Qatar Today October 2011 by Oryx Group of Magazines

october 2011

Qatar Today 1

2 Qatar Today

october 2011

c o n t en t s 78

c ove r s tory

50. REGULATIONS, RESTRICTIONS AND COMPETITION Banks explore new ways to profitablility

As the IMF hold their annual meeting in Washington, Qatari Banks are looking at the fiscal issues in Europe and the US and breathing a collective sigh of relief that they’re not suffering from contagion or indeed from their own sloppiness in the markets. in this period of extreme uncertainty Rory Coen finds out how the Qatari banks are faring.

64. Gulf Airlines embrace their ‘Sixth Freedom’

Boeing has a huge backlog of orders for their aircrafts and they recognise that some of the Middle East carriers are their primary customers. Why are the “Gulf 3” looking to purchase more aircrafts as fuelprices are expected to escalate?

66. The Rainmakers

Aquiess plans to bring rains to the Horn of Africa region and it hopes that Qatar will acquire the technology to overcome its water scarcity. Will Qatar go for it? Sindhu Nair finds out...

42. I Tweet Therefore I am

Tweeps were Middle East Experts during the Arab Spring; Sport commentators during the World Cup in South Africa; and during Ramadan they are pious and religious says Hassan Al-Ibrahim.

24 70

published by oryx advertising co.wll, All rights reserved. qatar today is published monthly by oac, po box no. 3272, doha, qatar. subscription rate for qr. 240 per year. address for all subscription correspondence to qatar today, oryx advertising co.wll, po box 3272, al hilal area, doha, state of qatar. for single copies call us on + 974 44672139 or mail to qtoday@omsqatar.com. material in this publication must not be stored or reproduced in any form without permission. request for permission should be directed to qtoday@omsqatar.com. reprint requests should be directed to the info@msqatar.com. qatar today is registered trademark of oryx advertising co.wll

October 2011 volume 37 issue 10 www.omsqatar.com

c o n t en t s

october 2011

44. Making food secure: Model Agricultural City launched

Mohamed bin Ahmed Al-Obaidly,Chairman of the QCCI’s Agriculture and Environment Committee, says the reason investors shy away from the agriculture sector is the difficulty of marketing agricultural products and the high costs involved, in an exclusive interview with Ezdhar Ali Ibrahim

70. Social Commerce What’s the status of your biz?

Social commerce is an emerging buzzword which may redefine the way people engage with social media, and how they share information. It may also change the way we share information and content with peers predicts Kapil Bhatia.

74. GPS edges closer

Since its announcement on June 5, 2011, the Green Programme for schools (GPS) has been very well received by schools in Qatar, with over 40 of them registering for the programme.

74 85

59. Wind beneath their wings Entrepreneurs set to meet their Angels

Angels’ Den connects entrepreneurs and small and medium enterprises (SME) that are in need of a boost to high net worth individuals (HNWI) who are willing to invest in them. Bill Morrow, co-founder of Angels’ Den tells us why Qatar was chosen as the next stop.

88. Silver Screen More than what meets the eye

The world of cinema is not just the 90 minutes of entertainment you see on the screen. It takes a couple of years or more of toil and a lot of investment, says Mohammed Al-Ibrahim, one of DFI’s mentors on the Education team.

regulars N e w s B i t es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 O & G O v e r v ie w. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 B a n k N o t es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 W o r l d Vie w. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 b r a k ing N e w s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Market Watch.............................................83 D o h a Di a r y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1

32. African Nation Emerging from Slumber

As Qatar drives ahead with its preparation for the latter half of the 21st century, other nations – as far away as centralwest Africa – are following their lead. Qatar Today visited Gabon for the official opening of their Special Economic Zone at Nkok which is hoped to trigger a seminal economic push for the “emerging nation”.

V o lume 3 7

issue 1 0

o c t o be r 2 0 1 1

Publisher & Editor-in-Chief Chief Executive Executive Vice President Vice President

Yousuf Jassem Al Darwish Sandeep Sehgal Alpana Roy Ravi Raman

Managing Editor Deputy Editor Editorial Coordinator CORRESPONDENTS FASHION &LIFESTYLE CORRESPONDENT Art Director Asst art Director – Production Assistant Art Director Senior Graphic Designers Graphic Designers Photographer

Vani Saraswathi Sindhu Nair cassey oliveira RORY COEN EZDHAR IBRAHIM ORNA Ballout Venkat Reddy Sujith Heenatigala Hanan Abu Saiam Ayush Indrajith Sampath Gunathilaka maheshwar reddy R obert F Altamirano

Managers –Marketing Mohammed Sami Zulfikar Jiffry S enior Media Consultant Chaturka Karandana Media Consultant HASSAN REKKAB Marketing Research & Amjeth Ali Support Executive Accountant Sr. Distribution Executive Distribution Support

Published by Oryx Advertising Co WLL, P.O. Box 3272; Doha-Qatar Tel: (+974) 44672139, 44550983, 44671173, 44667584 Fax: (+974) 44550982 Email: qtoday@omsqatar.com website: www.omsqatar.com Printed at: Gulf Publishing and Printing Co WLL Copyright © 2010 Oryx Advertising Co WLL

Qatar Today invites readers’ feedback Share your views on the magazine or any issue connected to Qatar. One lucky reader will win an exquisite Mont Blanc writing instrument.

Pratap Chandran Bikram Shrestha Arjun Timilsina Bhimal Rai

Write to: The Editor, Qatar Today, PO Box 3272, Doha. Fax: (+974) 44550982, email: qtoday@omsqatar.com Qatar Today reserves the right to edit and publish the correspondence. Views and opinions expressed in the published letters may not necessarily be the publication’s views and opinions.

october 2011

f r o m t h e d es k

European

nations continue to struggle with their financial mess, trying to draft reforms of least resistance. Gold has had a few humble moments, and the US dollar receives sporadic respite in the overall chaos. What does this mean for Qatar? On the one hand the economy continues to grow at a steady rate and investments in infrastructure development continue unabated; on the other, SWF while still active in Europe, is spending more closer to home. For those living here, the best way to assess how well or not the economy is doing is very much defined by how we interact with the financial services in the country. Lending has tightened, and there have not been very many exciting products on offer. This is a challenge more for the financial institutions than for the consumer, at this point. We speak to bankers to understand how they are reacting to new regulations and restrictions, and how they manage to maintain or improve profitability. And is the riyal-dollar peg the only way to go now? This month we speak to Mohammed Al-Obaidly on the proposed agricultural city, which will contribute to the food security of the nation. Our correspondent was in Gabon recently, and met President HE President Ali Bongo Ondimba, who highlighted development plans for his country, which is amongst the most promising economies in Africa. And there is some exciting news for entrepreneurs and small business owners, seeking funding. Angels Den will soon open its Qatar chapter, and its founder Bill Morrow talks to us about the role of angel investors. As we wrap up the issue, news of Dr Wangari Maathaiâ&#x20AC;&#x2122;s demise comes in. The first African Woman Nobel Laureate, Dr Maathai is probably the most respected green activist of our times, whose life was her message. Her legacy we hope will continue to flourish. Speaking of green movements, do check the updates on our Green Programme for Schools initiative. If you are on the move or are more comfortable with e-reading, Qatar Today is now on the App Store for iPad, and can also be accessed through Nokiaâ&#x20AC;&#x2122;s Ovi store. Happy reading.

Vani Saraswathi

10 Qatar Today

october 2011

le t t e r s feedback qtoday@omsqatar.com

Jumping High It was great to see Mutaz Essa Barshim being so competitive at the recent World Championship in South Korea. The television analysts were quick to give him a very good chance of getting a medal at the Olympics in London next year. The High Jump is such a technical event, I hope he can get the best coaching that’s available. I wish him the best in his preparation for next year and I hope he does this nation proud. Ayesha Al-Hassan

Power Shopping

It will be interesting to see how QR Codes develop over the next few years. It will make productive shopping so much easier and faster if you can get all the information you need about a product simply by swiping your phone against it. However, I also appreciate the personal touch that a shop-assistant can offer but a QR Code cannot. Sandeep Chauhan

Poll result is based on messages received till 20th of every month

qt poll – october

Supply/Demand

The supply-demand trend is impossible to regulate with any degree of assured accuracy, what with the volatile global economy and Qatar’s reliance on it. What’s good for one person is bad for another; it’s a matter of what side of the fence you are sitting on. I hope the Government puts a proportional emphasis on the lower-end market as much as they seem to be doing for the high-end. If we have learned anything from the past 12 months around the region, it’s to keep all classes on an even keel. Bilal Haroon

No escape from outside world

I can definitely relate to the 'Perpetually Available' piece in September’s edition of Qatar Today. I sure do miss the nights when one could go out to a restaurant or cafe and relax, safe in the knowledge that nobody knew where you were, what you were doing or who you were with. You were answerable to nobody – only having the pleasure of your immediate company for the night – for a few quiet hours. Now I see Facebook has a pre-configured update such as “I am with Mr X at W Hotel: 8:34pm”. Why ruin a good night? Joseph O’Dell

Is it time to unpeg the riyal from the dollar? SMS answers to +974 33072524 A lucky winner will win a NOKIa C5-03

Local trends and Initiatives

I have recently moved to Qatar and have been reading Qatar Today for the past few months. Qatar Today publishes some interesting articles and I appreciate the information given on local trends. I also like the Green initiative by your magazine. Some of the other articles by industry leaders are also informative. The article on Mocial Marketing was an interesting piece and the writer has been producing some good content in the past. Keep up the good work, team. Larry Hewitt

Is the supply/demand ratio in the Real-estate sector balanced?

02% 98% Yes

The winning number of the last QT poll is 30127485

Qatar Today invites readers’ feedback Share your views on the magazine or any issue connected to Qatar. One lucky reader will win an exquisite Mont Blanc writing instrument.

Check out all articles of Qatar Today on www.issuu.com/oryxmags/qatartoday

Write to: The Editor, Qatar Today, PO Box 3272, Doha. Fax: (+974) 44550982, email: qtoday@omsqatar.com

Qatar Today reserves the right to edit and publish the correspondence. Views and opinions expressed in the published letters may not necessarily be the publication’s views and opinions.

WIND BENEATH THEIR WINGS 59

NEWS BITES

Help restore Emir: Support security in Libya, the bid for a Palestinian State says Emir

hh sheikh HAMAD BIN KHALIFA AL-THANI ADdRESSING THE UN GENERAL ASSEMBLY

H the Emir Sheikh Hamad bin Khalifa Al-Thani called on UN member states to “listen to the voice of right and respond to the legitimate request” of the Palestinians for a full membership to the United Nations. He was addressing the opening session of the 66th UN General Assembly held at Washington DC on September 21. Addressing the session, HH the Emir said that all efforts to reach just and durable peace in the Middle East had stumbled because of Israel’s 'obstinate position'. “As the Palestinian cause has hit a culde-sac and the Palestinian people continue their suffering under occupation, and as their human rights continue to be violated,

14 Qatar Today

october 2011

we urge all the members of the UN to listen to the voice of right and respond to the Palestinians’ legitimate request for a Palestinian state with full membership at the organisation, on an equal footing with other people in order to prepare the way for the realisation of peace in our region.” The Emir reiterated the necessity for updating and developing the order of the UN to cope with the new global conditions and changes “which are not linked by interests alone but also through the ruling principles of the civilised behaviour side by side with the unity of interests”. He said it was a great pleasure to address the General Assembly in 2011 at a time “when it is headed by one of the sons of the State of Qatar, Nasser bin Abdulaziz Al-Nasr.”

he Emir HH Sheikh Hamad bin Khalifa Al-Thani asked the world to assist Libya’s new rulers in extending their influence all over the country in order to restore security and stability there. Speaking at a special summit on Libya held on the sidelines of the 66th United Nation General Assembly session at the UN headquarters, the Emir noted that the fighting in Libya was not yet over. However, manufacturing and services in the North African country should resume, he said, stressing that economic activity should not wait for stability. The meeting was attended by Qatar's Prime Minister and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor AlThani as well as of members of the official delegation accompanying the Emir. US President Barack Obama led the UN welcome for the Libyan leaders who deposed Muammar Gaddafi, but warned Nato would carry out air strikes if civilians are 'threatened'. At the summit, the UN and world leaders promised to help the new government with its campaign to take the remaining territory held by Gaddafi fighters and to rebuild the country and organise elections.

ne w s bi t es

Sheikh Faisal acquires W London

l Faisal Holding Company LLC, through its subsidiary Al Rayan Tourism & Investment Company (ARTIC), has exchanged contracts with Northern Irish developer McAleer&Rushe to acquire the W London Hotel, Leicester Square for close to QR1,120 million (£200 million), making this one of the most prestigious hotel transactions of the year. Launched in January 2011, the Starwoodoperated state-of-the art 192 bedroom hotel is on the corner of Leicester Square, the internationally famous and highly popular pedestrianised square of London’s West end. In addition to the hotel, the ten-storey, 90-ft glazed building houses one of the most exclusive branded apartment schemes in London, featuring 11 luxury duplex branded W Residencies. The development is also home to Mars’ 35,000 sq ft, M&M’s World store, the first in Europe. A wholly-owned Al Faisal Holding Company LLC subsidiary, ARTIC is engaged in real estate development, acquisition and leasing with a primary focus on the hospitality sector and hospitality-related services both in Qatar and overseas. The acquisition of the W in London brings its current

hotel portfolio to 11 properties located across Qatar, Egypt and London, comprising seven fully operational hotels and four under development. Commenting on the announcement, HE Sheikh Faisal Bin Qassim Al Thani, Chairman of Al Faisal Holding Company said,“We are delighted to have acquired this iconic landmark London development. Given its one-of-a-kind architectural quality, attractive setting and the strength of the international covenants of Starwood Hotels & Resorts Worldwide and Mars Retail Group, the addition of the W Hotel to the portfolio reflects our clear investment focus on high quality assets in prime locations as we continue to grow the business both locally and internationally.”

QNRF Awards 30 school projects

atar National Research Fund (QNRF) announced the results of the first cycle of the Secondary School Research Experience Program (SSREP) which was launched in September 2010, generating a considerable response. As many as 177 research proposals from 32 local secondary schools were received for consideration. Experts from the Curriculum Standards Office at the Supreme Education Council (SEC) assessed the applications. The team has accredited 158 research proposals, while 19 proposals were disqualified for non-compliance with the curriculum standards adopted by SEC. At the close of the pre-defined period of four months for research completion, QNRF received the final reports of all participating research projects and started conducting a rigorous review process. Each report was evaluated by three independent experts, as per the criteria set by QNRF and SEC. QNRF will award a Certificate of Appreciation together with QR5,000

16 Qatar Today

october 2011

Highlight

QNRF recognised

distinguished projects involving

48 23

students of which are Qatari students representing

47%

of the total awarded students.

Khanfar resigns, SHEIKH AHMED to head Al-Jazeera

adah Khanfar, the DirectorGeneral of the Al Jazeera Network, has quit and has been replaced by a Qatari, Sheikh Ahmed bin Jassim bin Mohammed Al-Thani. Khanfar, who headed the media empire for eight years, said it was time to move on and added that the TV station would continue with its good work. Khanfar said. he began his career with Al Jazeera working as a correspondent based in Afghanistan, Iraq and Africa, among other locations. Khanfar maintained that he was “moving on since the goal set at the time of his appointment to establish Aljazeera as a global media leader had been met.” There were speculations that Khanfar was under pressure to put in his papers over recent revelations made by the whistle-blowing website WikiLeaks about Khanfar “cooperating” with the US in 2005. Al Jazeera has always been objective in its coverage, Khanfar said. Referring to the Arab Spring and its coverage by the network, he said the network will continue to be the voice of the voiceless in the Arab world. to each student and teacher participating in these distinguished projects. In addition, those distinguished research projects prepared by the Qatari students will be nominated to compete for the Education Excellence Day Award in coordination with SEC.

ne w s bi t es

Personalised medicine on the cards?

he applicability of personalised medicine has moved one step closer thanks to a research study undertaken by WCMC-Q’s new Professor of Physiology and Biophysics, Professor Karsten Suhre, PhD. In the most comprehensive investigation of its kind, the genetic variance in human metabolism was analysed and new insights into a range of common diseases were discovered. The study, recently published in the Journal Nature and titled, ‘Human metabolic individuality in biomedical and pharmaceutical research’, establishes metabolomics as an intermediate to providing a biological link that contributes to the understanding of the genetic effects and more effectively impacts discovery and development of individualised biomarkers and therapies.

Prof Suhre lead the study, which was a collaboration between European research centres, prior to taking up his position as Director of the Bioinformatics Core at WCMC-Q.

18 Qatar Today

october 2011

40%

of Qatar-based respondents claim to connect with friends via e-mail, and

44%

of the same demographic connect with friends through social networking sites. Watching video clips and listening to music are also popular daily online activities and a very significant proportion of daily usage comes from online job hunting, with 43% of Qatar respondents using the Internet to seek employment.

Randolf Rodenstock, VP of DAFG with Sheikh Nawaf ibn Nasser Al-Thani and Sheikh Faisal Bin Qassim Al-Thani of QBA

Sheikh Nawaf bin Nasser Al-Thani, member Of QBA, welcomed the delegation and said that the visit from the German delegation highlighted the importance of Qatar in the world map.

Interfaith Dialogue to be held he Doha International Center for Interfaith Dialogue (DICID) will host The Ninth Doha Conference for Interfaith Dialogue on October 24 to 26, 2011 in Doha. The theme of the conference is “Social Media and InterReligious Dialogue: A New Relationship”. The conference would shed light upon

he majority of Qatar’s Internet usage is for connecting with friends via e-mail or social networking, with 94% of respondents having a Facebook profile - which 15% claim to be constantly connected to.A survey to investigate Internet usage in the Middle East by popular job site Bayt.com and research and consulting organisation YouGov has also showed that 72% of Qatar respondents spend three hours or more online every day. Every day

German business firms eye Doha SME s erman firms seek to strengthen business ties with Qatar with their interest focused on the Qatar’s SMEs. The prospects of such partnerships were discussed at a meeting between DAFG, a Bavarian umbrella business association comprising of more than 150 regional entities and supported by Qatar Business Association (QBA). “We want to help SME’s outside Europe. Business has been the best method to bringing people together. The idea behind the delegation is to deepen the understanding between the two countries,” said Randolf Rodenstock, VP of DAFG (GermanArab friendship society), who is leading a 10-member delegation of entrepreneurs.

Qatar high on social networking sites

the positives and negatives of the new social media that has become popular in the past decade. It will question whether there is a new sort of globalization caused by this increased interaction due to new media or whether efforts are still needed for encouraging dialogue between communities in order to avoid the new media becoming a tool of racism and hatred.

World of Difference programme

nder Vodafone’s ‘Better World’ Corporate Social Responsibility initiative, Vodafone brings the ‘World of Difference’ programme to life for its second year. The registration doors to the ‘World of Difference’ programme are open once again for the people who are passionate and would like to connect to a local need and to complete a project that will make a sustained difference to the lives of others. Vodafone Qatar is giving four people the opportunity to receive funding for twelve months to undertake projects to help the community in Qatar.

Agricultural city to be launched

O & G overview

WPC to seek energy solutions

LPG output to reach 11 million tpy by 2012

atar’s liquefied petroleum gas (LPG) output will reach 11million tpy by 2012, making it one of the largest global exporters, said Saad Al-Kuwari, Tasweeq CEO while he briefed media on the 24th World LP Gas Forum.”The more we produce liquefied natural gas (LNG), the more LPG we get,” he said. Asked whether Qatar’s LPG output would increase given that the country had achieved its targeted liquefied natural gas production capacity (of 77mn tpy), Al-Kuwari said: “There will be a slight increase with local projects such as Barzan and AKG2 getting commissioned.” Currently,

Qatar produces about 10.7 million tonnes per year of LPG gas. Tasweeq delivers regulated products exported from Qatar, such as LPG, condensate, sulphur and refined products, including naphtha, motor gasoline jet fuel and most recently GTL naphtha (a high quality product from Pearl GTL, the world’s largest gas-to-liquids plant in Qatar). Tasweeq also markets QP’s crude oil entitlements (non-regulated products) under an agency agreement. “The LPG Industry is set to scale newer heights with countries around the world realising the significance of adopting green energy," he said.

Qatar exports to Japan goes up

atar is about to overtake Indonesia as the thirdlargest exporter of liquefied natural gas to Japan, which has been increasing LNG imports to generate electricity to offset capacity lost due to the March 11 earthquake and tsunami. Japan, the world largest LNG buyer, imported 870,072 metric tonnes of LNG from Qatar in July, up 53% on year according to finance ministry data. During the same month, Japan imported 731,557 metric tonnes of LNG from Indonesia, down 36% from a year earlier, the

data showed. In the first seven months of this year, Japan bought 5.64 million tonnes of LNG from Qatar and 6.33 million tonnes from Indonesia, up 28% and down 15% from a year earlier, respectively. Indonesia reduced LNG export volumes under long-term contracts with several Japanese companies last year to meet rising domestic energy demand. Japan has been increasing LNG imports to make up for lost power supply from its nuclear plants since March. Japan’s overall LNG demand is expected to rise by more than 10 million tonnes this year versus 2010 because of its nuclear power shortage.

LNG import figures of Japan In Figures

870,072 731,557 metric tonnes of LNG metric tonnes of LNG from Qatar

20 Qatar Today

october 2011

from Indonesia

reparations for the triennial World Petroleum Congress to be held in Doha are in their pre-final stages, with registration in its final stages and event programme ready for dispatch to delegates. The 20th World Petroleum Congress is being hosted by Qatar Petroleum on behalf of the State of Qatar and will take place at the new Qatar National Convention Centre (QNCC) from December 4-8, 2011. The theme of the Congress is “Energy Solutions for All – Promoting Cooperation, Innovation and Investment” and this is the first time since its establishment in 1933 that the World Petroleum Congress will be hosted in the Middle East. This is the forum for the region’s top energy stakeholders to showcase advancements across the range of their operations, as well as for representatives of the Middle East to prove their growing credentials in a highly competitive market. WPC, Chairman of the Organising Committee, Issa Bin Shahin Al-Ghanim said: “This is a great achievement for Qatar and it also underscores the region’s growing role in global energy.” Al-Ghanim said around half of the expected 5000 delegates have already confirmed their attendance and applications continue to stream in.

GULF CARRIERS EMBRACE THEIR SIXTH FREEDOMs

bank notes

QNB to

develop EMTn ProgramME

NB Group announced that it plans to develop a Euro Medium Term Note Programme (EMTN) with a total amount of QR27.3 billion ($7.5 billion). The proceeds from this program will be utilised in the Bank’s normal operations. Barclays, HSBC and QNB Capital were appointed as arrangers for the programme.

SCB looks favourably on Qatar’s Sovereign rating Standard Chartered (SCB) have given a positive outlook on Qatar’s sovereign rating in a study entitled ‘Middle East Focus – Global Problems, Regional Challenges, Local Answers’. It reported that Qatar is a strong net creditor and is more than capable of servicing its debt obligations. Among its sovereign bonds, QATAR 2015 is seen as an especially favourable one, while the long end of the QTEL curve is attractive in the corporate space.

QATAR AND SHANGHAI STRENGTHEN FINANCIAL TIES

he Qatar Financial Centre Authority (QFCA) signed a Memorandum of Understanding (MoU) with Pudong New Area Financial Services Bureau ('PFSB') in a ceremony in Doha, Qatar, last month. The MoU has been signed to foster, pursue and develop the common interests of the PFSB and the QFCA in seeking and exploring opportunities that mutually benefit the parties’ respective financial centres and the financial and business communities of the State of Qatar and Shanghai Pudong. The QFCA and PFSB will cooperate in a number of ways including the exchange of information and organising common seminars and conferences on selected issues in Qatar or in Shanghai Pudong. Acting CEO and Chief Strategic Devel-

opment Officer of the Qatar Financial Centre Authority, Shashank Srivastava, commented, “We are delighted to strengthen our ties with Shanghai Pudong in whatever way we can for the mutual benefit of the financial and business communities of Qatar and Shanghai Pudong.” “The QFC Authority is looking increasingly towards Asia to target the needs of the region’s asset managers, reinsurance and captive insurance firms,” he added. General of Pudong New Area Financial Services Bureau, Shi Haining said, “Our visit to Doha has been productive and rewarding and we are grateful to the QFCA for their hospitality. They have developed a very successful financial centre here in Qatar and we look forward to building closer relations with them.”

Ahlibank given stable outlook

itch recently declared Ahlibank Qatar’s long-term issuer default rating (IDR) as ‘A-’ with a stable outlook, and a visibility rating of

‘bbb-’. They also adjudged their short-term IDR at ‘F2’, individual rating at ‘C’, support rating at ‘1’ and support rating floor at ‘A-’. Fitch reported that the rating reflected the bank’s solid profitability, adequate li-

22 Qatar Today

october 2011

quidity, sound capitalisation, and the likelihood of support from the Qatari authorities if needed. Chariman of Ahlibank Qatar, Sheikh Faisal bin Abdul Aziz al-Thani, said the Bank were pleased with the rating affirmation by Fitch, which was a clear recognition of its successful business model and its strong performance over the years, and he complemented by the valuable support of their partners, Ahli United Bank.

Standard Chartered recently announced the appointment of Rajat Sapra as the new Head of Global Markets and Co-Head of Wholesale Banking in Qatar.

BA N K N OTES

Diversification key to prudent investments Global stock prices have been very volatile recently, particularly over the summer months, amid a seemingly endless stream of data pointing to an economic slowdown.

Against

this backdrop, investors have become extremely risk-averse. This has seen many sell out of equities and transfer the proceeds to the ‘safer havens’ of bonds and even cash. The price of gold, another place of refuge for wary investors, has risen significantly too. The question that arises is why one should invest in equities at all, given their perceived risk, when bonds and other secure assets provide more stable returns? There can certainly be no denying that we are passing through a particularly turbulent time for equities. Almost all the major stock markets have fallen considerably over the last three months or so. One of the driving forces behind such volatility has been the desire to make short-term gains from market movements. The more prudent investor, however, recognises that a longer term approach is necessary. By holding onto assets with a long-term view, investors can ride out the ups and downs of the market. Patience truly is a virtue in stock markets as the evidence shows. *In the US, the S&P 500 recorded returns of -3.2% over the three months to July 29, while over three years it has grown 31.6%

(in sterling terms). Asia Pacific equities have done even better. In spite of weak three-month figures, the FTSE AW Asia Pacific except Japan has risen by over 100% in the last five years. Nonetheless, strong long-run performance alone does not provide a sufficient rationale for investing in equities; many bond indices also have robust track records over the longer term. Past performance is also not a reliable indicator of future returns. As such, a degree of diversification – the principle of not holding all one’s eggs in one basket – is fundamental to prudent investing. Although bonds are usually safer assets to hold when the economic environment is tough, they traditionally underperform equities when economies and investors’ appetite for risk start to pick up. Moreover, a number of sovereign bond markets in peripheral Euro zone countries are currently facing default issues. Given the nature of the business cycle – the so-called booms and busts – risk markets do undergo short-to medium-term undulations. In this light, a portfolio of medium-to-long-term investments spread across asset classes – equities and bonds, as well as perhaps property and cash – should provide satisfactory returns without entailing unnecessary levels of risk

feedback qtoday@omsqatar.com

By Javed Hassan Akhtar Senior Sales Manager Wealth Management, HSBC

*Source: Lipper Hindsight, Data to JULY 2011, Total Return, UK Net of Basic Rate Tax, GBP

24 Qatar Today

october 2011

BA N K N OTES

Global monetary policies keep gold in high demand Most of the factors that have driven gold prices to ever new highs are likely to remain in place over the coming months.

see mainly three factors that will continue to push the gold price higher: global monetary policies, strong emerging markets demand and high uncertainties about sovereign debt problems. Given the recent downturn in macroeconomic data, the US Federal Reserve already announced to keep interest rates at a very low level until at least mid-2013. There is a strong chance that other central banks will also keep interest rates low for longer given the deterioration in global economic growth. In this regard, some emerging market central banks already started to cut interest rates and it is likely that also the ECB will soon lower its benchmark rate. As real interest rates are the opportunity costs for holding gold, very low respectively negative real interest rates make it appealing for investors to hold the yellow metal. Moreover, as we expect to see further far-reaching monetary policy announcements by the US central bank in the coming weeks, the dollar liquidity is likely to remain high. On the one hand, this raises concerns over inflationary pressures in the long-run and on the other hand it weakens the US dollar. As investors tend to buy gold to hedge exactly against these two factors, actual global monetary policies are likely to keep investment demand for gold on a strong footing. Emerging markets demand is also likely to remain robust â&#x20AC;&#x201C; in particular in China and India. According to the World Gold Council, India and China together accounted for 52% of global bar and coin investment and 55% of global jewellery demand in the second quarter 2011. While we envisage the risk for high inflation in

industrialised countries to be low over the coming months given their weak economic growth outlook, inflation in these two markets is rather high. Moreover, increasing prosperity in emerging markets is also boosting demand for the yellow metal. Demand for gold, not only in form of bars and coins, but also in form of jewellery, is thus expected to remain at a high level in China and India. In addition, central banks in emerging markets continue to accumulate gold in order to diversify their foreign exchange holdings â&#x20AC;&#x201C; a structural trend that we expect to endure. Among others, Russia, South Korea, Thailand and Mexico are currently all adding to their gold holdings. Furthermore, Kazakhstan and Bolivia just announced to buy gold from domestic producers to enhance their reserves. Last but not least, the current very large uncertainties about the sustainability of sovereign debt levels are also boosting gold purchases. Given that the debt crisis in Europe is far from being solved and that the USA has recently lost its AAA rating by Standard & Poorâ&#x20AC;&#x2122;s, confidence in the global financial markets remains battered and is prompting investors to keep their money in the perceived 'safe haven'. Nevertheless, after the steep gold price rally that we have seen over the last decade, investors should expect volatility to be high. Temporary bouts of profit taking are very likely at the current high price levels. But falling prices should be used as entry opportunities as long as there is no significant change in global monetary policy in sight, since we expect demand, in particular from emerging markets, to appear on prices dips

read online qatartoday.tumblr.com

By Eliane Tanner The author is the Commodity Strategist of Bank Sarasin & Co. Ltd Switzerland

26 Qatar Today

october 2011

african nation emerging from slumber 32

realty check Preserving heritage

Construction sector sees minute growth

atar accounts for about 31% of the total new construction projects announced in the main MENA markets in the last 30 days, international financial conglomerate Citi Investment Research & Analysis says in a report. The main project announced by Qatar in the last 30 days is the $3.3 billion Aerospace City, the report said. According to Citi, construction projects worth $5.5 billion were awarded across the Middle East and North African region in August. This shows an increase of 13.5% year-on-year. On a 'cumulative rolling' basis, project award growth is now 1.7%. Project awards are slow and the summer period, which this

year included Ramadan and Eid. Overall, the trend continues to remain lacklustre and sits below the 5.9% historical average, Citi said. In terms of number of construction awards, some 22 projects were awarded in August, which compares with 19 in July. Again on a cumulative rolling basis, this stands at 2.5%. This compares with 2.2% in July and an historical rolling average of 7.6%. For the GCC, projects planned and underway now stand at just over $1.8 trillion, representing a growth for the first time since Citi’s November 2010 report. The total 'project pipeline' for the major Mena markets is up 3% to $648 billion, the report said.

Construction projectS in MENA August Figures:

$ 5.5 billion

Number of NEW projects

sheireb Properties has appointed a specialised team headed by company architects and leading local and international experts to oversee the restoration and preservation of four historical buildings in the Msheireb Downtown development. The assigned team will work on the restoration of four historic heritage houses that will transform the Heritage Quarter and create an important cultural destination within the development. The four houses that will be restored are the Jalmoud House, Company House, Mohamed Bin Jassim House and Al Radwani House. These historic structures will become cultural centres, museums and exhibition buildings. In addition to the cultural buildings, the team will also undertake the task of carefully dismantling a heritage house of particular historic value and reconstruct it on another location within the Heritage Quarter, located next to Msheireb’s Cultural Forum.

Msheireb wins Construction Sustainability Award

sheireb Properties’ focus on innovation, sustainability and green building was recognised at the Qatar Construction Week Awards 2011, where the developer tasked with regenerating Doha’s historical downtown picked up the Construction Sustainability Award at a gala ceremony at the Four Seasons Doha. The Construction Sustainability Award was awarded to Msheireb Properties for the ground breaking sustainability practices im-

28 Qatar Today

october 2011

plemented at its Msheireb Downtown Doha project. Construction Week chose the group’s signature project as the “winning initiative that will make a positive contribution to the advance of environmental considerations in construction, while also demonstrating clear practical applications”. Mohamed M Al Marri, Director of Projects, accepted the Award on behalf of the CEO Eng Issa M. Al Mohannadi. Eng. Issa said: “We are honoured to receive this award which recognises our unique

approach of developing projects that are sensitive to local norms, culture and environment and further underscores our leadership in actively promoting environmental awareness, sustainability and conservation. By creating the world’s first sustainable downtown regeneration project we hope that this will serve as a bold new template for the incorporation of practices such as passive cooling, energy and water conservation and use of renewable energy and reduction of carbon emissions across the world.”

WHAT'S YOUR DESIGN?

arab snippets GCC

UAE

Nabs, the adventurer, reaches out to GCC youth

abil Al-Busaidi (Nabs), the Arab adventurer, has announced a school tour to educate young minds about the Antarctic, and success through innovation. As an integral part of the tour, Nabs will encourage the schools to raise money for local charities around the region. Kicking off this GCC-wide school tour in Oman, Nabs will visit schools that agree to participate in a fund raising exercise for a local charity of the school’s choice. Showing his documentary on his historic trek to the North Pole and taking a refrigerated container so they can get a taste of life in subzero temperatures, Nabs plans on visiting schools in Oman, Bahrain, Qatar and the UAE in the upcoming weeks. “It is important for kids today to take

ownership of the environmental problems in the world,” said Al-Busaidi. “And this is no place more prevalent than Antarctica,” he said. Nabs is the first Arab to row across the Atlantic Ocean and the first Arab to walk to the magnetic North Pole. If your school would like to receive a visit from Nabs, go to www.arabadventurer.com or email him at info@arabadventurer.com

Emirates: World’s largest carrier in 5 years ?

es, if predictions by the Boston Consulting Group (BCG) are to come true. Emirates airline would be expected to become the world’s largest carrier with its capacity to grow by 9% to 12%, according to a BCG report. BCG added that in terms of wide-body fleet capacity, the carrier ranked in the second place at the current time after Air France KLM. In the past five years, Emirates airline increased its capacity and passenger revenue almost to the triple. It also said that over the next few years, the carrier would be able to cut unit operating costs by an additional 12% to 15% below their low levels due to the delivery of newer, more cost-effective aircraft. It is worth noting that Emirates ordered 30 777-300ER widebody aircraft from Boeing that worth $9.1 billion (QR33 billion) in 2010. AFP PHOTO/Stan HONDA

highlight Growth slump in protest-hit States In the wake of pro-democracy protests, growth rates in Arab countries are expected to dip, according to the chairman of the Arab Monetary Fund. Countries hit by protests which toppled autocratic leaders in Tunisia and Egypt earlier this year “will see a slump if not a contraction in growth rates,” Jasem al-Manaie has said at a meeting of governors of Arab central banks, in Doha. “The reluctance of foreign investment and continued pressure on reserves and currencies combined with the possibility of increased unemployment will increase the financial burdens on these countries.” In a statement after the meeting, Governors of Arab central banks “emphasised the importance of providing short-term financial support by international institutions to contribute to the overall financial stability in Arab countries affected by the recent events.” The governors also “expressed their confidence in the future of the Tunisian and Egyptian economies and the banking sector in both countries,” and hoped that “Libya’s central bank will return to play its role,” said the statement. Recently, G8 nations and institutions including the World Bank, the IMF, regional banks and the Arab Monetary Fund pledged nearly $80 billion (QR292 billion) in aid and loans over the next two years for Arab states who have ousted their dictators, doubling the amount promised earlier this year.

30 Qatar Today

october 2011

Palestinian Statehood Campaign UNITED STATES, UNITED NATIONS : Riyad Mansour (C), Palestine Ambassador to the United Nations with Majed Abdulfattah (L), Basem al Baz (2nd R) and Ahmad Dari (R) carry a symbolic Palestinian seat to a meeting with UN General Assembly President Nassir Abdulaziz Al-Nasser September 15, 2011 at UN headquarters in New York ahead of preparations to request UN membership for Palestine. Abdulfattah, al Baz and Dari are part of a Palestinian delegation that is campaigning for UN membership.

AFP PHOTO / MICHAL CIZEK

w o r l d v ie w

AFP PHOTO/David Karp

Chilling End CZECH REPUBLIC, PRAGUE : Over 3.000 people gathered for a farewell ceremony at the Old Town Square on September 11, 2011 in Prague to pay tribute to Josef Vasicek, Jan Marek and Karel Rachunek, three members of Czech National icehockey team who died during the plane disaster that took the lives of the Lokomotiv Yaroslavl ice hockey team. 43 people were killed September 7, 2011 when a Russian jet carrying hockey players of Lokomotiv Yaroslavl to their first match of the KHL (Kontinental Hockey League) season crashed on takeoff in the latest blow to the countryâ&#x20AC;&#x2122;s tainted air safety record.

AFP PHOTO / ADAM NURKIEWICZ

Public Panic UNITED STATES, New York : People from all over the country gather near Wall Street in New York to voice their frustration with the economy and Wall Street on September 17, 2011 AFP PHOTO/David Karp

Euro Trauma POLAND, Wroclaw : European Central Bank President JeanClaude Trichet (2nd right) attends on September 16, 2011. a press conference after a meeting of the 17-nation Eurozoneâ&#x20AC;&#x2122;s finance ministers and central bankers in Wroclaw. Eurozone leaders made last-ditch efforts to contain the Greek debt crisis, saying they would rule on new aid next month.

32 Qatar Today

october 2011

AFP PHOTO/ POOL/ SERGEI ILNITSKY

w o r l d v ie w Safe landings

AFP PHOTO / PATRICK KOVARIK

KAZAKHSTAN, DZHEZKAZGAN : U.S. astronaut Ron Garan (R) and two Russian cosmonauts, Andrey Borisenko (L) and Alexander Samokutyayev (C), rest after their landing aboard the Soyuz TMA-21 space capsule about 150 km south-east of the Kazakh town of Dzhezkazgan, on September 16, 2011. The three spacemen made a safe delayed return from the International Space Station as Russia again pushed back the launch of their replacement crew because of a recent rocket crash.

Off the streets FRANCE, Paris : Muslims pray inside an old barrack in Paris on September 16, 2011 as part of Friday prayers. A ban on praying in French streets came into effect on the day, with thousands of the nation’s Muslim faithful being moved to temporary alternative spaces for their day of prayer. From Paris to Marseille, Friday’s midday prayers will be led from disused barracks or other temporary buildings, after the question of Islam’s visibility became a political issue under right-wing President Nicolas Sarkozy.

october 2011

Qatar Today 33

w o r l d v ie w

African Nation Emerging from Slumber As Qatar drives ahead with its preparation for the latter half of the 21st century, other nations – as far away as central-west Africa – are following their lead. Rory Coen visited Gabon for the official opening of their Special Economic Zone at Nkok which is hoped to trigger a seminal economic push for the 'emerging nation'.

HE President Ali Bongo Ondimba IS KEEN TO ATTRACT QATARI WOOD AND METAL PROCESSING INVESTMENT TO HELP SUSTAIN HIS DRIVE TO DIVERSIFY THE GABONESE ECONOMY

34 Qatar Today

october 2011

w o r l d v ie w “An area which specialises on the processing of our main resource is the essence of the NKOK Special Economic Zone (SEZ). We want to provide the right environment to attract investors and hope that the model will work so we can adapt it in other areas of the country” HE President Ali Bongo Ondimba

P ONG

A lmost 5,300 kms south-west of Qatar, cocooned in the armpit of Africa, straddling the equator and lapping up the Atlantic’s glorious salty wash hides a country with a similar economic template as Qatar. Its fundamental principal is to promote a system whereby revenues can be expeditiously generated to develop and modernise the country in the short-term whilst training and sustaining its resources for the longterm. Sounds familiar, right? HE President Ali Bongo Ondimba – who was elected to office in 2009 upon the death of his predecessor, his father Omar – has begun a tireless campaign to diversify from an oil-based and export-oriented economy. He laughed at any suggestion of maintaining this economic model and explained why Gabon needed to act with certainty and

ara ONE OF THE NATIONAL KM GABONESE MANY PARK MAGNIFICENT COASTLINE

BEACHES alon g THE

800

transparency now to attract investors. “We have been exporting raw product for 50 years – mining, oil, forestry – we understood that while this has brought us much needed revenue, we wanted to bring Gabon into a new era and prepare for the post-oil era,” he said. “It’s important for us to start manufacturing our own products. Lumber from Gabon is of incredible quality but the final product is ‘Made in China’ or someplace else, not ‘Made in Gabon’. I was given a figure recently and it really struck me – a tree from Gabon only makes 20% of its potential worth as log; 80% of it is generated elsewhere, through wood processing and manufacturing – so this is where we have to be players. “For us it was important to show the world we were serious and thorough. An area which specialises on the processing of our main resource is the essence of the NKOK Special Economic Zone (SEZ). We want to provide the right environment to attract investors and hope that the model will work so we can adapt it in other areas of the country.”

1,126 hectares making it the largest industrial park in central-west Africa. The SEZ was founded in August 2010 as a result of a joint-venture (JV) between Olam International – a Singaporean processor of agricultural products – and the Gabonese Republic, whereby both parties initially invested $200 million (60/40). Since the partnership was signed, the Olam-Gabon has worked hard to promote itself for foreign direct investment. They staged road-shows in countries such as Italy, Serbia, Ghana and India and to date can boast to have generated $1.2 billion dollars of investment from nine different c ountries. So what is attracting such investment? Since the export of Gabonese log was banned last year, wood processing companies are instead being enticed by favourable tax policies within Gabon to process the wood locally. They will be exempt from corporate tax, VAT, and customs duties on imports and exports. As well as that, the can enjoy a reliable and inexpensive power supply, no limits on remittances and a dedicated administrative window to cut out the red-tape.

NKOK SEZ Gabon is approximately 267,668 sq km in size, of which 22 million hectares or 80% of it is described as ‘equatorial forest’. The NKOK SEZ will eventually cover an area of

Qatari Interest The President revealed he is keen to have Qatari partners on board and sees a real purpose in what both nations are trying to achieve. “We are interested in the example of the

october 2011

Qatar Today 35

w o r l d v ie w Qatari 2030 vision,” he said. “There are certainly similarities between both nations; it’s a small state compared to its neighbours, same as Gabon. It has a small population with high revenues. We need to apply and develop our vision just like Qatar is doing. “I had a meeting with His Highness, the Emir Sheikh Hamad bin Khalifa Al-Thani and the Prime Minister and Foreign Minister HE Sheikh Hamad bin Jassim bin Jabor Al-Thani in Paris recently and we talked about a partnership between the State of Qatar and Gabon. Following it, HH the Emir sent a delegation from Qatar and we explored how we could evolve the partnership and identify our ventures. We are thinking of developing the oil and gas sector, the mining sector, education, and in due course transport and tourism. These were the main topics of our discussion.” Whilst Olam confirmed that there haven’t been any investors from Qatar as yet, a sizeable delegation from Qatar did meet with Gabonese officials on September 6 and 7, 2011. Included in the party were the Minister of Industry, HE Dr Mohammed Bin Saleh Al-Sada, as well as representatives from Qatar Petroleum, Qatar National Hotels, Qatar Mining Companies, Qatar Aluminium, Qatar Steel, Qatar Supreme Education Council, Qatar Islamic Bank, Qatar Airways and Hassad Foods. Gabon Emergent The NKOK SEZ is the engine powering “Gabon Emergent” – the catchy title which derives its effort to propel itself into a new era. The President is quick to point out that they are focusing on all key sectors, such as education, social affairs, health, infrastructure and technology. However, the country’s location and climate could drive another sector which could in turn adjust its economic policy in the future, but they are apprehensive regarding its sustainability and marketability. The country has 800 kms of Atlantic coastline, much of which hosts glorious beachheads and palm trees. Libreville, its capital, is plum on the equator and has itself a magnificent, but under-developed, beach running parallel to its western corridor. Ecotourism is a somewhat untapped and unknown sector through-out the world, but it’s one where Gabon could thrive if the global demand was evident. The rainforests have hundreds of different types of trees and are where some remarkable mammals live in harmony and uncompromising freedom.

36 Qatar Today

october 2011

Investor: TimberWolf Timberwolf Tropical Hardwoods – an American Lumber Company – is a direct importer of Central-West African tropical hardwoods. They are acquiring a land-plot of 19 hectares in the NKOK SEZ. Jim Wolf – who is a partner at the firm – explained their presence there: “The SEZ was specifically designed to promote economic development. It was the brainchild of some very hard working and insightful men who realized that it was going to take a big effort to overcome some of the negative ‘inertia’ historically associated with doing business in Africa. What is worthwhile to us, is that the entire development was designed to promote the timber industry. Our customers told us that in the past supply from Africa wasn’t necessarily reliable; supply issues and quality control deficiencies meant that Africa was not meeting its potential. We made it our goal to control the supply from forest to customer and do this with a sustainable focus.” The quality of the wood in Gabon makes it useful for decorative qualities – for instance, flooring, musical instruments, panelling, furniture, cabinets or veneers. “We have been told that there are over 550 species in the Gabonese forest, and they range in colour from almost pure white to pure black. If you look at a typical tree in the Gabonese forest, it is tall and doesn’t have a limb for perhaps 100 feet. This long, uniform section of tree lends itself to making clear (without knots) boards, so its visual appearance is quite desirable. Since many of the trees are quite large in diameter it is possible to get wide boards for those end users to whom this is important.” But isn’t all this hazardous to environment. Won’t Gabon ultimately regret eliminating its rain-forests? “Gabon has adopted a policy of environmental sensitivity. It is both a legal and policy mandate. After all, without a forest there is no forest products industry! Our harvesting is designed to have as low an impact on the resource itself as is possible. For instance, we will not cut the largest of trees nor those below a certain legal minimum and in no case will we harvest more than the forest can regenerate in the 25-or-30-year cycle of the concession management. Good silviculture practice has shown that forest and wildlife benefit from opening the canopy and allowing some light into the forest.

“The biggest thing is to convince ourselves that we could have a thriving tourism sector here,” said Bongo. “We didn’t think it was possible until now – a country which is 80% rainforest; we thought nobody would be interested in that.” Many of the sectors are linked and rely heavily on each other to survive, so the President understands that he needs to take a holistic approach to every new venture or project. They need to be decisive and incisive about their strategy for tourism. “In order to boost tourism, we need to build infrastructure,” he continues. “11% of the country is reserved as national parks but we have to get access to those national parks; we have to build proximate hotels, hospitals and airports. Then we need to determine what is going to be our policy. What kind of tourist do we want? Do we want mass tourism, or will it be more selective? “We are also evaluating the assets that we have; the beaches, the rain-forests, the parks. We can certainly attract tourists here but you’re also going to wonder if we are something here that can’t be done somewhere else. What’s so unique about Gabon? We have started researching this

but we want to be thorough lest we make mistakes.” The Agence Nationale des Grands Travaux (ANGT) are charged with bringing the country’s infrastructure and social development to a modern standard. This includes providing potable water supplies and waste management systems for all neighbourhoods; efficient transports systems; sustainable housing developments and modern offices. The ANGT are working with Bechtel – an international engineering and construction company – to erase the slum areas from Libreville, by providing highquality housing units (HQU) for over 150,000 Gabonese in “SmartCode” towns in the suburbs and also developing the city centre – Le Champ Triomphal – into a prosperous area for business and trade and a safe place for socialising. They are also constructing a couple of hospitals in Libreville – one of which is a Cancer Institute – road networks, and indeed are behind the construction of the 40,000-seater stadium which will host the final of the African Cup of Nations in January, 2012 follow

www.twitter.com/qatartoday

v ie w p o in t

Beyond Business Trim suits, pressed shirts and ties; for a long time these were the standard uniform of travellers destined for Qatar. Business has been a mainstay of the State’s tourism sector, with segments like MICE (meetings, incentives, conferences and exhibitions) driving growth.

Indeed

, about 90% of the country’s one million annual visitors are here for business reasons alone, according to Hotelier Middle East. Recently, however, tourism in the State is undergoing a bit of a makeover. Qatar has been working toward a higher sport profile, hosting international events and investing in facilities. With all of the press surrounding the country’s 2022 World Cup bid, it would be easy to believe that the FIFA tournament marked the beginning of this shift. Believing so, however, would be a mistake. Sport has been a rising star long before the FIFA bid. The country has been hosting an increasing number of international athletic events in the past decade. In 2006, Doha hosted the 15th Asian Games, a 45-nation Olympic-style athletics competition. In March 2010, Doha hosted the World Indoor Championship, a series of track and field events. And, to take an example from football, Qatar hosted the 2011 Asian Cup, a 22-day, 32-match tournament. Events like these have helped the State build up its reputation as a sporting destination and utilise its existing sport venues, including the Aspire Dome and Khalifa International Stadium. The World Cup – nearly a century old and among the most-watched sporting events in the world – is an event that is already boosting Qatar’s sports profile even further. The authorities are expecting a massive influx of fans from across the globe. During the 2010 World Cup in South Africa, visitor numbers topped 370,000, according to consultancy Grant Thornton. An uptick in visitors could do much to boost the State’s hotel industry. The Asian Football Confederation Cup, for example, buoyed room occupancy rates earlier this year. The rate for the first six months of 2011 was 63%, compared to 61% reported in H1 2010, according to the Qatar Tourism Authority (QTA). On the face of it modest, this increase came in spite of regional political unrest, the opening of several large hotels and several other factors that may have pushed the ratio down. Along with rising occupancy rates, Qatar is set to ramp up its hotel capacity in the lead-up to the World Cup. The country

currently has about 10,000 rooms, with plans to boost that number to 30,000 by 2013 and over 90,000 by 2022, Chairman of QTA, Ahmed Abdullah Al-Nuaimi told Reuters in an interview last August. This year alone there are 6,604 rooms currently set for completion, according to STR Global, an industry consultancy. These plans will likely be welcomed by contractors, materials manufacturers and hospitality companies, who are all set to benefit from the influx of investment. Sports tourism could also encourage the broadening of the hotel offerings in Qatar, because sports travellers, more so than their business counterparts, have a wide budget range. For the World Cup especially, a broad selection of hotels is set to be crucial. Qatari officials are confident the country’s offerings will be up to the task. “We are fully aware that thousands of fans will be coming to Qatar with varying budgets,” Hassan Al-Thawadi, Secretary-General of the Supreme Council for 2022, told OBG. “Our bid book promised that 84,000 hotel rooms would be available for the event, and we will be working to ensure that we cater to every visitor no matter what his or her budget may be.” Budget considerations are important both for those attending events and for those hosting. Last December, Standard & Poor’s (S&P) estimated that the price tag for the infrastructure to accommodate the World Cup alone would amount to $64 billion. Still, indications are that the world’s largest LNG exporter has few ` concerns about funding. “We expect most of the infrastructure will be financed via revenues from the oil and gas sectors,” said S&P Analyst Luc Marchand in a report last December. “In our opinion, this could lead to a lower, although still substantial, surplus in the government’s budget at above 7%of GDP in 2011-2013.” Build and they will come. Doha seems to be taking this strategy a step further: build bigger and they will come in droves. With the planned outlays, World Cup preparations are set to unleash a deluge of investment opportunities into the State’s tourism sector, which the authorities no doubt are hoping will create a more robust tourism sector in the short-to-medium-term and a more diverse economy long-term

feedback qtoday@omsqatar.com

By Oliver Cornock The author is the Regional Editor of Oxford Business Group

38 Qatar Today

october 2011

vie w poin t

Women: Qatar’s Most Valuable Resource As GCC countries make the transition from economies dependent on oil to economies driven by the insights and intellect of their nationals, one of the most valuable – and untapped – resources available is the economic energies of Gulf women.

Qatar

has certainly recognised the need to bring more women into the workforce, particularly the private sector. The Qatar National Development Strategy 2011-2016 notes that the government aims to increase the number of Qataris in the private-sector workforce from 5% of the population to 15%, and also recognises bringing more women into the workforce will require greater provisions for work-life balance. However, as of 2009 (the most recent year for which data is available), just 36% of Qatari women were active in the workforce, and only 2.9% worked in the private sector. Private-sector companies that can successfully integrate women into their workforces can help the government increase this number. More important, they can fill their own talent gaps, tapping a cohort of women who are well-educated and eager to join the workforce. This will give them a long-term competitive edge in a market where the war for talent gets fiercer every day. Three steps are critical for private-sector companies that want to successfully attract and retain talented women. Make the business case First, GCC companies must have a senior champion who can make a business case for the need to have women in the work-

force. Doing so is not without challenges: There is little in the way of objective, broad-based research that clearly establishes the importance of integrating women in the workforce. However, anecdotal evidence from a multitude of companies shows the value that a strong female talent base can engender. For instance, having more women in a company improves the overall quality of the workforce: One company found that the level of overall employee engagement (as measured though annual survey) increased by 15% as a result of a large diversity and an inclusion programme. Companies can also target female consumers more effectively when they have women making decisions in critical areas such as R&D, product development, marketing, and sales. Companies can’t afford to miss such a crucial opportunity as GCC women’s spending power continues to grow. One Saudi consumer goods company found that increasing its market share among women in each region where it operates would grow total customer volume by over 2% and annual revenues by QR131 million ($36 million). Manage talent effectively Second, after making the business case, companies must develop a comprehensive approach to talent management. This begins with hiring, seeking out the most promising female candidates

october 2011

Qatar Today 39

v ie w p o in t from women’s colleges and vocational institutes, sponsoring professionally fulfilled and motivated. Doing so requires fairly promising candidates in their studies, and partnering with lead- traditional HR levers such as compensation and benefits, opporing technology training institutions and high-tech companies tunities for career advancement, and work-life balance, as well as the intangible elements that make employees feel motivated with training programmes. Once companies have hired the best candidates, they must to work hard each day: recognition, a sense of purpose, trust, and continue to invest in their development with training pro- a connection with colleagues and the organisation. grammes to impart necessary skills. In particular, many companies feel that women lack sufficient English, technical training, Adapt to the change and interpersonal skills. This is largely a legacy effect of the way The third and final step is to recognise that integrating women that regional women have been pushed toward working in a lim- in the workforce is a complex initiative with potential ramificaited number of sectors, such as education and healthcare. Dedi- tions for the entire organisation, and thus requires an extensive change management strategy. It is not cated training within companies and resufficient to simply prepare women to form within regional education systems join the labour force; management must can help bridge this gap. prepare the rest of the employees to make Companies should also consider a the integration of women a companymentorship programme that pairs less wide success as well. experienced staffers with more experiFor example, in some job This may require overcoming misguidenced women; focused mentoring may appraisals, women receive ed but still prevalent perceptions among accelerate women’s development into references to personality some about the proper roles of women in leadership positions and also help womsociety, or their ability to succeed in the en navigate particularly difficult transitraits – they are 'shy' or 'emoprivate-sector workplace. Because these tions in their career, such as pregnancy tional' or 'not thick-skinned perceptions can be stubborn, changing and return from maternity leave. them within companies must start from Another key part of managing talent enough' – rather than specific the top. Companies must line up support is evaluating employees fairly and objecdescriptions of behaviours or and commitment from senior executives, tively. All performance scores should be quantitative assessments of who must lead by example, for instance by based on specific outcomes (such as sales frequently working with female employnumbers) and the evaluation process their job impact. ees. At lower levels, the company should should include multiple sources of input, identify middle management champiincluding managers, colleagues, and subons for the programme who can begin ordinates. While this is good practice for spreading awareness of the programme all employees, it is critical to implement in advance, along with motivating their when evaluating women employees in a male-dominated environment. For example, in some job ap- staff to embrace the change. Finally, companies will need to add praisals, women receive references to personality traits – they a diversity-management component to the slate of mandatory are 'shy' or 'emotional' or 'not thick-skinned enough' – rather training required of all employees. Introducing women in larger numbers into the GCC privatethan specific descriptions of behaviours or quantitative assessments of their job impact. One approach to prevent this is to sector workforce will not be easy, and there is a risk of moving ensure that women are sufficiently represented on appraisal and too fast. But in the long-term, this change is inevitable. Women have the education and – more important – the desire to play a evaluation committees. The last element of talent management is retention: Once central role in the region’s labour market. Companies that adopt the company has taken measures to recruit, hire, develop, and an intelligent strategy to manage this transition will gain a comevaluate the women in its workforce, it should devote equal ef- petitive edge, through a workforce that is more engaged and fort to retaining women employees and ensure that they stay better reflects the GCC population at large Visit

www.booz.com and www.booz.com/me

By Leila Hoteit, Principal, Kamal Tarazi, Principal and Abdulkader Lamaa, Senior Associate with Booz & Company

About Booz & Company: Booz & Company is a leading global management consulting firm, helping the world’s top businesses, government ministries and organisations. Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914. Today, with more than 3,300 people in 60 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage.

40 Qatar Today

october 2011

v ie w p o in t

End of Summer Despair? This year Byron Wien organiSed three Benchmark Lunches in August for serious investment professionals who spend their summer weekends in eastern Long Island. The mood of this yearâ&#x20AC;&#x2122;s sessions was even more negative than in 2010, he writes, sharing the deliberations of those meetings.

The

investors at the lunch were concerned that the sovereign debt problems of Europe, now that they have spread to Italy and Spain, would overwhelm the resources of the European Central Bank, the International Monetary Fund and Germany. While believing growth would continue to be relatively strong in Brazil, India and China, many worried that tight monetary policies would slow even these emerging economies. There was concern that the Arab Spring might suffer a second wave of unrest if a failure of the new regimes to provide jobs were to result in further widespread disappointment. Although each lunch had its own mood â&#x20AC;&#x201C; all three generally

42 Qatar Today

october 2011

resulted in divergent outlooks, but throughout all three sessions there was considerable worry about a failure of European banks as a result of sovereign debt defaults or restructuring. American chaos The most common word used in all sessions to describe the American political process was 'dysfunctional' and there was a feeling that there would be no constructive change before the elections, and more than a few wondered if the situation was hopeless because the system was broken. One participant said the debt ceiling and budget debates were rational. A large part of the population simply wants to trim the size of government and they were determined to exercise every effort to make that

vie w poin t happen. Perhaps it will take a crisis, as it usually does, for the parties to come together and take effective action. Part of the frustration of the investors was tied to the fact that the US administration had so few options to deal with the economy’s problems. Quantitative easing was discussed at each session. It was agreed that the first round provided a boost to the economy, but that QE2 had a smaller impact although it created a rally in the stock market and commodities, especially gold. A potential QE3 was expected to have only a limited positive impact. The biggest problem is a lack of business confidence. This can only be restored by a pro-business president and Obama is the opposite of that. But we also have to revise the tax code and get rid of subsidies to agriculture, real estate and the oil and gas industry. We have to reduce regulation. The tax base has to be broadened. Everyone has to make some sacrifices to get us out of this mess. Almost everyone agreed that creating jobs was the most important task facing the US administration, but if the government was going to make any progress here, it would require spending federal money and there was no appetite in a Republican-controlled Congress for doing that. But, few were optimistic about the efforts of the joint Republican/Democratic “super committee” that would develop the second phase of deficit reduction, and most worried that lobbyists would have too much influence on the outcome. Most of the participants said they would be willing to pay higher taxes if they had any conviction the money would be used sensibly. The Europe Dilemma That European banks were in serious trouble and that institutions there lacked the resources to deal effectively with the sovereign debt issue, was of great concern. Even a partial solution would increase Germany’s dominance of the continent and many countries would find that unacceptable. It was thought unlikely

feedback qtoday@omsqatar.com

A 9-Step Solution? A hedge fund manager said he would provide some serious support (and get others to do so) to a candidate with this platform: Get out of Iraq and Afghanistan. Provide every returning soldier with free education at a four-year college or trade school of choice. Establish a peacetime WPA effort to help rebuild US infrastructure. Unleash the domestic energy industry to develop energy supplies and reserves. This will create employment and reduce dependency on foreign suppliers. Limit government spending to a growth rate of 1% below the level of nominal GDP growth. Freeze entitlements and raise Social Security retirement age to 70 with an exception for those who work hard labour. Implement a 10% income tax surcharge for three years on those annually earning over $500,000. Implement a 5% VAT tax to get at the underground economy and deal with the deficit. Tackle healthcare seriously. Ban or curtail high-frequency trading and limit credit default swap trading to those that own the underlying bonds. High-frequency traders are turning the best capital market in the world into a casino and scaring the public.

that Greece or Portugal would grow fast enough to restore their financial strength or that their people would endure the

austerity necessary to bring deficits into line. Most felt that a temporary solution would be found to avert an immediate crisis and the euro would survive, but that several years from now the EU would be different, with some weaker countries leaving. European banks were facing a challenge with sovereign debt similar to that faced by United States banks with the subprime real estate loans, but Europe lacks the fiscal authority to provide the financial support to deal with it. Euro bonds might be the answer, but there was disagreement on whether Angela Merkel would support that solution. Golden opportunity Problems in the United States and Europe have increased the attractiveness of gold for many of the attending investors, with some expecting it to reach $2,000 before year-end and higher prices later. Other commodities should also rise because of emerging market demand even if these economies slow somewhat. Oil also should move higher because of the rising standard of living in the developing world, but several knowledgeable participants expected significant increases in natural gas demand as it replaces gasoline in some commercial transportation applications. Social instability is expected to become a more important factor in other parts of the world. The riots in England dramatised how tender the unemployed have become. The social fabric in the United States is also combustible. One of the conundrums is that federal deficits account for almost 10% of Gross Domestic Product. If we cut government programs back too quickly the economy would almost surely go into recession. We are unlikely to deal with these severe unemployment issues without spending some serious money. There was so much despondency among the three groups that only a few of the investors were suspicious of the unanimity, but the contrarian in me thought that was a reason for hope

By Byron Wien is Vice Chairman of Blackstone Advisory Partners LP where he acts as a senior adviser to both the Firm and its clients in analyzing economic, social and political trends to assess the direction of financial markets and thus help guide investment and strategic decisions. Prior to joining Blackstone, Wien was Chief Investment Strategist for Pequot Capital and before that served for 21 years as Chief (later Senior) U.S. Investment Strategist at Morgan Stanley

october 2011

Qatar Today 43

v ie w p o in t

I Tweet Therefore I am 'Cogito ergo sum' is the famous impeccable three-word locution by RenĂ&#x2C6; Descartes that contoured the foundation of the Western Philosophy. Ideas do exist; and since ideas cannot be separated from oneself, then we exist. If we are to put it in today's lingo, in a virtual world we are nothing but cogitations that are translated in characters â&#x20AC;&#x201C; 140 if we are on Twitter. These thoughts are called tweets. We cannot be separated from our tweets, hence we exist in the Twitosphere.

a connected world these thoughts do travel fast from one individual to another. We follow tweeps for their thoughts and if we find them poignant, peculiar or prodigious we spread them through re-tweeting them. It is a mimic of the real world situation but it is different from other social networks. If the tweeps are not fortunate enough to be luminaries, they try to attract followers through their distinctiveness and creativity. Freedom of expression, finally! A tweep can wear many hats due to the complex nature of the hu-

44 Qatar Today

october 2011

man being and his or her different interests. Tweeps were Middle East Experts during the Arab Spring; Sport commentators during the World Cup in South Africa; and during Ramadan they are pious and religious. This multi-factorial identity is bothersome to those followers who are not well acquainted with the mere fact that these tweets are nothing but ideas. But no one has the right to complain since blocking an idea is a button away. The process of individuation necessary for a person to become whole, which has been encountered in the work of philosophers such as Arthur Schopenhauer, Carl Jung and Gilbert Simondon, is practiced on Twitter. If we perceive Twitter as a media tool, the individuation can be understood as a mass customization of

vie w poin t

the content to match a person's idiosyncratic mix of interests. This customisation could be done through the choice of tweeps you are following and the ideas you are sharing. Twitter gave people in regions where the freedom of expression was not everyone's right the vehicle to share their concerns and ideas not only with their friends, but with the whole world. We have heard voices that we could have never heard through the orthodox media conduits. Few years ago tweets were nothing but birds' vocalisations but today they are louder than the voices of the "tanks". Famous tweeps like Wael Ghonim and Sultan Al-Qassemi could have never made their way to the Times if it were not for their "loud" tweets, which were heard by the inhabitants of the Twitosphere. And the media folks found no better tool to get their firsthand information than from what has been perceived by many scholars as an incredible source of information. The same voices were not given a chance to be heard by the few which had the right to censor their ideas and words. It all started with a 'crave' I still remember the first day I joined twitter, back in February 2009. It was my craving for Hummingbird Bakery's cupcakes which made me register and follow their account on Twitter. In fact, I was exploring the possibility for a franchise (which did not work out for me). I never understood the intricacies nor delved into what seemed to me back then like a black box. I followed a few friends who followed me back, and that was my experience for the first few months. Major events in the region has shaped my perception and corrected the previous stereotype which many had about Twitter. The 2008 Gaza War, the 2009

follow twitter.com/halibrahim

Iranian Green Movement, Viva Palestina Life Line to Gaza and the Gaza flotilla raid were major events that directed people towards using this tool as a source of getting quick and credible pieces of information if they are following the right people. The tweeps who did not join Twitter during that period did not understand why people use a social network as a tool to empower activists and to share the vital pieces of information which make its way to the newsroom of major satellite channels. Although, I did

"By the time those who are not living the Twitter era get a piece of news or disseminate their ideas, a tweep will be way ahead of them in the curve."

not unfollow Hummingbird Bakery until recently, but unquestionably this shift in the paradigm changed my perception of how Twitter should be used and who should be followed. Although I was involved in helping some of the activists during the Gaza war, this experience got a bit personal as things were happening in our backyard. Once the issues in Kuwait started to escalate and for the first time in the modern history of this region, a prime minister

faced interpellation, there was no source that could present the unheard voices of the opposition. Although forums would provide some information with a lot of details, Twitter was the only source of information that helped me and others to get to hear about the events promptly. Tweet, or be left behind? The catchphrase 'disconnect to connect,' does not necessarily make sense in today's world and especially for activists, journalists, analysts, politicians, bureaucrats and even business owners. You do not need to be the next Wael Ghonim but you cannot miss the birth of the next one. I am not the same person one tweet ago because I get to explore the great minds out there and especially those who share the best ideas in the straightest and shortest possible way. If I get to tweet about an idea or post a question which I need different answers for, Twitter is a good platform to do so. This helps with the process of ideas mellowing and opinions shaping. By the time those (individuals and organisations) who are not living in the Twitter era get a piece of news or disseminate their ideas, a tweep will be way ahead of them in the curve. This is a fact that should not be ignored in this era. You cannot ignore this fact when you are addressing your audience or customers or they will just leave you behind in the process of individuation. This applies to governments as well, the masses will simply 'unfollow' them if they are left behind. This is a fact that can no longer be ignored nor overlooked. The Tunisians 'unfollowed' Bin Ali, the Egyptians 'unfollowed' Mubarak, Gaddafi was 'blocked' and others such as Saleh and Bashar are soon to be banned from this atmosphere

By Hassan Al-Ibrahim

The author is the co-Founder, Fikra Consulting and Research, the first Qatari think and do tank which is founded to look into human development (Physical, Cognitive and Socio-Economic) in Qatar. In its first year, Fikra was able to build partnerships with Dubai School of Government and the Wolfensohn Centre for Development in Brookings. Fikra was awarded a $900,000 grant to study Qatarisation with Brookings Institute and is currently in the board of the National Advisory Committee for the General Secretariat of Developmentâ&#x20AC;&#x2122;s UNDP HDR.

october 2011

Qatar Today 45

listening post

Making food secure Model Agricultural City launched 90% of the country’s food requirements are met by imports. The country’s limited storage areas and packaging facilities increase its difficulty in obtaining a diverse mix of import as a result of which there are fluctuations in supply and price rise. The issue of food security has therefore been identified as an extremely important national priority and it is in this context that the Agricultural City concept evolved.

M 46 Qatar Today

october 2011

By Ez dhar Ibra h i m Ali ohamed bin Ahmed Al-Obaidly, Chairman of the Qatar Chamber of Commerce and Industry’s (QCCI) Agriculture and Environment Committee, says the reason investors shy away from the agricultural sector is the difficulty of marketing agricultural products and the high costs involved, compared to imports. He highlighted that the committee had put forth the idea of setting up a model Agricultural City at the fifth annual consultative meeting with Prime Minister HE Sheikh Jassem bin Hamad bin Jabor Al-Thani. The Agricultural City concept came out of studies done by the Agriculture and Environment Committee. The City was planned with the aim of ensuring food security in Qatar while caring for the environment. It also aims to market the Agricultural City as a tourist destination and create a number of agricultural-related industries. The idea was approved and is now in the early stages of development. This was in context to the comprehensive development and building of a robust and productive economy based on agriculture, industry, education, health and recycling investments while moving away from reliance on finite natural resources, construction and real estate, which are features of a primary economy. In an exclusive interview with Qatar Today, he speaks about the challenges of this huge initiative.

listening post What are the principal challenges facing the agricultural sector in Qatar, and the reasons why it contributes to such a small share of GDP? There are several factors behind the agriculture sector’s tiny contribution to GDP, which in 2010 was just QR534 million, or 0.04%. These include Qatar’s harsh climate and high temperatures, which limit the growing season to short periods of the year, and the lack of rivers and lakes combined with low levels of rainfall. The upshot of all this is that Qatar ends up producing either crops that are tolerant of extreme heat and drought, such as date palms, or certain kinds of fruit, vegetables and flowers that can be expensively cultivated in greenhouses or polyhouses. The alternative is to make agricultural investments abroad in countries where they have the necessary elements for such investment, such as Africa and some Asian countries, especially in view of rising world prices for food commodities. Agriculture in Qatar also suffers from a lack of specialisation, which is one of the main problems for the sector. Does investing in Arab countries for agricultural purposes make business sense? Investing in Arab countries is not a profitable investment. It is not just because of the political tensions. There’s also the bureaucracy, formalities, and investment laws that are centuries out of date, and the immaturity of the executive branches in Arab countries. It is time the Arab states got their act together. The investments that have been made in other foreign countries are already yielding results, though they were made later than those in the Arab countries. What solutions is the committee suggesting to address the obstacles faced by the agriculture sector? The first solution the committee has proposed is specialisation. We’re looking at ways of making the best use of the existing situation and non-independent farms. We can move them away from activities they’re engaged in at present that have nothing to do with farming, although they give the same return, towards focusing on a single category of vegetables that can be marketed in a scientific way. This won’t happen without expertise and resources being available. This comes under domestic food security in the event of any crisis occurring in the countries where we have invested. There are a number of other challenges to which the Agriculture Committee could

also give some thought, such as the reluctance of young people to work in the agricultural sector for social reasons, and the low level of private sector investment in farming, as well as the lack of local investment in the agricultural sector.

Mohamed bin Ahmed Al-Obaidly, Chairman of the Qatar Chamber of Commerce and Industry’s (QCCI) Agriculture and Environment Committee

Investing in Arab countries is not a profitable investment. It is not just because of the political tensions. There’s also the bureaucracy, formalities, and investment laws that are centuries out of date, and the immaturity of the executive branches in Arab countries.

Is it necessary to establish an agricultural bank in Qatar to finance agricultural investments? I don’t believe there is any necessity to set up an agricultural bank in Qatar at present since Qatar Development Bank (QDB) currently plays this role. Setting up an ag-

ricultural bank isn’t a simple process. It would require billions of riyals’ worth of agricultural projects to justify the scale of investment, unless the bank expanded its operations to include international investments and financing, in which case it would become economically viable and fit the philosophy of specialised agricultural banks in other countries with vast expanses of agricultural land. Is it true that Qatari banks are reluctant to finance agricultural projects and investors in the agriculture sector? Financing is a thorny issue, and we can’t blame the farmers for that. The commercial banks aren’t interested in agricultural finance because they feel profit margins are small and risks are high. We will be raising farmers’ and investors’ financing problems again with QDB, whose role it is to deal with them. Farmers complain about QDB’s maximum financing limit of QR1 million, which is inadequate for the purposes of agricultural projects. I do hope any farmers with specific complaints will come to the Agriculture and Environment Committee at QCCI, as we welcome all complaints and for our part will investigate them thoroughly and try to resolve them. We recently sent out 2,000 questionnaires to businessmen, investors and farmers about the agricultural sector and only 20 investors replied, most of them members of the Agriculture and Environment Committee, which shows how little interest there is among investors. Which organisation is responsible for preparing a full study of the Agriculture City project? The Agricultural City idea is still only at the beginning of its journey. We have done some studies that need to be taken further. There are specialist studies being undertaken by the Agriculture and Environment Committee, Ministries of Environment, Municipality and Urban Planning; businessmen and specialists in the agricultural field, looking at all the problems associated with the project to put in place a sophisticated mechanism to safeguard the rights of new and existing farmers and consumers. It will be discussed at future meetings of the committee to find the best ways of realising the concept. There will be consultation with the relevant official bodies. There is a whole value-chain from production to processing to exports that is being formulated.

october 2011

Qatar Today 47

listening post

“The commercial banks aren’t interested in agricultural finance because they feel profit margins are small and risks are high. We will be raising farmers’ and investors’ financing problems again with QDB, whose role it is to deal with them." Will QCCI be directly responsible for the project? The project is a joint venture and decisions will be made by the higher authorities. QCCI cannot implement it on its own, but will have a big hand in working for the success of the project, as it is its own brainchild. Have you carried out any studies to identify a site for Agriculture City? And what conditions will the site have to meet? We have done some research to try and designate land where the city can be set up close to the ports and the industrial area, and although it will be difficult to balance all these requirements, it will nevertheless need access to transport links. It will use high-tech polyhouses to create model farms for vegetables, ornamental trees and certain fruits and crops for daily consumption that don’t need vast amounts of space, and will run on renewable energy. Agriculture City will also engage in livestock rearing and fish farming, and will have markets for the distribution of produce. There will be storage facilities on site so as to avoid having to transport perishable produce elsewhere, with the aim of getting it safely to consumers in accordance with health and safety requirements. We are also looking at setting up food processing plants in collaboration with global brands to produce – what in international terms will be – Qatari products. How will this enormous project be financed? The project will have its own foundation set-up. As we said, it’s a national jointventure (JV) between the public and private sectors, with the state as the main stakeholder - since the return will be seen in the long term, in the form of food security - and it will be based on the principle of active partnership between the private and public sectors. Agriculture City will benefit from foreign investment in technology, the

48 Qatar Today

october 2011

founding of research and development centres and the hybridisation of agricultural products on behalf of the State of Qatar. How long do you think it will take for the concept to materialise and see the light of day? Internationally, several organisations have indicated a desire to invest and get involved in developing food processing services and technology for power generation and polyhouses. I wouldn’t like to put an exact time on it, but I hope the idea will be implemented soon.

Qatar and its Farmland Qatar has 45,000 hectares of farmland, but these farms produce only 10% of their potential as a result of weak inputs and not using modern scientific methods, in addition to the absence of the necessary research to develop the agricultural sector. The cultivable area in Qatar is estimated at 65,000 hectares.

Will the project run separately with Hassad Food Company’s work in this area, or in cooperation with it? The project will be complementary to Hassad’s investments to ensure food security, and we will draw on its broad expertise in agricultural investment and the practicalities of land reclamation. The company is an active partner and we hope its participation will contribute to the success of the project. Will Mawashi (Qatar Meat and Livestock Company) be merging with the project, or will it operate in parallel to meet shortfalls in demand for meat and meat products? Mawashi shares the concept with us and is represented on the Agriculture and Environment Committee, but Hassad is now in the process of taking over Mawashi, which

will become just a distributor of Hassad’s output. What about the existing farms? How will they be involved? The project will not replace farms currently in production. They will complement it and benefit from the technology used by the project, which will itself gain advantage from the locations of such farms. Qatar has very little water resources. How will you tackle this water shortage? The project will make use of technology to desalinate seawater using renewable energy, and recycle sewage water, which will in turn increase the fertility of the soil. Do you think technology can solve all the problems of the agriculture sector? The main problem faced by the agricultural sector in Qatar is the salinity of its soil and water. It can’t produce enough food, or even any worthwhile supplement, so most of the food we consume comes from abroad. There is therefore no alternative but to use technology and modern methods of cultivation to diversify sources of supply and water. A firm called Aquiess claims to have the technology to generate rains. What do you think of it, and would you make use of it in the Agriculture City project? I have no idea about the scheme. We wouldn’t want it to be tested here unless it is proved successful in other countries. We don’t want any hype, but although there has been no suggestion of using it in the Agriculture City project, as artificial rain-making is normally done on huge farms covering vast, open areas, Qatar would of course benefit if the technology is successful in making the weather less harsh, especially in the summer follow

www.twitter.com/qatartoday

something should discribe the headlin e

THE FOCUS

WELLNESS IS

VOLUME 1

2010

HEALTHCARE

healthcare suppliment

cover story

Regulations, restrictions and competition B a n k s e x pl o r e ne w way s t o p r o f i ta bili t y

T 52 Qatar Today

october 2011

he fundamental function of a bank is to keep people’s savings safe and use this pool to provide credit for others who wish to borrow. For this service, the bank is entitled to a nominal profit margin on what it charges the borrower against what it gives out in interest to the saver. Ultimately, it’s a balance of risk and if a banker cannot keep his portfolio in the black then he is not doing his job. Somewhere along the line, the job's definition became so ambiguous, it was abused, and the hangover of this is now all too obvious in key markets. Last month, the Financial Times (FT) reported that Siemens withdrew half a billion Euro from a large French bank and deposited it at the European Central Bank (ECB), which brought the sum total of similar transfers by Siemens to €6 billion. This was in the wake of the US Federal Reserve (Fed) lending dollars to the ECB to help it lend to stuttering European financial institutions that couldn’t get a loan off any other bank. When massive enterprises like Siemens are losing faith in the large banks – and the Fed is lending to the ECB – then there’s something wrong. QNB Capital, here in Qatar, believes that ‘more needs to be done to directly address Europe’s sovereign debt issues, which are the root cause of the problem'. They intimate that this could involve cutting ECB interest rates, creating Eurobonds backed by all Eurozone countries, expanding the ECB’s Italian and Spanish bond-buying programme, or moving towards greater fiscal union in the Eurozone. The three former measures would help drive

Regulations, restrictions and competition Banks explore new ways to profitability By Rory Coen As the IMF hold their annual meeting in Washington, Qatari Banks are looking at the fiscal issues in Europe and the US and breat hing a collective sigh of relief that they’re not suffering from contagion or indeed from their own sloppiness in the markets. After a few months of shock and distress towards the end of the last decade, they’re now operating with a harmonic mix of confidence and caution.

down borrowing costs for some of the indebted countries, they say, but this would only be a short-term solution, giving these countries breathing space to reform their fiscal situations’. QNB Capital maintains that ‘despite the increased accessibility to dollar liquidity provided by the world’s central banks, the move does little to address the underlying concern about the ability of European banks to withstand a sovereign debt default. Until this is more directly addressed, the appetite of banks for lending and investment will remain restrained. The measures are merely a precautionary step that will shore up and insulate the banking system in case of a sovereign default in Europe rather than an emergency response to immediate dollar funding requirements’. So why are European banks not lending to each other? They are most probably frightened that they will go bust and will not be able to pay the money back. They are frightened that the other banks may not have been totally honest in revealing their balance sheets. Fears of a liquidity crunch force them to hoard cash, whilst the threat of regulation requires them to hold more capital. The trust

element between them is gone. There is that sense that we are in a period of extreme uncertainty and unpredictability which is evident from studying the financial markets. The era of cavalier and speculative betting has ended and every decision is now thoroughly scrutinised. Performing Banks However, banks in Qatar have been relatively unaffected by the ongoing issues in Europe and whilst there is a call for global regulation, this is coming from the parties which stimulated the problems in the first place. Banks in Qatar and the Middle East region in general have enjoyed sustained periods of growth and satisfactory yields since 2008, for various reasons. Qatar Financial Centre Regulatory Authority (QFCRA) CEO and Chairman, Philip Thorpe, explained that there is a wide-scope permit for international financial firms to conduct their business in the local Qatari market – which distinguishes it from other financial centres in the region – but the caveat is in the type of work the

october 2011

Qatar Today 53

cover story

Regulations, restrictions and competition B a n k s e x pl o r e ne w way s t o p r o f i ta bili t y

commercial banks are allowed to carry out. QFCRA regulated banks do not have the right to conduct retail banking activity in the local market, in terms of accepting deposits and providing loans or credit to individuals. This was due to the Authority's certainty that there were enough financial institutions operating in Qatar which were able to cope with market’s need for retail banking functions. Speaking to Qatar Today, newly appointed CEO of Standard Chartered Qatar, Charles Carlson, said: “Qatar Central Bank (QCB) is on top of all the major regulatory changes that are ongoing here at the moment. However, there’s a huge debate in Europe and US about global regulatory changes – as you’d expect after the crisis in ‘08 – they don’t want that to happen again. However, the verbosity of the debate is not as much in the east as in the west. There is no pressure on a country like Qatar to push for it; they have their own culture of banking and ways of doing things which is working. “Because [Standard Chartered Qatar] do our business exclusively in Asia, Africa and the Middle East,” he continued, “we have no exposure to European sovereign bonds. Our Head Office is in the UK but more than 80% of our revenue comes from abroad, from markets such as Qatar, as we have been in the Middle East region for 150 years. We have doubled our growth since 2008 and the results just announced were the ninth consecutive first half-year of growth, which is unique by itself given the bigger picture for international banks.” Country Manager, Mashreq Bank Qatar, Howard Kitson echoed this: “I don’t think there’s any significant exposure by Qatari banks to Greek bonds for example. There’s going to be a ring fencing of assets and the bond holders rights. Qatar has overseas investments which are very public, but these wouldn’t be directly linked to a Greek default.” QNB Capital notes that the implications for the Gulf of a Greek default are mixed. On the negative side, it could spark a fresh credit crunch in European banks, increasing the cost of financing globally, including projects in the Gulf. Also, if the crisis further knocks the already weak economic growth, then oil prices could fall. More positively, a weaker Euro would reduce the cost of imports to the Gulf, which sources much of its capital and consumer goods from Europe. Low asset prices may provide buying opportunities for GCC private and sovereign investors, as they did in 2009. Meanwhile, Doha Bank says that it has overcome negative sentiment and tighter regulations by providing innovative products to satisfy their customers’ needs. They signed up with the Qatar Development Bank (QDB) for the ‘Al Dhameen’ programme, which is a Credit Guarantee scheme to help finance Small and Medium Enterprise (SME). The programme will cover SMEs in eligible sectors with revenue of QR40 million or start-ups requiring investment of QR10 million. Doha Bank Group, CEO, R. Seetharaman said: “We saw a net profit of QR702 million for the first half of 2011, which represented a growth of 14.3% (QR615 million) for the same period last year. Net Loans and Advances increased to QR27.7 billion from QR26.6 billion in the same period last year, while deposits increased by 7.2% – from QR27.2 billion to QR29.2 billion – which is evidence of the strong liquidity position of the bank.” Exposure to Credit There are many theories regarding the most prudent way to

54 Qatar Today

october 2011

handle your capital during a period of intense growth. ‘Strike while the iron is hot’ or ‘if you have it, spend it’, were the popular rallying cries of institutions pre-2008, but tighter regulations by the QCB in the aftermath of the economic crisis retarded these sentiments. However, it’s important that entrepreneurs and businesses aren’t totally dissuaded from taking a risk with credit, whatever about the uncertainly in the global markets. Regional Economist at HSBC Qatar, Simon Williams, said: “Credit is a key ingredient in any growth story. It’s the means by which long-term investments can be funded by short-term savings, and the channel that allows the economy as a whole to be lifted by infrastructure focused capital spending plans. “During the 2003-08 boom, credit growth ran too hot, due in part to the dollar-peg,” he continued. “It took a couple of years for the sector to recover from the downturn that followed, but when I look at the Qatari banking sector now it does feel like conditions are normalising. Don’t confuse this, though, for a return to the easy funding environment that prevailed pre-2008. Those days are gone for good.” Kitson said: “There was a contraction in the amount of credit given out in 2009 compared to 2008 – that was a massive boom here – and then obviously the international markets contracted and there was a squeeze on liquidity and rates between banks. Interest rates shot up as there wasn’t much money in the system, but now, we’re seeing banks willing to lend more freely, interest rates are coming down and it’s actually becoming very competitive again. “Savings account interest rates have fallen, currently we’re offering 2.75% on the easy saver account – maybe you could shop around and get better or worse. However, given the current economic climate and the fact that we’re pegged to the dollar, it’s likely that we’re going see further falls in interest rates as we’ve seen monetary easing over the past six months and we predict even more going forward.” HSBC outlined that “banks play an important role in any economy to ensure companies have sufficient liquidity to operate, but in a booming market like Qatar it is even more important as access to credit is key to ensuring the success of any project. This can be as simple as issuing guarantees so the project owner shares the risks with the contractors to providing more complicated receivables backed financing arrangements. For good customers access to credit has been easy given the large number of well capitalised banks who operate in the Qatar market, all of whom are looking to build their balance sheets with high quality assets.” Carlson at Standard Chartered agrees with this sentiment: “There are some very strong banks in Qatar – there are seven full licenses – so it’s not so much a question of people having access to credit in this market. However, the Central Bank is very sensible on your requirements to have security – it’s not a free lunch; credit is something which has to be done within the terms of the regulations – but if you have a good proposal that makes sense, then I don’t believe that you would have a problem in getting the required amount. “You have to understand this,” explains Carlson. “We have long standing relationships with customers; the whole credit process works by knowing the owners and the managers of businesses. It’s very personal before you get into the financials – it’s personal because it’s about credibility and character. Good banks don’t lend money in the absence of certain things – you’re in the risk

“When I look at the Qatari banking sector now it does feel like conditions are normalising. Don’t confuse this, though, for a return to the easy funding environment that prevailed pre-2008. Those days are gone for good.” Simon Williams, Regional Economist at HSBC Qatar

business, so you actually have to start with having the credibility of the ownership of the people. If we have an ongoing relationship with certain people, sometimes we come up to them with ideas: ‘Here’s a new opportunity’ we say. “Qatar is a net exporter of capital – so not only do we support Qatari companies for their ambitions within Qatar, but also outside the country. Our role here is if Qatari companies want to look to East Africa or elsewhere in the Middle East or Asia, we may have proposals. If we know these clients and know where they want to grow, we can come up with a proposal. It’s not just domestic, it’s international as well.” Doha Bank reports that there has been a surge in credit approvals in Qatar in 2011. Credit Facilities have grown by 14.7% until August of this year; retail lending by 13.9%; Real Estate lending by 25.8% in the same period. In light of these promising recent developments, QFCRA C hairman, Philip Thorpe, is keen to push for a single regulatory body to really open up the tremendous opportunities presented by the country’s growth and investment plans.

“Qatar’s current financial regulatory structure is far from ideal. While the QFC benchmarks and delivers international standards, other areas of the domestic marketplace remain less well regulated, or in some areas, not regulated at all. The Government has long recognised the importance of establishing a comprehensive, integrated and effective regulatory framework, and in 2007 announced its intention to establish a single integrated regulator for the State of Qatar, an objective which it remains committed to. The benefits of a single integrated regulator are considerable and include ensuring consistent high standards across all markets and increased growth opportunities for financial services in Qatar. In time, such an initiative will also aid the diversification of Qatar’s economy; reduce uncertainties and administrative costs for financial market participants," he outlined in the QFCRA 2010 Annual Report. Personal lending regulations The QCB have inhibited the procurement of a credit card from your bank or any other bank, by forcing your sponsor to accept liability should you default, something which many sponsors don’t accept.

october 2011

Qatar Today 55

cover story

Regulations, restrictions and competition B a n k s e x pl o r e ne w way s t o p r o f i ta bili t y

“our industry and product expertise here matches the growth aspirations of qatar, from oil and gas to the proposed government spednding on infrastructure, where we have strong experience If we all get this model right there’ll not just be growth for us here in Qatar, but the banking sector as a whole.” Charles Carlson, CEO, Standard Chartered Qatar

It is also not possible to acquire a credit card from a financial institution where your salary is not transferred. They also moved to set an upper limit for personal car loans – banks and financial institutions would henceforth only be permitted to lend 80% of the value of a car, with consumers required to put up a down-payment for the remaining 20%. “Regulations like these aim to protect a number of stakeholders,” say HSBC. “Higher provisions due to customer default have impacted many banks since 2008. Customers have struggled to repay their debts, so there regulations protect consumers as well as banks against over exposure and help consumers to manage their liabilities.” Seetharaman said that these recent regulations can discipline the customer instead of inhibiting him. Kitson explained: “These are per QCB guidelines and are a good thing really. They simply mean your bank should be focused on you and if they’re not giving you what you need then you can have your salary paid to a more diverse bank, who do understand your requirements. “The employer only needs to be aware that you are taking the

56 Qatar Today

october 2011

credit facility. But in terms of settlement, the employer, should you leave Doha, will make sure your end-of-service benefits are paid to your bank to compensate for the facilities you have taken – they may not cover the complete debt, but the employer is not liable.” Meanwhile, Carlson says: “If you move to the UK or US, any place where you have no credit history, you won’t be able to acquire a credit card. You have no credit history in these countries. This situation is no different to what any foreigner would experience going into these countries.” Innovation With such competition and restrictions in Qatar, there seems to be a need to innovate to gain that competitive edge. It might be a very simple thing like having an efficient customer service and client focus. New regulations do inhibit banks to offer certain products and services and with a drag on risky business, there really is a place now for innovation in banking. In general, banks will need to run efficiently as an organisation, and offer high service standards in order to compete. Other opportunities as business continues to recover will also help balance any impact from these regulations.

“There was a contraction in the amount of credit given out in 2009 compared to 2008. However, now we’re seeing banks willing to lend more freely, interest rates are coming down and it’s actually becoming very competitive again.” Howard Kitson Country Manager, Mashreq Bank Qatar

“The key industries in Qatar for operating globally are oil and gas, mining and metals, telecoms, and power,” says Carlson. “What makes us industry experts is we hire people in the oil and gas sector for example who are actually qualified engineers, who have worn the hard-hat as it were. Years later, they get into finance, banking, so we send these guys to talk to clients in the sector they know. They speak the same language; they can understand each other and speak as equals – understanding the industry you are working in is critical these days.” “For three years in a row, Mashreq have won the Global Finance award for the best retail banking online service,” said Kitson. “It’s user-friendly, safe, you can access your accounts from multiple destinations as well as on your mobile.” HSBC has a full scale Corporate Cash Management infrastructure in Qatar, comprising on-ground specialist Sales, Product and Client Management teams, working under the umbrella of the Payments & Cash Management business unit. This is a unique offering to HSBC for which the bank has been consecutively winning some of the most prestigious awards in the Cash Management World.

Economic Outlook HSBC remains positive about the outlook for emerging markets, where they expect continued growth in the rest of Asia-Pacific and Latin America and take comfort from the focus of the authorities on managing inflationary pressures. In the Middle East, the outlook for the GCC economies is also positive. In the developed world, growth in the US and Europe is likely to remain sluggish as long as the impact of high debt levels and government budget cuts weigh on economic activity. In the UK, there are concerns that regulatory actions being contemplated and the ongoing regulatory uncertainty will constrain the supply of credit to the real economy and contribute to sub-par economic growth. Carlson has a very positive outlook for Standard Chartered and the banking industry as a whole in Qatar: “Our industry and product expertise here matches the growth aspirations of Qatar, from oil and gas to the proposed Government spending on infrastructure, where we have strong experience. If we all get this model right, there’ll not just be growth for us here in Qatar, but for other banks as well, which is healthy for customers and the economy as a whole.”

october 2011

Qatar Today 57

cover story

Regulations, restrictions and competition B a n k s e x pl o r e ne w way s t o p r o f i ta bili t y

US Dollar under Riyal Pressure The Qatari Riyal has been fixed at 3.64 to the US dollar since June 1980. This peg has provided an anchor for macroeconomic policy and a reference point for stability and confidence. Qatar is approaching a critical time in its history as the drive to diversify by 2030 gathers pace – notwithstanding FIFA World Cup 2022 and the potential of the 2020 Olympics being staged here.

R 58 Qatar Today

october 2011

ecent fiscal issues in the United States has freshened speculation on whether the Qatar Central Bank (QCB) would consider unpegging from the US dollar. This is not a new debate in the region, as the peg has met with equal amounts of support and sceptism from the rest of the GCC States as well (all currencies pegged to the US dollar). The ‘unpegging’ discussions gained momentum around the time the GCC common currency move was initiated – with experts offering a solution of pegging the common currency to a basket instead of the US dollar. The GCC common currency move is in a state of flux at present, but the US dollar peg is now open to more critical scrutiny. The US credit rating was recently cut by the rating agency, Standard & Poors, for the first time ever. There is the same amount of jobs in the US economy today as there were in 2000, and yet the population has grown by almost 9%. About 45% of the unemployed haven’t had a job for six months. These are significant figures and questions, because if America is not creating jobs, then their economy is going nowhere. Yet, QCB’s Governor, Abdullah Saud Al-Thani, said in September, that he saw no good reason not to keep the Qatari Riyal pegged to the US dollar. He intimated that Qatar is confident it can keep inflationary pressures contained while maintaining the longstanding currency peg, despite the US dollar’s recent weakness. He continued that the QCB’s monetary policy was focused on managing the short-term inter-bank interest rates with a view to sustaining the peg, and any weakening of the dollar might not cause any severe pressure on inflation in Qatar given a lower inflationary environment here, adding that the consumer price index (CPI) inched up by a modest 1.9% in the year to July 2011. He expects the Qatari economy to grow by 15.7% in 2011. Doha Bank Group, CEO, R Seetharaman, explains why unpegging would still be some-

“Qatar-US foreign trade was close to $3 billion in 2010 and the U.S will continue to be a major trade partner for Qatar. Considering the currency risks and the realignment needed for fiscal and monetary policies for Qatar, it is more prudent to be pegged to dollar” R. Seetharaman, Doha Bank Group, Chief Executive Officer,

thing the Central Bank should not be looking seriously at. “Qatar’s major source of revenue and contribution to current surpluses mainly comes from the sale of hydrocarbons, oil and natural gas. As these – and Qatar’s major foreign investments – are denominated in dollars, it protects Qatar from currency risk. “The fixed exchange rate vis-á-vis the US dollar has kept domestic interest rates closely in line with those prevailing in the US. However recently we have seen a worrying challenge to the US dollar mainly on account of concerns in the US economy. Despite this, Qatar and other GCC countries will continue to be pegged to US dollar; the monetary policy of Qatar is accordingly realigned based on the actions by the Fed. “In August 2011, the QCB cut its overnight

deposit rate to 0.75% from 1% and axed the overnight lending and repo rate to 4.5% from 5%, a day after the US Federal Reserve decided to keep the rates low for another two years. This is the third time in a year Qatar has cut rates. In August 2010, the Central Bank had cut its deposit rate by 50 basis points but left other rates unchanged. “Given the fixed parity between the riyal and the dollar, QCB short-term interest rate policies have had to be subordinated to the fixed exchange rate policy. As such, QCB overnight interest rates are closely related to its counterpart on the dollar, the Fed funds rate. The reduction in key interest rates should, in theory, enhance credit off take, especially to the private sector due to lower funding costs, which should add vigour to local lending.”

Consider the discrepancies in variables such as interest rates, employment and inflation between the US and Qatar? No job growth in the US in August. Inflation: Qatar: 1.8%; US: 3.8%. Interest Rates: Qatar: 4.5%; US: 0.25%. “Qatar-US foreign trade was close to $3 billion in 2010 and the US will continue to be a major trade partner for Qatar. Considering the currency risks and the realignment needed for fiscal and monetary policies for Qatar, it is more prudent to be pegged to dollar.” Is the US Dollar still fit to be the World’s Reserve Currency? “In the global market currently, apart from dollar, the major currencies are the Euro, Pound and Yen. However we notice

october 2011

Qatar Today 59

cover story

Regulations, restrictions and competition

tag th

B a n k s e x pl o r e ne w way s t o p r o f i ta bili t y

that the economies pertaining to these countries are neither stable nor do they indicate stable growth. On the contrary, some of these economies also have stakes in US treasuries. Arab economies are expectPros: ed to have close to $470 billion in US bonds and the Assuming the Qatari Riyal is valued higher at the time of depegging and continues to rise against US and Japan, this could bring down revenue from hydrocarbon sales for GCC economies inflation pertaining to imported items (particularly food items) is in dollars. Major commodities traded in the world from Europe and US. are also denominated in dollars. Recently we have The development of a Qatari Riyal currency market which could seen some central banks such as Japan and Switzerenable the Qatari government to further consider bond issues in land trying to prevent the strengthening of their curQatari riyals instead of dollar denominated bonds.” rencies. Given these circumstances, the dollar is still Cons: fit to be the world’s reserve currency.” Exposure to significant currency risk on revenue generated from Simon Williams, Regional Economist at HSBC, hydrocarbons and on investments made overseas by Qataris. wasn’t so convinced however that remaining pegged Development of Qatari currency market may require significant alignment to the fiscal and monetary policies of Qatar. It should to the dollar be the over-riding sentiment going be reviewed whether it is sustainable. forward. Lack of a viable alternative. “The dollar-peg has been the corner stone of monetary policy for a generation and there are no serious expectations of near term change. The peg has the US economy is diminishing, as a growing proportion of its trade offered Qatar, and the region as a whole, protection from the pronounced volatility we have seen in other emerging and capital flow shifts to Asia. Qatar’s economy is also likely to conmarkets, and safeguarded it against the kind of debilitating swings sistently outgrow those of the west, making the US monetary policy that might otherwise impact an economy tied so closely to the en- stance forced on it by the peg increasingly inappropriate. Qatar’s institutional capabilities are also rapidly evolving – a decade ago ergy market. “As the global economy continues to change, however, the utility it might have been difficult for Qatar to manage its own monetary. of that dollar peg will come increasingly into focus. Qatar’s link to Now that’s no longer the case.”

What are the pros and cons of unpegging?

60 Qatar Today

october 2011

h is

t a g t h is

Wind beneath their wings

Entrepreneurs

set to meet their Angels It is not enough to have a good idea. What good ideas need to make that leap from mind to matter is a solid pair of wings. Angels Den does just that.

By vani saraswat hi tarted in the UK in 1997, it connects entrepreneurs and small and medium enterprises (SME) that are in need of a boost to high net worth individuals (HNWI) who are willing to invest in them. Angels Den is now active outside of UK in Malaysia, Hong Kong, and Singapore, and operates across the world via its website. It makes its Middle East debut in Qatar this month. There are around 4,800 Angels across the world-growing at 120 per month, and over 16,000 business owners have registered with the agency so far. Qatar Today speaks to Bill Morrow, Co-founder of Angels Den, to understand how the network functions, and why Qatar was chosen as the next stop, before USA and Canada (to be launched later this year). When you started off, as an entrepreneur, what was your greatest challenge? How does Angels Den address that? My biggest challenge was finding those who I needed to help me. The first stage of the entrepreneurial journey is often realising that you cannot do it all yourself. Angelsâ&#x20AC;&#x2122; Den helps make

october 2011

Qatar Today 61

tag th

g t h is

t a g t h is

tag th panies to invest in, HNWIs find it hard to find GOOD companies to invest in. On average we reject 93% of those who apply to join us and THIS is the reason Angels join us, as we maximise their minimal resource – Time. We have seen that Qataris are keen to invest in their country and are very keen to see those earlier stage companies being given help, not to make the mistakes that they themselves have made. Often it is this mentoring and advice that is AS valuable as the money. Connections and family are paramount in Qatar. How does the mentoring work? We find that across the world, nothing concentrates the mind more than putting your own money into a deal. Often more established business owners can help a young company with support, direct advice on business models, contacts and data. This is just as valuable as the money to most growing businesses, who otherwise would be destined to perpetuate the mistakes others have made before. Do you think the concept of ‘angel investor’ will appeal to Qataris? A lot of them run family businesses, and may want to pump any surpluses back into their own company. The dirty little secret of angel investing is that the Angels do not primarily invest for the returns. They invest to give back to the community and help others. Qatari society has been built, and is based on these principles. We have been welcomed with open arms, much as we have in Hong Kong, where a similar family bond exists. We thrive in cultures that are not just concerned about squeezing a monetary profit out of every deal. There is a strong family bond in Qatar and we have seen that this extends to helping those who need the capital to expand and the advice to grow. Not only does this help the Angel, but also Qatar. The Qatari Government recognises that a strong enterprise culture of small growth companies drives the economies of most non-oil dependant states and has stated that it is keen to replicate this model; we see Angels’ Den as contributing to this vision.

If it’s a Qatari seeking funding – who won’t need a sponsor – then matching with an Angel investor will doubtless include both parties ‘checking out each other’s family’.

Bill Morrow, Co-founder of Angels Den

an imperfect market slightly more perfect. There are a great many people looking for cash and a great many with money and experience who cannot find good deals. We help both sides find each other. Why choose Qatar? Investments and funding is not a big issue for Qatari investors... or so it seems. Qatar has a burgeoning enterprise community and whilst there is no shortage of capital and a lot of com-

62 Qatar Today

october 2011

What kind of initial interest have you received from here? Phenomenal interest from both sides. About 27 Angels registered with us in our first week and our first clinics, where we meet with business owners and give them free advice on how to maximise their chances of finding funding, are filling up. Web traffic, from across the world, with an interest in our Qatar region, is growing daily. Would you be able to share the names of some prominent Angel investors? I cannot name individuals as confidentiality is key to our business, from both sides. Most Angels do not want to make it known that they are active investors as their mail boxes would be inundated. We are now

h is

t a g t h is the largest player in Europe and Asia, so we attract most of the serious Angels who want to invest in the best deals and who do not have time to meet with them all. Are there similar networks in the region? Dubai has a few small networks, but most are run as social clubs for the Angels. We attract HNWIs who want to make a difference and NOT just be seen as part of a group; who want to invest not just their money but also give their experience and time to help those further down the trail. Do you see yourself collaborating with existing incubators or funding agencies? Absolutely, across the world we help set up incubators and support numerous programs. What we have is invaluable experience not necessarily about how to run their business but WHAT Angels look for and HOW to present yourself. Is this open to only nationals, or will expatriates will be included as well? We welcome all business owners keen to help drive the economy of Qatar. Business owners from all across the world have registered an interest in pitching in Qatar and Angels from 34 countries have already been to see what all the fuss is about. How involved will you be in the Qatar operations? The Board of Angels Den has made a concrete commitment to Qatar. We chose Qatar over Bahrain and Dubai based on the welcome and the enlightended responses that we received, so we hope to make Qatar the hub for angel investment in The Gulf. It is our youngest child but it will grow to form an important part of our family. Can you name a few gratifying moments or experiences? There are too many to recount individually, but every day we fund at least one 'deal'. However, to us, they are more than 'deals', we understand first-hand the commitment, effort and tears that the entrepreneurs have invested in their businesses. To find another human being, in the shape of an Angel, who shares these passions and vision is a life changing event. The Angels and each of our staff are privleged to facilitate this marriage. Which is the most common concern of entrepreneurs? And of investors? Entrepreneurs are mostly concerned about cash flow, and then secondly about cash flow and finally... cash flow. Investors are faced with many asset classes and choices. We find however that most successful Angels do not invest JUST for the money. This is not philanthropy. The world is divided into those who have been blessed with riches and who want to share their wis-

dom and those that, for whatever reasons are valid for them, do not. If you just want to make money then I suggest angel funding is not for you. I read that most Angel investors will lose, rather than earn money. How does that reflect on the success of an entrepreneur’s initiative? Most Angels do lose money, but then “most” Angels invest for the wrong reasons. We run insights into ‘angel investing’ for our Angels and we help them choose what deal is right for them and why. Our processes are by no means perfect, but we do have valuable insights into the investment process from both sides, which help skew the decision making to investing in companies where Angels can add the most value. Again I reiterate, if you just want to make money, invest in property or derivatives. A small select group of investors can see this distinction and want to make a difference to their country. Under the auspices of which organisation will Angels Den operate here? Angels’ Den is working under the auspices of a small consultancy run by a Qatari and British partnership. This organisation was established over three years ago to sponsor and represent companies from around the world to do business in Qatar. How will it work within the current, sponsorship/partnership norms in the country? Good question. It will depend on the status of the company that comes seeking funding. If this is already established as a 51:49 partnership agreement between Qatari and non-Qatari business partners, then it may be that the non-Qatari will need to release some of their ownership shares – but as the Angels’ Den arrangement is often about profit-share and not ownership it may be the entrepreneur sees that the extra investment will lead to greater profit. If the business is not yet sponsored here in Qatar, it’s likely the Angels Den process will introduce them to an investor who will also want to be their sponsor. If it’s a Qatari seeking funding – who won’t need a sponsor – then matching with an Angel investor will doubtless include both parties ‘checking out each other’s family’. But again that’s not so different from anywhere else in the world. One of the opportunities for Angels Den in Qatar is that the process offers a simple and rapid matching of entrepreneurs to new investors/mentors. This might be welcomed by those Qatari businessmen who are ‘sitting on’ a number of businesses which may have stalled due to lack of funding and connections. Thus the Angels Den process could help release a log-jam of dormant businesses in the region – as well as introduce Qatar Entrepreneurs to investors worldwide

We have seen that Qataris are keen to invest in their country and are very keen to see those earlier stage companies being given help, not to make the mistakes that they themselves have made.

Twitter.com/ANGELSDENQATAR

october 2011

Qatar Today 63

t a g t h is

Gulf Airlines

embrace their

‘Sixth

Freedom’ Boeing has a huge backlog of orders for their aircrafts and they recognise that some of the Middle East carriers are their primary customers. Why are the “Gulf 3” looking to purchase more aircrafts as fuel-prices are epected to escalate?

66 Qatar Today

october 2011

By ror y c oe n espite the threat of long-term oil-prices, civil regional unrest and global economic uncertainty, the impact on air-travel to and through the Middle East has been relatively unaffected. The 2008 economic crisis certainly caused some turbulence in the sector, but Middle East carriers managed to maintain yields in the face of those challenging events and will continue to be profitable in the foreseeable future. Boeing, Vice-President of Marketing, Randy J. Tinseth reveals: “The Middle East has been one of the fastest growing and dynamic air-travel markets in the World. In fact, the International Air Transportation Authority (IATA) projects regional carriers to show a profit for 2011 with recent data showing 10% growth year-on-year. As we look to the future, Boeing sees demand for a total of 2,520 new airplanes in the region over the next 20 years.” Capacity at the “Gulf 3” carriers – Qatar Airways (QA), Etihad and Emirates – has grown collectively by 23% over the past decade and there is fierce competition between them as they try to gain a competitive edge.

t a g t h is Market Strategy Why are the ‘Gulf 3’ performing so well? What is their strategy when it comes to enticing potential customers to fly with them? “Many of the airlines in the region are leveraging both their ‘Sixth Freedom’ right and their geographical location in order to grow,” explains Tinseth. “The ‘Sixth Freedom’ carriers are part of the ‘Freedoms of the air’, which are a set of commercial aviation rights granting a country’s airlines the privilege to enter and land in another country’s airspace. The Sixth Freedom covers the right of an airline to carry passengers or cargo from a second country to a third country via a scheduled stop in the airline’s home country. An example of this can be QA carrying a passenger from a city in Europe to a city in Australia via Doha. While the passenger’s destination is not Doha, the journey involves a stopover in Qatar before catching a connecting flight onward to Australia.” I experienced the force of this strategy first-hand recently when I got a flight from Lagos in Nigeria to Doha and all bar two got off the feeder bus for a transfer to another location. Myself and a young Nigerian girl followed on to Arrivals. The passengers either side of me on the plane were en route to India and the Philippines from Ghana and Benin, respectively. The huge air travel market does not depend on the relatively small populations of the home countries of course, because the passengers are merely using the Gulf airports as conduit. The three carriers are using their Sixth Freedom right to expand into new markets, and now offer more than 100 weekly frequencies to destinations in the Americas, including Houston, Chicago, Los Angeles, New York, San Francisco, Washington D.C., Toronto and Sao Paulo. More than 70 weekly flights are offered in the rapidly burgeoning Chinese market. QA added Sofia in Bulgaria as its latest destination last month, which follows on from routes to Bucharest, Budapest, Stuttgart and Venice which were initiated in 2011. This is the model upon which the three air carriers are placing their hopes and capital for the next couple of decades. These models and the dynamic growth of air-travel in emerging economies – which are spread out over the continents – are diversifying the demand for aircrafts. As global air travel declined in 2009 – in the wake of the 2008 economic slump – this business model still returned growth showing how capable it is.

Demand A Boeing forecast predicted that the greatest demand for new aircrafts will come from the United States, then China, but astonishingly the United Arab Emirates – with a population of approximately 9 million – is third on the list, due chiefly the fact that they are home to some competitive airlines, such as Etihad and Emirates Airlines, who are really

Air Traffic Growth in ME

6.6% Aircrafts in operation 2710 (by 2030)

“Many of the airlines in the region are leveraging both their ‘Sixth Freedom’ right and their geographical location in order to grow” Randy J. Tinseth Vice-President of Marketing, Boeing

exercising their sixth freedom right. Such has been their drive to be the best, they are now focusing on procuring new aircrafts for strategic reasons, which is why

Boeing are seeing such a huge backlog from the region as a whole. “Newer airplanes are certainly more fuel efficient,” said Tinseth. “In fact, airlines in the Middle East, such as QA, have long recognised the competitive advantage new airplanes provide and this is reflected in the large order backlog from the region.” “An excellent example is the Boeing 787 Dreamliner, which will provide QA with unmatched fuel efficiency, resulting in exceptional environmental performance. The airplane will use 20% less fuel for comparable missions than today’s similarly sized airplane,” he added. With the price of fuel expected to rise year-on-year for the foreseeable future, Boeing still envisage that there will be almost three times as many aircrafts in operation out of the Middle East in 2030 as there is currently (1,040 vs 2710). “We expect slow and constant growth of fuel prices over time. However, our forecast for airplane demand is based on our forecast for traffic growth over the next 20 years. As we look at the Middle East, we expect traffic to grow 6.6%and as a result airline fleets will grow to meet that demand.” Single-aisle airplanes account for the majority of deliveries over the next 20 years, which is approximately 70% of the load and about half of the overall value. Rapidly expanding air service within China and other emerging economies and the spread of lowcost carrier (LLC) business models throughout the world will further drive this market. The twin-aisle market, which includes efficient long-range airplanes such as the Boeing 787 and 777, is the fastest growing segment in the market, accounting for 22% of the units and 43% of the cost. Worldwide economic activity is the most active driver of growth in commercial air transport and the resulting demand for airplanes. Growth in air travel has historically outpaced economic growth, represented by GDP, by approximately 1.75%. So in effect, about 60-80% of air-traffic growth can be attributed to economic growth. Boeing projects the global gross domestic product (GDP) to grow at an average of 3.3% per year for the next twenty years, whilst on the back of this forecast, worldwide passenger traffic and cargo traffic to grow by 5.1% and 5.6% respectively follow

www.qatartoday.tumblr.com

october 2011

Qatar Today 67

t a g t h is

The Rainmakers Aquiess plans to bring rains to the Horn of Africa region and it hopes that Qatar will acquire the technology to overcome its water scarcity.

68 Qatar Today

october 2011

By Sindh u N a i r ain-making technology existed as early as 1946. It was used as a combat weapon in early years, to overpower the enemy by forcing rains thus foiling assault plans. In recent years, the largest cloud seeding programme (the technology to initiate artificial rain) is that of Chinaâ&#x20AC;&#x2122;s who have claimed that the weather during the opening ceremony of Beijing Olympic 2008 was monitored to avoid heavy rainfall by inducing storms beforehand which also reduced the choking pollution over the city. Though a treaty was signed in 1978 in the US to prevent the use of weather modification process for hostile purposes, it is the power to change metrological conditions that makes the technology vulnerable and ominously dangerous. It is this same power that is in the hands of Aquiess, a Melbourne-based company with a Doha-based operation facility, that claims to have been instrumental in bringing rains to specific target areas of continents for over a decade now. But Aquiess does not want to take on the responsibility of weather

t a g t h is The Crisis

(R-L) David Miles, Chief Executive Officer and Mahindra Shah, Director, International Planning of Aquiess explain the RAINAID technology

alterations on itself. What they aspire is to the UN to adjust the climate of the world use the technology called Rainaid, to bring to benefit each and every country. It has to an early end to the devastating drought- be managed by the right people. We are also famine in the Horn of Africa and for fund- hoping that Qatar will take the lead in creating this campaign they are eyeing Qatar’s financial might. They have already made a commitment at the United Nations Approximately Food and Agriculture organization Ministerial meeting on the $2 famine emergency in the Horn billion of Africa, to this effect. spent on David Miles, Chief Executive desalination Officer and Mahindra Shah, Director, International Planning and Communication of Aquiess speak to Qatar Today in great million detail about their plans. (1/10th) Miles declares that the need amount to produce the same amount of water through for the Horn of Africa region is natural means without using as much energy sources so high; they intend to go ahead with the technology, even without a sponsor. Aquiess wishes that a global organisation ing such a collaboration that will end some takes the responsibility for such weather of the natural disasters and also find a solumodifications which will benefit the whole tion to climate change. Creation of a world weather modification centre in Qatar, for world and not just one continent. “My hope is,” says Miles, “to set up gov- example, is the medium-term goal while ernance like the UN or collaborate with Horn of Africa is the immediate need.”

Cost Comparison:

$20,000,000

With over 12 million people now affected in Somalia, Kenya, Ethiopia and Uganda, the famine is set to affect even more numbers as family food stocks are being rapidly depleted and the people’s ability to cope is being eroded by the day. The Horn of Africa region has faced drought - induced famine emergencies in 2006 and 2008-2009, as failed harvests have brought food shortages and water scarcity. Livestock, on which these communities depend, are dying from lack of grazing and water. In Kenya and Somalia regional food shortages have reached disastrous proportions and the Kenyan government has declared a national emergency. Weather forecasts for the area indicate the region will remain seasonally dry during September but worse, that the normal rainy season in October will see rainfall below average. Many countries, Qatar included, have already sent relief measures but the most pressing need is to end the draught for rehabilitation and recovery to begin.

Playing with clouds David Miles says their short-term plan is to break the drought by bringing gentle soaking rain to the region drought-hit area within the next 45 days (once the technology is put in action). Remember last Ramadan, when the skies of Doha clouded and a light shower blessed the parched city? This too, claims Miles was a result of Aquiess technology. “In 2010, during the Holy Month of Ramadan, we delivered 4 gigalitres of rain in Qatar which is equal to the volume of water supplied in the country for 10 days. And, as a follow-up of this achievement, we again delivered on October 1, 35 gigalitres of rain to Qatar,” he says. Explaining the weather modification technology, Shah says, “Ever since the beginning of civilization, human beings have moved rivers to suit their needs. Only 10% of rain falls on land, while 90% falls into oceans. When we look at the atmosphere, there are rivers (clouds and water vapour) floating above just like the rivers on earth. Like we harvested the rivers, our technology is to

october 2011

Qatar Today 69

t a g t h is

harvest the atmospheric rivers in the clouds from over the ocean and move them to the target areas where there is a need for water. The velocity and direction of the cloud systems can be adjusted and that is what Aqueiss technology is about.” Answering the obvious question of the consequences of such an alteration, Shah says, “We are assessing the global general circulation impact of removing, for example 3% from the 90% of rain that the ocean receives. Our initial findings suggest that there is no major impact.” It is interesting to note that there have been instances in China where the weather alteration system in use pulled rains from one province to another, thus creating rifts between two provinces. Is there a threat of new border wars over rainfall? “Rain clouds are harvested from above the oceans which receive over 90% of the total rain and if we take 3% off that quantity, it will be insignificant on the ocean while it will be 30% more rains for the land, which could create a huge impact.” The technology that is in use is different too, clarifies Miles. “The current competitive technology in use is called ionization seeds the clouds above for producing rain. That is an artificial process. Our technology is to move existing oceanic clouds. What we have is a signal that affects the flow pathay of the clouds. We have been studying for more than two decades and have run demonstrations over the last 10 years, some of which include the adjustment of rain systems to end a drought in 2005 (called Project Albatross) in Australia to draw oceanic rains into the Murray Darling Basin, Eastern Australia which ended the drought; to bring spring rains in Australia in 2009; to put out a devastating large-scale fire in Victoria again in Australia in 2009. There doesn’t seem to be any public documentation of these claims, of which Miles explains: “We were advised by the governments who have put to use our technology not to go public. The technology is our IP and we have been approached by the military, by governments to buy the know-how, but we feel that this is to be shared to benefit the whole world not to be owned by a single entity. “It is time the technology is used for the benefit of those who are in need, for the dry land countries, for those who have an land-water imbalance in agriculture

70 Qatar Today

october 2011

China to use Rainmaking technology to increase its wheat production China is to launch the country’s first regional programme to artificially enhance precipitation in its north-eastern area in an attempt to guarantee the wheat harvest there, according to China Daily. $150 billion is expected to be invested in this programme, according to Wang Guanghe, Deputy Director of the artificial weather intervention centre under the China Meteorological Administration, and the reason why Northeast China was picked for the pilot project was the fact that the area is a major wheat growing zone and is at risk of forest fires in the event of a long drought. By the end of 2015, Northeast China is expected to be producing at least 100 million tonnes of wheat a year.

The Aqueiss technology is powerful and it can be misused. This is why it was kept under the radar. But the need is high. The only solution in that impoverished Horn of Africa region is to deliver water immediately to enable recovery through productive agriculture and thus empower the livelihood of the people there

productivity. We want to be involved in the greening of the dessert and also help the regions most affected by droughts.” Shah says, “The Aqueiss technology is powerful and it can be misused. This is why it was kept under the radar. But the need is high. The only solution in that impoverished Horn of Africa region is to deliver water immediately to enable recovery through productive agriculture and thus empower the livelihood of the people there. Every day without rain puts at risk the survival of the population."

Plan for Dry lands “The technology is only about applying intelligent technology at the right point. This technology has the ability to green countries to give them water for agriculture and thus provide an industry where there has been none. About 100 countries, 41% of the world’s land surface, 35% of the world’s population, more than 60% of the world’s hunger is in the dry land. The solution to dry lands is either industrial development or agriculture. But agriculture is impossible in dry areas until you solve the issue of water scarcity. And the technology that Aqueiss has developed is natural but involves some management of rain clouds. “Crops and rainfalls are related,” says Shah, “and the rain cycle determines the crop you can grow in any land. The technology beyond delivering managed rain to break droughts can also be applied to extend the rainy season, for example, from 60 days to 120 days thus enabling crop agriculture. Where normally you cannot grow a crop, you can now do that with this alteration. So in the Horn of Africa region, what we intend to do is not just to deliver rain but also extend the rainy season for an extended period and we plan to do this over the next two years so that the sustainable crop agriculture can be managed. We have also been in talks with North Kenya, South Somalia region to understand the immediate relief needs. The estimated cost of the Aquiess Rainaid Horn of Africa project is $10 million over the next two years and we are now awaiting sponsor commitment for this effort to be put in place. This is without any profit margin since it is for a humanitarian cause.” The technology can also control the intensity of rain storms and this could be very useful in reducing the calamity of natural disasters. The rains can also be directed to other areas like over barren reservoirs, the source point of rivers in mountains to reduce the intensity. Rainaid can make lands fertile; reduce the effect of natural calamities, end battles between regions who have been fighting over water, bring food to countries where there is no food security, increase the agricultural cycle in an area, the possibilities are immense and hence even more susceptible...but the big question is will Qatar go for it?

www.facebook.com/qatartoday

t a g t h is

What’s your design? design is all about creating enhanced quality of life

Ever

since I arrived in Doha from New York City, 16 months ago, I have been attempting to explain to both nationals and expats what I’ve been doing professionally, with much enthusiasm, for the past 20 years, and how it can contribute to the growth of local infrastructure, products and services. In the majority of the attempts, with my new friends and neighbours, I am painfully stuck at getting my point across, despite having two design degrees and having been lecturer for over 15 years. That said, I’m a sharp-tongued person who utilises her communication skills as well as a prep cook wields a paring knife. Lecturing and presenting ideas that are new and different to most people is a huge component of the design profession. Suffice to say, I snidely thought Before Doha (BD) I could explain everything to everyone. Looking back, it was a teaching moment for me, when I realised, like Afrikaans, design culture is a foreign language to most of the world, outside a small narrowly educated elite. It’s belonging to a cult of nerdy enthusiasts and practitioners (ever hear of Steve Jobs from Apple?) And even within the design profession there are class distinctions. So, this is how I found out, I belong to a small world of over-educated people, and an even smaller world of cultural elitists. #Fail, as they say on Twitter. Because, Design means too many things to too many people. Case in point: The first design event I was invited to in Doha consisted of a group of Australian housewives who were earnestly crocheting wool cupcakes with elaborate flowers on top. Though, fresh off the boat from NY (so they say) I was grateful for the invitation, their company and kindness, I quickly realised that my

follow www.twitter.com/laureneleonboym

definition of design was not in their vernacular. Methinks, design for the home as leather and chrome sofas, mirrored lighting fixtures, and blonde wood consoles. To these ladies, knitted tea cozies, overstuffed wing chairs, big mushy down comforters, were their comfort zone. Literally. Undeterred, the next time I went to a design event in the Gulf, I was invited to a ladies-only fashion show. On this occasion, I was excited to see my Arab sisters, heads uncovered, pumped by the designs that walked down the runway, whooping and whistling for the different designer looks like Bronx Girls at a NY Yankees Baseball Game. “Design is” the products/services/ environments/ecosystems we surround ourselves with. Our design personalities are defined by what we consciously choose to wear, the tool we write with, the sheets we sleep on. Are you a spunky type that likes a modern look, or a down to earth pessimist who wears all black? That, my dears is your design choice. If the definition of design is a conscientious action that enhances the quality of life can be made aware to every man, woman and child’s understanding, we can be receptive enough to allow for new ideas on wellbeing to be part of the fabric of our city. Why wouldn’t we want to limit obesity and ill health issues by allocating safe bike lanes linking critical areas of the city, or create new jobs for newbie farmers to raise safe and non-irradiated local food? The payoff is enormous in terms of the community it creates. Hugely, each individual’s well-being is enhanced by developing these ecosystems within Doha. No matter what their income bracket and their personal taste Isn’t design about creating enhanced quality of life, after all?

By Laurene Leon Boym Boym is a partner in the Doha/New York City based design studio, Boym Partners. Boym Partners brings a critical, experimental approach to a range of products that infuse humour and wit into the everyday. Frequently drawing from American iconography, the studio creates a variety of products and environments for an international roster of companies, including Alessi, Swatch, Flos and Vitra. The studio also creates their own Boym Editions, sought after by many art and design collectors around the world. Laurene has taught at Parsons,The New School for Design and the School of Visual Arts. Boym Partners work is included the permanent collections of many museums, including The Museum of Modern Art.She will write a regular column on design for Qatar Today

71 Qatar Today

october 2011

Qatar Today 71

t a g t h is

Social Commerce

Whatâ&#x20AC;&#x2122;s the status of your biz? Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver â&#x20AC;&#x201C; Ayn Rand Human beings like to be in control of things. However, increasingly it seems we are being controlled by money. Internet and Social Media are no exceptions to the greenback lure.

72 Qatar Today

october 2011

By Kapil B h ati a ast week, I was looking for an easy to operate SLR camera to gift someone. While I would never have taken the time to email or call all my friends to ask which SLRs they liked, I felt updating my status on Facebook and asking for help would be a good choice. Guess what? Within an hour, a stream of comments and suggestions started to list on my Facebook wall. This helped me make a decision. Social commerce is an emerging buzzword that has caught the attention of many including people who called Social Media a fad. It is an area which may redefine the way people engage with social media, and how they share information. It may also change the way we share information and content with peers. As we share information and converse with people on Social Media site, the level of trust has increased, so has our comfort level to perform financial transactions. At present, like any other new trends, social commerce is surrounded by uncertainty on issues like:

t a g t h is

How will people use the platform to make payments? Which type of devices will be used to share content? How will the brands capitalise on this opportunity? Currently, major developments are taking place on the Facebook platform, as brands want to engage 750 million active users, and develop a platform to purchase products and facilitate payments. This development has been given a new name called F-Commerce Buddy Media, a Facebook marketing company gives us examples of how successful F-Commerce is: Groupon made $11 million (QR40 million) in one day on a GAP promotion Pampers – a baby care website, sold 1000 diapers in 1 hour on its Facebook store. Ticket Fly – 3.25 average sales generated through Facebook shares. 'Share' (on Facebook) drives Sales; the more people share and recommend, better the chances of increase in sales. According to Buddy Media: The predicted revenue for the social commerce market in 2015 will be over $30 billion (QR110 billion), 90% of all purchase decisions are subject to influence, 67% spend more online after recommendations. Coca Cola has also got a transaction page set up on Facebook, which enables a fan to purchase branded merchandise directly on the page and make payments. Take a look at where have Venture Capitalists invested their money in 2011 to ensure maximum returns. All the sites are closely related to the

Share and Buy phenomenon. Your peers recommend a product or a service which may encourage you to buy the same. $950 million Google has also taken a plunge in Social (QR3,467 million) Commerce and is working to commercialise its homepage. This would help balance StoreEnvy (social marketplace) the competition, as both the giants’ battle $1.5 million for the market share. (QR5.5 million) The other side to the F-Commerce is the privacy issue, which Facebook has been PlumDistrict battling for a while. Some people may not (group-buy) want their social interactions and graphs $8.5 million (QR31 million) to be monetised at all. Rather they could do their ‘social commerce’ on Amazon, or the ShopSocial actual online retail store. (social shopping/ Some brands may actually try to influrewards) ence their products and services by writ$1.2 million (QR4.3 million) ing fake reviews. However in the past many brands have been busted for artificially Snapdeal raising their rankings online. (group-buy) According to techcrunch.com, PowerRe$12 million views, a company that provides customer (QR44 million) review technology for retailers and e-comVillageVines merce sites has raised $10 million in new (flash-sales club) funding this year. This investment brings $3 million PowerReview’s total venture funding to (QR11 million) $37 million. It shows how powerful online reviews are and how many companies may Baynote (ratings, reviews and try to control and get their hands on it. recommendations) The social media hype is good for giants $13 million like Coca-Cola and Pampers, as they can (QR47.5 million) afford million dollars in advertising. However, the mom and pop stores need to spend Pose (social shopping/ significant time to crack a solution which rewards) gives them returns. Social Commerce driv$1.6 million ers need to give affordable option to small (QR5.8 million) and medium enterprises to break into this stream. It’s great to see that we are starting to anVitrue (Facebook commerce) alyse online conversation using numbers $17 million which will highlight the results and effec(QR62 million) tiveness of social media Groupon (group-buy)

www.twitter.com/kapilkb

By Kapil Bhatia Kapil Bhatia is an E-Business Executive, working in the Financial Services Industry. His work ranges across Digital Marketing, e-Channels and development of online strategies, with a sound Information Technology base. He will be writing a regular technology column for Qatar Today. He is an avid blogger @ http://iwep.blogspot.com.

october 2011

Qatar Today 73

g t h is

GREEN SCENE

Schools get ready for GPS launch Since its announcement on June 5, 2011, the Green Programme for schools (GPS) has been well received by schools in Qatar, with over 40 of them registering for the programme. All schools have been invited to a briefing session that will be held next month to initiate and guide them through the entire process.

76 Qatar Today

october 2011

he GPS is the environmental initiative of Msheireb Properties in association with Qatar Today magazine. This unique programme aims to Reach, Inspire and Reward students and schools in Qatar by meaningfully engaging and inculcating in them the importance of building a green equity. GPS has been receiving great support from its partners which include the Supreme Education Council (SEC) who have been providing assistance in identifying the most appropriate local and international schools. These are schools that have the potential to not only be part of the programme but also to enhance it, and SEC is facilitating registrations with them. Meanwhile, iloveqatar.net (ILQ) being the foremost digital media experts in the country, is providing the ideal platform to reach out to the wider community as media partners through daily tweets, blogs and posts on various social media platforms. In addition, GPS has invited Mission20, a youth-centric body, as one of its activation partners in charge of strategically placing pledge boards, suggestion boxes and creative stickers in campuses to constantly remind and encourage students to utilise resources carefully. Consulting partner Qatar Green Building Council (QGBC) will be lending its expertise to develop the assessment criteria for monitoring the participating schools through this programme.

GREEN SCENE

Green your school Now that schools are back in full swing and gearing up for the GPS, a few tips to help your school go green:

Teach: Include a subject on eco-consciousness within the school’s curriculum. Surveillance: Do a monthly check on the energy and water consumption and make note of faulty areas. Recycle: Encourage students to use recycled textbooks and stationery supplies instead of brand new ones. Keep stock of used books from seniors that can be handed over to the new batch when a new academic year begins. Lunch: Food at the canteen must be served in paper plates or bags instead of plastic ones. Assign a person to also monitor and discourage food wastage. Signs: Develop interesting visuals around the campus to raise awareness among students. With GPS, pledge-boards, suggestion boxes and creative stickers will be strategically placed in the campus to constantly remind and encourage them to utilise resources carefully. Activities: Keep students and staff engaged in eco-friendly activities. Hold monthly competitions and seminars that encourage them to act and think green. Schools participating in the GPS would be vying for prizes like the Best Eco-idea, Most Energy Efficient School and the Eco School of the Year. Parents: It’s important to have parents involved in the green steps your school takes. Hold meetings with parents and students together to help parents educate their children better about turning eco-friendly.

You can be a part too.

Log on to www.facebook.com/GPSQatar and ‘Like’ the page to receive daily updates on the GPS as well as a variety of informative and interesting eco-friendly tips, facts, polls, links and videos.

To know more about the programme,

visit the GPS page at http://www. facebook.com/GPSQatar. To know more about GPS,

contact 44550983

october 2011

Qatar Today 77

b o t t o m line

What’s

your Type? Balancing multi-culturalism with sound HR policies maybe just a question of understanding your individual preferences. May-Britt Searty writes about how the MBTI tool can be deployed by corporates. Albert Einstein misplaced his train ticket and could not produce it for the conductor. He was on the way to a conference. The Conductor said “That’s all right, Professor Einstein. Don’t worry, I know you.” Einstein replied, “Young man, you may not worry, but I still do. Without my ticket, how will I know where to get off?”

f Einstein reached his conference on time, the story doesn’t tell us, but what it does indicate is a typical personality trait exhibited by the great man. What does this tell us about his type? The answer can be found in one of the world’s most used and comprehensive personality inventory or psychological instrument is called the Myers Briggs Type Indicator, also referred to as MBTI (r). It was developed by Katherine Briggs and Isabel Briggs Myers, and is based upon the type theory of Carl Gustav Jung, a Swiss Psychologist, who in the 1920s discovered two

78 Qatar Today

october 2011

important mental processes that takes place in people: Perceiving (taking in information) and Judging (organising this information and coming to conclusion). Jung observed that there are two opposite ways to perceive (gather information), which he called Sensing and Intuition, and two opposite ways to Judge, which is called Thinking and Feeling. Everyone uses these four essential processes daily in both the external world of people and things Extraversion and the internal world of inner processes and reflection Introversion.

b o t t o m line How you relate to the outer world?

how you get your energy?

How you take in information?

How you make decisions?

Extravert

Sensing

Thinking

Judging

Focuses on detail, the here and now

Use logic, criteria,guidelines, consistency

OrdeRly, on time, planned, structured

Energised by the outer world

Intravert

Energised by the inner world

The MBTI produces 16 different personality types, each with its own characteristics and strengths. There are no right or wrong answers on the indicator and no assumed 'right' way to be. There are preferences, of course, and the MBTI assists you in clarifying what your type preferences are. Can it be used in a multicultural environment? The answer is a definite yes. Millions of people around the world have taken the MBTI in various settings. I have worked in three different continents – The Middle East, Africa and Europe. I have facilitated workshops for up to 20 people, where over 12 different nationalities have participated at once. Yes, of course each culture is different, each region within a country is different, so different that you think you are in another world. But when you work with a tool like the MBTI, you will see that many misunderstandings and conflicts are not only based upon cultural differences, but upon the differences in how we process information and the way we make decisions, even in the way from where we get our energy. It is essential though, that cultural differences are respected and understood.

Intuiting

Feeling

perceiving

Sees the big picture, future oriented

bases decisions on values, case by case

"GO with the flow"

Utilising this personality assessment tool has helped organisations make better decisions, be productive in information gathering, and efficient in staff communication. MBTI has assisted in resolving office tensions and conflicts, understand and appreciate differences, brainstorm, sell, and has even inspired career changes. Carl Gustav Jung wrote: “Different cultures may have different forms of their archetypes, but the concepts are universal. If personality type is such a concept, and if it is universal across cultures, religions, and environments, what a challenge lies before us!” You might even experience the “aha” moment, experienced upon recognising something about yourself or the reason for the difference from someone else. Particularly when it extends beyond political and economic borders. The recognition of the difference and the rationale behind it brings understanding, respect and acceptance of people of different countries, races, cultures and persuasions. Using MBTI in your Organisation Leadership style Through your MBTI type, you are getting

information about your preferred Leadership Style. You will recognise where your strength is and become more aware of how to go about improving your own leading style and the leading style of others. Conflict management Here you will recognise the type-related reasons for conflict, which is not a rare explanation for arguments with others. We will work on your own working style and the use of advice in how to delegate and organise your tasks. Some people have a preference to plan in advance (J) Judgment whereas others experience ‘last minute’ to be a useful motivation (P) Perceivers. Experience the effect your own type has on the outside world and the possible tension that it can create. “I am not crazy, I am just not you.” Team building Are there enough different preferences in your team, optimising your problem solving? Do different preferences go against each other, are the different seen as a danger rather than enrichment? Team analysis is another interesting discovery within a company or family setting

by May-Britt Searty check out email: maybrittsearty@yahoo.com

is a recognized MBTI Consultant for the past 15 years and offers different seminars where the Myers-Briggs-Type-Indicator is used as a basic helping tool to create a better understanding of yourself. The themes cooperated with the MBTI is Teambuilding, Stress-Management, Conflict management, Career searching as well as areas of personal development. May-Britt has provided her seminars in Denmark, England, Kenya, Egypt, Nigeria, Germany and Qatar in several companies, Embassies, British councils, Schools and Universities for teachers as well as students, UN, USAID and other non-governmental institutions.

october 2011

Qatar Today 79

braking news Eventful Race sees NISSAN GT-R shine

t the longest race of this year’s super GT, the 500km event at Suzuka Circuit, S Road MOLA GT-R (Masataka Yanagida/Ronnie Quintarelli) came in second place, the CALSONIC IMPUL GT-R (Tsugio Matsuda/Joao Paolo de Oliveira) took third, while the MOTUL AUTECH GT-R (Satoshi Motoyama/Benoit Treluyer) finished fourth. The MOLA team took a major points-haul, firmly advancing their maiden title bid. Fans rejoiced with the relentless pursuit demonstrated by the MOTUL AUTECH GT-R driver Motoyama commented, “I expected us to finish well here as we had been strong all weekend. We made the right tyre choice at the start of the race, though things went slightly astray for the middle stint. In the end we were able to recover sufficiently, despite getting a penalty. I believe we’re looking strong for the remaining rounds of the season.”

BMW X3 earns safety points

he new BMW X3’s exemplary role on the safety front has now been confirmed by Europe’s leading crash test programme, the Euro NCAP crash test. BMW X3 achieved the highest rating of 5 stars with its comprehensive range of standard safety equipment and effective occupant protection in various types of collision. With extremely stable body structure, and standard safety equipment inside that includes front, side and curtain head airbags it protects both the driver and the passengers. It was awarded outstanding ratings for the protection of children aged around three years or 18 months, side impact protection and active safety features. The test procedure of the NCAP ranks as one of the most rigorous tests worldwide and is a benchmark for crash safety recognised throughout Europe.

QatarToday Today 8080 Qatar

o c to oc bt eo rb e2r0 1210 1 1

Filmmaking: MORE THAN WHAT MEETS THE EYE

Jaguar XF crowned power car of the decade

ver a period of 10 years, readers of Auto Express participated in the Driver Power survey and evaluated their car based on factors from reliability to dealer performance. Over 300,000 readers participated with the Jaguar XF emerging as Number One. “We are humbled by Jaguar owners voting in such a way to rate the XF as the number one car in the UK. It’s a tremendous achievement for everyone in Jaguar – from the people here at Castle Bromwich who have been building the car since 2008 to the engineers, the designers and the dealers.” said Dr Ralf Speth, CEO of Jaguar Land Rover. The most efficient XF yet, the new 2.2-litre Diesel model, is capable of travelling in excess of 800-miles on a single tank and emitting 149 g/km of CO2.

Porsche Doha introduces four new MODELS

orsche Centre Doha, Al Boraq Automobiles Co. wll, launced four new Panamera models during the Holy Month of Ramadan. The new Panamera Diesel has a 3.0-litre turbocharged V6 diesel engine with variable turbine geometry, a maximum torque of 550 Nm and top speed of 242 km/h. The Panamera S Hybrid demonstrates the next stage of Porsche Intelligent Performance. The Panamera Turbo S, combines performance and efficiency, with a 4.8-litre, V8 biturbo charged engine delivering 550 hp. The Panamera 4S Exclusive Middle East Edition with its Carrera Red leather interior will be on display with very few of these distinctive units on sale for a short period of time. Every Panamera model sold during Ramadan came with free extended one-year warranty in addition to the two-year Porsche International Warranty as well as a two-year service package.

b r a k ing ne w s

Bugatti Grand Sport wows

or the first time in eight years, Bugatti, renowned for producing the world’s fastest and most exclusive vehicles, appeared at the IAA. Bugatti brought a spectacular piece of automotive artwork, The Grand Sport ‘L’Or Blanc’, a one off vehicle created in collaboration with the Kˆnigliche Porzellan-Manufaktur Berlin (KPM), a historic porcelain company. The one-of-a-kind creation is the world’s first car featuring porcelain in both the body and the interior. Bugatti showcased a second open roadster, The Grand Sport, with striking scarlet paintwork. With the polycarbonate panorama roof

open, the Grand Sport has a top speed of 350 km/h, and closed it can hit a maximum speed of 407 km/h, making it the fastest convertible in the world. 42 orders have been placed from the limited run of the roadster with 108 available for interested customers.

second season of Porsche Driving LESSONS

orsche Centre Doha, Al Boraq Automobiles Co. wll, will start the second season of the popular Porsche Kids Driving School beginning October 2011. The local importer of Porsche cars successfully concluded the programme’s first season with a record participation of 2,000 children. Many Qatari schools, such as the Doha English Speaking School, Ali Bin Abdulla School and Massaied International School, sent pupils to the offered courses with more schools following in the next term. The Porsche Kids Driving School combines educational objectives with an entertainment approach by including theory lessons on basic traffic rules and road signs as well as a practical driving session on Porsche 911 pedal cars under professional supervision. For this, an indoor training park with traffic lights, road signs and a zebra crossing is available to children between five to eight years.

New Maserati Kubang launched

he new Maserati vehicle in the sport luxury SUV segment will represent a natural direction for Maserati to enlarge its product range and strengthen its presence in the sport luxury market. The essence and all major system components of the Maserati sport luxury SUV embrace the brand’s core values of sportiness, style, elegance, luxury, performance and craftsmanship. created by the Maserati Style Center, headed by Lorenzo Ramaciotti, with new-generation high-tech Maserati proprietary engines designed in Modena by Paolo Martinelli, Head of the Maserati Powertrain Department and produced in Maranello by Ferrari. An AT 8 speed automatic transmission and specific performance settings such as suspensions, brakes, steering will be exclusively developed in Modena for the Maserati sport luxury SUV by the Maserati Product Development Department.

82 Qatar Today

october 2011

GM Stays in Top Spot for Auto Innovation

eneral Motors remains the No. 1 innovator among 184 companies for the third consecutive quarter ranked by The Patent Board in its quarterly industry scorecard. “We are busy reinventing the automobile, and we’re doing it sustainably with our customers and the environment in mind,” said Alan Taub, GM Vice President of Research & Development. “One person’s vehicle needs can be quite different from the next, so we’re creating designs for various lifestyles building in technology that delivers a fun, safe, and efficient ride.” A majority of GM’s patents are tied to improving fuel economy and reducing emissions. Earlier this year, the Clean Energy Patent Growth Index of U.S. patents ranked GM No. 1 in clean-energy patents across all industries for 2010. The Patent Board analyzes intellectual property performance across 17 industries and determines the leader in each sector based on measurements from patent portfolios of more than 2,700 of the world’s top technology firms.

M ARK E T WAT C H

Heated action with

Back to Business As business goes on a roll after a slow paced summer, Qatar’s corporate landscape witnessed high action with the seventh edition of ‘The Back to Business 2011’ event at The Sharq Village Hotel on October 2, 2011.

The

magazine coverage. This event while bringing together business communities from different sectors allows networking in a relaxed event is aimed to bring the business commu- way which is quite unique. It is important as it brings to light the imnities from different sectors in Qatar under one platform after mense business potential that exists in Qatar, presenting the counachieving an increasing popularity since its launch in 2004 by the try as a welcoming, friendly nation especially to the expat community," explains M. Palma German Business CounLibotte, Chairperson cil. At present it involves of the Italian Business seven business councils Council. “We have obactively operating in Qatar served a greater attend– the Australia-New Zeaance this time than last land (ANZBIQ), British year that saw over 550 (QFFB), Dutch (DBCQ), participants. We encourGerman (GBCQ), Italage and have received an ian (IBCQ), Scandinavian increased participation (SBCQ) and the Spanish from the Qatari busiBusiness Councils (SBC). ness community as well. The event set in an inforThis time we invited the mal atmosphere enables Chamber of Commerce. people to catch up with We are also planning their business countersome collaboration with parts, make new busithe Qatar International ness contacts and gain an Business Women Forum updated insight into the Qatari business scenario. (From left to right) Members of the Organising Committee of Back to Business 2011: Car- in future.” los Maldonado, Vice Chairman from the Dutch Business Council; Pamela McDowThis year the diamond Every year two different ell, the General Secretary and M . Palma Libotte, Chairperson, Italian Business sponsor of the event was councils organise the event Council International Bank of voluntarily with the support of a steering committee constituted of members of the other Qatar (IBQ), gold sponsors: Ronautica (the luxury yatch company) five councils. The Back to Business 2011 edition was organised by and CBS (Technical Recruitment Agency). silver sponsors: ProPartnership (Consultants), Petrotec (Oil & Gas), Gac (Oil & Gas), the Dutch and the Italian business councils. “This time the event was more business oriented rather than just Zueblin (Construction), Fata (Power Generation Plant), Hec (Edunetworking, with the sponsors getting more visibility in terms of cation), Protection (Insurance), Qatar Skills Academy (Education) dedicated space for exhibiting their marketing material, presenting and Action (Engineering). The strategic partner is Vodafone and their work on stage, logo display and visibility on the website and the media partner is Qatar’s leading publication Qatar Today

october 2011

Qatar Today 83

MARKET WATCH dunhill presents Mother of Pearl Cufflinks

A MILLENIUM OF ISLAMIC CERAMICS

unhill presents elegant and timeless cufflinks in Mosaic Mother of Pearl for Autumn Winter 2011. Fragments of black mother of pearl are intricately applied by hand to Facet Cufflinks, creating a unique spectrum of colours to perfectly highlight a dunhill tailored evening suit. The mosaic design is directly inspired by a dunhill La Captive Clock, an exquisite timepiece produced by Alfred Dunhill himself in the Art Deco era. For today’s debonair gentleman, the iconic dunhill Facet Cufflink design is perfectly customised with a mother of pearl mosaic face within a ruthenium branded outer. The dunhill name is known for its remarkable men’s ready-to-wear collection,

leathergoods, cufflinks, writing instruments and other accessories for men and has achieved global recognition as a brand that offers functional, essential luxuries to

meet the needs of the modern male. dunhill’s blend of classic, contemporary styling appeals to a discerning Middle Eastern man with a maverick mindset.

Gulf Air Celebrates over 60 Years of Service

Nokia C3-01 Gold hits Qatari market

ahrain’s national carrier Gulf Air marked 60 years of successful service to Qatar with Gulf Air Chief Commercial Officer, Karim Makhlouf, unveiling a series of initiatives tailored to the Qatari market. The airline presented the Falcon Corporate Plus package, designed exclusively for corporate travellers, offering a range of benefits including special price discounts and free upgrades. For small and medium enterprises, the airline presented a range of incentives including a double bonanza by which member organizations and travelling employees earn miles that can be redeemed for free flights and upgrades. Gulf Air’s popular Frequent Flyer programme, renamed ‘Falcon Flyer'.

onsolidated Gulf Co (CGC) introduced Nokia C3-01 Gold for consumers looking for a userfriendly device which gives them exclusivity and smooth connectivity. This impressive Touch and Type smart phone comes with 18-carat gold plating, ceramic-feel keypad and a matching theme. Carrying a vibrant 2.4-inch QVGA touch screen, Nokia C3-01 is a modern day device equipped to fulfill the need of internet surfing. The hardware has been updated with a 1GHz processor and comes with Bluetooth, Nokia Messaging, IM functionality and Nokia Communities for checking into Facebook and Twitter. Additionally it has a 5-megapixel fixed focus camera, VGA video recording ability and a LED flash feature that gives bright photography in dark settings.

85 Qatar Today

october 2011

Qatar Today 85

M ARK E T WAT C H

Costa Coffee launches Flat White

osta Coffee has just launched a new coffee drink that promises to be Qatar’s new favourite – the Flat White. To celebrate the occasion, Costa held an event on September 19, distributing gifts and inviting customers at Landmark to make their own Flat White, with basic lessons of how to heat the milk, extract the coffee and make the design on the cup. The teacher was no one but Costa’s very best barista in Qatar, Raza Abdalla, who recently won the best creative drink trophy in Costa’s annual Barista of the Year competition, held in Dubai, against Costa baristas from all over the MENA region.

Shanghai Sublime from The One

LG Optimus 3D now in Qatar

G Electronics, global leader and technology innovator, launched the LG Optimus 3D Smartphone, the world’s first tri-dual architecture 3D Smartphone that brings 3D technology in the palm of your hands. “3D Technology has grown beyond being a buzzword. Today 3D technology has become an integral part of people’s modern lifestyle. LG’s Optimus 3D Smartphone makes this unique technology accessible on a day to day basis”, said H.S. Paik, President of LG Electronics Gulf FZE. Users can record and immediately view content in 3D without special glasses. Its wide viewing angle makes watching videos and movies more convenient while the 4.3-inch WVGA display offers bright, flicker-free images in HD. Free software for converting 2D games will be available for download. Optimus 3D Smartphone is available with all LG Lifestyle Galleries, Jumbo Electronics outlets, Hypermarkets and selected dealers.

ashion your very own sumptuous sanctuary with an Asian twist by taking your cues from THE One’s Shanghai Sublime theme – part of their Autumn/Winter 2011 Collection. Combining nude hues with sleek surfaces and Far Eastern-inspired accessories, this alluring look blends modern elegance with a dash of classic glamour to create a style that oozes chic sophistication. Set the scene in your living room with standout pieces like the simple, yet stylish white leather PAULO sofa and the graphic TSING coffee table in glass and chrome.

Ulysse Nardin Sponsors 2011 Monaco Yacht Show

n icon in high horology, Ulysse Nardin took part in the 21st Monaco Yacht Show and revealed the limited-edition Monaco 2011 Executive Dual Time. The Monaco 2011 is a limited-edition collection of 100 pieces that echo the regal lifestyle of the Principality of Monaco. Engineered with the Ulysse Nardin patented Dual Time system and conveying a modern aesthetic with

classically refined characteristics, the Monaco 2011 is fitting for the watch connoisseur who seeks unparalleled precision and considers dressing a form of art and strong self-expression. The timepiece’s streamlined design evokes the essence of a yacht cutting through the water. Conquering the oceans with its precision instruments for 165 years, Ulysse Nardin continues its journey of innovation, guiding yachtsmen on the water and into the future .

october 2011

Qatar Today 87

D o h a Di a r y

A Millennium

Of Islamic Ceramics The history of ceramics unfolds against the intriguing background of Islamic societies

C 88 Qatar Today

october 2011

eramics are among the chief glories of Islamic culture and craftsmanship. Their history unfolds against the intriguing background of the remarkably varied cultures of Islamic socieAbbasid lustre bowl ties. For over a thousand years, the Islamic world, spanning from Spain all the way to Central Asia, saw an unprecedented production of the ceramicist’s art leaving behind examples of creative expression and experimentation which are testimony to the diversity of influences and knowledge in this vast territory broadly known as the Islamic world. The demand for works of art relating to the field of Islamic Art has never been so strong and is growing rapidly, demonstrated by recent record-breaking prices and auction totals achieved for rare and important pieces with outstanding provenance. On the October 4, 2011 Sotheby’s in London will bring to market the truly exceptional collection of Islamic Ceramics assembled by Harvey B. Plotnick – 27 exquisite Islamic Ceramics carrying a total estimate of QR13.52 million – 18.07 million (£2.6 million – 3.6 million). The outstanding offering of masterpieces of Islamic craftsmanship, assembled over the past 20 years, focuses principally on the cultures of Iraq and Iran, as well as the trade routes between the Mediterranean and Central Asia. It will afford collectors and connoisseurs an unrivalled opportunity to acquire some of the rarest and most important ceramics relating to the Islamic World ever to be offered at auction. The sale will be highlighted by a large ninth century Abbasid lustre bowl with geometric and stylised vegetal decoration from Iraq. This magnificent bowl represents one of the

D o h a Di a r y earliest attempts at lustre painting on ceramic, a Kashan bowl radical new technique that involved the application of metallic pigments to the surface of a pre-fired glaze to give the appearance of glittering gold. The earliest polychrome lustres are by far the rarest and most sought-after by collectors and this example is estimated at QR1, 255,000 to QR1,757,000 (£250,000 – £350,000) . A ninth century pottery bowl with a Kufic inscription from Iraq, is an exceptional example of early Islamic tin-glazed pottery and it epitomises the powerful abstraction of the early Abbasid style. While the shape imitates a Chinese prototype, the use of cobalt blue is a novel departure that was to have a profound and long-lasting influence on world ceramics. The bowl is estimated at QR753,000 – QR100,400 (£150,000 – £200,000). A Kashan dish depicting an onager or wild donkey, native to the deserts of Iran, with inscriptions which include a date of AH609/AD1212-13, is estimated at QR753,000 (£150,000). Also carrying the same estimate is an early thirteenth century Kashan lustre pottery bottle vase from Persia with inscriptions i n Arabic. Among the most beautiful objects is a striking and monumental Kashan lustre dish fifteenth century Timurid mosaic tile with lotus blossoms, from Transoxiana, which is estimated at QR1,255,000-1,757,000( £250,000350,000). Plotnick’s interest in Islamic Art stems from a trip to Paris in 1992 with his wife, Elizabeth, to celebrate their wedding anniversary. They spotted elegant ninth or tenth century Central Asian bowls in a shop window, which inspired Plotnick to educate himself about his new passion. His first purchase was a Kashan lustreware bowl that Daniel Walker, Head of the

Islamic Art department at the Metropolitan Museum of Art in New York, at the time, had been considering as a possible acquisition for the Met. Although Plotnick purchased most pieces one at a time, his acquisition of two major collections represents a significant portion (nearly a third) of the collection that he assembled. Discussing his collecting in the introduction to Perpetual Glory: Medieval Islamic Ceramics from the Harvey B. Plotnick Collection, collector and connoisseur Plotnick, said: “My style of collecting is first to

Kashan bowl

steep myself in the subject at hand; only later do I begin acquiring. I set about educating myself on the subject of my new passion, for this is one of the greatest joys of collecting: exposing oneself to new worlds of learning, not only about the objects themselves but also about their context, the places and periods in which the works originated.” Commenting on building this particular collection, Plotnick wrote: “I began by purchasing books, in and out of print; first those devoted to Islamic ceramics, and, later, works pertaining more broadly to Islamic art.” Further sales of Islamic Ceramics from the Collection assembled by Plotnick are planned by Sotheby’s London for April and Samarqand pottery bowl October 2012

bookmark www.issuu.com/oryxmags

By Edward Gibbs Edward Gibbs is Senior Director and Head of Sotheby’s Middle East and India Department

october 2011

Qatar Today 89

D o h a Di a r y

Silver Screen

More than what meets the eye The world of cinema is not just the 90 minutes of entertainment you see on the screen. It takes a couple of years or more of toil and a lot of investment, says Mohamed Al-Ibrahim, one of DFI’s mentors on the Education team. He was both in front of and behind the camera for the Arab epic, Black Gold, which will premier at the launch of Doha Tribeca Film Festival 2011, on October 25.

M ohamed Al-Ibrahim, all of 26, has come a long way. Armed with a degree in Criminal Justice from the US, he began work in a bank in Doha, but resigned soon after to start pursuing his life-long ambition of film-making. Now he has started directing his own movies while he mentors other film enthusiasts at Doha Film Institute (DFI). Add his short acting stint in Jean-Jacques Annaud’s Arab epic and Qatar’s first inter-

90 Qatar Today

october 2011

By Sindh u N a i r national co-production, Black Gold, and his life just cannot get more fascinating, or can it? Mohamed shares his colourful expedition with Qatar Today. “It all started when my father, who was then working with Qatar TV, took me to the news room when I was six years old. I was fascinated with the lights and the sets,” says Mohamed. While it took him 10 more years to realise that he really had a passion for films, his desire, when expressed, was met with scepticism. “Ten years ago there was no film industry in the region and my family was concerned that I would remain jobless.” So he proceeded to the University of Central Florida in the US to study Criminal Justice – a mix of criminal psychology and law. The pull of the home country was strong and Mohamed went back in Doha,

a degree under his belt, to work for a local bank. “The money was good,” he smiles. But that wasn’t enough, and so when he went to the first DTFF in 2009 and found out more about the industry, he left the comforts of the banking career to pursue his passion. However, his education did prove beneficial in his current vocation: “Part of my degree was to learn behavioural psychology,” he says. It helps Mohamed get under the skin of his characters while directing and scripting his own movies. After a couple of years at DFI, embracing all that they had to offer, Mohamed is now sure that he can make a career as a film-maker. He has moved on to play the role of a mentor at DFI, running workshops, encouraging new aspirants and picking new talent. Runner to the third AD Black Gold opened a whole new world

D o h a Di a r y

Mohammed Al-Ibrahim, Doha Film Institute (DFI)

of possibilities for Mohamed. Though he started as a runner in the movie, Mohamed learnt the ropes through the process, questioning each detail and imbibing techniques from the crew. “Scandar Copti told me about this opportunity and said that I would be able to learn a lot from the experiences. I agreed instantly and three days later I was on my way to Tunisia. The first week I was asked to just watch and learn. The second week I was a runner. It was a huge set so there was always a need to carry equipment around and that was what the runner did, run around delivering props. I worked my way up to the third assistant director at the set there. “The third assistant director makes sure that all the actors and the crew arrive on time and he is responsible for all of them while they are on the set.” For someone who loved to be behind the cameras, Mohamed also had his stint as an actor in this huge banner though he it wasn’t by design. “The Education team was responsible for the auditions which were held in Doha, October 2010. I had to mike-up the contestants before the auditions and send them in. The acting director used to see me do this and he asked me to try my luck. I resisted but on the last day he arm-twisted me into auditioning. A month and a half later my name was announced by Frieda Pinto. It was all very exciting and happen-

ing too fast for me to even react. “They were looking for someone with no acting experience, a small frame and I fit the bill, perfectly. It was the role of a pigeon guard, someone who was used to a hard life in the dessert, a survivor...” Reminiscing about his role in the movie and his experience working with JeanJacques Annaud, he says, “I had to lose 7kg for the movie and grow a beard but I did really look the part! The director changed my lines and he even made me improvise on my dialogues. Coming from such a great director that was indeed exhilarating. I learnt a lot from this short stint as I could see how he (Jean-Jacques) worked with actors. He explained the character, the mood to me and what the audience should understand from the scene but he did not tell me how to do it – that was left to the actor. The way he sets up his set is also very interesting. I learnt a lot from him and I have actually taken his techniques and used them in my film.” Remembering special moments from Black Gold, he says,”Meeting Antonio Bandera was great fun; he likes to speak to everyone and he is always chatting with the crew after the shoot.” From 1-minute to 30-minute movies Last year Mohamed produced and directed a one-minute movie, Land of Pearls, which was fully funded by DFI as part of the education programme and this year he is com-

pleting his first 30-minute movie. “The movie I am currently directing is called Lockdown and the whole thing is shot in a prison, a makeshift one.” Funding, says Mohamed, is a challenge, especially in Qatar as film-making is never considered a business that will bring in profits. “We need more investors; we need more film-lovers who encourage the industry and are willing to fund good movies.” Qatar, according to Mohamed, has huge potential to have a stable film industry. “I can see young enthusiasts, not just talented Qataris but other Arabs too, who are so passionate and thirsty for opportunities. With more education, exchanges and encouragement from people within the industry, experimentation, all of which DTFF provides each year, I would say in another 15 years, we should have a thriving film industry.” People need to understand that filmmaking involves a lot of hard work, stresses Mohamed. “Even for a one-minute movie, there is so much work involved. It took us around five days to finish planning, scripting, shooting, post production, etc. You put your heart, blood and soul for over a year into an hour and half of cinema and the spectator gives it no further thought. It is time that the industry is taken more seriously.” follow

twitter.com/dohafilm

october 2011

Qatar Today 91

TOP 10 AIRLINES 2011 96

doha diary

Stars of Science returns for its third season

Boost for arab innovators

tars of Science, a Pan-Arabian docu-reality television programme highlighting young Arab innovators, returns for its third season. At a press conference held at the Qatar Science and Technology Park, previous winners, jurors and Qatar Foundation representatives presented the overview for the new season and explained the global impact of the show. Touring eight countries in the Arab region, young innovators present their ideas to a highly qualified permanent jury consisting of Professor Fouad Mrad who serves as co-ordinator of the United Nations ESCWA Regional Technology Centre as well as Rashed Ali Mohammed Ibrahim the Assistant Director of Electronic Production for the Qatari Armed Forces and the Head of the Qatar Scientific Club. Top selections come to QF to participate in high-energy challenges

that test their idea. With the support of world-class universities, young innovators gain invaluable feedback from qualified jurors at every stage. Jurors include leading professors, designers and leading business people. Participants are filmed as they prove the complexity, usability, marketability and patentability of their idea. Season one winner Bassam Jalgha has filed a patent for his creation, a tuning machine for Arabian instruments named â&#x20AC;&#x2DC;Torkâ&#x20AC;&#x2122; while Season two winner Sadeq Qassem has gone on to win several international prizes as well as develop his project further with the support of the Kuwaiti royal family. This season, the show will be shown exclusively on MBC 4 at prime time and $600 000 is offered as prize money to the finalists who are chosen by public vote. QF emphasised their commitment to the development of young Arab innovators and scientific advancement.

Millennium Hotel Doha initiative has teamed up with the Hamad Medical Centre for a blood donation drive where more than 40 hotel employees donated more than 40 pints of blood. Taking place at the hotelâ&#x20AC;&#x2122;s Simsima Ballroom, the drive was part of a wider corporate initiative which saw all Millennium & Copthorne hotels joining together to volunteer for a good cause.

october 2011

Qatar Today 93

D o h a Di a r y

ABA's Ramadan offering

he Ali Bin Ali Group invited 35 individuals from The Qatari Centre of Social Culture for the Deaf (QCSCD) to an Iftar gathering at W Hotelís Ramadan Tent. The group came together to celebrate the spirit of giving, sharing and caring in honour of the values promoted by the Ramadan Season. The ABA Group made considerable financial contribution to QCSCD in a step to boost its valuable efforts. ABA Group also hosted an iftar Party for 100 children from Qatar Orphan Associationís Dhreima Foundation at the Ramadan Tent of the W Hotel Doha. ìThis Iftar gathering was planned specially to uphold the spirit of Ramadan and this effort forms part of the CSR initiative of the Group. We carefully chose the W hotel because we wanted to treat the children to something very specialî, said Nabeel Ali Bin Ali, Vice Chairman, ABA. The evening concluded with a generous contribution of QR250,000 by ABA to support the programmes benefiting cultural and educational activities of the orphaned children.

grow wins design award Wolda, the Worldwide Logo Design Annual 2010, has awarded the prestigious “Best of Nation” award to grow. Its design for the Education Centre logo at the Museum of Islamic Art (MIA) was selected from almost 1,400 entries from freelance designers, agencies, studios and students from all over the world.

94 Qatar Today

october 2011

D o h a Di a r y

Katara and Virgin get together New position

atara together with Virgin Megastore announced an exclusive partnership which allows cultural festival fans to purchase their tickets from any Virgin Megastore outlet across the region.

The event was attended by Abdul Rahman AlKhulaifi, President of Katara, the deal was signed by Darweesh Ahmed, Marketing and International Affairs Director, Katara and Nassim Goraieb, Marketing Manager, Virgin Megastore at Virgin Villaggio.

for Crane at Four Seasons Hotel Doha

our Seasons Hotel Doha announced Julian Crane as the new Director of Marketing. Following his 17 years with Four Seasons in various capacities, Crane has plans for some iconic upgrades and new openings for this leading hotel in the coming months.

ROTA honours Ramadan partners Reach out to Asia (ROTA) held a reflection event as a token of appreciation for the efforts of all those who partnered and participated with ROTA Ramadan 2011 campaign. Over 70 volunteers and partner representatives attended with volunteers receiving certificates.

october 2011

Qatar Today 95

D o h a Di a r y

Qatar Today on the App Store

atar Today, Qatar’s No 1 news and business magazine is now available on the App store for free downloads. Qatar Today is the flagship title of Qatar’s leading publishing house Oryx Advertising

Co WLL. Designed in-house, by the expert designing team, the Qatar Today app for iPad is an enhanced digital version of the print magazine, incorporating a range of multimedia features. This is another first for Qatar Today and Oryx Advertising, as the first local magazine to be on the store. Commenting on this important feat, Oryx Advertising Co WLL, Vice President, Ravi Raman says, “As the country’s leading magazine it was important for Qatar Today to be available in all platforms, be it mobile or tablet. This called for a lot of hard work and the end result showcases the design intuitiveness of the team. It is remarkable that the whole project was done inhouse We did not want to outsource the project, but be involved in it at every stage, as we understand best what the local market seeks. We strive to bring the best in design and content to our readers and this is just one more step in that direction. This is the first step in the digital direction for us, and we have some exciting plans in the pipeline.” In the first week of launch itself, there were a few hundred downloads. Once the app is downloaded from the store, the reader will

receive a push notification when a new issue hits the stand. The iPad app is part of Oryx’s endeavours to reach out its readers in all forms of media. Established in 1973, Oryx is the only publishing company in Qatar that brings out four monthly magazines – Qatar Today, Qatar Al Yom, Woman Today and Glam and several other periodicals such as T Qatar, CAMPUS, Landmark, ICT Today, Progress. All of these titles are leaders in their categories.

ABA's mentoring initiative

li Bin Ali (ABA) Group recently announced an initiative with Qatar Foundation as its partner. Having proposed this notable collaboration, ABA Group has offered a mentoring opportunity to a number of students from QF universities. Unlike most mentoring efforts the ABA initiative will not simply be a sponsorship or CSR effort. The chosen student who will participate in this effort will not just receive a sponsorship but also will also receive exposure to a variety of fields of work. Since THE group has multiple business operations the company is able to enrich the student's experience, making it both practical and meaningful. A few of the divisions of the Group like the International Agencies (IA), Qatar Quality Products (QQP), Ali Bin Ali Medicals & Fauchon will also support this endeavour. Commenting on this effort, ABA, ViceChairman, Nabeel Ali Bin Ali said, "We

96 Qatar Today

october 2011

came up with this mentoring programme because we wanted to be part of something that reflected our commitment to the over-

all education sector and to the growth of professionalism among the youth of this country."

ne w s bi t es

QT TwitPick The easiest way to keep abreast of news pertaining to Qatar and the region,

on a daily basis, is to follow Doha News on Twitter. With close to 6,000 followers (and growing), @dohanews is our pick this month. We speak to Shabina Khatri (@shabinakhatri), who started the twitter handle and partner of the eponymous site, on how Doha News fits into the media spectrum of the country.

W Doha gets spicier

Doha is revamping its iconic street style Spice Market brunch bringing the ambience closer to the streets of Far East. It will serve innovative menus and sizzling fusion food in traditional food carts and spice stations. ìItís an amazing transformation; diners will feel they could be dining in downtown Hong Kong or even Singapore. Our new Spice Market brunch will stand out as the most genuine and creative Asian cuisine around. We want diners to enjoy themselves and have fun while feasting on amazing dishesî, informed Edgar Vaudeville, PR and Events Manager, W Doha.

Why Doha News? What vacuum did you hope to fill, by starting Doha News? I started Doha News in March 2007, in the form of a Twitter feed as a sort of public service, sharing what was happening on the ground as well as news of Qatar’s increasing involvement on the international level. Two years later, in response to growing demand for news about Qatar and a virtual vacuum of certain types of stories on the local media front, my husband and colleague Omar Chatriwala (@omarc) and I launched a news site with the same name. We have started out with a Tumblr blog because it is interactive and easy to update. In the six months since dohanews. co’s inception, we have experienced an encouraging and increasing uptick in traffic, particularly on days where there is breaking news or stories that the local press won’t cover, including matters of religion and government. Because we currently rely heavily on curation – culling what we deem to be the most interesting tidbits of news to our readers from various sources – I want to point out that we do not consider ourselves as a replacement for local newspapers, but a complement to them. Doha News also has an emphasis on multimedia – like videos and photos – as well as online community engagement, sparking discussions on hot topics and getting the audience involved in the newsgathering process. Tell us a bit more about the people behind DohaNews. Omar and I both come from professional journalism backgrounds, and we work

hard to ensure that Doha News is a credible, transparent operation. I’ve lived in Qatar now for over four years, and Omar is rounding out his fifth year in Doha. Because we can’t always be available, we also ask our friend Malika Bilal (@mmbilal) – an Assistant Editor at Al Jazeera English – to help us keep the site updated from time to time. Also invaluable are audience contributions, whether they be photos, news tips, or even writing up stories for us. We know this community and though we are expats, we care about its future. What next for Dohanews? Are there plans to make it commercial? Long-term, we hope to develop Doha News into a broader local news website, continuing to offer the 'best of the web' but also featuring original reporting, multimedia stories and special sections relating to key events/issues in Qatar and the surrounding region. With regards to the business side of things, we are currently exploring a couple sponsorship opportunities and other revenue-generating ideas. And of course, we are more than open to other collaboration. Who are your favourite tweeps? I am always grateful to the tweeps who spot something that’s happening in Qatar and give us a head’s up. We do rely on our followers and readers to keep plugged in to what’s happening around Doha and the rest of the country/Gulf. (Every month Qatar Today will feature an interesting Doha tweep in this new column. So if you have a favourite, do send a direct message to @QatarToday)

october 2011

Qatar Today 97

Qatar Airways

flies one of the youngest and most modern fleet of aircraft in the skies today, with ongoing orders for more than 200 aircraft worth over $30 billion (QR109 billion). The airline will operate a fleet of 110 aircraft by 2013 - almost double the existing size. During 2007, Qatar Airways ordered 80 Airbus A350s, together with 60 Boeing 787s and 32 Boeing 777s. It has ordered five of the twin-deck Airbus A380 ‘super jumbos’ for delivery from 2012.

Singapore Airlines

has come a long way since 1972, evolving from a regional airline to one of the most respected travel brands around the world. They fly to destinations spread over five continents, with their Singapore Girl as their internationally-recognisable icon.

Asiana Airlines the South Korean carrier - offers 516 daily departures across Asia, Europe, North America and Oceania. It offers 14 domestic and 85 international passenger routes. The airline was established in 1988.

Top 10 Airlines 2011

Cathay Pacific Hong Kong’s flag carrier - has 108 aircrafts serving 114 destinations in 36 countries world-wide. The airline was founded in September 1946 and made the world’s first non-stop transpolar flight flying over the North Pole in July 1998.

Thai Airways International was founded in 1960 and started intercontinental services in 1971. The Thai Government bought out SAS’ 15% holding in 1973 and Thai Airways became fully owned by the Thai people. It routes a fleet of 85 aircrafts to 72 destinations in 35 countries.

The World Airline Awards were held at the French Air and Space Museum earlier thissummer as part of the Paris Air Show. Voted by over 18.8 million airline passengers from 100 different nationalities, these awards reflect customer satisfaction levels regarding the airlines’ front-line products and services.

Etihad Airways

was set up in July 2003 and commenced commercial operations in November 2003. As of October 2010, their fleet of 56 aircraft operates close to 1,000 flights per week, serving an international network of 66 destinations in 43 countries.

7 Air New Zealand IT'S route network focuses on Oceania and the South Pacific, with long-haul services to Asia, Europe and North America. Air New Zealand originated in 1940 as Tasman Empire Airways Limited (TEAL) but became wholly owned by the New Zealand Government in 1965 and was renamed.

Qantas was founded in the Queensland outback in 1920. Nicknamed “The Flying Kangaroo”, it is Australia’s largest airline, the oldest continuously operated airline in the world and the second oldest in the world overall.

9 Turkish Airlines 98 Qatar Today

october 2011

operates services to 146 international and 41 domestic cities (38 domestic airports), serving a total of 187 airports, in Europe, Asia, Africa, and the Americas. The airline was formed on 20 May 1933.

Emirates is the flag carrier of the United Arab Emirates and is the largest airline in the Middle East, routing over 2,400 passenger flights per week to 111 cities in 62 countries across six continents from its hub at Dubai International Airport.

october 2011

Qatar Today 99

100 Qatar Today

october 2011