriving ecosystem. “Online marketing, i.e., how to get people to visit your site; then the content, how to get them to stay with the best price, selection and good merchandising; purchase, how to enable paying for the product with minimum friction; and then the delivery mechanism.” The last leg HE Dr Hessa Al Jaber, Minister of Information and Communications Technology, who spoke at the forum said that the Qatar National e-Commerce Roadmap, the result of in-depth analysis and consultations with different stakeholders, outlines the main strategies for moving forward. She said, “We need a comprehensive and integrated ecosystem unlike the one we have today where every party is responsible for a small part of the network. What should we do? We will liberate the postal market and open it to competition. QPost is undergoing reforms and modernisation, and hopefully will be able to compete with the likes of Aramex and DHL, providing services we expect and deserve.” This was a milestone announcement made at the event. Delivery services may not be the weakest link in the country’s e-commerce chain, but it is the most obvious one – highly visible and tangible. The addressing system is a mess,

the P.O. box concept wholly inadequate and delivery times are completely unacceptable. The huge reform in this space will send a clear signal to all the players about our readiness to grow and mature. And opening up this market to international logistics companies is just one part of the equation. QPost’s Chairman and Managing Director, Faleh Mohammed Al Naemi, who also spoke at the forum gave some promising indications about the direction of postal services in the country. He spoke about the national addressing system – or INWANI; while adoption has been slow, it has been launched in Al Wakra and QPost is analysing the data from this pilot, he said. “We are investing in our fleet and hope to treble the number of transactions we do currently, i.e., 400,000 in the last three months, and capture 90% of the local market,” he said. He spoke also about innovative logistics solutions that QPost aims at piloting in Qatar – from e-lockers which provide customers with secure and automated parcel lockers to offering customers alternative and convenient delivery locations such as malls, shopping centres, educational campuses, etc., and launching a virtual address for international shipments from America, Europe and Asia. The payment problem Among Qatar’s banking population, only 49% have debit cards and credit card proliferation is even less, at only 29%. This explains why cash on delivery remains a popular method of payment, although it is fraught with risks. One reason for this may be the fear and lack of trust when it comes to e-payments. HE Dr Al Jaber explained that with the implementation QATAR TODAY > NOVEMBER 2015 > 67

development > tag this “We are transacting online but we are not transacting as much. The question is how do you enable more supply and create an ecosystem that offers more options and incentives.” Charbel Sarkis Sector Lead for Retail, e-Commerce, Technology and Telecom Google MENA

Photo courtesy of Umer Shabib

KEY E-COMMERCE INHIBITORS IN QATAR E-COMMERCE LAWS NEED FURTHER CLARIFICATION, IMPLEMENTATION AND COMMUNICATION LIMITED E-COMMERCE CONVERSION OF DIGITAL BROWSERS, POOR E-COMMERCE PENETRATION AMONG LOW-WAGE LABOURERS CASH-ON-DELIVERY RELEVANCE, WITH LIMITED E-PAYMENT BEYOND CREDIT CARDS PRICING AND PERFORMANCE OF LOGISTICS IS LOWER THAN BEST PRACTICES DUE TO QPOST MONOPOLY AND LOW VOLUMES LIMITED ONLINE OFFERS DUE TO LOW PRESENCE OF LOCAL MERCHANTS; STARTUP REGISTRATION COMPLEXITY; FOREIGN INVESTMENT CONSTRAINTS FRAGMENTED E-COMMERCE ECOSYSTEM WHICH IS STILL IN DEVELOPMENT PHASE 68 > QATAR TODAY >NOVEMBER 2015

of the e-Commerce Transaction Law, the Consumer Protection Department will work to protect consumers on the Internet as well and create trust. Payfort facilitates merchants to accept payments through its four different services – online payment through cards or direct banking, cash on delivery, paying at designated points and installments. “We provide one or a combination of these services according to the specific market, after studying the behaviour of consumers. In Qatar, people use Visa/Mastercard or bank accounts, so our services are limited to this,” Soudodi says. Paypal, which is also relatively popular in Qatar, is another payment method they offer. While 75% of the users in the country still primarily use cash, Payfort hasn’t rolledout of its pay@ home, i.e., cash on delivery service here unlike in other markets like the UAE. But Soudodi says that even in the UAE, the service was provided only for large clients like airlines. While cash on delivery is less than ideal, merchants and payment providers can’t turn a blind eye to it because of its prevalence in the region. Even at the cost of “encouraging” it. “I feel it’s more about mirroring the consumer, which is what we try to do. Yes, we have to motivate them to transact through other methods also but first we have to give them a trigger/an incentive,” he says. According to ictQatar, in the absence of services like Payfort, merchants are subjected to a costly and complex process

through national banks in order to set up e-payments, and this could be a huge deterrent, especially for start-ups and SMEs. On the consumer side, the buzzword is options. Giving them as many choices as possible so that they are empowered to use the most comfortable mode of payment – even if it is the cumbersome cash on delivery or the outlandish Bitcoin. Another significant step in this direction was taken with the launch of the Mobile Money Payroll service by Qatar National Bank and Ooredoo. This electronic system for employee salary transfers was announced at the forum as well and is “a safer and more efficient way to deposit salaries directly in the employee’s mobile money wallet and will include a special debit card which can be used at ATMs and other points of sale”, according to QNB. This is a big boost for the Wage Protection System that the government is so keen on. And more importantly, it’ll empower the often unbanked blue-collar population, which has hitherto stayed clear of any e-commerce activities, and make it easier for them to transact online. Your neighbourhood retailer Despite the litany of problems plaguing e-commerce in the country, when we asked Soudodi to pick the one that needs to improve the fastest, he said without hesitation, “In Qatar, it’s about the supply. Most customers buy from overseas, but the idea is to increase supply by encouraging entrepreneurship and helping local companies and merchants to go online.” This was also a large focus of Sarkis’s address who spoke about the breadth of the region’s transformation and also the long way it still had to go. “In the Gulf, we are seeing so many domestic players and also international entrants who are localising

Segments

Market size

22%

Snapshot of the Qatar e-commerce market

TRAVEL

II%

CONTENT

20%

I8%

I5%

ELECTRONICS

FASHION

I0%

ENTERTAIN

80% 9%

I0%

Avg. transaction value

H.HOLD

HOTELS

$1.02 billion 2014

Channels

SPORT

$260

per transaction

AUTO

Waiting time

Penetration

Payments

POPULATION

I9%

~2.13 million

CREDIT CARDS

E-BUYERS ~0.3 million

8.8

75%

days

C.O.D

PAYPAL

Source: Team Analysis

Major B2C categories - 2014 Percentage (%); category 2,2 3% 3%

1,9

+17%

22%

1,6 1,4

I0%

1,2

B2C market Qatar outlook

1,0

$ billion

I0%

I8%

II% I5%

2014

2015

2016 2017

2018 2019

Airline tickets and electronics are the largest B2C categories

Qatar B2C market is growing in line with the MENA average

Travel Electronics Fashion & Lifestyle

Digital content and books Hotels Entertainment

Household products Sport Auto parts

Source: eMarketer; Expert Interviews; Team Analysis, Nielsen, The State of Payments In The Arab World, Payfort

Toward a Smart Nation

e-Commerce Act

Qatar e - Commerce Policy Framework Qatar e - Commerce Leagel Framework Qatar e - Commerce Governance Framework

Execute

Facilitate

Qbuy

e-Commerce framework design

Master Plan

Plan

Enable e-Payment

Trust & Support

Enhance Delivery

Education

Stimulate Consumer

Tools

Funding & Incubation

Empower Merchants

Security & Certification

Source: Qatar National e-Commerce Roadmap 2015

Drive

QATAR TODAY > NOVEMBER 2015 > 69

Photo courtesy of Umer Shabib

development > tag this

“I feel it [cash on delivery] is more about mirroring the consumer, which is what we try to do. Yes, we have to motivate them to transact through other methods also but first we have to give them a trigger/an incentive.” Omar Soudodi Chief Executive Officer Payfort

WHAT IS QBUY GOING TO LOOK LIKE? ONE NAME WE KEPT HEARING OVER AND OVER AT THE FORUM WAS QBUY – AN ELECTRONIC PLATFORM THAT WILL REPORTEDLY PROVIDE TOOLS TO SUPPORT E-COMMERCE AND RAISE AWARENESS AMONG CONSUMERS AND MERCHANTS. IT WILL ALSO AIM AT BUILDING CONSUMER TRUST AND CONFIDENCE THROUGH TRUSTMARKS AND CERTIFICATION. IT PROMISES TO BE CENTRAL TO THE GOVERNMENT’S EFFORT TO PROMOTE ONLINE RETAIL. “THIS PLATFORM SUPPORTS MERCHANTS AND SMES IN ACCESSING KNOWLEDGE/LEARNING RESOURCES, AND PROVIDES ONLINE TOOLS, ONDEMAND SUPPORT, AND FUNDING. A POLICY FRAMEWORK WILL ALSO PROVIDE DIRECTION ON THE CRITERIA FOR THE CERTIFICATION OF QBUY PARTNERS AND FOR THE LICENSING OF TRUSTMARKS. THE FRAMEWORK IS INTENDED TO FOSTER TRANSPARENCY, FAIRNESS, AND SECURITY IN THE MARKET AND ALLOW MERCHANTS TO BETTER COMPLY WITH LEGAL PROVISIONS,” ACCORDING TO ICTQATAR.

70 > QATAR TODAY >NOVEMBER 2015

their offices and marketing efforts. We are also seeing traditional retailers with digital transformation plans to integrate their physical and digital shops. We are seeing mushrooming accelerators and incubators who are mentoring entrepreneurs, more funding, significant local venture capital C players, and money coming from international players with an increase in average deal size. And we have had big exits like the $170 million acquisition of Talabat by Rocket Internet,” he said. Incidentally, Rocket Internet was also present. And if they had been scoping out the start-ups at the forum for the next big ticket, surely they wouldn’t have been disappointed. Some of Qatar’s newest and most innovative companies in the e-commerce space were at the forum – from eGrab who deliver groceries from your local supermarket, to Pick and Drop who, as the name suggests, could be your personal errand man dropping off your dry cleaning or delivery from that favourite restaurant of yours that doesn’t do delivery. Rubbing shoulders with them were successful, veteran (relatively speaking) e-commerce ventures like Q Tickets. It was an interesting juxtaposition of their respective challenges; in fact, the start-ups were invited to speak about a few of them in a panel session – from funding to finding and retaining talent. It is worth noting that many of them – like Qatar Best Deals and Urban Point (both online marketplaces) – had been or are currently being incubated at the Digital Incubation Center at ictQatar. We

remember talking to DIC a couple of years ago about some of their underperforming e-commerce incubatees, and we were told that despite the local ecosystem not being ready for them yet, a start had to be made somewhere (“Maybe the infrastructure will not develop till there is a critical mass of companies requesting this”). They knew even then that newer and better companies will emerge that will climb over the debris of some of their earlier failed ventures. Failed ventures that would turn out to be equally important in the grand scheme of things. Speaking to us, Rocket Internet’s Eyad Al Kassar (who wouldn’t tell us if they had their eyes on any Qatari start-up), said, “If you do VC in general tech, a lot of companies will fail; that’s inevitable. But you need to give people the chance to try something out. As a founder, you will always believe in your idea and want to make it work but sometimes it doesn’t. You just have to learn, take your time and start your next company.” A couple of start-ups gone bust shouldn’t scare an entrepreneur, he feels. “It’s hard to build a start-up. It can fail for so many different reasons. I will never say I won’t try because I have seen so many fail.” Rocket Internet has founded plenty of companies in the UAE and Saudi Arabia (they have close to 15 regional companies in their portfolio), which were able to expand successfully into neighbouring markets. “For us, when we are looking to build a company, we start with the markets that are big enough and wealthy enough with less competition, and then expand to others like

Qatar and Oman,” he said. It would seem it is up to one of our local companies to prove the reverse could also be possible. But first, as Sarkis says, there has to be a concentrated effort towards building digital talent and entrepreneurs. “Next is educating our small and medium business. Today only 2.5% of the region’s SMBs have any online presence,” he says. “What is the role of telecoms, government and global digital players like Google in making this happen? Do our regulations make it easier to set up businesses and incentivise global e-commerce companies to have localised presence? And finally, funding; there is a big gap in the market especially when it comes to big-ticket investments that are needed during the scale-up phase. What role can sovereign wealth funds, family offices and institutional investors play here?” he asks. He didn’t have any answers, he warned during this address, but he had a lot of pertinent questions. e-Commerce of the future But just because there are a lot of unanswered questions for the present, doesn’t mean we can’t dream about the future. There was chatter about drones, 3D printing and robotics which will reduce cost of delivery, expand production and automate services, respectively. HE Dr Al Jaber hinted at the changes coming to e-commerce thanks to big data. “Big data gives us the opportunity to personalise the shopping experience, create trust and loyalty among customers and also forecast needs and behaviours through predictive analytics,” she said while speaking about the government’s smart city initiatives which will collect big data on an open, smartnation platform and make it available for the public and private sectors. An exciting company we met in this space is Hive Technology that specialises in single electronic identification. Before we can talk about how this fits into the e-commerce equation, we first have to understand what it is and CEO Gert Botha obliges. “A Hive ID is a secure, private ID that you can use instead of your national ID and credit card but also to unlock your vehicle or open your garage door. It works in every part of your life by identifying you for objects and virtual objects (like a transaction or interaction online),” he says. Today we live in a world where everyone who collects data about you believes they own it – from your medical centre to the local mall. “Why can’t that data about you be in a database that you have your stake

“Using big data in retail and e-commerce is a great idea in essence. But how do you ensure you are not bombarded with marketing and advertising?” Gert Botha Chief Executive Officer Hive Technology in and you decide what data to share on a need-to-know basis?” Botha asks. While it’s inevitable that we are going to use big data to build profiles of people and make it available for businesses, this technology aims at giving users a degree of control over their own data. “Using big data in retail and e-commerce is a great idea in essence. But how do you manage this and make sense of it; how to ensure you are not bombarded with marketing and advertising?” Botha also believes that Hive can potentially do away with the fraud that happens with e-commerce daily. “We haven’t spoken about this much at this forum but a large percentage of payments made online don’t go through because of how banks currently work. They often have their own authentication systems which are cumbersome and a lot can go wrong in the process. But with Hive we can provide the highest level of authentication, more secure than anything they have and the only one they will ever need. It’ll make e-commerce transactions a lot easier,” he says. To introduce a technology like Hive, it’s necessary to start from the top. “We are in talks with governments and regulators in the Gulf as they are the best people to deploy this kind of technology. Furthermore, they have a vision for smart cities and smart governments, and Hive can put all the pieces of the puzzle together because of a lot of attributes – it’s private, secure, wireless. And it’s going to be easier to implement here because of the vision, smaller communities, lack of red tape and legacy systems. We’ll probably see it first in the region,” he says QATAR TODAY > NOVEMBER 2015 > 71

finance > tag this

72 > QATAR TODAY >NOVEMBER 2015

SUKUK HEADING FOR

MARKET CORRECTION?

Contrary to reports that sukuk issuances are likely to decrease in 2015 as Malaysia has stopped issuing the bond, experts tell Qatar Today that the market is not dependent on one particular country.

By V L Srinivasan Illustration by Patricia Alex hen Bank Negara Malaysia (Central Bank of Malaysia), one of the world’s largest issuers of sukuk, decided early this year to stop issuing Islamic bonds, the announcement sent ripples through the global markets. However, it said there were still plenty of Islamic assets and instruments, including investment sukuk issued by the government, to meet Islamic banks’ demand. What has comforted the stakeholders is that low oil prices provided more space in the market for many oil-exporting economies in the Middle East, especially those in the GCC region, multilateral institutions and even corporate issuers to plan more sukuk issuances in the coming months. In other words, the focus will be shifting to the Middle East and other regions. In its report entitled “Global Sukuk Issuance Stalls In 2015 As Major Issuer Exits The Market,” Standard & Poor’s said that the impact that Bank Negara’s decision to stop issuing short-dated ringgitdenominated sukuk has had on global sukuk issuance has led the rating agency to revise its forecast of sukuk issuance from $100-$115 billion to $50-$60 billion this year, assuming no issuance from Bank

Negara in 2015. The report also said that Bank Negara’s move left the door open to other issuers such as the International Islamic Liquidity Management Corp and the Islamic Development Bank to step up their issuance and provide the industry with liquidity, thereby contributing to the development of an Islamic yield curve (see box). Bank Negara alone issued about $45 billion of sukuk, more than a third of total global issuance of $116.4 billion, and the decision was taken because its sukuk were subscribed to by a broad array of investors, preventing them from reaching their intended end-users (primarily Malaysian Islamic banks for liquidity management purposes). “As a result, Bank Negara decided to switch to offering other instruments restricted to banks,” the report said. However, excluding the Bank Negara effect, the total sukuk issuance performed in line with its expectations, total issuance dropping by only 10.7%, confirming that the impact of falling oil prices on recurring government spending and investment projects in core markets like GCC Countries and Malaysia was limited in the first half of 2015, the report said. Sukuk issuance falls “In the first half of 2015, Bank Negara’s pullback saw total sukuk issuance drop

“The significance is perhaps overstated since most of these were shortterm sukuk issued and rolled over multiple times each year and so the total ringgit value of the issuance overrepresented the effect on the total value outstanding at any one time.” Blake Goud Chief Executive Officer RFI Foundation QATAR TODAY > NOVEMBER 2015 > 73

finance > tag this worldwide by 42.5% compared with the same period a year earlier. The total amount of sukuk issued in H1 2015 reached $38.6 billion, compared with $67.2 billion in the same period of 2014,” says Mohamed Damak, Standard & Poor’s Global Head of Islamic Finance. According to him, sovereign issuers and, to a lesser extent, banks will dominate the sukuk market in the second half of the year. Countries like Oman and Bahrain, that are most vulnerable to a fall in oil prices, are likely to issue sovereign sukuk. That said, other countries could also follow suit as the reality of lower revenues starts to pinch budgets, he says. “While the global sukuk market appears to have hit a soft patch in 2015, the list of potential issuers continues to grow. How quickly the industry can recapture its previous momentum remains to be seen,” adds Damak.

Saudi Arabia, with a deficit budget of $38.6 billion in 2015 (IMF estimates it could be $150 billion), has issued $4 billion local bonds in July and plans to raise $27 billion by the end of the year. The issue was the first sovereign bond offered by the Kingdom since 2007. The bonds, 7- and 10-year conventional issues with yields of 2.57% and 2.88%,respectively, were said to have been sold to quasi-sovereign Saudi institutions. Doha-based Qatar Islamic Bank (QIB) and Doha Bank have raised QR2 billion ($550 million) each a month earlier. Masraf Al Rayan, one of the four Islamic banks in Qatar, also received proposals from banks for a benchmark-sized, debut Shariahcompliant offering. Barwa Bank’s shareholders in Qatar approved plans for a $2 billion senior unsecured sukuk programme while Qatar International Islamic Bank has

FOLLOWING ARE SOME COUNTRIES AND ORGANISATIONS WHICH ARE PLANNING TO ISSUE CONVENTIONAL AS WELL AS ISLAMIC BONDS IN THE COMING MONTHS.

ORGANISATION/COUNTRY

SUKUK VALUE

AL OTHAIM/SAUDI ARABIA

$267 MILLION

BEST LEASE/TUNIS

$15.6 MILLION

IVORY COST

$252 MILLION

WEST COAST EXPRESSWAY/MALAYSIA

$265 MILLION

BANK MUSCAT/OMAN

$1.3 BILLION

ARAB NATIONAL BANK/SAUDI ARABIA

$533 MILLION

RENAISSANCE SERVICES/OMAN

$200 MILLION

APICORP/SAUDI ARABIA SARAWAK ENERGY/MALAYSIA ABU DHABIISLAMIC BANK/UAE TURKEY

$3 BILLION $264 MILLION $3 BILLION $1.5 BILLION

TOYOTA MOTOR CORP/MALAYSIA

$660 MILLION

“In the first half of 2015, Bank Negara’s pullback saw total sukuk issuance worldwide drop by 42.5% compared with the same period a year earlier. The total amount of sukuk issued in H1 2015 reached $38.6 billion, compared with $67.2 billion in the same period of 2014.”

SAPURAKENCANA PETROLEUM/MALAYSIA

$2.65 BILLION

SINDH PROVINCE/PAKISTAN

$200 MILLION

Mohamad Damak Global Head of Islamic Finance, Standard and Poor’s Rating Services

GULF FINANCE HOUSE

$230 MILLION

QATAR INTERNATIONAL ISLAMIC BANK/QATAR

$825 MILLION

74 > QATAR TODAY >NOVEMBER 2015

BARWA BANK/QATAR

$2 BILLION

BAHRI/SAUDI ARABIA

$1.04 BILLION

ADIRA DINAMIKA/INDONESIA OMAN

$190 MILLION $500.19 MILLION

AEON CREDIT/MALAYSIA

$2.64 BILLION

CIMB GROUP HOLDINGS/MALAYSIA

$1.46 BILLION

TELEKOM MALAYSIA

$750 MILLION

KUALA LUMPUR KEPONG/MALAYSIA

$390 MILLION

JORDAN INTERNATIONAL BANK OF AZERBAIJAN

Source: Reuters

$2 BILLION $200-$300 MILLION

secured the nod of it shareholders to issue additional tier 1 sukuk non-convertible into an ordinary shares up to QR3 billion. Countries like Jordan and Tunisia are working on issuing debut sovereign sukuks this year. Chief Executive 0fficer at RFI Foundation, Blake Goud says it would be “axiomatic” if a large issuer stops and shows the dependence of the market on Malaysia (and Bank Negara in particular). “The significance is perhaps overstated since most of these were short-term sukuk issued and rolled over multiple times each year and so the total ringgit value of the issuance overrepresented the effect on the total value outstanding at any one time,” he says. On the prospects of more sukuk issuances in the next two years, Goud says that the market is small and dependent on a few issuers for a large proportion of total issuance. “This year will likely be dominated by Saudi sukuk, if that is the structure used and next year could also see the same, as well as a sukuk from Kuwait,” he says. He also says that political turmoil in Malaysia may complicate international issuance although the effect has been limited with two credit rating agencies declining to downgrade the sovereign rating. Because Malaysia has been such a large portion of the decline in YoY issuance, any pickup in issuance would be a boost to the overall market. “Other than that, there may be a few other one-off sukuk (a follow-on by Luxembourg or ICD-supported issuance from West Africa). But these will not account for much of the total issuance which will continue to be dominated by issuance from the GCC, Malaysia, Indonesia and Turkey,” Goud adds. Credit Strategist at the Kuala Lumpurbased RHB Investment Bank Ahmed Fakrizzaki Sallehuddin bin Ghazali says that Bank Negara is not the only reason for a shortage in sukuk supply. “Global uncertainties such as uneven economic recovery, cheap commodities, possible tightening in the US, and slower growth in China are among the reasons that have made sukuk issuers to be extremely cautious this year,” he says. According to him, the cut by Bank Negara will impact the overall supply of sukuk this year but the trend has been a declining trend since reaching its peak in 2012 on US quantitative easing which led to a liquidity frenzy globally.

“Bank Negara is not the only reason for a shortage in sukuk supply, in my opinion. Global uncertainties such as uneven economic recovery, cheap commodities, possible tightening in US and slower growth in China have made sukuk issuers extremely cautious this year.”

A prolonged period of cheap oil and global uncertainties could limit sukuk issuance for the remainder of the year and 2016. The complexity of documentation (especially for sukuk debutants) could also be another risk factor for sukuk growth going forward. "However, we started to see the wider application of asset-light, commodity murabaha structure as favourable to grow the sukuk market while the cost of funding should continuously be more attractive (for issuer) relative to the conventional platform." says Ghazali. Ever since former chairman of the US Fed Ben Bernanke hinted at launching Quantitative Easing in May 2013 and the subsequent cuts thereafter, the supply of sukuk has started to fall on fears that rates will go up as the liquidity party may be over. “Nonetheless, we can see the short supply as favourable to offset the impact from the rising yields from a potential rate hike in US. It may take some time for other issuers to fill the gap given the unfavourable market conditions, as corporates and governments are reducing capex and cutting on infrastructure spending,” Ghazali points out. He also feels that the GCC governments may need to tap the sukuk/bond market to plug the fiscal deficits expected from falling oil revenues so as to fund government spending on infrastructure. “We expect most of the issuance will be in local currency as the US dollar is becoming more expensive. Alternatively the opening of the equity market to foreign investors in Saudi Arabia could offer another avenue for fundraising amid sluggish offerings from IPOs - only five totalling $1.3 billion in 2015 Year To Date as against 16 IPOs for $10.8 billion in 2014,” Ghazali adds

Ahmed Fakrizzaki Sallehuddin bin Ghazali Credit Strategist RHB Investment Bank Kuala Lumpur

QATAR TODAY > NOVEMBER 2015 > 75

affairs > tag this

FIFA vs QATARI LAW Qatar Today spoke to experts in the field to find out whether Qatar is legally prepared to host the World Cup. A team of professors at the College of Law at Qatar University was recently awarded the National Priorities Research Program award and a grant of half a million dollars to research this topic, and speaking to them gave us a clearer picture of the dilemma the nation faces. By Keertana Koduru

76 > QATAR TODAY >NOVEMBER 2015

he FIFA World Cup is bigger than the game of football. A great unifying force, it brings together people from all corners of the world and walks of life. On the field, it is a way of life, a thing of beauty. But off the field, it’s a whole other story and often deeply divides organizers, hosts and fans. It has been five years since the bid and the recent restructuring in major oil companies has affected the progress of the World Cup projects here. Construction is at a standstill and the progress slow. Through constant monitoring FIFA authorities are making sure that this country delivers what it promised. But the involvement of FIFA in the hosting nation’s policies and regulations can go too far. Yes, Qatar seeks prestige and greatness, but is it really prepared? Professor Francis N. Botchway, Associate Dean of Research at the College of Law, Qatar University, explains what it really means to host the World Cup in this part of the world. “Qatar has strict legislation that cannot be changed over night; this will take

time, which is why the first step is research.” In a initiative by the Qatar Supreme Committee for Delivery and Legacy, the College of Law is to join other lawyers in the state to advise on legal requirements in hosting an event of such grandeur and impact. An in-depth analysis into the topic is very important to understand the repercussions of any laws that may need to be changed to host the tournament. With almost half the population of the world watching, countries that host the World Cup seek prestige and global attention. FIFA, as a non-governmental sports organization, has no right to change the complete legal system of a country but enters into an agreement with the host nation to accept its requirements. For the games in Brazil, FIFA made it mandatory to allow alcohol into the stadiums, something the government had previously banned. Qatar has strict laws regarding homosexuality and consumption of alcohol in public spaces. It’s going to be a battle between authorities to modify these laws. The stakeholders have also been caught

unawares by the low oil prices and resulting restructuring, retrenchment and stop on government projects The laws governing the construction sector are also being monitored so labourers are not affected and contractors are put under legal obligations and agreements so as to avoid delays and losses. Along with the students, who are significant contributors to the research, the four professors who are the brains behind this project are Associate Professor Dr Hassan Elbarawy, Asst. Professor Dr Yassin El Shazly, Asst. Professor Dr Tarek Gomaa El Sayed Rashed, Associate Professor Dr Abdelnaser Zeyad Ali Hayajneh and Associate Dean Dr Francis N Botchway. The objectives of this research are concerned with labour practices, project completion, intellectual property and logistics. The laws are many and scattered in different places, especially when it comes to intellectual property in terms of franchising, marketing, branding and knowledge management. The major question here is should we have a delegated legislation from the government which allows the Supreme Committee of Delivery and Legacy to modify any laws it thinks necessary or to go piece by piece to check whether the laws are consistent and ask the cabinet to change them according to FIFA regulations. “My view and the best strategy to adopt is to have a delegated legislation to modify the laws but with notifications to the cabinet, as in the end it is the government’s decision with regards to laws of the land. It isn’t respectful towards a nation to ask them to change laws that are FIFA-compliant. An easier way to understand this is that one strategy comes from FIFA directly interfering in the legislative system of the country as a whole and the other strategy comes locally from the host nation’s organizations to direct FIFA to approach the Supreme Committee and request them to modify laws for the event.” “If the World Cup Act is to be played in Qatar, it will provide predictability, transparency and incitement to modernize a number of existing laws and regulations,” says Dr Minas Khatchadourian, Arbitrator in Sport Law appointed by the Court of Arbitration for Sport (CAS) in Qatar. FIFA is under much scrutiny because of the way their requirements seem to benefit them in a greater way than the host country. “Their posture appears to be insensitive to the needs of the country at times. They are

(From left to right) Dr Tarek Gomaa Rashed, Dr Francis N Botchway, Dr Abdelnaser Hayajneh, Dr Hassan Elbarawy and Dr Yassin El Shazly, the team of professors at College of Law, Qatar University, researching Qatar's legal preparedness for the FIFA World Cup 2022. of an opinion that they are announcing a country to the world in the 21st century in terms of tourism, publicity and advertising the country’s first-class facilities and services; but this will not come at FIFA’s own cost and the host country will have to bear the price and consequences. They also do not force any country to bid and people fight for it at a global level. It is difficult to maintain the balance between what FIFA wants and a country wants. A give-and-take policy for visibility and profitability comes into play.” The second major aspect of this research is the construction of infrastructure and how it can run smoothly without jeopardising the event. This involves policies with regards to the contracts, agreements, execution, breach of contracts and dispute management. “The construction of stadiums also comes into the picture as we have to deliver according to the bid made and on schedule. The consequences of delay have to be minimized, if not avoided. The domino effect should be considered. For example, the construction of one stadium involves the hiring of many subcontractor services such as surveyors, electricians, plumbers, etc. Even if the work of one subcontractor is stalled for any reason, it affects the turn-around time of every other component related to the project which will result in losses and delays. To control these circumstances, mechanisms have to be put into place for remedies of breach of contracts and dispute management systems, as the 2022 deadline is non-

negotiable.” FIFA has strict benchmarks to meet when it comes to the stadiums, facilities, airports, logistics and the publicity of the event. They go so far as to regular inspections of the work sites and review policies related to the event as well. The lead organizer of this research project, Dr. Yassin El Shazly, Associate Dean of Outreach and Engagement, and Asst Professor of Commercial Law at College of Law, Qatar University, says “Qatar has been involved in organizing and managing globally acclaimed sports events in the past. What is the relation between sports and law? Organizing mega sports events such as the Handball tournament, Asian Games 2006, and the AIBA World Boxing Championship this year has economic, social and legal consequences, mostly related to the construction sector. You expect to have millions of visitors which require new hotels, bridges, tunnels, stadiums, railways and this requires finance from the host nation as well as a legal framework that guarantees the smooth running of these projects starting from the design stage, going through the tender and bidding process, implementation and, finally, to delivery. So my colleagues and I decided to tackle this issue of how could the current laws address the World Cup preparations. We decided to study the construction sector and asked - Do we currently have the framework designed for this process? For example, South Africa enacted a law that enabled speed QATAR TODAY > NOVEMBER 2015 > 77

affairs > tag this

Dr Minas Khatchdourian Court of Arbiteration for Sport Qatar

RESEARCH AGENDA • HOW TO MAKE PRIVATE SECTOR

MORE ACCOUNTABLE TOWARDS THE GOVERNMENT AND INTERNATIONAL LABOR ORGANIZATION (ILO) RULES.

• TRAINING OF INSPECTORS AND HOW

TO GIVE THEM ACCESS TO TOOLS THAT COULD HELP IN THEIR WORK PROGRESS.

• HOW TO ENSURE TRANSPARENCY AND

FAIR COMPETITION IN THE TENDER AND BIDDING PROCESS.

• ACCESS TO LAW BY LABOURERS WHO

DON’T SPEAK ARABIC OR ENGLISH AND HOW TO INFORM THEM OF THEIR OWN RIGHTS AND OBLIGATIONS IN THEIR OWN LANGUAGE.

78 > QATAR TODAY >NOVEMBER 2015

trials in smaller courts to deal with crimes committed by fans (expats) during the World Cup. Previously Brazil enacted the World Cup Act to harmonize the situation and accommodate the FIFA requirements. Russia, the next hosts, are also making changes in their legislation to host the World Cup.” The professors decided to concentrate their research on the construction sector over a span of two years in order to revisit the terms and conditions of agreements made by construction companies pertaining to the infrastructure development for the World Cup facilities. “Starting from acquiring licences to supervision of execution until delivery of the projects, Qatar will spend $80 billion to be prepared for 2022. You cannot just host a World Cup with the push of a button; it is an intellectual and an interactive process that requires human contribution." On the topic of labour laws and the recent public criticism on the working and living conditions of the labourers, he says, “Those who are liable for the protection of laborers should be questioned. Qatar only provides a way and certain rules for workers who would like to come and work here in terms of sponsorship rules, residence, working and exit permits. The actual supervisor is not the state but the companies that hire them. This situation is often misrepresented by the media. It is also the private companies that hire them and their home countries that are liable and should be questioned, and not just the public sector.” Gradual changes to the system have been made by the state to ensure that workers are being paid through the new system of transferring salaries to bank accounts. The minimum wage system has also been put on the table for discussion. “Some sort of dialogue is needed between the private and public sector to resolve and address these issues and to guarantee the smooth resolution of disputes. Investing in translation of rules and information and making it available through online portals will help workers understand the process. It is important to also resolve disputes in courts but also through alternative methods such as negotiation, arbitration and mediation in order to preserve the relationship.” When asked how effective are the alternative methods of arbitration and negotiation as opposed to settling

matters in court for resolving disputes, Dr. Khatchadourian said, “Mediation and arbitration are very practical means to obtain an out-of-court decision and to resolve disputes in an efficient way. However, other elements or components are necessary such as a modern body of rules for arbitration, competent and qualified arbitrators, and an arbitrationfriendly position of the national state courts at the stage of the enforcement of arbitral awards. The other sectors in which common disputes may arise from are telecommunications, insurance, shipping and transportation.” This topic of research also involves consultants from the Construction Law Centre at King’s College London. It is worth mentioning that this study is a first of its kind at the regional level about a legal subject that has multiples facets relating to health and safety. “It’s a transversal study that is related to different disciplines. The consultants will come in at the launch phase of the project to analyze the outcome. One of the main deliverables of the project is the website in which you can find all the legislations related to the construction sector, from the license approvals to the final delivery, the regulations and ministry decrees, which will be in Arabic and English,” says Dr Khatchadourian. The grant money will be used to recruit research assistants, consultants, translators and for workshops and seminars, and a significant amount is to be used for the creation and maintenance of the website. The target is to conduct two workshops per year to discuss these issues and involve stakeholders such as Ashghal, Kahramaa, Ministry of Interior, Civil Aviation, Ministry of Justice, Ministry of Economy and Trade, Supreme Council of Health and so on. Findings of the research team, how the participants perceive them and action plans to tackle any issues will be discussed. The research findings are to be presented to Qatar National Research fund (QNRF) established by Qatar Foundation. “The World Cup Act will be a better solution to enact the assurance and insurance of liability towards the construction sector” is what Dr. El Shazly believes in. “Experiences from the past host nations like South Africa and Brazil, and the future host nation Russia, will bring a better perspective to understanding what Qatar needs in terms of its legal framework related to the FIFA World Cup 2022.”

healthcare > tag this

Behind Pink October

For this team at Qatar Biomedical Research Institute, demystifying breast cancer research to the general public is just as important as their work itself.

“At the booth and our lectures, we explained the major discoveries in cancer, their history, cancer biology and therapeutics. We also spoke about the tools being used in the research and how the researchers of the past have contributed to the treatments of today.” Dr Manale Karam Postdoctoral fellow QBRI

80 > QATAR TODAY >NOVEMBER 2015

his October, for three days only, the researchers at QBRI exchanged their white lab coats for bright pink t-shirts in order to take their work to the outside world and vice versa. “It gives us some perspective,” says Dr Julie Decock. “After so many hours in the lab, cancer can become an abstract thing. Meeting with people helps put our work back into context.” With a booth in Villaggio Mall and two seminars at Qatar University and HBKU, the team also hopes to simplify the technicalities of cancer and cancer research, helping lessen the fear of the disease and encourage keen, young minds to consider it as a career option. “It is very important for the public not to have a negative image about cancer. The way people deal emotionally with cancer can impact the attitude of cancer patients to hopefully give them a better quality of life and may impact the outcome of the disease,” says Dr Mariam Al Muftah. “It is

important to explain in laymen terms the underlying causes of cancer, the steps in the progression of cancer, as well as the current and new therapies so that you can make the public more aware without scaring them,” Dr Decock says. “It helps people better understand how diet and environment contribute to the development and progression of cancer, and makes them more aware of the benefits of screening and early detection. This is very important because in the earlier stages breast cancer can be relatively easily treated but this becomes very difficult towards the end.” Dr Reem Al Olaby says this is the first time QBRI is engaged in cancer outreach. “We want to engage the public, and women specifically. We want to gauge to what extent people might be hesitant to approach the booth because of fear of the word ‘cancer’, and we want to see if we can encourage people to learn more about breast cancer. This might help us get a better idea of how aware people are of breast cancer and why women might be reluctant to get screened.”

Dr Mariam Al Muftah Scientist at QBRI and Assistant Professor of Biology at Qatar University. Graduated from the UK and joined QBRI in 2012 as one of its first researchers. At QBRI, her work is focused on identifying novel immunotherapies for the treatment of breast cancer. She has also been working on understanding the progression of prostate cancer through a collaborative project with Dr. Lotfi Chouchane from Weil Cornell Medical College in Qatar.

The brass tacks The medical research community in Qatar is very small and the team says that it is important for all of them to work together and not operate in silos. “We have collaborative research projects with Weill Cornell Medical College in Qatar, Hamad Medical Corporation and Sidra Medical and Research Center and also hope to work with Qatar Biobank in the future,” says Dr Decock. “Qatar Biobank is a fantastic initiative and is important for the country, not only for the public but also for us as researchers. This way we have both normal and cancerous samples at our disposal to compare. “And because the indigenous population is relatively small, samples are precious. This is why we aim for collaborations with scientists with cross-interests so that we can make the most out of every specimen,” Dr Al Muftah says. The small size of the local population (Qatar Biobank only collects samples from Qatari and long-term residents) means a better chance for researchers to look at the genetic contributors as well and understand the biomarkers. “Using these biomarkers from the Qatari population or long-term residents, we can try to identify novel therapies that are tailored toward Qatari patients,” Dr Al Muftah says. “Our bodies are affected not only by genetics, race and ethnicity but also by environmental and geographical factors and lifestyle. These could have led to genetic differences or specific proteins that are present in Qataris and or people who have lived in Qatar for a long time which will allow us to distinguish between cancerous and non-cancerous cells,” Dr Decock adds. The cancer team is currently focusing on immunotherapy for breast cancer. “This is a recent breakthrough in cancer treatment which uses the natural immune system to target and eradicate cancer, unlike chemotherapy which kills both healthy and cancerous cells,” says Dr Manale Karam. Currently there are FDA-approved drugs for immunotherapy in different

Dr Manale Karam

Dr Julie Decock

Postdoctoral fellow. Joined QBRI in November, 2013, after obtaining her PhD in cancer biology and pharmacology from the University of ParisSud in France. At QBRI, her work is focused on identifying new treatments for breast cancer and leukemia by using two different approaches; immune system-based therapy or screening of natural products derived from the Qatari flora. She has collaborations with national and international research institutes; i.e. the National Center for Cancer Care & Research in Qatar and Institut Gustave Roussy in Paris, France.

Postdoctoral fellow. She joined QBRI in November 2013 after 5 years of postdoctoral research in the UK. Her research career has mainly focused on the biology of cancer, including breast cancer, and currently she is investigating new targets for breast cancer immunotherapy. She is collaborating with Weill Cornell Medical College in Qatar and Sidra Medical and Research Center.

types of cancers like leukaemia and melanoma, but not yet in breast cancer. “Various immunotherapeutic strategies are undergoing clinical trials and it’s a very hot area of research,” Dr Decock says. The challenge in developing immunotherapy drugs for breast cancer and cancer in general is partly due to the different ways cancer looks and behaves. “The idea of personalised medicine is to find a specific marker expressed by the patient’s cancer cells which we can target for example by the immune system. However, the immune system responds differently to different cancer types. Some cancers have a tricky way of blunting themselves not to be seen as foreigners by the immune system but as a natural part of the body. So it can be difficult to target these cells specifically,” says Dr Al Muftah. “That’s why we have been able to develop drugs for some but not for other types of cancer. Also the personalisation aspect means that if the drug works on one person it won’t necessarily work on others.” Dr Karam adds, “It’s also about accessibility to the immune system. Treatment of leukaemia (blood cancer) through immunotherapy has seen the most success because the cancerous cells and the immune cells are generated from the same sources and the proximity works favourably

in targeting the disease.” “In addition to immunotherapy, we also aim to develop new targeted pharmacological therapies through screening of natural products specific to the Qatari flora. Together, with Dr Ameena Fakhroo (Senior scientist at QBRI), we hope to discover new compounds that specifically target defected molecules in cancer cells and limit their aberrant protumoral function,” says Dr Manale Karam. The team is in the initial stages of their research and is aware that they have a long way to go, but are very enthusiastic about the novelty of their work and the implications for this increasingly prevalent disease. All hospitals and laboratories within the GCC are now obliged to register all new cancer patients into the Gulf Centre for Cancer registration. This data has made it clear that breast cancer is the most common cancer in women in Qatar. In 2011, 150 women were diagnosed with breast cancer, of which approximately 30% are of Qatari descent and the number of new cases is anticipated to increase 60% by 2020. This increase can be partly attributed to the increasing population and changing lifestyle with increased tobacco consumption, a high fat and low fiber diet, lack of physical exercise and increased awareness QATAR TODAY > NOVEMBER 2015 > 81

ENERGY WORLD QATAR 2015 JOIN THE ENERGY GENERATION

WE LIVE IN AN ERA MARKED BY INNOVATIVE SCIENTIFIC DISCOVERIES - DRIVEN BY TECHNOLOGICAL ADVANCEMENTS, DOMINATED BY ELECTRONIC DEVICES, AND TRANSFORMED BY THE POWER OF THE INTERNET - WHICH HAS RESHAPED THE WORLD INTO A SMALL GLOBAL COMMUNITY. 82 > QATAR TODAY >NOVEMBER 2015

very day we hear about the wonders of new inventions and scientific discoveries that previously seemed beyond our imagination. Progression in fields such as genetic engineering has given us new and effective treatments for many diseases that until very recently lacked any cure. There is no doubt that this outburst of invention has a positive impact on our daily lives. Advancements in science, engineering, technology, and mathematics have refashioned the way we live. This progress is the main driver of societal change as it influences our methods of transportation and the way in which we communicate. The advent of inventions such as the television, the mobile phone and satellite navigation, has forever changed the way we operate. And as information technology continues its rapid development, daily breakthroughs continue to enable us to store and access vast amounts of information at the mere click of a button. However without energy, none of these discoveries and inventions would have been possible. Energy sustains life. It provides us with food and water, powers our cities and drives progress and inventions. Today, the world’s population is rising, cities are growing, and living standards are improving, thus the demand for energy is increasing. By 2050 the earth will need to support two billion more people. That means by 2030, we are going to need 40% more energy than we currently use, but how can we achieve this? Our challenge is to find more and cleaner sources of energy, and become more efficient at using it. And who is going to make this possible? That’s going to take brilliant minds – creative people to think and act. To explore the possibilities of the future of energy, you together with your family and friends are invited to join ‘Energy World Qatar 2015’ on an exciting journey of Science, Technology, Engineering and Math (ST EM) and for the first time in Qatar. ‘Energy World Qatar 2015’ will be held at the Doha Exhibition and Convention Centre, from November 19 to 28. Delivered in partnership with Qatar Petroleum and Qatar Shell, and in association with the Qatar Tourism Authority, this exciting adventure aims to inspire a new generation of engineers, technologists, innovators in Qatar to contribute to the energy solutions of tomorrow.

QATAR TODAY > NOVEMBER 2015 > 83

JOIN THE

ENERGY GENERATION

WHAT IS ENERGY WORLD QATAR 2015? Energy World Qatar is a celebration of Science, Technology, Engineering and Math (ST EM) in all aspects of life, and an initiator of interest, understanding, enthusiasm, and engagement in science among the young people of Qatar in a fun way. Energy World Qatar is brought to Qatar by long-term partners, Qatar Petroleum and Qatar Shell, in association with Qatar Tourism Authority, with the vision of creating a positive impact in Qatar, and in support of the Qatar National Vision 2030. Energy World Qatar is an interactive experience that tells the story of Energy and Innovation. It shows the benefits of energy, demonstrates how

it enables every aspect of our lives, and highlights the national and global energy challenges we are facing, while presenting innovative solutions. Energy World Qatar includes various exhibits and activity zones that embrace the proven concept of â&#x20AC;&#x2DC;learn through playâ&#x20AC;&#x2122;, to ignite a passion in the young people of Qatar to embrace ST EM skills in order to become the scientists, engineers, technologists, innovators and leaders of tomorrow.

WHY BRING ENERGY WORLD TO QATAR?

nergy World Qatar is a national event that aims at fostering a spirit of wonder and inquiry about the world around us, and at inspiring young people to question, explore, create and innovate through science and technology.

Energy World Qatar also helps inspire students in Qatar to want to learn more and pursue Science, Technology, Engineering, and Math (ST EM) subjects in higher education, so they are part of building a prosperous future for the country through innovative thought and action.

84 > QATAR TODAY >NOVEMBER 2015

JOIN THE

ENERGY GENERATION

THE ENERGY GENERATION

very member of the family now has the opportunity to explore and embark on a fun adventure through the world of Science, Technology, Engineering and Math (ST EM) with ‘Energy World Qatar 2015’. We invite all the young people in Qatar to ‘Join the Energy Generation’ and experience an exciting educational journey into the world of inspiration, as they explore their potential as Inventors, Connectors, Designers, Engineers, and Adventurers.

WHY PARTICIPATE IN ENERGY WORLD QATAR?

n support of the Qatar National Vision 2030, Energy World Qatar is a oneof-a-kind “edutainment” and interactive adventure for students and families, taking people of all ages on a journey into Science, Technology, Engineering and Mathematics (ST EM). It features a lively mix of physical and digital exhibits, workshops, installations and science shows encouraging everyone to ‘explore, make and learn’. ‘Join the Energy Generation’ and discover your identity as an Inventor, a Designer, an Engineer, a Connector, or an Adventurer. An active imagination is the key to great innovation – empower yourself with creativity as you journey through the possibilities for a better future, shaped by the discoveries and innovations of the young people in Qatar. At ‘Energy World Qatar 2015’ the possibilities are endless!

WHAT

Energy World Qatar 2015

WHEN

November 19 to 28

WHERE

Doha Exhibition and Convention Centre (Next to City Center, West Bay, Doha)

VISIT

Sunday -Thursday from 17:00 until 22:00 Fridays from 14:00 until 22:00 Saturdays from 10:00 until 22:00

Tickets available free of charge www.energyworldqatar.com

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affairs > tech talk “They [Apple] have hired people we’ve fired. We always jokingly call Apple the ‘Tesla Graveyard.’ If you don’t make it at Tesla, you go work at Apple. I’m not kidding.” ELON MUSK CEO, Tesla Motors

Ooredoo and Qatar Business Incubation Center (QBIC) announced a 250 sq metre incubator – “Digital and Beyond”– within QBIC’s premises to encourage the creation of a new range of technologyfocused start-ups and businesses.

oredoo will form a committee to evaluate and select “disruptive ideas” in the digital space, and provide seed-funding for the aspiring entrepreneurs, a statement from the company said. The first wave of ideas to be assessed will include innovative digital ideas focusing on customer experience, healthcare, education, sport, smart living and other areas. The one-year agreement between Ooredoo and QBIC, which includes the option to renew every year, aims at supporting economic diversification, encouraging tech entrepreneurship and also reducing the time to market for new digital products and services in Qatar, while opening new business opportunities for Ooredoo in adjacent markets. Following the signing of the partnership

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agreement, Ooredoo and QBIC formally launched the first open competition for young entrepreneurs. Young people with a creative idea for a new digital product or service can submit their concepts via a special page on the QBIC website or through a link to that page on the Ooredoo website. Selected ideas will receive the support of mentors and business experts, and also access to testing and trialling infrastructure, before the winning entries move on to full incubation at the “Digital and Beyond” space which includes three zones designed specifically for start-ups: a community zone for relaxation and regeneration; a collaboration zone to encourage communication and teamwork; and private zones for meetings and innovative thinking.

JACK DORSEY OFFICIALLY TWITTER CEO AFP PHOTO / JUSTIN TALLIS

Ooredoo launches incubator within QBIC

The site’s co-founder, Dorsey, had been serving as interim chief since Dick Costolo, who had held the job for six years, stepped down in June this year. Dorsey will also continue to serve as head of Square, the payment company he co-founded in 2009, with both offices within walking distance from each other.

DELL’S

RECORD-BREAKING ACQUISITION DELL OFFICIALLY ANNOUNCED ITS ACQUISITION OF EMC CORPORATION IN A DEAL VALUED AT APPROXIMATELY $67 BILLION, SETTING A NEW RECORD FOR THE LARGEST TECH FINANCIAL DEAL OF ALL TIME. THE DEAL MAKES DELL THE THIRD LARGEST ENTERPRISE TECHNOLOGY COMPANY BY REVENUE, BEHIND HEWLETT-PACKARD AND IBM.

THE HOME OF ALPHABET ALWAYS CONNECTED

GOOGLE FAILED TO SECURE ALPHABET.COM (WHICH IS OWNED BY BMW) BEFORE LAUNCHING ALPHABET INC., SO IT PURCHASED ABCDEFGHIJKLMNOPQRSTUVWXYZ. COM. WITH ABC.COM ALSO UNAVAILABLE (HOME TO THE POPULAR BROADCAST NETWORK), GOOGLE HAD TO GET CREATIVE AFTER IT LAUNCHED ALPHABET, A NEW PARENT ORGANISATION TO OVERSEE GOOGLE AND ITS VARIOUS SIDE PROJECTS. THE COMPANY’S WEB PRESENCE IS CURRENTLY HOUSED AT ABC.XYZ.

Ooredoo announced the completion of its special project to roll out the Ooredoo Supernet across Qatar’s deserts to provide 4G and 4G+ coverage in time for the camping season.

Drone-related complaints on the rise in the UK

According to a report in The Guardian, there has been a major increase in “the number of cases where members of the public have reported nuisance drone flying to their local force”.

ata provided to the newspaper through a Freedom of Information request shows that the Metropolitan Police Service, for instance, logged 21 such incidents this year, up from just one in 2014, while Thames Valley Police have already recorded 80 incidents in 2015, up from 20 last year. “The incidents logged by Scotland Yard in the past 24 months range from concerns about the piloting of drones over packed crowds at a Christmas event in Hyde Park to the devices being used to ferry drugs into prison or to commit sexual offences,” the report notes. In one case, a drone was caught “hovering outside” the 72nd floor of a skyscraper in London. In another case, a caller expressed concern that someone was using a drone to spy in their bathroom window. Concerned citizens have also reported the use of drones equipped with cameras hovering near children and cash machines.

VR FOR ALL Google Cardboard goes global and is now available in 39 languages and more than 100 countries on iOS and Android.

Google is democratising the virtual reality experience with Cardboard. Now anyone can create their own VR cradle for their smartphone through an open source design available free of charge online. The headset, designed by Google, needs a piece of cardboard cut into a precise shape, 45 mm focal length lenses, magnets or capacitive tape, a hook and loop fastener (such as Velcro), a rubber band, and an optional near field communication (NFC) tag. Once the kit is assembled, a smartphone is inserted in the back of the device and held in place by the selected fastening device. A Google Cardboard-compatible app splits the smartphone display image into two, one for each eye, while also applying barrel distortion to each image to counter pincushion distortion from the lenses. The result is a stereoscopic (“3D”) image with a wide field of view. “With more than 15 million installs of Cardboard apps from Google Play, we’re excited to bring VR to even more people around the world,” Google Software Engineer Brandon Wuest wrote in a blog post. QATAR TODAY > NOVEMBER 2015 > 89

affairs > sports

IT WAS A BUSY MONTH FOR SPORTS IN THE COUNTRY WITH TWO HIGH-PROFILE EVENTS – THE DOHA 2015 AIBA WORLD BOXING CHAMPIONSHIPS AND DOHA 2015 IPC ATHLETICS WORLD CHAMPIONSHIPS.

INSIDE THE RING The AIBA World Boxing Championships showcased the talent of youngsters, record holders and world champions in this sport. Between October 5 and 15, 260 athletes from 74 countries arrived in Doha to fight for pride, gold medals and the ultimate prize of qualification for the Rio 2016 Olympic Games.

he sporting event was held at the Ali bin Hamad Al Attiya Arena at Al Sadd and boxers were delighted to be here. Mohammed Flissi, the Algerian who won a silver medal in the light-flyweight category in the last World Championships in Kazakhstan, said: “Everything in this arena is perfect to push me to do my best. It’s probably the best facility that I’ve ever come across.” The nation also welcomed boxing superstars such as world boxing champion and congressman Manny Pacquaio and two-time former world boxing champion and current WBC Silver welterweight belt holder Amir Khan as special guests to witness the event and encourage the athletes. Pacquaio announced that his next fight could be against British boxer Amir Khan and may take place in Doha early next year. Yousuf Ali Al Kazim, President of the

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Qatar Boxing Federation, at the close of the event said, “This has been a defining moment for boxing in this region and, as history was made, new generations of boxing talent are left inspired. We will undoubtedly see Qatar continuing to be an integral part of the development of boxing here in the Middle East and across the world. That is our commitment. That is our pledge.” AIBA President Dr Ching-Kuo Wu, who was also spoke at the closing ceremony said, “Bringing the AIBA World Boxing Championships to Qatar and the Middle East for the first time in history was really special. The organisers have been first class, from the spectacular arena to the incredible facilities for our boxers and the full logistical side of the event. Doha has really set a new benchmark for the AIBA World Championships, and I think it is safe to say that this was the best ever.”

Athletic triumph

espect is the hardest medal to win. The largest parasport event ever to come to the Middle East saw the world’s most incredible athletes fight their battles to become world champions and secure their place at the Rio 2016 Paralympic Games. Hosting this unique event in the Middle East for the first time in history provides an opportunity to raise awareness of parasports and people with a disability across the entire region. The event started off with the release of the film series of ‘My Incredible Story’ where para-athletes explained their story and their road to success overcoming difficulties of their conditions. It broke down barriers, empowered people to achieve their goals and captured the attention of youngsters. This global sporting event saw the world’s best para-athletes such as Brazilian world record holder (fully blind sprinter), Terezinha Guilhermina, Tunisian world record holder (sprinter) Walid Ktila and Qatar’s very own Sara Masoud (discus throw), Mohammed Al Kubaisi (sprinter) and Abedlrahman Abdelqader ( javelin), all gold medalists from the 2014 Asian Para Games. Speaking about Team Qatar, Ameer Al Mulla, CEO of the Doha 2015 Local Organising Committee and Executive Director of the Qatar Paralympic Committee, said:”Simply qualifying for the World Championships is an achievement in itself and we are extremely proud of all the athletes that will represent Qatar in October. This is the largest and strongest team that Qatar has ever sent to a World Championships, which shows how

para-sport is growing and developing in Qatar. I have no doubt that our athletes will be role models and inspire and engage young people across Qatar and the whole of the region. We hope that hosting the World Championships in the Middle East for the first time in history will raise awareness of parasport, helping people to realize that disability should not be a barrier to sports participation and that anything is possible.” Speaking after the opening ceremony, HE Dr Thani Abdulrahman Al Kuwari, President of the Local Organising Committee and Secretary General of the Qatar Olympic Committee, said: “These World Championships are another proud milestone in our long history of hosting major international events, and we look forward to showcasing the very best of parasport in a truly groundbreaking event that will inspire and excite spectators around the world, spreading the Paralympic values of courage, determination, inspiration and equality.” QATAR TODAY > NOVEMBER 2015 > 91

business > auto news A class apart

Alfardan Automobiles announces the sale of the new BMW 3 Series in showrooms across Qatar.

ver 14 million units sold worldwide, the BMW 3 series prides itself on the latest upgrades to design, technology innovations and more efficient drive trains. The new BMW 3 Series is the first model in the premium mid-size sports segment to support Long Term Evolution (LTE) the fastest current mobile technology standard. The Parking Assistant now also enables automatic parallel parking. The model update also marks the world premiere for two engines: the new four-cylinder petrol engine in the 330i and, as the 3 Series range-topper, the new six-cylinder in-line petrol engine in the BMW 340i. These two new engines, like the ones in the

318i and the 320i, feature reduced fuel consumption and CO2 emissions by as much as 11%. The eight-speed Steptronic transmission allows multiple sequential downshifts, providing a smoother feel and improved acoustics, while the coasting function increases efficiency by another notch. The BMW 3 series is available in Mediterranean Blue Metallic, Platinum Silver Metallic and Jatoba metallic.

MCLAREN’S RACING MACHINE – THE 570S

cLaren Doha unveiled the latest in the range of high-performance sports cars from McLaren Automotive, the McLaren 570S, at an exclusive event held at its showroom in Al Muftah Building in October. Launched in New York earlier this year, the 570S is a pure sports car, with driver-optimised layout and electrifying performance, and shares its DNA with the McLaren Super Series and Ultimate Series, offering race-derived technologies and design values to a new segment and audience. It combines a power output of 570PS (562bhp) with lightweight construction to give a class-leading power-to-weight ratio of 434PS per tonne. It accelerates from 0 to 100km/h in 3.2 seconds, while 200 km/h is reached in just 9.5 seconds with the pace not letting up till the car reaches a top speed of 328 km/h (204mph). Ian Gorsuch, Regional Director Middle East and Africa at McLaren Automotive said, “We are delighted to be able to preview this sought-after new addition to our three-tier range for the first time in Qatar, and we know that it will make a big impact in the Middle East’s sports car segment.”

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business > auto news

717 REASONS TO LOVE

AUDI W

ith the new Audi Q7’s entry into Qatar, Audi enthusiasts can look forward to a model that debuts with next-gen styling plus next-level weight savings. While the Q7 loses 717 pounds for 2016, it gains nearly 717 different technologies and enhancements. We sit down with Anthony Kwan, Marketing Manager of Audi Qatar, to listen to his views on the new Q7. To start things off, please give us a quick overview of the new Audi Q7 2016 model from a design perspective. The new Q7 model features a stunning blend of technological efficiency and cuttingedge design. I can say without hesitation that the 2016 Q7 totally embodies the Audi philosophy of ‘Vorsprung durch Technik' – Advancement through Technology. The Audi Q7 exterior design gives this 2016 model massive presence and style. It has cast itself in the same mold as the classic Quattro models from Audi. The new Q7 has those very striking and distinctive horizontal lines that extend above the wheels. This model’s singleframe grille extends to the headlights, and features either LED or Matrix LEDdriven headlights. How about the engine? What are the specifications of the new Q7? This SUV has a powerful V6 3.0 TFSI engine. that yields of 333 hp and 440 Nm of torque, giving it an effortless acceleration from 0 to

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100 km/h in just 6.3 seconds and reaching a top speed of 250 km/h. The world has taken notice of the exceptional engineering that has led to a huge loss of weight in the 2016 Audi Q7. Tell us a bit about that. Yes, with changes in design and the use of lightweight construction materials in the vehicle components, the new Q7 comes out with an unladen weight of just 2,045 kilograms for the 5-seater. What that means in terms of comparison is that the new Audi Q7 is up to 325 kilograms lighter than its predecessor. This is an exceptional feat because that move alone has earned the new Q7 a place among the world’s lightest in the premium SUV segment. What are some changes that the 2016 Q7 offers in terms of spatial comfort and interior capacity? In our market, the new Audi Q7 comes standard as a genuine seven-seater. The model boasts the most spacious third-row seating in its class. This improves passenger comfort by giving them more head, shoulder and knee room to enjoy. There are adjustable seatbacks for the second row captain's chairs, which is a versatile design feature. Passengers also appreciate an extremely large and useful cargo compartment of 890 litres and an even greater capacity of 2,075 litres if the second and third-row seat backs are folded down.

Audi has been making a name for itself with its Driver Assistance Systems. Has the new Q7 benefited from any of those technologies? Actually, one of the remarkable features of the all-new Audi Q7 is the vast range of driver assistance systems. In fact the model has been awarded the top grade of five stars for safety which was issued by the Euro NCAP, a highly respected European New Car Assessment Programme. To give you some specific examples, the 2016 Q7 features rear parking assistance, cruise control, an adjustable speed limiter, rest recommendation and an all-new Audi pre sense city feature. That is a unique safety system, because it is designed to sense impending collisions. So heavy breaking in an emergency is initiated by the Q7 itself. Give us a peek into the Q7’s entertainment options The Audi Q7 has a really impressive secondgeneration modular infotainment platform. This, I must mention, is in addition to the optional Audi virtual cockpit. With this model passengers can enjoy an unparalleled in-car experience. The SUV also carries a range of other technology options like Audi connect®, a fully integrated onboard information source. For true music enthusiasts the 2016 Q7 offers the choice of a Bose or Bang & Olufsen 3D surround sound system entertainment features

The fastest Ferrari ever built The design of the F12berlinetta is a result of the collaboration between the Ferrari Styling Centre and Pininfarina.

The unveiling of the F12berlinetta ushered in a new generation of Ferrari 12-cylinders, delivering unprecedented performance combined with innovative design that blends classic themes with extreme aerodynamics.

evealed to the world for the first time on Ferrari.com in preparation for its official debut at the Geneva International Motor Show, the F12berlinetta represents the very cutting edge of mid-front-engined sports cars. This is, in fact, the most powerful and high-performance Ferrari road car ever launched thanks to the incredibly efficient engine – in terms of mechanical, combustion and fluid-dynamics efficiency together with advanced vehicle architecture, aerodynamics, components and electronic controls. The wheelbase has been shortened and the engine, dashboard and seats have been lowered in the chassis, while the new layout of the rear suspension and gearbox enabled Ferrari’s engineers to make the rear volume of the car smaller. Scaglietti, renowned for its expertise in aluminium materials and construction, designed an all-new space frame chassis and bodyshell using 12 different kinds of alloys, some of which have been used here for the first time in the automotive sector, and employing new assembly and joining techniques. This has resulted in a 20% increase in structural rigidity while reducing weight to just 1,525 kg (70 kg less than the previous V12 coupé) with an ideal distribution between the axles (54% at the rear).

The F12berlinetta’s V12 engine delivers unprecedented performance and revs for a naturally aspirated 12-cylinder. Its maximum power output is 740 CV. Torque reaches a peak of 690 Nm, 80% of which is already available at just 2,500 rpm, and which provides an unrelenting surge of acceleration all the way to the 8,700 rpm limit. The engine is mated to the F1 dualclutch transmission, which has closer gear ratios developed specifically for this car’s performance. Fuel consumption has been reduced by 30%, with CO2 emissions of just 350 g/km – figures which put the F12berlinetta at the top of the highperformance league. Similarly excellent results have been obtained with the car’s aerodynamic development, thanks to the integration of the design process with extensive computational fluid dynamics (CFD) simulations and lengthy testing in the wind tunnel. Downforce has been boosted by 76% while drag has been significantly reduced. These results come courtesy of two new solutions. The first is the Aero Bridge which uses the bonnet to generate downforce by channelling air away from the upper part of the car to its flanks where it interacts with the wake from the wheel wells to decrease drag. The second is

Active Brake Cooling, a system that opens guide vanes to the brake cooling ducts only at high operating temperatures, again reducing drag. The result is that the new Prancing Horse 12-cylinder accelerates from 0-100 km/h in 3.1 seconds and from 0-200 km/h in 8.5 seconds. It also completes a lap of the Fiorano circuit in 1’23”, faster than any other Ferrari road car. Benchmark performance and maximum driving involvement are guaranteed by immediate turn-in, with smaller steering wheel angles, and increased cornering speed. Stopping distances have also been drastically reduced. The all-new Frau leather interior highlights the balance of advanced technology and sophisticated, handcrafted detailing. The cabin has been optimised to ensure maximum usability of the interior space with additional luggage capacity behind the seats, which can also be easily reached thanks to the large aperture offered by the tailgate. With the cockpit designed around the driver, typical of all Ferraris, the Human Machine Interface approach is emphasised, grouping all the major commands within immediate reach to guarantee maximum ergonomics for the most involving driving experience. QATAR TODAY > NOVEMBER 2015 > 95

business > market watch On the occasion of its 20th anniversary, brand ambassador Nancy Ajram led guests through a sneak peek of Home Centre’s television commercial and the annual catalogue.

Home Centre celebrates the big 20

ome Centre recently celebrated its 20th anniversary at the Madinat Arena, Dubai. Prominent media personalities, socialites and senior management from Landmark Group across the Middle East were present to commemorate the occasion. Speaking about her association with Home Centre, Nancy Ajram said, “Homes are an extension of one’s personality through which they are able to express themselves and Home Centre very well gives you the kind of products that help you create that ‘space’.” Commenting on the occasion, CEO of Home Centre, Mederic Payne said, “Going forward, we are set to open over 50 new stores and refit more than 40 existing stores by 2020. We have launched our Omni-channel presence and will introduce a host of new product offerings to meet customer needs and expectations.”

Introducing Qatar to the world

atar Tourism Authority unveiled the Qatar Destination Brand to global audiences at the World Travel Market in London. “The unveiling of Qatar’s first destination brand marks the beginning of a new phase in our journey towards achieving the vision for Qatar, as outlined in the National Tourism Sector Strategy 2030: a world class hub with deep cultural roots,” said HE Issa bin Mohammed Al Mohannadi, Chairman of QTA. “In launching this brand, which is the first to represent Qatar as a destination, and by channelling multiple characteristics of the nation’s persona, hopes, actions and vision, our efforts to promote the country and pique interest from world travellers, gain new strength and cohesion.”

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Global education within reach

The Qatar Global Education Fair was successfully held on October 27-28 and included over 50 universities, higher education institutions and government organisations.

he BMI Global Education Fair was sponsored by Qatar University (QU) and Hamad bin Khalifa University (HBKU), and organised by BMI as part of a series of fairs taking place in Abu Dhabi, Dubai and Kuwait. Held at the Sheraton Doha Resort & Convention Hotel, the two-day event featured the participation of various local and international institutions such as QU, HBKU, Qatar Skills Academy, British Council in Qatar, Thompson Rivers University, Education USA, University of Essex, among many others. At QU’s booth,

representatives were on hand to brief the large number of students and other visitors on scholarships and academic grants, accreditation, undergraduate and graduate studies, application and visa process, student accommodation, training and internships. The programme featured a series of workshops like “Study in the USA”, “Tips for finding your dream job”, “Study in the UK”, etc. Commenting on the event, QU VP and Chief Academic Officer Dr Mazen Hasna said: “It was an invaluable opportunity to

join other local, regional and international academic institutions, and engage a new audience of prospective students and faculty.” BMI President and CEO Mr Samir Zaveri said: “All the fairs in the Middle East have had a great attendance but in Qatar we had nearly twice as many as in Dubai. This surprised us but really shows the interest in education in the country. All of these factors contributed to the huge success of the event and we are particularly grateful for the support of both Qatar University and HBKU.”

MALL OF QATAR & SALAM SIGN DEAL

he Mall of Qatar, expected to open in December 2016, recently signed a deal with Salam Studio & Stores during a press conference at the site office of the mall held by Shem Krey, Managing Director, Mall of Qatar, Rony Mourani, General Manager of the Mall of Qatar, and Abdul Salam Abu Issa, Deputy Chief Operating Officer of Salam International Investment Ltd. Under the deal, Salam Studio & Stores will lease three floors consisting of over eight thousand square meters to showcase a wide array of leading international brands that will join Mall of Qatar’s select merchandise mix. Salam Stores also features a contemporary café and lounge area, dedicated children’s department and personal shopping assistants to set the mood for sheer comfort and indulgence. “It will be a pleasure for us to unite our strengths. We look forward to bringing a wide variety of haute couture and luxury lines under one roof,” said Abu Issa. QATAR TODAY > NOVEMBER 2015 > 97

business > market watch

Tawar Mall project announced

At a press conference held last month, Qatar Today met with the new General Manager of Tawar Mall, Pedro Ribeiro, who, along with the Al Kuwari family, introduced Tawar Mall to the public.

fter the passing of the founder, Jabir Tawar Al Kuwari, his son Jassim bin Jabir Tawar Al Kuwari is taking charge of the completion of the mall. Located in Al Duhail, the mall spreads over 300,958 sq m of which 91,047 sq m will be the leasable area. Approximately 6,000 sq m will be allocated for entertainment purposes. The mall is now in its final stages of completion with flooring laid and exteriors almost done. “It is 70% complete,” says Ribeiro. He was previously working with Mall of Qatar and has now moved to the Tawar Mall project. “With support from the Al Kuwari family, this project, although delayed, will be ready by late 2016 and promises to deliver a unique experience for shoppers including brands that have never been seen before in Qatar. The hospitality experience will be enhanced with the introduction of new restaurants that are yet to enter the Qatari market.” Being involved with another mall and staying in Doha for more than two years, he says

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“The opportunity to grow along with the immense support and guidance from the management made my transition easier to this project. I also wish Mall of Qatar all the best for its opening.” Under new leadership, Tawar’s development team will seek to make this extraordinary project a reality for Doha, featuring an impressive variety of facilities, all of which capture the exciting aspects of Doha’s development. A featuresized cinema with 12 screens, an exquisite courtyard, a boutique hotel with more than 100 rooms and a beautiful expanse of greenery will be amongst the array of luxurious experiences the Tawar Mall has to offer. The leasing process has begun, already attracting a vast selection of the world’s most distinguished brands; the mall is expected to become a diverse social hub with a variety of tastes from around the world. The expected footfall in the mall will be 200,000 per week, making it a destination meeting point for all residents.

Pedro Ribeiro General Manager Tawar Mall

culture > qt take

THE MEMORY BOARD Msheireb Downtown Doha gives a glimpse of what to expect of the biggest real estate project in the centre of the city at the launch of the Msheireb Museums. Sindhu Nair gives her take on the heart of regenerated Doha.

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have always been fascinated by the construction at the Msheireb Downtown Doha. At first, I was taken aback that a part of Doha, literally the heart of the city, around which the city thrived and grew to what it is, was being destroyed to make way for more modern construction. However, I looked at it –the sustainable angle, the need for the city, or any city, to grow and mature and to have a modern centre of business and governance – I was not convinced. And then, I interviewed many of the architects involved in this project, and my mind slowly reconciled with the fact that what was being planned was a beautiful regeneration and it was indeed being executed in the most safe and sustainable method. I started following the project with renewed energy, but was unable to get any real first-hand insights into the project until Msheireb Properties finally opened the four museums within the Msheireb Downtown. It was a moment that I was waiting for and, despite myself, I was astonished by the beauty of the masterplan, the general aesthetics of the buildings: the recessions, the projections, the play of shadows and light on the pathways. What a pragmatic way to recreate the age-old Qatari construction! How the narrow sikkas were created with houses built on either side of alleyways, or how they converged onto a baraha, an open-air town square, all recreated in the most modern construction aesthetics. But I had always expected this; my interviews with architectural firm John McAslan + Partners and the earlier master planners had prepared me for the design excellence. What I had not expected was the museum, and what it would hold. To say that I was taken aback is to put it very

The Architecture Msheireb Downtown Doha has a beautiful landscape design that takes visitors on a visual treat.

mildly. At the opening night of the museum, MP CEO Abdulla Hassan Al Mehshadi said, “The mission of Msheireb Properties is to transform the way we live and think about urban spaces here in Qatar. In undertaking this development, we are meeting the challenge of striking a balance between the sophisticated requirements and benefits of contemporary living and the responsibility of preserving our local heritage and culture. We are committed to re-defining how we can celebrate and express our cultural values and our aesthetic heritage, yet also live as an advanced, progressive nation, QATAR TODAY > NOVEMBER 2015 > 101

culture > qt take

offering the very best to our residents, tenants and visitors.” “These museums will reinforce Doha’s position as a leading cultural destination in the Gulf region, and one that is highly significant on the international stage,” he said. One thing is sure: all Qatari expats and nationals should take a journey through these memory boards to understand how a community of ordinary people lived, not just Qataris as most of the exhibits seem to imply, but also the later inhabitants, the poor Asian and expat communities. Jassim House The first house we were taken to was the Mohammed bin Jassim House. I call this the memory house; the house that is the keeper of old memories of the town that was. It takes us back to a time when life was much simpler and Doha looked very different than what it is today. It houses the Echo Memory Art Project using objects uncovered during demolition of the site and which make this a cherished space. From old radios to barber shop hoardings, abandones electronics and some utensils from a samosa shop, this house takes you on a nostalgic trip. To those who have seen and experienced this part of Doha; it is a special moment. Particularly

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poignant are the memories collected from earlier inhabitants. “We bought from first television Al Emadi’s on Al Kahraba Street,” says Hassan Rasheed, an inhabitant of old Doha, quoted on the audio files and the screens. “The brand was Andrea. It was like a cupboard, you opened it and you could see the screen inside.” One inhabitant recalled that if he did not find an item anywhere in Doha, he could surely find it in Al Kahraba Street. Radwani House First built in the 1920s, this house is located between Al Jasrah and Msheireb, two of Doha’s oldest quarters. The restored house presents traditional Qatari family life and gathers, preserves and shares memories of Qatar in a time of historic social transformation. Radwani House provides visitors an insight into how family life evolved in Qatar over the years. The house showcases not only the manner in which the house changed over time, but also how domestic family life was transformed in Doha. Visitors will witness the changes brought about to family life by the discovery of oil and the arrival of electricity. Excavation works carried out by archaeologists at Radwani House

Houses of Memory From far left, clockwise: Radwani House shows us how a traditional Qatari house looks; Jassim House is the keeper of memories of the old streets of Msheireb, cement embellishments from roofs, and other decorative items are on display here; the Company House is a memorial for the Qatari men who paved way for modern Qatar; Bin Jelmood House speaks about slavery around the world and also focuses on the kafala system in the country; a copper timeline represents the growth of the country in the past decade.

constituted the very first archaeological digs in the centre of the city. These excavations have produced a number of important finds which provide some clues to the daily life during those times. Bin Jelmood House Bin Jelmood House wants to give an insight role into the global abolition of human exploitation. The house showcases and pays tribute to human adversity and perseverance and celebrates the human spirit prevailing against all odds. The house serves to acknowledge the cumulative social, cultural and economic contribution of formerly enslaved people to the development of Qatar. Bin Jelmood House tells of a time when there was a flourishing trade of enslaved people throughout the Indian Ocean region. The museum provides space for reflection on the emotional journey through the story of universal enslavement. It also provides an opportunity for visitors to make a personal commitment to joining the fight against human trafficking in all its many manifestations. What is interesting is that this house was also where slaves were initially housed and sold as a form of business, though the name of the Qatari owner is not revealed for safety purposes.

Company House Set within a house that was once used as the headquarters for Qatarâ&#x20AC;&#x2122;s first oil company, this museum tells the story of the pioneering petroleum industry workers and their families who transformed Qatar into a modern society. Here is an almost unbelievable story of hard-working Qatari men who laboured not just to provide for their families but also to lay the foundations for their emerging nation. Beautiful representations of timelines in copper water pipe systems to tear-evoking videos of life before and after the discovering oil, representing old Qataris working alongside in exploration work; the hardships endured and the perseverance which finally paved the way for the Qatar we see now. Even after all the creative representations within Company House, you emerge with a profound sense of injustice: a feeling that a bigger story is ignored or underplayed in the narration. From the Jassim House to the Company House, the Asian labourers have been completely ignored and their role in building the country, forgotten. So if you ask me, if this museum is a true perspective of a city that has grown beyond the trappings of the old streets of msherieb, I would say it is most certainly not the most honest one

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city life > doha diary ONE MORE FOR DOHA

THERE AND BACK AGAIN

To celebrate the 30th anniversary of the Back to the Future trilogy, Doha Film Institute organised a special screening for movie lovers on October 20.

he open air free screenings, part of the ‘Cinema Under the Stars’ programme, paid a special tribute to the worldwide phenomenon of one the most wildly entertaining film trilogies in Hollywood history. The highest grossing film of 1985, ‘Back to the Future’ launched one of the most successful franchise’s in Universal Picture’s history, including two theatrical sequels, an animated television series, a theme park ride, toys, comic books, video games and apparel. The screening continues on November 6 and 20 with screenings of Part II and Part III respectively.

The new Doha Exhibition and Convention Center, located near the City Center building, opened for an exclusive media preview last month. The venue boasts of five exhibition halls and the 18-metre high ceiling is the highest in the Middle East (according to the PR shared). The DECC will be officially launched on November 2 and will have 12 events over the year and 60 exhibitions planned for 2016.

The new port of call

Qatar Tourism Authority announced recently that Island Sky, a Noble Caledonia ship, will be the first to dock in the Old Doha Port as part of the Cruise Arabia Alliance.

he cruise ship is expected to arrive on November 18 and is part of an effort to boost intra-GCC tourism through various avenues and the itineraries will showcase the best of the Gulf’s landscape and attract tourists from around the world, including Sharjah, Ras Al Khaimah, Muscat, Dubai, Manama and Doha. Hassan Abdulrahman Al Ibrahim, QTA’s Chief Tourism Development Officer, commented on the announcement: “We expect this docking to mark the beginning of increased activity in the cruise tourism sector, especially as we gear up to host the Seatrade Middle East Cruise Forum at the end of this year.”

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FROM TSUKIJI TO DOHA Nozomi, the fine dining contemporary Japanese lifestyle restaurant from London and Riyadh, is now serving up intriguing Far Eastern culinary creations at the Pearl-Qatar.

he chic outlet is the final restaurant to open at the complex that houses Antica Pesa and Toro Toro. It offers 228 seats downstairs in the restaurant, including the outdoor patio, and 143 seats in the upstairs lounge with stunning views of the Marsa Malaz Kempinski hotel and the sea. The city’s media were given a sneak preview of the restaurant’s offerings - each more delectable and dramatic than the last. The smoked sashimi was followed up by gorgeous fresh-water Alaskan crabs, unagi and foie gras, and the famous Kobe beef sirloin. The executive chef explained that all the seafood is specially flown in from the famous Tsukiji fish market in Tokyo, from one merchant specifically who x-rays each fish, squid and shrimp to ensure they are of the highest quality. The dessert boat had an excellent chocolate fondant, an interesting dessert sushi and an innovative miso ice cream. The upstairs lounge offers up some great music, along with wood-smoked cocktails and views of the sea.

HAPPY 10 FOR QATAR LIVING!

Social networking website, Qatar Living, celebrated its 10th anniversary at the Sheraton Hotel and Convention Centre Doha with a gala dinner on October 15. HIGH TEA GETS MORE LUXURIOUS Café Murano, the European gourmet café at Marsa Malaz Kempinski, The Pearl-Doha, has introduced the opulent Golden High Tea to its menu as a permanent fixture after its resounding success at the last Qatar International Food Festival. The signature golden cappuccino is served together with a selection of petite culinaire, allowing guests to choose between a traditional and an oriental high tea, served with innovative chocolate creations and traditional in-house secret recipes.

Qatar Living announced future plans including a redesigned website as well an Arabic language version that will be launched soon. Guests who attended the event walked away with prizes including round-trip tickets to Dubai. Qatar Living also hosted several Qatar-based startups like Meddy, Rinfo, and Future International Football Academy at the event.

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A day in the life of... Alex Tsapakidis, Assistant Director of Event Sales, Crowne Plaza Doha

Qatar Today follows the daily routines of professionals from all walks of life around the country. By Ayswarya Murthy IN AN ATTEMPT TO UNDERSTAND WHAT GOES ON BEHIND THE SCENES OF ANY BUSINESS EVENT OR CELEBRATION, WE SHADOW THE MAN WHO HOLDS THE REINS OF ANY EVENT AT THE PROPERTY – FROM WHEN THE CLIENT IS SIGNED ON TILL THE TABLES ARE CLEARED.

It’s another typical day at the popular business hotel near downtown Doha during the peak conference season. Tsapakidis says they host up to 15 events per day, both inside and outside the hotel. At the distinctive-looking convention centre, he meets with his staff, busy with the final preparation for an event that is due to start in an hour. From venue décor and valet services to catering and audio-visual equipment, he has to check that everything is in order and as per the client’s request.

Client relations are of course supremely important. He and his team of three make sure the hotel is on the preferred list of event organizers in corporations, ministries, etc. Customers often drop in to understand their options and Tsapakidis helps them pick the package best suited for them.

The meeting rooms inside the hotel are packed today. And Tsapakidis also makes sure he or his staff is on hand to handle any situation that might arise. “An event is a living organism,” he says. Though he largely handles business events, which tend to go by the book, sometimes there are some interesting and bizarre requests that come his way. He remembers a movie-themed end-of-the-year school event where his wait staff were requested to be dressed up as famous actors.

Then he heads over for a meeting with his team. Here he is able to get a better idea about the business of the day, feedback from clients, specific challenges and new leads. He tells us he is currently on the lookout for an Arabic-speaking woman who can handle weddings and engagements, which make up a good chunk of the events at the hotel. As he walks around the hotel, he finds himself being roped in for several tasks. He is requested to sit in on a panel that is interviewing for an intern. We are told about this one time when, during a particularly busy event, Tsapakidis and the general manager joined the valet team to help clear up the backlog of cars. That’s inspiring. 106 > QATAR TODAY >NOVEMBER 2015

He meets daily with the executive chef who helps him design the menus according to a client’s requirement, the number of attendees and their culinary preferences. Sometimes, their regular outside catering job needs a menu refresh. The job isn’t your regular 9-5. Some events start at 8. Others go on till late into the night. No two days are the same for Tsapakidis.