Private Sector Qatar - August 2012 by Private Sector Qatar

real estate sector

success story

environment and business

PUBLICATION LICENSED BY IMPZ, DUBAI TECHNOLOGY AND MEDIA FREE ZONE AUTHORITY

AUGUST 2012 www.privatesectorqatar.com/en

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cash flow statement

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AL MIRQAB

AL NAJADA

A L

CHOOSE YOUR OWN FLAVOUR With six new boutique hotels and nine new residences, Souq Waqif Boutique Hotels brings, exciting, creative, innovative five star luxury to Doha’s most precious tourist destination, Souq Waqif. The authentic souq, for many years the centre of merchant trading, now has a collection of uniquely different sanctuaries and retreats. From 14 rooms to 37 rooms, from traditionally Qatari to fashionably contemporary and modern, the six hotels will inspire and tailor make a wonderful memory for all guests, whether they be staying at leisure or on business.

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+974

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Doha

Qatar

J A S R A

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‫‪A R U M A I L A‬‬

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‫ﺗﺤﻘﻖ ﺳﻠﺴﻠﺔ ﻓﻨﺎﺩﻕ ﺍﻟﺒﻮﺗﻴﻚ ﻓﻲ ﺳﻮﻕ ﻭﺍﻗﻒ‪ ،‬ﻣﻦ ﺧﻼﻝ ﻓﻨﺎﺩﻕ ﺍﻟﺒﻮﺗﻴﻚ ﺍﻟﺴﺘﺔ ﻭ ﺍﻟﺸﻘﻖ ﺍﻟﻔﻨﺪﻗﻴــﺔ‬ ‫ﺍﻟﺠﺪﻳﺪﺓ‪ ،‬ﻧﻘﻠﺔ ﻓﺎﺭﻗﺔ ﻓﻲ ﺍﻟﺼﻨﺎﻋﺔ ﺍﻟﻔﻨﺪﻗﻴﺔ ﺍﻟﻔﺨﻤﺔ ﻓﻲ ﺍﻟﻤﻨﻄﻘﺔ ﺍﻟﺘﺎﺭﻳﺨﻴﺔ ﻭ ﺍﻷﺛﺮﻳﺔ ﻣﻦ ﺍﻟﺪﻭﺣﺔ ﺍﻟﺘﻲ ﺗﻤﺜﻞ‬ ‫ٔﺍﺣﺪ ٔﺍﺑﺮﺯ ﻣﻌﺎﻟﻢ ﺍﻟﻌﺎﺻﻤﺔ ﺍﻟﺴﻴﺎﺣﻴﺔ‪ .‬ﺍﺫ ﻳﺤﺘﻀﻦ ﺳﻮﻕ ﻭﺍﻗﻒ ﺍﻟﺬﻱ ﺷﻜﻞ ﻣﻨﺬ ﺯﻣﻦ ﺑﻌﻴﺪ ﻣﺤﻮﺭ ﻭ ﻣﺮﺗﻜﺰ ﺍﻟﺤﺮﻛﺔ‬ ‫ﺍﻟﺘﺠﺎﺭﻳﺔ ﻓﻲ ﺍﻟﻌﺎﺻﻤﺔ ﺍﻟﻘﻄﺮﻳﺔ‪ ،‬ﻭﻳﺘﺮﺍﻭﺡ ﻋﺪﺩ ﻏﺮﻑ ﺍﻟﻔﻨﺎﺩﻕ ﺍﻟﺴﺘﺔ ﺍﻟﺠﺪﻳﺪﺓ ﺑﻴﻦ ‪ ١٤‬ﻭ‪ ٣٧‬ﻏﺮﻓﺔ ﻓﻨﺪﻗﻴﺔ‪ ،‬ﺗﺘﻤﻴﺰ‬ ‫ﺑﻬﻨﺪﺳﺘﻬﺎ ﺍﻟﻤﻌﻤﺎﺭﻳﺔ ﺍﻟﻔﺮﻳﺪﺓ ﺃﺟﻮﺍﺋﻬﺎ ﺍﻟﺮﺣﺒﺔ‪ ،‬ﺑﻴﻨﻤﺎ ﺗﺘﻤﺎﻳﺰ ﻋﻦ ﺑﻌﻀﻬﺎ ﺍﻟﺒﻌﺾ ﺑﺘﺼﻤﻴﻤﺎﺗﻬﺎ ﺍﻟﻤﺴﺘﻠﻬﻤﺔ ﻣﻦ‬ ‫ﺍﻷﺻﺎﻟﺔ ﺍﻟﻘﻄﺮﻳﺔ ٔﺍﻭ ﺍﻟﺤﺪﺍﺛﺔ ﺍﻟﻔﺨﻤﺔ‪ ،‬ﻭﻫﻲ ﻣﺼﻤﻤﺔ ﻟﺘﻮﻓﺭ ﻟﻠﻨﺰﻻﺀ‪ ،‬ﺳﻮﺍﺀ ﻣﻦ ﺭﺟﺎﻝ ﺍﻷﻋﻤﺎﻝ ٔﺍﻭ ﺍﻟﺴﺎﺋﺤﻴﻦ ٔﺍﻭ‬ ‫ﺍﻟﻤﻘﻴﻤﻴﻦ ﻓﻲ ﻗﻄﺮ‪ ،‬ﺿﻴﺎﻓﺔ ﻭﺭﺣﺎﺑﺔ ﺗﺨﻠﺪ ﻓﻲ ﺫﺍﻛﺮﺗﻬﻢ‪.‬‬

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CONTENTS August 2012

Success story 18 GO AND KNOCK ON DOORS!

Tamara Pupic got talking with Al Jaidah, Managing Director, Techno Q, to know how his company proved that even in a small market there is always scope for growth.

Entrepreneur 22 STARTUP WITH A CAUSE Tamara Pupic brings you a story about a very young Qatari determined to start a veterinary clinic in Doha, after catching up with Abdulla Adel Al-Naemi, Managing Director, and Rhonda Rooney, Practice Manager, Parkview Pet Center.

Confessions of a shopaholic! News

10 UPDATES

24 CONFESSIONS OF A SHOPAHOLIC Dr. Dana Al Malki, Founder and CEO, Dana Al Ghafri, Managing Partner, and Mai Al-Malki, Marketing Director, The Infotribe LLC, tell Private Sector Qatar how they established the first Qatari-owned online shopping portal.

Finance

Get to know about the latest events and happenings in Qatar that will have an impact on SMEs and large enterprises.

26 MAGIC WAND SOLUTION A cash flow statement is crucial for the analysis of the actual level of cash flowing into and out of the business. Huda Kamal spoke with Kamel Fathi Fayed, Financial Controller, QDB, about its main purpose within QDB’s project financing.

About town 14 ATTRACTING THE WORLD Doha Trade Fair was held in the Doha Exhibition Center. Private Sector Qatar was there and gives you the highlights of this exhibition.

15 QATARIS GO GREEN Keeping Qatar free from hazardous industrial waste and poisonous contaminants is easier after establishment of the Rassas Battery Recycling Factory. Private Sector Qatar brings you insights from their press conference.

16 LOCAL CONTENT BARRIERS Impact of digital platforms on the global print media industry was discussed at a panel discussion on “Local Content and Migration to Digital Platforms” hosted by the Dubai Media City. We present to you a synopsis of the event.

Legal 26

28 IS YOUR LIABILITY REALLY LIMITED? Limited liability company (LLC) is the most common vehicle available to foreigners wishing to conduct business in Qatar. Fouad El Haddad, Senior Associate, Clyde & Co, explains what options are available in case that the LLC incurs losses.

Logistics 30 BUILDING A FUTURE Aparna Shivpuri Arya gets talking to Ranjeev Menon, Group CEO, to know more about the Gulf Warehousing Company and what has been the mantra for its success.

Business growth

How to

Sector study

32 GOLDEN RULES OF NETWORKING

42 ENGINEERS, CHECK THIS OUT!

44 REAL eSTATE OF OUR FUTURE

On the eve of Qatar’s infrastructural boom, Wayne Merrick, Country Manager (Qatar), Links Group, advises engineers how to capitalise on the projects planned within the Qatari market.

With the announcement that the FIFA World Cup 2022 will be hosted in Qatar, country’s real estate market got a new impulse. Huda Kamal and Tamara Pupic bring you an analysis of the sector which is likely to remain dynamic for many years to come.

In a business context, we pursue competitive advantage through personal connections. Mark Dixon, Founder and CEO, Regus, provides tips for making sure that we take out the time to connect.

44 34 PROMISING EXCEPTIONAL EXPERIENCE

Women in business

Huda Kamal talked to Kareem Shamma, CEO, BASREC, about one of the “must see” destinations in the region – Doha Festival City.

46 INVESTING: A NEW WOMEN’S CLUB Women are becoming increasingly aware that they have distinct advantages over men when it comes to the topic of investing. Marzena Hallam, Founder and CEO, Mibx, explains why and how Qatari women need to engage in investing.

Business advice 38 MAKE YOUR OWN PATH Robin McCall, Group CEO, al khaliji Bank, spoke to Aparna Shivpuri Arya about what determines success for an SME and provided some interesting tips.

Marketing 48 RECORD WELL TO SELL BETTER!

40 A VISION TO LEAD

In the near future, all companies which generate business from their Websites will feature an online video explaining their particular products or services. Stefan LindbergJones, Founder, Think Big Qatar, explains how to make an effective video presentation.

Al Attiyah Group is known for its commitment to excellence in various business sectors. Huda Kamal caught up with Dr. Ahmed Nasser Al Fadala, CEO, Al Attiyah Group, to find out the secret of their success.

Opportunities 50 BEING HEALTHY IS WEALTHY There is good evidence worldwide that academic health systems act as strong engines of economic growth. Prof. Edward Hillhouse, Chief Policy Advisor on Academic Health Systems, Hamad Medical Corporation, Doha, reveals to us what business opportunities exist in Qatar’s healthcare sector.

52 ENVIRONMENT AS A BUSINESS OPPORTUNITY Aparna Shivpuri Arya checked with Benno Böer, Ecological Sciences Advisor, and Mark Sutcliffe, Project Officer, UNESCO Doha Field Office, on what business opportunities can arise in the process of protecting the environment.

Publisher Dominic De Sousa Group COO Nadeem Hood Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126

EDITORIAL

EDITORIAL Senior Editor Aparna Shivpuri Arya aparna@cpidubai.com +971 440 9133 Assistant Editor - English Tamara Pupic tamara@cpidubai.com +971 440 9130 Assistant Editor - Arabic Huda Kamal huda@cpidubai.com +971 440 9140 Contributing Editors Mike Byrne mikeb@cpidubai.com +971 440 9105 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 Advertising Sales Manager Zaid Abdel Hadi zaid@cpidubai.com +971 4 440 9163

Feel the excitement! Because we definitely are all excited about our August issue and want to share the stories we have been working on so far. This month, you’ll get to know some very enterprising and interesting Qataris and read about their leap of faith. Our story about Parkview Centre highlights the ambition of a young Qatari to make a difference. And he indeed made a difference – by setting up a place where animals are valued and taken care of. Isn’t that a perfect example of mixing business with a noble cause?

CIRCULATION Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147

Our other two stories on TechnoQ and the first online shopping portal (www.shoppingshrine.com) bring forth the ability of individuals to identify a gap in the local market and to offer a niche service. That is something, we all can learn if we dream to be entrepreneurs.

OPERATIONS AND DESIGN Operations Director James Rawlins jamesr@cpidubai.com +971 4 440 9108 Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9148 Photographer Cris Mejorada cris@cpidubai.com +971 4 440 9108 DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya Louie Alma online@cpidubai.com +971 4 440 9100 Published by

Moving on, we also caught up with a few local experts from al khaliji bank and Al Atiyyah Group to pick their brain on some advice for SMEs. And if that’s not all, we also explore some interesting business opportunities in the health and environment sector. Did I mention that we are excited about this issue? And now you know why! As the cover reads – we are always on the lookout for Qataris who have thought out-of-thebox. So, if you want to share your story with us, or know someone who has taken the risk, please do let us know. We hope you’ll enjoy this issue and please don’t forget to connect with us through e-mail, Facebook or Twitter. We are waiting to hear from you. Ramadan Kareem to everyone!

Aparna Shivpuri Arya, Senior Editor, Private Sector Qatar Talk to us: E-mail: aparna@cpidubai.com Twitter: @PrivateSectorQA Facebook: www.facebook.com/PrivateSectorQatar LinkedIn group: Private Sector Qatar

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QDB BriDgeD the gap to starting my own Business through aL Dhameen.

Do you have a promising business or new business idea? But do you also have trouble finding the funding that you need? Ask us about Al Dhameen Indirect Lending Program from QDB. We will guarantee up to 85% of your business loan *, leaving you free to focus on developing your business. Click on www.qdb.qa or visit one of our partners listed below.

* Guarantees of up to 85% are for new businesses. Exiting businesses can get guarantees of up to 75%. Terms and Conditions apply.

Ms. Amal Al-Mannai

advisory Board Gail Gosse Gail Gosse, is the Dean of the School of Business at College of North Atlantic-Qatar.

Ms. Al-Mannai is the Executive Director of the Social Development Center (SDC).

Hamad Mohammed Al-Kuwari Hamad AL-Kuwari is the Managing Director of Qatar Science & Technology Park.

Professor Nitham M. Hindi

George M. White, Ph.D.

Professor Nitham M. Hindi, is the Dean of College of Business and Economics at the Qatar University.

Dr. White is Associate Teaching Professor of Entrepreneurship at Carnegie Mellon University-Qatar.

Abdulaziz N. Al-Khalifa

Hamad Al Abdan Al-Marri

Mr. Al-Khalifa is the Executive Director, Strategic Planning and Control at Qatar Development Bank (QDB).

Eng. Hamad Mohamed Al Abdan is the Chief Business Operation Officer at Enterprise Qatar.

Raed Al-Emadi

Rashid Nasser Sraiya Al Kaabi

Mr. Al-Emadi is the Deputy CEO, Silatech.

Mr. Al Kaabi is the Chairman of the Board of Energy City Qatar Holding (ECQH).

For more information, please visit www.privatesectorqatar.com/en

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News

Al Dhameen fifth feedback session created on the basis of an initiative by the SMEs which aim to engage in bidding processes for bigger projects and, thus, require this kind of support. Dimitros explained that bonds were usually found within the real estate sector and the services industry. In addition, he provided arguments for supporting this initiative by QDB, which related to pricing, eligibility criteria and operational points. Andre’ van Zijl, Head of SME – Business Banking, QNB, suggested that this proposal should be tested through appropriate case studies before introducing it to the market.

Al Dhameen is an indirect lending facility set up by QDB to guarantee commercial bank loans to private sector businesses. QDB recently held the 5th Al Dhameen feedback session to assess how the programme has been doing and to interact with the partner banks. The feedback sessions aim to enhance Al Dhameen service in order to understand the expectations that both, the partner banks and potential customers, have regarding the programme. In her opening speech, Jawaher Al-Naimi, Al Dhameen Programme Manager, QDB, thanked participants from partner banks for their support to date and stated that the programme proved to be quite effective on the rise and development of the private sector in Qatar, especially the SMEs. Abdulaziz Bin Naser Al Khalifa, Executive Director of Strategic Planning and Control, QDB, said, “QDB had launched the Al Dhameen programme with the aim of helping SMEs to secure the necessary funding from the local banks, through a complete package that works on promoting and motivating the banking sector to give SMEs the loans they need with simplified terms, and on solving the problems

August 2012

that may arise between the banks and SMEs or individuals asking for funding.” Dimitros Critcos, Al Dhameen team, QDB, presented an update on the programme since the last session. He mentioned that the current number of 14 partner institutions within the Al Dhameen network will most likely increase by the joining of two partner institutions in the next quarter of 2012. Dimitros also informed that, since October 2011, 54 project finance and 11 working capital deals have been approved. Dimitros then presented QDB’s proposal for improvements of the guarantee issuing procedure. The proposal includes introduction of the Guarantee Offer Intimation Letter, which would be submitted as a confirmation that the guarantee will be issued later on. The goal behind the introduction of this new document is to give partner banks a reasonable time frame to prepare all required documentation. It is now extended to 120 days instead of the usual 90 days time frame. The next topic of discussion focused on bonds and how they can be introduced in the Al Dhameen programme. This proposal was

In the last part of the session, Iqbal Singh Kaundal, Head of Advisory, QDB, informed about QDB’s internal advisory section activities through which all Al Dhameen clients are being provided with any business-related advisory support they might need. He stated that QDB is eager to regulary share its experience and clients’ feedback with partner banks. He also encouraged partner banks to use the SME Toolkit to a greater extent and to suggest the same to their clients. The feedback session was also attended by the assistant editors of Private Sector Qatar magazine who invited partner banks to engage in providing editorial contributions to the magazine.

Number of partner banks: 1. Qatar National Bank 2. Qatar Islamic Bank 3. Masraf Al Rayan 4. Al Khaliji 5. Commercial Bank Qatar 6. Barwa Bank 7. International Bank of Qatar 8. Doha Bank 9. QIIB 10. Ahlibank QSC 11. Mashreq 12. Al Jazeera Finance 13. First Finance 14. Qatar Finance House

News

FDI flows expected to rise Global foreign direct investment (FDI) flows picked up in 2011, in spite of economic uncertainty, due to structural reasons that are likely to further increase international capital flows in the coming years, suggests QNB Group’s analysis. The UN Conference on Trade and Development (UNCTAD) recently published its annual report on FDI flows. The data shows that global FDI (defined as foreign investments involving equity stake of above 10%) rose by 16% in 2011, to USD 1.5 trillion. This is the third year of growth, and the level of annual investment is now back in line with the average seen in the years before to the global crisis, although it is still below the peak of USD 2 trillion in 2007. The sharp drop in 2009 was a result of the global credit crunch, which resulted in tight liquidity and falling asset prices, thereby causing companies to postpone FDI plans. The total stock of FDI now totals USD 20.5 trillion, equivalent to 29% of global GDP. Looking ahead, the outlook is for further growth in FDI flows, provided that the global economy does not face another major shock. One reason for this positive outlook is the large cash

pile that transnational corporations have built up over the past three years.

a large pipeline of projects planned, particularly in Qatar, which will be partly financed with FDI.

Another structural factor that could contribute to increased flows is the current low level of FDI from sovereign wealth funds (SWF). These funds mainly make portfolio investments and only a few, such as the Singapore’s Temasek and the Qatar Investment Authority (QIA), are active in taking larger ownership stakes. The total FDI stock owned by all SWFs is only about USD 125 billion, a tiny fraction of their total assets. A reallocation of some of their portfolio investments to FDI could have a noticeable impact on global flows.

The FDI potential index which UNCTAD produces to assess countries’ attractiveness as destinations for FDI implies that the GCC is currently receiving fewer inflows than might be expected. Kuwait and Bahrain, in particularly, have been attracting considerably less FDI in recent years than implied by ranking for potential. Qatar is also expected to see an increase, as it ranks the first in the world in terms of market attractiveness, a key component UNCTAD’s index.

The status of FDI in the GCC is a mixed picture. Rising hydrocarbon revenues in 2011 prompted FDI increase by both SWFs and companies in the GCC, totalling USD 22 billion. Inflows to the region, however, fell for the fourth year in a row, to USD 26 billion, less than half their peak in 2008. The decline is due to global credit crunch and to the suspension and cancelation of various major construction projects in the region. However, FDI inflows to the region are likely to pick up again in the future. This is because there is

FDI flows to and from the GCC (USD bn) 60 Inflows Outflows

34 26 22 14 3

200102

Source: UNCTAD and QNB Group analysis

High-level GECF meetings convene in Qatar The Secretary General of the Gas Exporting Countries Forum (GECF), His Excellency Leonid Bokhanovskiy hosted the 2nd Meeting of the vStrategy (HLWG-LTS) of GECF and the 13th Meeting of the Executive Board (EB) at the headquarters of GECF in Doha, Qatar, on 10th, 11th and 12th July 2012, respectively. The meetings were attended by senior delegations from GECF member countries – Algeria, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Oman, Qatar, Trinidad and Tobago and Venezuela, in addition to observer members, the Netherlands and Norway. Chaired by Ali Hached, Algeria’s Senior Adviser to the Energy Minister, the HLWG-LTS met with the aim of continuing the discussion

on road mapping the long-term strategy of the GECF and further reinforcing the Forum’s position as a committed international organisation that serves as a platform for the exchange of views and insight on the gas market. During the meeting, participants also discussed the challenges facing the natural gas industry, and the current global economic situation, further underlining the important role of the GECF as a factor of stability and cooperation for member and consumer countries alike. Under the Chairmanship of Ilya Galkin, EB Member from Russia, the 13th EB Meeting discussed the current global gas market

and the inclusion of new members and observers from the Middle East, Central and Southeast Asia and South America, to the Forum. Delegates also discussed initiatives related to the enhancement of the Forum’s research capacity and the creation of financial instruments. Preparations for the 14th Ministerial Meeting of GECF, which is expected to take place in Equatorial Guinea in November 2012, was also high on the agenda. The meetings in Doha, Qatar, recognised the importance of the Forum as a platform for the exchange of views and coordination among member countries and ensured further understanding and agreement amongst gas exporting nations for the benefit of all.

august 2012

News

Save the date!

August - October 2012

Date

Event

Location

2 - 3 August

Strategies, Governance & Social Research Conference

MĂśvenpick Doha Tower

12 August

Sunday Entrepreneurs Network

Bedaya Centre

September

Women Investing in the Stock Market Workshop

Bedaya Centre

5 - 8 September

Made in USA 2012

Doha

15 - 19 September

"HYA" Abaya Exhibition September 2012

Doha Exhibition Center

16 - 19 September

Construction Leaders Forum Qatar

Hilton Doha

16 - 19 September

Cyber Security for Energy & Utilities Qatar 2012

Doha

17 September - 19 October

Gulf-European Partnership Forum Under The Patronage of H.E. Prime Minister

Qatar Chamber

18 - 19 September

Capital Markets Conference

Qatar Central bank

18 - 19 September

MEED Qatar Banking Summit 2012

Doha

21 - 26 September

World Philatelic Exhibition

Doha Exhibition Center

23 â&#x20AC;&#x201C; 26 September

HR Congress Qatar

Oryx Rotana Hotel

24 - 25 September

Building Information Modeling Summit

Doha

25 September

Doha Furniture and Decoration Exhibition - INFDEX 2012

Doha Exhibitions Center

26 - 29 September

World LP Gas Forum

Sheraton Doha Resort & Convention Center

30 September - 03 October

3rd Annual District Cooling Qatar Summit

Intercontinental Doha

30 September - 04 October

Investment Management Forum

Doha

October (TBA)

Job Shadowing Programme

Bedaya Centre

1 - 3 October

3rd Annual Global Petrochemicals Technology Conference

Doha

2 - 3 October

ITS and Road Safety Forum Qatar 2012

Renaissance Doha City Center Hotel

5 October

Made in Italy 2012

Qatar Chamber

8 - 10 October

HSE Forum in Energy

Doha

15 - 16 October

CFO Congress Qatar

Doha

16 - 18 October

Diyafa Exhibition

Doha Exhibitions Center

17 - 18 October

2nd Annual LNG Technology Global Summit

Doha

21 - 24 October

Ground Support MENA Congress

Doha

22 - 24 October

Career Development Qatar

Doha

August 2012

About town

Attracting the world Doha Trade Fair, Qatar’s bi-annual and largest trade festival, was inaugurated on 1st July 2012 by the Vice Chairman of Qatar Chamber of Commerce & Industry, Mohammed Bin Ahmed Bin Tawar Al Kuwari. Private Sector Qatar brings you details from the event. Held under the patronage of His Excellency Sheikh Khalifa Bin Jassim Bin Mohammed Al-Thani, Chairman of Qatar Chamber of Commerce & Industry, the region’s prime trade show was organised by the Qatar Tourism Authority in collaboration with Maraya Public Relations in the Doha Exhibition Center. This year’s theme was “We Attract the World for You”. The Fair was held from the 1st until the 10th of July 2012 with 550 exhibitors participating from 31 countries, all showcasing and selling the latest exclusive and traditional products from around the world. Al Kuwari, Vice Chairman of Qatar Chamber of Commerce & Industry, pointed out that Doha Trade Fair has developed every year with greater number of participating companies and the organisation of the variety of goods and products, “This event achieved the expected success and generated extra services, products and goods for all members of a family. It has satisfied customer’s needs by offering large number of different goods, with different prices and types, in order to target different categories of our society.”

August 2012

He added, “The July 2012 edition of the region’s prime trade show received around 200,000 visitors. In order to assist shoppers in buying and carrying their purchases and to avoid any parking difficulties, this year we focused more on the organisation of the event and the quality of the services and products.” Al Mohannadi, Head of Local Exhibitions of the Qatar Tourism Authority, expressed his satisfaction, “We are delighted about the July 2012 edition of the Doha Trade Fair and are confident that it has generated a successful outcome for all exhibitors. As we have received around 200,000 visitors, we have put in place an integrated plan to provide the extra services and facilities that were needed by such a large number of our visitors.” Speaking to Private Sector Qatar, Jaber al Mansouri, CEO, Maraya Public Relations, explained what was offered to participating companies, “Doha Trade Fair covers 15,000 square meters for approximately 55 participating companies. Each company was offered a space of 12,000 square meters within which they could showcase different types

of consumer goods ranging from perfumes, fashionable clothes, accessories, furniture, souvenirs, and decorations, kitchen to office wares, besides other articles. Most of the participating companies are SMEs. Lastly, main focus is on the Qatari products and services.” To ensure the exhibition would offer the ultimate in terms of convenience, the QTA had provided up to 50 ushers free of charge to assist shoppers in carrying their purchases; on demand limousine services; and simple to use banking services to facilitate purchases by credit cards. Medical experts and security forces were also available on site to ensure safety and security. To avoid any parking difficulties, a team of traffic specialists was on hand during the ten days of the Fair to ease traffic flow as well as guide visitors to additional spaces that the QTA had set up around the Doha Exhibition. This year’s main highlight was an Entertainment Tent that staged live shows and music performances in addition to offering a small kids area and two restaurants that offered visitors an authentic taste of traditional Qatari fare.

About town

Qataris go green

Private Sector Qatar attended the press conference of the

Rassas Battery Recycling Factory which is the first in Qatar, and the second in the Gulf area, to help keep Qatar free from hazard industrial waste and poisonous contaminants. We share with you details about the factory and their development plans. Announcing this at a press conference at the Sheraton Doha Hotel, His Excellency Sheikh Soud bin Nasser Al Thani, Chairman, said that the factory is one of its kind in Qatar and will cost about QR 19 million to build the two phases – warehouse and recycling and production lines. The factory is located in the Mesaieed Industrial City (MIC) and will cover an area of 7,000 square meters. He also added that the Rassas Battery Recycling Factory is expected to enter service by early 2013 and treat some 10,000 tons of used batteries per year. The factory is jointly financed by Qatar Development Bank and Qatar Islamic Bank.

of the local market and the expected annual growth of 5% - the figure could cross 10,000 metric tons a year in 2030. The studies were based on information from the customs department, Qatar Chamber and Traffic Department of the Ministry of the Interior (MoI) About the project, HE Sheikh Soud bin Nasser Al Thani also pointed out that the project will be built in two phases. The first phase of the facility is expected to be ready by January 2013. It includes acid neutralisation and battery recycling facilities. Within the second phase, plastic recycling and pelletising

lines will be built soon. At the battery recycling facility, batteries are crushed and treated to produce lead ingots, but in the second phase, plastic recycling and pelletising lines will be established. The production facility would manufacture 72,000 sets of different sizes every year. About export opportunities, he explained that based on the population growth rate of Qatar and the great opportunities offered by FIFA World Cup 2022, the battery production line will have the capacity to meet the requirements of the local market and also to export to the neighboring markets. But, for now they will focus on the capacity of Qatari market and export plans will not be taken at this stage. About the possibility of entering the new SME stock market in Qatar, His Excellency Sheikh Nawaf Ahmed Mubarak al-Thani, Deputy CEO, explains that currently they have no intention to enter the stock market and that the company will undertake a market feasibility study upon which it will be decided whether this step is beneficial or not. At the end of the conference, HE Sheikh Soud bin Nasser Al Thani expressed his gratitude for the support of the Ministry of Energy and Industry, the Ministry of Environment, the Mesaieed Industrial City (MIC), QIB and QDB.

HE Sheikh Soud bin Nasser Al Thani also outlined that the company is being established in line with the recent Directives of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. The idea was inspired by His Highness the Emir Sheikh Hamad Bin Khalifa Al-Thani to achieve the aspirations of Qatar National Vision 2030. It was finalised in November 2010 after appointing teams to study the project’s viability, feasibility and environmental effects. Intensive studies focused on the elimination of hazardous wastes. The facility’s initial capacity is based on the current capacity

august 2012

About town

Local content barriers

Dubai Media City, a member of TECOM Investments’ Media Cluster, in conjunction with Dubai Press Club (DPC), hosted on 3rd July 2012 a panel discussion on “Local Content and Migration to Digital Platforms”.

Private Sector Qatar brings you discussion points regarding the importance of digital platforms, their impact on the global print media industry, and accessibility of digital media in the GCC countries. The initiative came as part of a series of discussions organised by DPC to highlight the key outcomes of the fourth edition of Arab Media Outlook 2011-2015. Examining latest trends in the media sector across 17 Arab countries, the report particularly studied the media consumption pattern in the UAE, Saudi Arabia, Egypt and Morocco.

media. Therefore, it is imperative for media decision makers and content providers to work together to create quality and distinctive local content. In response to the growing demand for such programming, the industry is witnessing a steady increase in the output of regional media organisations, as well as investments from foreign broadcasters.”

The panel discussion featured Santino Saguto, Partner and Consultant, Deloitte, Shadi Al Hasan, Managing Director and Founder, Flagship Projects, Bilal Hijjawi, Managing Editor, Fortune Arabia, and Mohammed Burhan, CEO, CNBC – Arabia. The session was moderated by Mamoon Sbeih, Managing Director, APCO Worldwide Arab Region.

He also added, “We believe that the success achieved to date can be widened in scope and shared with international markets. A good example of this is Rufoof, the first mobile platform for Arabic e-books. We need to find a particular area of content to focus on in order to produce and generate revenue.”

The following sub-topics were discussed: • local policies regarding the Arab content, • local content within the television and radio networks and publications, • the future of the Arab content, • local content barriers and challenges, • initiatives to support local content, • lack of realistic and quality satellite content, and ways to define and boost the local content. Shadi Al Hasan elaborated on the topic, “Unlike other sectors, local content primarily relies on topics relevant to local communities. Such content cannot be imported from the overseas

August 2012

Regarding features of the report, Santino Saguto explained, “The report encompasses a thorough examination of the Arab media scene, providing valuable insights into sector trends that exist in this region. Deloitte’s role has been to gather and analyse, from multiple sources and stakeholders, a broad range of region-specific quantitative and qualitative data, to be able to give the Arab reader significant results.” The issue of connection between content and language was raised by Bilal Hijjawi, who pointed out, “We cannot separate content from language as each relies on the other for successful indigenous local programming. In order to distinguish themselves from the competition,

several countries and media companies are in the process of developing a distinct presence on the Internet – an essential move given the phenomenal reach of digital content.” He also explained, “You tailor content based on the platform. For example, you cannot expect extremely lengthy articles to be read on the Web. This also reflects the changing habits of the adult audience as well as of the techsavvy younger generation.” Following up on that, Mohammed Burhan, CEO, CNBC – Arabia, remarked, “Local content has witnessed a growing interest from domestic players represented by media institutions in the Arab world. This is obvious from the increasing number of joint projects that are being implemented by regional broadcasters in conjunction with international media groups. Moreover, the investment strategies of some global players are increasingly focused on specialised sectors of the market, which currently suffers from a lack of local content.” In conclusion, he highlighted, “It is important on a theory level – if any study is to be conducted regarding the content effectiveness, one needs to define the good content first. Specifically, there should be an Arab standard for local content. There are more than 645 free-to-air stations producing content and how does one decide what is good local Arab content? Also intellectual property regulations need to be reinforced to protect all kinds of content.“

success story

Go and knock on doors!

In 1995 two mechanical engineering graduates from Qatar shared their passion for audiovisual systems and effects. In 2012 two successful businessmen are still sharing the same office although they now run a company of 250 employees. Tamara Pupic met up with Zeyad Al Jaidah, Managing Director, Techno Q, to know how he and his partner Abdulla Alansari, Executive Director, Techno Q, proved that even in a small market there is always scope for growth.

Please tell us about yourself and how did it all begin in 1995. In 1994 I graduated in mechanical engineering in the US, where I met my partner, since he was studying at the same university. Upon our return to Qatar, we both wanted to start our own business. Interestingly, both of us had the same idea – to start a business related to home theatre systems. At that time, home theatres were doing very well in the US and that was also our hobby. I have, personally, liked everything relating to audiovisual effects and applications since I was very young.

August 2012

What was the idea and the plan behind Techno Q? The idea was to start a company which specialised in installing home theatres, while the plan was to target people with higher income since we assumed that they might be able to afford the upscale home theatre system. We didn’t want to compete with the already established brands like Sony or Panasonic, but we wanted to focus on creating customised home theatre solutions. We demonstrated the home theatre systems to many important figures in Qatar,

since it was a new concept not only in Qatar, but in the entire Gulf. To be honest, it wasn’t a success and, thus, we had to think about specialising in some other area. Some time later, a client asked us for a touch screen that would control everything in his house (from drapes and lighting to AC and so on). So, we did research which was quite difficult back then since Internet didn’t exist. We went to exhibitions in the US and Europe, in order to see what would be the right solution for our client and managed to implement a

success story

We wanted to do something completely new, even for the whole Gulf region. That would be my advice – be unique. If the solution already exists, think how to do it in a unique, innovative way, based on your research and market study. home automation system. That was our first big project worth around USD 1 million. The first commercial project was the new audiovisual solution for the Alfardan BMW Showroom. That is how we entered the commercial sector. Later on, in 1997, we developed security systems called “anti-shoplifting” for many shops in The Mall, Doha. This is how we started. We would offer one service and a client would ask for an additional one and so on. We would research and provide that as well, since for us it is all about putting things together and not inventing them. How did you set up your business? Are there any steps you would advise an entrepreneur to follow? We wanted to do something completely new, even for the whole Gulf region. That would be my advice – be unique. If the solution already exists, think how to do it in a unique, innovative way, based on your research and market study. Therefore, always bring something new to the market.

market there is scope for growth. The growth came from the fact that the more we gave to clients, the more they wanted. For that reason, I believe we played a huge role in educating clients – we would offer one thing, but we would also explain them what is also possible. In that manner, we have created opportunities for ourselves. The advice is – go and knock on doors! For example, we went to offer our “antishop lifting” system to a retailer of cheap clothes who had a lot of traffic. Even though he declined, we gave him 200 tags for free just to try. A week later he called us asking for more, because after using those tags, he was able to prevent a lot of theft attempts. What challenges did you face and how did you solve them? In the beginning finance is definitely a big challenge. Luckily, my older brothers had supported me and they are still our partners. It was needed because banks would prefer to

finance bigger projects than a startup which is lead by two very young guys. Another challenge was lack of information since, I repeat, there was no Internet when we were starting and information is crucial for our business. How has technology influenced the Middle East in general and Qatar in particular? Presenting our ideas in 1995 was much more difficult than today because we had to bring hard copy brochures and samples to show to our clients. It was taking a lot of resources which we did not have. For example, I remember a client for whom we installed the first plasma TV ever in Qatar in 1997. At that time, plasma TVs were just at a very preliminary stage. They were not in the market and we had to research which company was manufacturing them in order to bring a first prototype to Qatar. Later on, I remember a complaint from the client that there was a “noisy fan” in it. Devices produced noise due to the insufficient level of technological development at that time. Basics of technological solutions have changed only slightly, but the real change

Do not copy - that is not entrepreneurship. In my opinion, the definition of an entrepreneur must include innovation and differentiation when compared to what is currently present in the market. A new entrepreneur must see what the clients want, even for the existing service, in order to do it in a much better and innovative way. Take us as an example, who could believe that a dedicated audiovisual solutions company could grow to 250 employees. I wouldn’t believe it at that time. But, this is because we specialised in that particular segment and proved that even in this small

Zeyad Al Jaidah

august 2012

success story

In my opinion, the definition of an entrepreneur must include innovation and differentiation when compared to what is currently present in the market.

has happened in the clients’ requests relating to technology. For instance, previously when we would receive requests for meeting rooms’ equipment, clients would ask for a projector and screen. Today, it’s a completely different story – they want light control, video conference, a different type of projector, and so on. What are the opportunities and challenges in the sector? Opportunities are definitely there, especially with FIFA World Cup 2022. In addition, the country itself is expanding; a lot of construction work is going on, more hotels are opening and so on.

professionals that would provide exactly the required equipment. Lower price of these new companies means only that they are compromising in quality and types of products. Even though they do not last long, they do affect us since this is a very small market. There are initiatives from Enterprise Qatar and Silatech and, hopefully, they will fulfil their mandate to help SMEs. This support is not only financial, but also in terms of connections, lobbying for prioritising Qatari companies by the government. This is important because today I do not see any advantage for us, as a Qatari company, in getting projects.

We need stronger implementation of legal provisions which state that the priority will be given to Qatari companies if their price is up to 10% higher. We also need more trust in Qatari companies. The challenge is, of course, facing competition, but the unhealthy one. By that I mean companies coming from neighbouring markets and just dropping the prices without any knowledge about the Qatari market. Then they are faced with the reality. If I say that Qatar offers a lot of opportunities it is true, but like with any other market in the world you have to know the pecularities of that specific market. This creates unfair competition which creates a new business challenge. Let me be clearer – I’m happy to compete with legitimate companies and with

August 2012

We need stronger implementation of legal provisions which state that the priority will be given to Qatari companies if their price is up to 10% higher. We also need more trust in Qatari companies. For example, one of the requirements for some airport projects was previous airport experience. Since there is only one airport in Qatar, it automatically meant that the project would be granted to a foreign company. To avoid that, I would suggest them to trust Qatari companies – the fact that we have installed at least a similar project with similar magnitude and our overall

track record should be fair criteria. These are basic requirements for us to benefit from the market’s boom which the whole world is talking about. What are your ambitions and growth plans and how do you plan to achieve them? Recently, we have been awarded a project in Oman which is being executed as we speak. This is our first international project and we are very excited. We have been trying for a very long time to explore the UAE and KSA market and, all of a sudden, a project comes from Oman. We didn’t even look at that market and I think it’s an oversight. We should really look at markets that do not have a lot of attention, like Oman which is not discovered yet. Thus, we are very lucky to work there and, hopefully, many new projects will come. We want to become a world class company which would be able to deliver projects anywhere in the world. I am confident that we have the quality, staff, products and track record, with which we can reach the whole world. I would also like Techno Q to be able to deliver whatever quality solution client is asking for. What is your management style? I think my management style has evolved over time, since this company grew from six to 250 employees. In the beginning, we were involved in everything. We were also detailoriented. For example, in some showrooms the two of us were even installing a speaker. Today we try to guide and inspire our employees. Above all, I have to trust them. Therefore, management style is today more matter of delegating, depending on the people that I have and letting them do their job. For example, my marketing manager should think of exhibitions I should participate in and convince me why I should do that.

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Entrepreneur

Startup with a cause There is a place in Doha where both people and animals feel like home. And it is a startup founded by a very young Qatari determined to make his dream come true. Tamara Pupic shares with us the details on the impressive story behind Parkview Pet Center after catching up with Abdulla Adel Al-Naemi, Managing Director, and Rhonda Rooney, Practice Manager, Parkview Pet Center.

bdulla has always felt strongly about helping animals, “I used to rescue animals and upon taking them to the vet clinics for treatment, I had found the charges to be quite high and sometimes the services did not match the prices. For that reason, I decided that I was going to open a clinic myself which would offer top quality treatment at affordable prices,” are his opening lines.

Rhonda joins in and tells us that it all began in 2009 when Abdulla had created the 2nd Chance Rescue Shelter to provide a new start for some of the abused, abandoned, and unwanted dogs in Qatar, “He took a portion of his family’s farm, renovated and made it suitable for animals. The

August 2012

shelter is now managed by a small committee of volunteers and two full time workers, who care for the dogs and prepare them for their fresh start in life. The final goal is to find “forever homes” for them.” Then, in 2010, Abdulla decided to start a veterinary clinic which would be affordable to people. In addition, he wanted to create a centre that is friendly and professional. Ronda revealed some details, “He was quite focused and researched everything on the Internet, designed the whole villa by himself and ordered all appropriate equipment online. So, Parkview Pet Center opened in July 2011. But, the amazing thing is that Abdulla is a Qatari face and, thus, a proof that people here love and enjoy animals.”

Success is the only option Elaborating about his business plan, Abdulla is honest to say that he didn’t do a lot of market research, “I did not do a lot of market research other than sitting down with a very good friend of mine who is a veterinarian and together we worked out a scope of things I had to do in order to open the clinic.” However, he is quick to point out that the crucial components were basically hard work and perseverance, “I knew what I wanted to achieve and I was determined to do what I had to do to attain my goal.” For the financial resources Abdulla turned to his father, and to Qatar Development

Entrepreneur

Doha currently has just four well-established veterinary clinics and a few small ones. Although competition is not big, friendly and personal attitude of our employees resulting in great quality of service for animals and clients is what makes Parkview Pet Center so unique. Bank (QDB) as well, “Once I had figured out how much it was going to take to start up the business, I then discussed that with my father who agreed to assist in financing of the Center. Nevertheless, the more my project came to light, the more I realised that I would need to acquire further financing to complete everything and that is when I turned to QDB. My colleague and I created a business proposal for QDB and presented it to them. QDB had been very supportive and positive in regards to my plan to open the Parkview Pet Center and I am very grateful to them and my father for all the support.” Nevertheless, Rhonda states that Abdulla’s passion was not enough for the bank to grant a loan, but his careful planning and evaluation of the business potential in the veterinary sector in Qatar added value, “Doha currently has just four well-established veterinary clinics and a few small ones. Although competition is not big, friendly and personal attitude of our employees, resulting in great quality of service for animals and clients, is what makes Parkview Pet Center so unique.” Even though it now represents a successful startup, the process of establishment of the Parkview Pet Center faced many challenges on which Abdulla says, “There were many challenges in starting up the Parkview Pet Center. We are in the Middle East where export and import can prove tedious and difficult at times whether it is the supplies that cannot be shipped here at all or sourcing the supplies that can be shipped, but then get held up or rejected. Again though, my solution was patience and perseverance. If I hit an obstacle, I would stop and think of different ways to solve

the problem, and then tried another way. For me, giving up was not an option.” In addition, Abdulla admits that there are not too many obstacles regarding business conditions in Qatar, “However, just like anywhere else in the world, starting a business does not come easy and you have to want it bad enough. I do not have experience in starting business somewhere else, but I have been told that the obstacles I have had to face in Qatar are much the same as anywhere else.” Lastly, he concludes, “The main obstacle I face is sourcing supplies and equipment, since it is much easier to access these things in the Western world.” “Word of mouth” marketing Being aware that the first years are difficult for a startup in terms of market positioning and the quality of services, Abdulla explains, “Our marketing consists of our Website, Facebook page, adverts in some local magazines and the word of mouth, which is the most important in Qatar. Since this is a unique business for a Qatari to start and be involved in, it has brought a lot of curiosity among people who want to interview me and check what I am doing. In this way, I have received wonderful publicity through the interviews I have been asked to do.” Looking back at the year behind him, Abdulla admits that he really wanted to achieve all of this, “This was not just a business-oriented idea, but a plan to improve our community and educate people how to help animals and treat them better. So, it didn’t matter to me how many hurdles I had to jump, or the long hours it took, or the seemingly never ending red tape.

Abdulla Adel Al-Naemi and Rhonda Rooney

What was and still is important is to create a clinic that offers quality treatment at affordable prices and an atmosphere in which people will always feel comfortable in and want to return to. Parkview Pet Center is a clinic that strives to be friendly, professional and, above all else, show love to animals.” Rhonda advises that with passion and drive there’s nothing one can’t do, “Just put your feet on the ground and start walking and keep going until you succeed, because Abdulla did it due to his drive and perseverance.” Regarding their ambitions and growth plans, Rhonda explains, “The first next step is to renovate and reequip a new villa.” Regarding business development first three years are crucial, but since Abdulla is constantly researching in order to provide the best of everything to his clients, she is assured that their clinic will develop. They are constantly working on raising awareness among volunteers and supporters of the 2nd Chance Rescue Shelter to find “forever homes” for abandoned animals. Lastly, all employees of the Parkview Pet Center are committed to educate people how to take care of their animals and why is that important – the more you educate people the more they will indulge.

august 2012

Entrepreneurs

Confessions of a

shopaholic

Not much time ago, Qatari women used to panic about not having enough time to go for shopping. Two young Qatari ladies were inspired to resolve this problem and established the first Qatariowned online shopping portal. Dr. Dana Al Malki, Founder and CEO, Dana Al Ghafri, Managing Partner, and Mai Al-Malki, Marketing Director, The Infotribe LLC, tell Private Sector Qatar how they transformed this challenge into a promising business opportunity.

wo young ladies working in the IT industry realised that their busy careers couldn’t fetch them enough time to indulge in one of their favourite pastimes – shopping. Either the shopping malls should remain open until the early hours of the morning or they should find a way to shop for their favourite brands whenever they wanted to. The former was not a solution which was in their hands while the latter posed before them a challenge that they could either walk away from or utilise their academic experiences and convert that challenge into a business opportunity. The two young ladies, Dr. Dana Al Malki and Dana Al Ghafri, chose the latter. And, thus, the idea of the Shopping Shrine (www. shoppingshrine.com), the first project of The Infotribe LLC was hatched.

have such kind of a facility. I had become so used to online shopping that I started feeling handicapped. Moreover, coming from an IT background, my friend Dana and I were looking to start an IT-related venture, and of all of the ideas we had, this was the most urgent and relevant to our local context,” said Dr. Dana.

“During my university years in the UK I had discovered the convenience of online shopping since I used to buy everything I needed online from car insurance, clothes and gifts to my daily groceries. The online market is huge in the UK and it is a big convenience to people’s hectic lives. However, after returning back to Qatar I found out that the Qatari market didn’t

“Every moment after that was a moment of discovery. Every minute we were learning something new. We did a lot of online research, spoke to friends and relatives who were already running business and got a grip on more or less how to go about legally establishing such a venture. And finally in September 2009, we legally established The Infotribe LLC, registered

August 2012

Shopping Shrine under it, and set up our offices on D Ring Road. Fortunately, we didn’t have to wander around banks for the necessary finance, as we had already decided that this venture will be 100% financed by our funds. Hence, profit or loss, we will answer only to ourselves,” said Dana Al Ghafri.

We did a lot of online research, spoke to friends and relatives who were already running business and got a grip on more or less how to go about legally establishing such a venture, “said Dana Al Ghafri, Managing Partner.

Ensuring that the idea saw the light of the day was quite a challenge, especially for two women who had no previous experience with the governmental and commercial legalities and procedures.

The challenge of developing the portal of their dreams came afterwards. They hired a Webdeveloping firm to develop the portal, and toiled alongside them until it took shape in exactly the same look and feel that they had envisaged. The portal finally came online in January 2012 with the assistance of their small dynamic team. “In order to avoid rush hour traffic in the beginning we had adopted a cautious and calculated approach. Instead of going for mass market advertising we primarily depended on word of mouth to get the message across,” highlighted Mai. In that way it was easy to keep

Entrepreneurs

“In order to avoid rush hour traffic in the beginning we had adopted a cautious and calculated approach. Instead of going for mass market advertising we primarily depended on word of mouth to get the message across,” highlighted Mai Al-Malki, Marketing Director.

track of the users and get their genuine feedback. Slowly, but steadily, the portal expanded the scope of services to include everything a buyer wants to buy or a seller wants to sell from anywhere in the world. Today Shopping Shrine is ready to welcome the rush hour traffic with open arms and Mai revealed to us, “On the basis of our customers’ feedback, we are adjusting our Website to serve better their needs. Thus, the main launch of the Website will be on 1st October 2012.” Platform for the local talent Shopping Shrine enables consumers to purchase goods via the Internet through a secure, efficient and fun Website. It was created to be user-friendly for both sellers and buyers and to create the allusion of a genuine shopping experience in one of the top shopping centers in the world. Still, it combines that luxurious experience with the sense of pride and satisfaction that one has when being exposed to the souq experience, with all of its authenticity. The vision behind Shopping Shrine is to give the traditional idea of Souq a modern twist and add to the concept of bringing the shopping experience to one’s home. It is not just a shopping Website, but a trading one as well.

Buyers and sellers have the unique opportunity to trade online easily, securely and effectively using this online platform. “It was very important that we provide a platform for the local talent. We have discovered many talents in variety of fields and all they needed was a window to the public. We feel honoured and responsible to provide these talents with all the support and encouragement they need. We gave our sellers the opportunity to reach out to a wide base of customers, locally and internationally,

“We aim to cater for working men and women, housewives, businessmen, university students, teenagers, children and others. From the initial feedback we are receiving and the surveys we are conducting, it shows that our basic assumption was spot-on and that people from different demographics in our society shop online. It has become a necessity rather than a luxury. Our expansion strategy is to include local, regional and international products, introducing our Qatari products to the international market and selecting international products that the local market needs,” stated Dr. Dana. To avail the services of this unique portal, all one needs to do is create an individual profile on the portal. The portal has the necessary infrastructure to ensure that sellers get their money either

“It was very important that we provide a platform for the local talent. We have discovered many talents in variety of fields and all they needed was a window to the public,” explained Dr. Al-Malki, Founder and CEO. and we gave our buyers the securest means through which they can enjoy their shopping experience. We consider the inaugural body of sellers and buyers with us as our partners in this amazing endeavour and we have new partners joining us on daily basis,” explained Dr. Dana. The portal aims to provide a platform for all types of businesses and services to grow through e-commerce and, thereby, become market leaders in e-commerce solutions in the Middle East region from its base in Qatar. It also aims to provide easy and convenient access to high quality e-business, e-commerce and e-marketing services, which will improve the business sector as well as the quality of lives of the Middle Eastern communities and individuals.

Dana Al Ghafri Dr. Dana Al-Malki Mai Al-Malki

Health and Beauty; Creativity and Arts; Fitness and Sports; and Cuisines.

Shopping Shrine presently covers trading in the following categories: Flowers and Gifts; Fashion and Accessories; Technology; Stationary and Office Supplies; Home and Kitchen; Traditional Items;

through Western Union or through their bank accounts. Buyers can make payments using their credit cards or have the option to pay on delivery and their purchases will be shipped to their premises. “With Qatar providing all the necessary support to boost private sector participation in the economy, we look to the future with absolute confidence and optimism and we would like to tell all aspiring entrepreneurs, especially women, that there has never been a better time to start your business in Qatar. We have a five year plan, and so far we have been reaching the milestones of each phase and there are many to come that we look forward to. We understand that there will be many challenges on the way to success, but we see every challenge to present an opportunity and if one pursues that opportunity with unwavering commitment and dedication, one will definitely taste success. Shopping Shrine is a living testimony to this,” remarked the two young Qatari entrepreneurs.

august 2012

Finance

Magic wand solution

The main objective of a cash flow statement is to provide information on a business’s cash inflows and outflows in order to predict and evaluate financial condition of the company and its ability to repay a loan. Huda Kamal spoke with Kamel Fathi Fayed, Financial Controller, QDB, about the main purpose of a cash flow statement in QDB’s project financing. What is the purpose of QDB’s financial services? Qatar Development Bank (QDB) is a non-profit organisation focused primarily on assisting local startups and supporting diversification and growth of local SMEs. The bank provides easily accessible financing services as well as consulting, advisory and research services to help companies grow and stand tall. QDB does not receive deposits from customers; it depends mainly on loans generated by the bank’s capital. It serves large number of customers from different segments of the economy with an overall aim of supporting the private sector growth in alignment with the National Vision 2030. Qatar Development Bank was previously known as the Industrial Development Bank, which was established in 1997 by Emiri Decree to support national economic development and diversity which would ensure continuity and flow of national income. Is there interference between QDB’s role in financing projects with partnership agreements within other projects? QDB haven’t entered into any partnership agreements with companies whose project we finance. But, our partners contribute and support those companies and help them contribute to Qatar’s GDP and diversity of the national economy. We did start the idea of partnership with the Bedaya Center for Entrepreneurship and Career

August 2012

Development. Our contribution within that aims to address the needs of young business-oriented individuals who wish to develop their knowledge in marketing and trend-forecasting in order to discover how it can expand their business ideas. In general, I strongly support the idea of partnership with the companies whose projects we finance as I believe that Qatari market has not matured enough to make the best use of loans. The entrepreneur who lacks the experience will not be able to achieve his/hers goals alone. Thus, they need to be supported by a strong partner so as to reach the degree of expertise which will enable them to rely on themselves and their abilities. In addition, entering into partnerships within finance projects is essential because QBD can provide them with expertise, since we have the capacities and means to help them take advantage of Qatar’s economic growth. For example, if QDB finances a new hotel that lacks the experience and the right connections to grow, the owner may not be able to provide a five-star hotel. For that reason, entering into partnership with QDB will help him achieve a five-star level of service and generate profits with which he or she would be able to repay the loan. So, I think it is better to consider having partnerships with customers to solve these kinds of loan defaulter’s problems.

Do you think the Qatari market lacks specialisation in financial services and financing? We can’t say that there is no specialisation in finance in Qatar. Banks in Qatar have reached quite a convenient degree of maturity in finance and proved its ability to grant loans. Think about it in this way – if there was a deficiency in the financing process, why the default rate wouldn’t exceed 1%? I believe that the banks in Qatar, and especially QDB, have specialised employers with a high degree of professionalism. We have already succeeded in financing new projects that contributed to diversity and growth of the national income. QDB, in turn, provides all accounts, interests and securities, which guarantees the success of the financing process. In your opinion, what are the most useful financial statements to guarantee the success of the financing process? I believe the most important statement is the cash flow. It’s important to analyse the actual level of cash flowing in and out of the business. This provides information necessary to measure the company’s ability to generate cash. In the past we used to guarantee loans by collateral based lending. The more guarantees the client provides, the more money he gets without taking into account the importance of information provided in the cash flows. Even though QDB is a non-profit organisation, we don’t want to lose money either and we want to recover the loan. Thus, we consider that it’s very vital to pay attention to cash flow statements and they must be available at the beginning of the funding process to ensure the success of the project.

Finance

Cash flow statements help evaluation of the companies’ ability to meet their obligations and to generate profits. Put it simply, we need to know if the company is able to generate money or not. Consider an example of a company which has taken a loan from QDB to establish a new hotel in Qatar. Also, for example if we decided to follow the collateral based lending technique and our grantee was the project itself. In this case, if the owner is capable of paying back his loan, QDB would transfer the property to him. But, if he couldn’t repay the loan, the hotel would be added to QDB’s portfolio with no possibility of selling it. Consequently, the funds would come back to us as real estate and would lead us to great losses. This emphasises the point of importance and the need to measure the possibility of selling back projects and, therefore, we need to focus on cash flow statements first. That is essential to ensure the much needed relief. Government’s decision to raise QDB’s capital comes with an aim to activate its role in the overall development process. How has that affected QDB’s financial strategy? The government decision to raise QDB’s capital has supported our finance portfolio and helped in generating higher number of loans for Qatari companies. It has also contributed in achieving a rapid rate of return and growth of national income. Undoubtedly, raising the capital helped us deliver more development-related services to our clients and doubled our financing portfolio to QR 1.2 billion. It also helped us change the entire financial strategy and our administrative structure by employing qualified staff and joining partnerships with international companies. This is all aimed at providing help for establishment of new factories and local companies with a purpose to ensure sustainable, wholesome development of Qatar. How do you see the impact of the economic crisis on the financial services provided to the customers? Crisis affected the whole world and slowed down the progress, but it didn’t affect us like other countries in the region. Actually, I don’t think it affected QDB at all. To the contrary, the

GNP has increased in 2011 despite the decline in most countries. Globally, I believe that the financial crisis is still rapidly growing due to the global calls to reduce financing. The crisis needs to reach the bottom before it finds its way out. There is a partial shift back and towards and I think the recession may continue until the end of 2013 or 2014. But again, it will have very little impact on the Qatari market and almost no impact at all on QDB. Does that mean that there were no restrictions on customers after the global crisis? Due to the lower asset ratio and the decrease in purchasing power of the assets, QDB asked for more guarantees. But, in spite of QDB’s keenness to ensure its rights, our main objective remains the same - achievement of the further development of country’s industry. Regarding the services, we didn’t cut down our services. Actually our high growth has been achieved amidst the financial crisis and we have even offered new services such as: • Al Dhameen lending service to facilitate the

availability of funding for SMEs with new business ideas. • Launch of the Qatar Export Development Agency (TASDEER) in 2011 to develop and promote exports from Qatar and to provide financing products and services to mitigate national exporters’ risks. • In 2012 QDB has also launched the SME Toolkit as single-window solution to facilitate entrepreneurs and businesses in the country. • QDB has partnered with Silatech to establish the Bedaya Center for Entrepreneurship and Career Development to support the development of the SME sector and encourage entrepreneurship and development of the local industry. • Recently, 13 major Qatar’s companies were invited to take part in the International Plastics Showcase - the exhibition “Plastic Industry 2012” in the United States (Orlando, Florida) to help develop the nation’s manufacturing industry with special attention given to SMEs. 24 Qatari companies are expected to participate in “The Big Five” which is an

international construction show organised under the auspices of QDB. The goals are to discuss further partnerships and to help these companies promote their products and achieve Qatar’s strategy and National Vision 2030. What is the importance of providing finance to SMEs from your point of view? Qatar gives considerable attention to SMEs. Not only for its importance to the development and growth of the country, but because of the fact that they are under less risk since large companies always ask for larger loans and possibly might generate greater losses. Therefore, success of SMEs is a success for us as well. That is because the success of a new factory leads to an increased rate of employment and provides for more jobs. In addition, it supports the purchase and export of raw materials from other companies. This success helps the continuation of “the industry circle“ that revolves around the factory and contributes to the progress of wider economic cycle. Thus, I need to highlight again on the importance of preparing cash flow statements and its impact on the success of any project.

Kamel Fayed

About Kamel Fathi Fayed is Financial Controller, CPA, in QDB. He worked as Chief Financial Officer at Kuwait International Bank and as Financial Manager of the Control Department at Kuwait Finance House. He graduated from the American University in Cairo and has over 15 years of experience in driving banks’ strategic growth. Kamel can be contacted at kamel@qdb.org.qa.

august 2012

Legal

Is your liability really limited?

Subject to some limited exceptions, the most common vehicle available to foreigners, personal or corporate, wishing to conduct business in Qatar is through the incorporation of a limited liability company (LLC) established pursuant to Law No. 5 of 2002 as amended (Companies Law). Fouad El Haddad, Senior Associate, Clyde & Co, explains how safe you are if your LLC incurs losses.

he general principle in relation to LLCs is that the liability of the shareholders is limited, but in certain circumstances, Article (290) of the Companies Law allows the “lifting of the corporate veil” of a LLC. That is to look beyond LLC’s limited liability in order to impose its liabilities on LLC’s shareholders, and potentially its general manager, manager or equivalent. In Qatari LLCs there may more than a few managers, since a Qatari limited liability company with only one shareholder is referred to as a single person company. A word of law Article (290) of the Companies Law provides, “If a Limited Liability Company loses half of the capital as a result of losses from its business, the managers shall within thirty days from the date of the losses, present to the shareholders’ General Assembly the matter of reinstating the capital or dissolving the company. In the case of company dissolution, a resolution approving the dissolution is required to be passed by a majority vote similar to the requirements for amendments of the company’s Articles of Association. Should the managers fail to call for the

August 2012

shareholders’ General Assembly, or if the shareholders fail to pass a resolution on the

days either to (a) capitalise the LLC’s debts or (b) wind-up the LLC.

Article (290), therefore, provides that if the losses of a LLC reach half the amount of its capital, the shareholders must resolve, by the majority required to amend the Articles, for example, 75% of the share capital, within thirty days either to (a) capitalise the LLC’s debts or (b) wind-up the LLC.

matter, the managers and shareholders, as the case may be, shall be jointly and severally responsible for the company’s liabilities resulting from their negligence.” The standard form of Articles of Association for an LLC (Articles), as circulated by the Ministry of Business & Trade, refer to Article (290) of the Companies Law and provide that any decision relating to the amendment of the Articles shall not be effective unless passed by at least a majority of shareholders holding 75% of the share capital. Article (290), therefore, provides that if the losses of a LLC reach half the amount of its capital, the shareholders must resolve, by the majority required to amend the Articles, for example, 75% of the share capital, within thirty

If the managers fail to call for such a shareholders’ General Assembly and/or if such a resolution is not passed, the shareholders and/or the managers, as the case may be, will be jointly liable for all of the LLC’s debts. Articles may be tailored for an individual LLC in order to accommodate the requirements of the shareholders. Where, for whatever reason, the Articles are silent in relation to Article (290) or in relation to what majority will be required to wind-up the LLC, the Companies Law states that the shareholders must resolve unanimously. The Companies Law does not specify when and how to determine a LLC’s losses, for example, through audited accounts or internal management accounts.

Legal

When read as a whole, the common interpretation of the procedure set out at Article (290) is that when the net position of a LLC is negative (like when it would appear in the audited accounts) and the losses amount to 50% of the share capital (for example, if the losses amount to QR 100,000 in the case of a LLC with a share capital of QR 200,000, being the minimum share capital for an LLC), then Article (290) of the Companies Law could apply. It would be preferable to have the losses determined through audited accounts given that audited accounts would confirm the position and would be necessary if the shareholders should resolve to reinstate the capital. In this event, the general manager or any other managers of the LLC or any person whose name appears on the Commercial Register (CR) as an authorised signatory of the LLC, should call for a General Assembly within thirty days from the date of determination of the losses (for example, 30 days from the date of the audited accounts which should confirm such a position). The shareholders are able to reinstate the capital or resolve for the dissolution of the LLC by a 75% majority vote. It should be noted that when dissolution is resolved, this should be achieved through liquidating the LLC which requires a set procedure as outlined in the

Fouad El Haddad

It should be mentioned that as a matter of practice many LLCs fall below the statutory capitalisation requirement and continue to trade as normal. The issue of solvency of the LLC would only be crystallised when a shareholder wishes to sell his/its shares and the question of valuation of the LLC arises, or when a creditor files a claim against the LLC. Companies Law and includes the appointment of a liquidator with responsibility to settle the creditors, distribute assets, and so on. If the managers and/or shareholders fail to call for a shareholders’ General Assembly or to pass the requisite resolution as out-lined above, the managers and/or shareholders, as the case may be, may at least theoretically be jointly and severally liable for all the LLC’s liabilities, in effect providing a shareholder’s guarantee. In these circumstances the principle of limited liability is lost. A matter of practice It is not unusual for a LLC to incur losses that exceed half of its capital, particularly at the early stage of the business when the LLC has no revenue stream. An LLC could in theory exist and operate as normal so long as no third party creditor files any debt recovery claim and/ or bankruptcy claim for defaulting in payment against the LLC.

To avoid the risk to shareholders and managers the initial capitalisation of the LLC should be carefully considered. While the minimum capital requirement is QR 200,000, Article 232 of the Companies Law requires the LLC’s capital “shall be sufficient to realise its objectives.” Sufficiently capitalising the LLC on establishment and monitoring its capital requirements to ensure they are adequate is likely to assist in mitigating against any claims in relation to a potential breach, technical or otherwise, of Article (290) of the Companies Law.

About

Fouad El Haddad is Senior Associate at the Clyde & Co Doha Office. Fouad is a corporate and commercial lawyer with an extensive experience in advising on corporate restructuring and foreign investments, acquisitions, joint ventures, employment law, commercial contracts, as well as broad range of corporate and commercial work. Prior to joining the Clyde & Co Doha Office in 2007 he worked over five years as an in-house General Counsel for a group of companies operating across the MENA region. Fouad also worked for five years at a well-known Lebanese law firm, which was once associated with a London based firm, specialising in corporate and commercial law before accepting the General Counsel role. He has over 14 years of experience working in most Middle East jurisdictions in the areas of corporate and commercial law and mergers and acquisitions. Fouad can be contacted at fouad.haddad@clydeco.com.qa.

The application of Article (290) of the Companies Law remains largely untested through the Qatari courts, though in the current economic climate the commencement of dissolution proceedings is becoming more common.

Note: Qatari Laws (save for those issued the Qatar Financial Centre to regulate internal business) are issued in Arabic and there are no official translations, therefore for the purposes of drafting this article we have used our own translations and interpreted the same in the context of Qatari regulation and current market practice.

august 2012

Logistics

Building a future

Logistics providers with solid infrastructure, efficient organisation and processes have survived the turbulent times of the past few years. Aparna Shivpuri Arya got talking to Ranjeev Menon, Group CEO, to know more about one such logistics powerhouse – Gulf Warehousing Company and what has been the mantra for its success.

alking about flagship venture of the company – the logistics village Qatar (LVQ), Ranjeev Menon was quick to point out that GWC’s positioning within the industry has dramatically improved with the development of LVQ, making the company the principal participant in end-to-end logistics solutions provider.

Phase two of the LVQ is completed and consists of an additional 62,000 sqm of warehousing space. Ranjeev added, “The LVQ makes the idea of any business setting

August 2012

up its own logistics centre obsolete. This business model has helped GWC garner a significant market share in Qatar.” The reason behind building a logistics hub of this proportion is to provide the nation with a state-of-the-art logistics facility and to support industries with growing logistics need and space. The grand vision behind LVQ was to provide regional logistics players and large corporate houses something they never had until now: a platform that was tailor-made for their special needs, supported by ready-made

services and infrastructure to help them become operational instantly. As a result, the LVQ was master planned to be highly configurable to suit the needs of customers from a variety of industries Elaborating on the next steps of building the logistics hub, Ranjeev said that they plan to expand to other regions, “We will be starting our operations in Dubai and KSA soon. We expect to be extending our footprint and brand name in the region in the next few years, providing new integrated logistics solutions to our customers.”

Logistics

In addition to the development of the LVQ, the company’s project team also had the task to take forward two other expansion projects within the company– Mesaieed and Ras Laffan. It aims to fill the gap of providing a good facility to store and support the oil and gas industry in Ras Laffan. During FY2011, GWC additionally acquired 10,300 square meters of open yard spaces in Ras Laffan for the future expansion for storing of hazardous materials. The company is currently developing this facility and expects to complete it by the end of FY2012. When we asked Ranjeev what kind of growth momentum does he expect in the freight forwarding segment, he said that GWC is proposing an integrated supply

In addition to the development of LVQ, the Company’s project team also had the task to take forward two other expansion projects within the Company– Mesaieed and Ras Laffan. The open yard in Ras Laffan is under construction and due to be completed by August 2012. It aims to fill the gap of providing a good facility to store and support the oil and gas customers in Ras Laffan.

chain management model to customer to reduce their burden, “Through our supply chain planning and optimisation services delivered under our 3PL umbrella, GWC’s freight forwarding division assists our clients in designing and implementing solutions that improve the predictability and reduce the overall costs of their supply chains.”

Talking about the future, GWC will be working on an additional Phase 4 of the LVQ to increase warehousing capacity due to the high demand and the nature of LVQ as a center for Supply Chain Solution. And with the FIFA World Cup 2022 just a decade away, it will also be supporting the government with logistics needs. “Our contract logistics services primarily relate to value-added warehousing and the subsequent distribution of goods and materials in order to meet customers’ inventory needs and production or distribution schedules,” he added. Talking about the future, GWC will be working on an additional Phase 4 of the LVQ to increase warehousing capacity due to the high demand and the nature of LVQ as a center for supply chain solution. And with the FIFA World Cup 2022 just a decade away, it will also be supporting the government with its logistics needs.

Ranjeev Menon

With the IMF anticipating Qatar’s growth to be more than 12% in 2012, Ranjeev pointed

out that their financials are solid and they have established branches in KSA and UAE and will be considering further expansion this year. He, of course, highlighted that the government of Qatar has also played a very important role in promoting business, “The government has implemented single-window system in the port to ease congestion and expedite clearance of cargo. This new and extensive electronic system is being developed to cut down current sea customs clearance procedures by as much as 95%.” And with the mammoth infrastructure spending outlined by Qatar, there will be an increase in freight movement across ocean, air and road which will require logistics provider like the GWC to operate the supply chain in a manner to ensure material for construction arrivers on the specified time. Talking to Ranjeev and going through the extensive material on GWC, we are left with no doubt that GWC has the largest and one of the most modern warehousing facilities in Qatar. The Logistics Village Qatar has provided a leading edge to the logistics infrastructure and we hope that GWC will continue its good work in promoting Qatar and the region in the field of logistics and trade. GWC’s strategy for regional expansion is more than just a plan – it’s a roadmap to the future! * This article was first published in Trade and Export Middle East, our sister publication.

august 2012

Business Growth

Golden rules of networking

In business, personal connections prove to be more useful than just plain knowledge. Mark Dixon, Founder and CEO, Regus, provides tips for making sure that we take out the time to connect.

don’t think the key to success lies simply in knowing “the people who matter”. Just think for a moment of all the high fliers who have crashed due to the financial crisis. They had the right connections or so they thought. Their trouble was that they had become isolated from the rest of us. And here’s the challenge for networkers today. It’s about making connections – yes. But, it’s also about constantly testing yourself against other people, bouncing ideas around, keeping yourself honest, in the broadest sense. What is networking? In a business context, we consider it as a social interaction in the pursuit of competitive advantage. It’s hardly new. In Asian societies, the tradition has always been to establish a social connection first, often with an exchange of gifts. It was the Anglo-Saxons who thought they could get straight to business. And it was them who belatedly realised the importance of networking in the latter half of the last century. Globalisation has blurred those traditional cultural differences, and now we all network. But, the remarkable thing about today’s society is that besides all our massively enhanced ability to connect, it’s easy to end up feeling quite lonely. Once you get to a certain level, you can choose who you speak to, screen out the rest and operate to a great extent by virtual means. Your networking becomes so selective that it ceases to work as it should. The answer, I believe, is that you have to make an extra effort to stay in touch. Get out and see the world, by all means. Make all the connections you can. But, don’t

August 2012

forget to talk to your own people as well and people from other walks of life. They have good ideas and can help you make good connections. Above all, they provide the best reality check there is. If you want to see what happens without that reality check, just look at banking, which always used to be based on a personal relationship. Previously, you could not borrow more than a certain sum of money without, at some point, looking someone in the eye and shaking their hand. Nowadays, an enormous number of financial transactions can happen without any human element at all. I don’t think it’s simplistic to say that the de-personalisation of everyday banking was one of the underlying reasons why bankers looked for ever more ingenious ways of making money, without any connection to the everyday concerns of ordinary people. Too many began to think about their “customer base” with no mental image of flesh-and-blood customers. They thought in abstractions and forgot about people. The right sort of networking always brings you back to people. It makes sure you talk things through and bring the best out of people. Three essential steps for successful networking »» Open all the networking avenues you can.

That means getting involved in every kind of social media, so that you maximise your connections. It means travelling to explore new markets, meet potential new customers and pick the brains of local experts. And it also means being open to casual encounters that might arise from social events. But, this is only the exploratory stage – the making of connections. »» Build relationships. How do you get the most out of a networking opportunity? The successful networker needs to be able to relax and persuade others to do the same. You can’t do that if you are too determined to sell something, or win an argument. Respect people, listen, and give them the chance to express themselves. In the end, you can’t fake it – you have to be genuinely openminded, genuinely ready to listen and learn. »» Follow through. Giving someone your business card won’t persuade them to follow up. If you’ve identified a business opportunity, now is the moment when you need to take the initiative. Remember what they were interested in. Send them an e-mail with an offer or invitation for something. Networking may be much more complicated than it used to be, but at heart it depends on that personal interaction and all that flows from it – courtesy, respect and, ultimately, your hope and trust. But, if you try to shortcut the personal element, you are asking for trouble.

About Mark Dixon, Founder and CEO, Regus. Since founding Regus in 1989, in Brussels, Belgium, he has achieved a formidable reputation for leadership and innovation. Prior to Regus, he established businesses in the retail and wholesale food industry. For more information, please visit: www.en.regus-qatar.com.

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Business growth

Promising exceptional experience

Doha Festival City will be one of the “must see” destinations in the region. Huda Kamal talked to Kareem Shamma, CEO, BASREC, about how the project would contribute to Qatar’s promising future.

Tell us more about the progress and development of the Doha Festival City. Currently, we are in the phase one of the development which includes the first IKEA store in Qatar. Our target is to open the store in the first quarter of 2013. We have already constructed three levels of the store with the roof as the next stage for completion. The roof will cover over 21,000sqm which is the size of two and a half football pitches – and we’re coming up to that challenge shortly. Development period of the whole project is three years from today, so it will be finished around 2015. Doha Festival City will be the largest mall in Doha – valued at QR 6 billion, spanning more than 39 million square meters and with 2.5 million set aside for retail space. In addition to the IKEA store, there will also be an

August 2012

entertainment and leisure complex on 30,000 square meters, with a supermarket, motor show, other major international and local brand tenants, five star hotels, cinemas and conference facilities. What are the project’s objectives and vision? First of all, Doha Festival City was envisioned as a key effort to promote the private industry in Qatar, which is in alignment with the Qatar National Vision 2030. The project is already creating jobs in the private sector and will continue to do so as we move from construction to operating facilities. We felt that Qatar, and the whole GCC region, would benefit from a prestigious landmark retail complex offering entertainment, hospitality, automotive showrooms and more than 500 shopping and dining outlets – all of them interconnected under one roof. We envisioned

regional mixed-use destination that provides visitors from all backgrounds and age segments with a unique and memorable experience. Doha Festival City was designed with the visitor’s perspective in mind and with uniquely configured spaces that will transport consumers from the world of indoor and outdoor entertainment into a retail area populated with diverse international brands. With a total of more than 260,000 square meters and such a diverse offering, Doha Festival City will be one of the “must see” destinations in the region. What makes Doha Festival City a unique project? What makes this a unique project is that it will provide a complete retail and entertainment experience and by that we mean an experience that will satisfy the shopping needs, entertainment needs and leisure needs. This experience will be the specific reason for a visit since you won’t find this anywhere in Doha. Through statistics I noticed that many malls in Doha have issues regarding parking and road access, but Doha Festival City will have an excellent access road which will provide easy direct access and exit to the mall without going through a long road network. Our facilities will be very clean, wellmaintained, unique and very stylish. We are fortunate to be aligned with a number of highly experienced and well-qualified firms for the various planning and construction phases. Doha

Business growth

Doha Festival City was designed with the visitor’s perspective in mind and with uniquely configured spaces that will transport consumers from the world of indoor and outdoor entertainment into a retail area populated with diverse international brands.

Festival City is designed by the DP Architects and the Arab Engineering Bureau appointed as project architects, the MACE International as project manager, and the EC Harris as quantity surveyor and cost consultant. Ammico Contracting Co is undertaking the excavation, while Redco International is supplying the precast concrete elements. Qatari Arabian Construction Co (QACC) and Amana Qatar Contracting Co have formed a joint venture for the general contractor package for IKEA, while the mechanical, electrical and plumbing package was awarded to Hamad and Mohammed AlFuttaim Engineering. Doha Festival City’s location is excellent. It’s located on Doha’s Al Shamal Road (North Road), the main arterial route to the city centre, which is connected with Doha International Airport in just 20 minutes, and with Bahrain via, soon to be completed, “Friendship Causeway.” Al-Futtaim is renowned as the company behind the Festival City brands in both the UAE and Egypt. How do you feel the Qatar entity will stand out in comparison to them and what will differentiate it from its international counterparts? The differences are physical. For example, Cairo Festival City will include a large residential compound which is not the case with Doha Festival City. But, since they share the same brands and the same quality of services, I believe they will complement each other and will maintain the Festival City standard wherever they are. The team in charge of the retail function and design is working hard to bring a unique mix of local, regional and international retailers to the project. For that reason, we’re sure you’ll see

a retail mix unlike any other mixed-use retail, entertainment and hospitality destination in the region. Even though we are in the construction phase, we are very proud to have had some significant recognition for Doha Festival City. The project just won the prestigious “Best Future Project” Award at the Global RLI Awards in London, a real testimony to the impact we think Doha Festival City will have on Qatar and the region. This Award recognises the most impressive developments of the retail and leisure industries worldwide for their architectural concepts, initiatives and design excellence and the impact that each of the developments will have upon the local community.

For our customers, the value will lie in the unique mix of local, regional and international retailers that we will feature, unlike any other mixed-use retail, dining, entertainment and hospitality destination in the region. Doha Festival City will also compliment the FIFA World Cup 2022 in terms of its hotel accommodation and service apartments for families and visitors from around the world. What’s your advice to investors? As an investor you have to meet the world’s high standard – you have to offer something unique and to have the commitment to maintain your facilities. In the Cityscape Qatar we noticed great interest in our projects from the local investors. It’s very exciting and encouraging to see that level of interest and to know that Doha Festival City has been recognised as a very unique project.

Doha Festival City development will undoubtedly contribute to Qatar’s promising future.

What value does Doha Festival City create for its investors and customers? Doha Festival City is set to become a driving force behind Qatar’s diverse economic development. This regional retail and entertainment destination will not only elevate the shopping experience in Qatar to an international level, but will also serve as a draw not just to Qatar residents, but also to the residents of neighbouring GCC countries. Doha Festival City development will undoubtedly contribute to Qatar’s promising future. This will happen, firstly, through its development revenues for many Qatari businesses, and secondly, after opening in 2015, as a major contributor to the country’s retail, dining and entertainment revenue stream, tourism sector as well as through career development opportunities for Qataris.

My advice to entrepreneurs wishing to enter the retail sector is to study the market, offer good facilities, think of a project that adds value to the Qatar market, and keep people interested. What are the main challenges for Doha Festival City? And how do you plan to overcome them? This project has been planned for years and required a carefully orchestrated approach to identifying and bringing the right partners to the table. We now have all partnerships in place and working well as a team. Having everyone on the same page is one of the biggest challenges for getting any large project off the ground, particularly given the significant private sector entities involved in Doha Festival City. We are now firmly focused

august 2012

Business growth

Doha Festival City will offer them a great opportunity to present their products and services in a unique and compelling way. Thus, we are not anticipating any difficulties in achieving our desired retail mix.

Kareem Shamma receives the “Best Future Project 2012” Award.

We are targeting Qataris and the entertainment is especially designed for Qatar which you will not be able to see anywhere else.

on completing the construction on schedule and assembling an attractive and enticing retail mix. From a construction standpoint, we encountered hard rock period during the excavation process, making things more difficult than expected. We have managed to move over 102,000 metric tons of earth and made significant progress on the structural front since breaking ground last October. At 168m, the IKEA store is longer than two new A380 Airbuses laid end-to-end and covers a GLA of approximately 32,000m2 – you can see that this is no ordinary retail space. As for competition, we don’t see the other malls as competitors. We see them as partners since we all work together to add value to Qatar’s economy. All these projects will encourage Qatar to become an exceptional destination.

August 2012

What effect the global economic crisis had on the progress of the Doha Festival City? In terms of timing we managed to overcome any global impact and our financing is secured. All of our shareholding partners are companies based in Qatar or the GCC. While the global economic crisis affected some GCC countries, it had less impact on Qatar which is evident from the country’s growth strategy and wisdom, revenue streams and progress made to date on realising Qatar’s National Vision 2030 through an ambitious slate of projects encouraged by His Highness The Prince and the government. Our funding for Doha Festival City and our drive to complete it are in place and we are not anticipating any difficulties to complete the work at hand. When it comes to our retailers, many of whom are headquartered in countries that were greatly affected by the global financial crisis, we think that

How do you see the construction and entertainment sector demand evolving over the coming two decades and how do you position yourself for the future? People are now coming to Doha to share the construction boom. Qatar has seen considerable development in the last decade and currently represents a USD 250 billion worth sector. The country’s economic outlook for 2011–2016 is broadly favourable, with the global recovery continuing, thanks to robust growth in emerging markets and rebounding world trade. Income levels are expected to remain high. Construction will continue to grow steadily, along with manufacturing, transport, communications, business and financial services. Entertainment is also growing, with retail, dining, cinema and other venues under development in Qatar. Doha Festival City is positioned to meet Qatar’s and the GCC region’s growing appetite for such experiences. The local demand has always been there. We are targeting Qataris and the entertainment is especially designed for Qatar. We have carried a market research among Qatari families and overall society with questions about their needs and what‘s their ideal entertainment experience. The results indicated that Qatari people are looking for good quality entertainment which is more educational. Based on those results we will offer something exceptional and unique. Are you confident about the future? Yes, I am most confident about the success we foresee for Doha Festival City, which is set to become a driving force behind Qatar’s diverse economic development. Qatar has a great vision in terms of investing in education, research and construction. This vision will be very beneficial to the economy.

Business advice

Make your own path

SMEs in Qatar are supported in many ways to overcome all kind of obstacles on their path to success. Robin McCall, Group CEO, al khaliji Bank, talks to Aparna Shivpuri Arya that much of this success depends on the SME and its ability to leave a trail in the market. Please tell us a bit about the services that al khaliji offers? al khaliji Group offers a full range of banking services in Qatar, UAE and France, encompassing consumer, business, corporate and treasury activities. Given the robust nature of Qatar’s economy, our predominant focus is centered on corporate financing and treasury management. al khaliji’s strategic goals are motivated by the desire to develop an efficient and integrated business through the active pursuit of clearly established core competencies in the Group’s principal business areas. Our success has been built on a set of fundamental strengths, which are sound corporate values, a growing customer base, strong capital and liquidity positions and solid core businesses. What is your opinion on the growth of SMEs in Qatar? The bedrock of a successful economy is the SME sector. They are the hub of creative ingenuity and job creation. Although historically the GCC region has been focusing on its lucrative hydrocarbon sector, recently the significance of SMEs and their

August 2012

role on economic growth has brought their importance to the forefront as a move towards building long term sustainable economies in the GCC region. Qatar is no exception and economic diversification is listed as a key pillar in Qatar’s National Vision for 2030. An SME is different from a large enterprise in three main aspects – uncertainty, innovation and evolution. From an external perspective, these traits are both a positive and negative and require close direction, control and management if the SME is to succeed. To prosper, SMEs need a conducive business environment and regulations, adequate basic infrastructure services, access to short and long term funding at reasonable rates, equity and venture capital, advisory assistance and knowledge about market opportunities.

and progressive SME Evolution Programme, launched in February 2011 by the Potential, a company handling the enormous task of executing the programme across all countries of the MENA region. A key partner to the SME Evolution Programme is Enterprise Qatar (EQ), established by the Ministry of Business and Trade, which will allow businesses to get accredited once they go through the programme. This provides an assurance of quality for large companies who wish to enter a new relationship with an SME. In addition, EQ will support evolution companies with business opportunities. In particular, they will be advocating their participation in the projects of 2022 World Cup. The Silatech initiative is in place since 2008 to support entrepreneurship and career guidance for young people and to improve access to capital, business development, services and markets for new and existing SMEs.

So, the fundamental issue we should examine is how we measure up against these requirements and what is being done locally and regionally to nurture and assist growth in the SME sector.

There is also the Social Development Centre with their excellent programmes to build the largest incubation centre in the Middle East. Others, such as the Qatar Science and Technology Park, a part of Qatar Foundation, are also playing a major part in the support of SMEs.

MENA governments have set aside a massive USD 5 billion for SME development, of this USD 2 billion is coming from Qatar. Part of the USD 5 billion solution is the ambitious

The banks in Qatar have a vital role through their business by promoting Al Dhameen programme where partial guarantees are provided by Qatar Development Bank (QDB).

Business advice

An SME is different from a large institution in three main aspects – uncertainty, innovation and evolution. From an external perspective, these traits are both a positive and negative and require close direction, control and management if the SME is to succeed. I am very optimistic about SME growth in the country given all the initiatives and firm commitment to achieve economic diversification as outlined in Qatar’s National Vision 2030. Do you provide special support services for SMEs? At al khaliji, we recognised the central role that SMEs will play in the country’s economic development early on, and consequently, we introduced a department within our Business Banking Division, especially catering to SMEs and their unique requests. Their day-to-day account management is handled by dedicated relationship managers who not only offer conventional financial products and services, but also provide their experience, knowledge and guidance for business creation and approach towards sound business practices for local SMEs Even though there is a perceived risk in the region with regards to lending to SMEs, we have managed to keep a high quality SME portfolio by being selective and prudent in our approach. As many small businesses have presented innovative and creative

business ideas, many SMEs have benefited from our services. We also focus on the training and education of the entrepreneurs who will be at the helm of these businesses. Under our corporate citizenship strategy, we have supported or held workshops and seminars that educate and train SMEs and their staff. For example, for two consecutive years, we have supported the regional Middle Eastern SME Forum. We have held workshops in anti-money laundering regulations and compliance, and held trainings in other topics. As you can see, we are committed to the SME sector in Qatar and the region as a whole. We also work in collaboration with Qatar Development Bank within programmes, like Al Dhameen that provides credit guarantee schemes for SMEs. What advice would you give to SMEs who want to secure financing in Qatar? Access to financing is generally perceived as a constraint. However, the money is there. The question is not if the financing is available, but how to secure it. My advice is to have a clear-cut business plan and innovative approach to the business. Qatar’s financial institutions tend to be conservative in their lending practices and banks like to see that companies have paid attention to detail, considered the essential relevant drivers and variables that can arise. So, write a business plan in a standard format. Make sure to understand the market and the industry as well as to posses right management capabilities - the level of financial control, the business focus, and personal mindset to consistently think of change.

Robin McCall

A matter that requires close consideration is that as SMEs grow they increasingly need

connectivity to export markets and the world economy. The export support arm, Qatar Export Development Agency (TASDEER), provides excellent financial and non-financial support in this area. Export development and promotion services include identifying thrust products and target markets, providing trade information and foreign market intelligence across various geographic borders. Successful export units in Qatar are those that are built on the country’s core advantages which are close proximity to a maritime port, competitive energy costs and favourable tax treatment. Also, diversify your customer and supplier base and do not become overly reliant on any single one of these since this reduces pressure in any critical situation. The strength of SMEs include the swift realisation of marketable products, an international focus, a high degree of specialisation and the ability to successfully claim niche positions in the market. Build these into your plans, be forward looking, but pragmatic in order to eliminate or minimise the uncertainty, highlight the innovation and explain the evolution. What advice would you give to entrepreneurs in Qatar? If you do not try, you cannot succeed. Expect some disappointments, but do not give up. And most importantly, be smart. Make sure to have a clear-cut strategy and contingency plans to deal with the unforeseen event or “curve ball”. Entrepreneurs need to remember that support is there in its many guises while the best support is not necessarily financial, but advisory, so seek it out and listen. As the old phrase so aptly says, and which I believe is at the core of entrepreneurial drive, “Do not go where the path may lead, go instead where there is no path and leave a trail.”

august 2012

Business advice

A vision to lead Al Attiyah Group is one of the leading business groups in Qatar, which is known for its high-end services and customers’ confidence in its products and services. Huda Kamal spoke to Dr. Ahmed Nasser Al Fadala, CEO, Al Attiyah Group, to find out more about the group’s success and future plans. Tell us more about your company and its vision and objectives. Al Attiyah Group is operating in Qatar and the Gulf area since 1996. We have diversified into various industrial activities and offer a spectrum of services, including contracting, transportation, advertising and marketing, securities and guarding, information technology, telecommunication, building, imports, general trading, medical, restaurant and car parking management. Add to this, our strategic alliances with leaders from various industries around the world. The group aims to carry out large projects and provide the best and high quality services, promote mutual benefits and maintain longterm strategic relationships with its customers. We look forward to raising the level of provided services and achieve our goals which focus on two categories: • Growth goals - to expand our business not only in Qatar, but in the whole of the Middle East. This will enhance our growth and development and support our position in the Qatari market by increasing the competitiveness of all goods and services produced by our affiliates.

August 2012

• Customer goals – to provide high-quality products, services and solutions to our customers. Within this, we aim to approach our customers and partners with fully transparency and credibility in order to gain their respect and loyalty. We are and will do our best to achieve these goals. What’s the impact of the economic crisis on the development of the Al Atiyyah group? In general, the country’s economy is growing consistently and is one of the fastest in the world. That enhances its ability to face challenges and overcome the economic crisis. I did not see any negative effects in the market or within our group. The management of Al Attiyah Group firmly believes in the concept of specialisation and, hence, has formed strategic collaborations and joints ventures with specialised companies in various fields. In the time of crisis, we focus on administrative cooperation and coordination

between all our companies in order to develop a basic plan that can help us overcome the crisis and response immediately without going through any losses. Did you have a backup strategy? We adopted the following strategy to overcome the economic crisis: • Diversify activities, • Reduce expenses, such as senior managers allocations, rewards and grants, • Prevent our companies from becoming overloaded with loans and control our operating expenses, • Sign partnership contracts with global strategic partners and benefit from their experience in overcoming crisis, • Develop continually, • Adapt the latest technology, and • Answer the needs of Qatari decision makers and customers. What makes Al Attiyah group different from the competitors in the Qatari market? We can’t judge the market and determine the differences between the companies. Qatari market is full of successful companies and we appreciate and respect them all.

Business advice

We capture assignments with innovative solutions to maximise returns and have distinctive capabilities to capitalise on opportunities worldwide. We encourage innovation and entrepreneurship. We are committed to fulfill our customer’s needs and keep our promises. We treat others as we wish to be treated in order to maintain our good reputation and long history. But, what makes us really different is the great diversification of our activities. As you know, of course, everyone competes and only strong companies succeed. We follow market trends and analyse them in order to maintain our position in the market and to know more about our customer’s requirements and needs. Final goal is to offer them what they need with high-end quality. Do you have plans to expand in the future? Al Attiyah Group is committed to building strong client relationships and assisting our clients to achieve their ultimate strategic objectives. We are committed to excellence, integrity and teamwork both locally and globally. In order to

The management of Al Attiyah Group firmly believes in the concept of specialisation and, hence, has formed strategic collaborations and joints ventures with specialised companies in various fields.

expand successfully, we are keen to put the right person in the right place and to further expand and adopt the group’s principles and values in proportion to our activities and its variables. Regarding our future projects, we are interested in new sectors such as health, education and the metro. We will also build a new international school in Doha and provide hospitals and health centers, in addition to the establishing a plastic factory. Currently, we are studying the possibility of providing the metro maintenance and its auxiliary services, and we are also working on many other projects within the State of Qatar. We are poised to expand our production capacity to meet the growing demand for our products and services and we have great confidence in our ability to grow. We expect strong performance which can increase the cash flow and support our leading position in the market as it can add value to the local economy in Qatar and the Middle East. All our facilities and services are now focused on the Qatari market. However, as I mentioned earlier, we strongly look forward to carry out projects in the Middle East, particularly in the GCC region.

Ahmed Nasser Al Fadala

We plan this with our companies and our foreign partners and we look forward to diversifying in other potential fields keeping in line with the dynamic progress of Qatar under the wise directives and administration of the Government of Qatar.

What is your advice to new entrepreneurs and investors? My main advice for new entrepreneurs and investors would be • Get informed – analyse the market and conduct a comprehensive study. • Develop long-term solid plans to avoid problems and overcome unexpected barriers. • Maintain good reputation and approach consumers with honesty and transparency. • Hire skilled employees. Take care of details and use the help of experienced people to guide you to the market requirements and values. • Provide the best by conducting research in order to achieve the desirable development and growth which will stand tall and lead the market full of great competition. Do you expect the market to revive in the next ten years? Based on the directions given by His Highness Sheikh Hamad bin Khalifa Al Thani and his efforts to develop a sustainable economic growth in the country and support its economic diversification, Qatar’s construction market is expected to outperform many developed economies over the next decade. Qatar is set to become a favourable and leading business destination where many international companies will come to benefit from the expected growth. And I’m confident about my expectations which are based on the positive response received from the stock market as investors awaited a huge influx of investments.

august 2012

How to

Engineers: check this out!

With Qatar gearing up to build QR 220 billion worth of infrastructure projects, it had committed to in its 2022 FIFA World Cup bid documents, there are plenty of opportunities for engineering firms to capitalise on these projects. Wayne Merrick, Country Manager (Qatar), Links Group, advises them how to use available legal structures in order to properly position themselves within the Qatari market.

atar is one of the most stable and safe countries in the world and a growing economic power in the middle of a dynamic and exciting region. With its ambitious growth plans and fast developing infrastructure as part of the National Vision 2030, Qatar has become one of the most attractive markets for foreign businesses. For engineering firms looking to do business in the world’s richest country, there are three types of commercial structures available. They include: • registering an international engineering consultancy office, • registering a local engineering consultancy office, which has three different sub categories, and • securing a single project registration. International engineering consultancy office If you are an engineering firm already operating on a global or regional basis, then you would be best to establish an international engineering consultancy office. This must be formed with a Qatari national who holds a minimum 51% of the ownership. The office must be a branch of a main office aboard that has been licensed to pursue the profession for at least ten years, and which has consistently worked in the profession providing engineering consultancy during that period. According to the Engineering Law in Qatar, there are other registration requirements for establishing an International Engineering Consultancy Office. These include – having branch offices located in at least four states other than the main office’s home country, providing certified copies of at least four

August 2012

licenses for those branch offices, and showing completion of ten projects in five countries, other than your home country, with a total value of not less than QR 100 million. In addition, applications for establishing an international engineering consultancy office must be accompanied by attested copies of the articles of the association for the main office as well as yearly audited balance sheets for the last three years. The registration fee for establishing an international engineering consultancy office is QR 25,000 and QR 4,000 for each specialisation. Registrations are to be renewed every two years and attract a renewal fee of QR 20,000. Under the licensing terms for an international engineering consultancy office, the registered office space must not be less than 200 square metres and its insurance value must be QR 2 million and valid for three years. There are no specific areas of technical specialisation and sub-classifications in which the international engineering consultancy office must operate, unlike the second and third categories of the local engineering consultancy office. In Qatar, there are ten different areas of technical specialisations in which the engineering professionals, whether through local or international consultancy offices, may operate. The areas of technical specialisation are: civil engineering, architectural engineering, mechanical engineering, electrical and electronic engineering, chemical, petroleum and gas engineering, quantity calculation and cost estimation, project management, industrial

engineering, security and safety engineering, and communication engineering. It is worth noting that certain sub-classifications apply to many of these areas of technical specialisations. For instance, civil engineering comprises eight different sub-classifications ranging from road engineering and construction engineering, through to airport and harbour engineering, and health and environment engineering. The engineers employed by an international engineering consultancy office must be among those registered as first class in the Register of Engineers at the Ministry of Municipality & Urban Planning. According to the Ministry, there are three engineer categories: first class, second class and third class. The process of classification is based on the certificate that the engineer holds in addition to their years of experience. For instance, if the engineer has seven years’ experience and holds a Bachelor degree, then the engineer will be classified as second class. And if the engineer has seven years’ experience and holds a Masters degree, then the engineer will be classified as first class. Local engineering consultancy office If the engineering firm does not meet the requirements for an international engineering consultancy office, then it can establish a local engineering consultancy office. This must be formed with a Qatari national or locally-owned company, and allows for a maximum of 49% of foreign ownership.

How to

In Qatar, there are ten different areas of technical specialisations in which the engineering professionals, whether through local or international consultancy offices, may operate.

A vital component of setting up an engineering office, either international or local, is that the local partner shareholders must not work for the government. With a large proportion of Qatari nationals working for government entities this can be a major obstacle and should be considered when engineering firms are completing the necessary due diligence. As with the international engineering consultancy office, the engineers of local engineering consultancy office must be among those registered in the Register of Engineers. In the case of establishing a local engineering consultancy office, there are three categories: first category local office, second category local office, and third category local office. The classification is determined by the projectâ&#x20AC;&#x2122;s value, scale of construction, and the areas of specialisation in which the engineering firm is looking to operate in Qatar. The registration fee for opening a first category local office is QR 15,000 and QR 2,000 for each specialisation. Registrations are to be renewed every two years and attract a renewal fee of QR 10,000. As with the international engineering consultancy office, the registered office of a first category local office must not be less than 200 square metres and the insurance value must be QR 2 million and valid for three years. There are no specific areas of technical specialisation and sub-classifications in which the local office must operate and the engineers employed must be registered as first class in the Register of Engineers. The first category local office is required to show a track record of completed projects with a total value of not less than QR 70 million annually. Companies registering for the first time are exempt. For the second category, the registration fee is QR 13,000 and QR 1,500 per specialisation.

Registrations are to be renewed every two years at a cost of QR 8,000. All the engineers employed must also be registered as first class in the Register of Engineers. Unlike the first category, the office space required for second category local consultancies must not be less than 120 square metres and the insurance value must be QR 1 million, valid for three years.

Wayne Merrick

There are five specific areas of technical specialisation in which a second category local consultancy must operate. They include civil engineering, architectural engineering, electricity & electronics engineering, mechanics engineering, and quantity calculation and cost estimation.

Securing a single project registration This type of commercial engineering presence is only available to foreign engineering firms that have been awarded a government contract or subcontract that serves a public benefit. It is to be performed over a period of not less than one year, in which case that entity may establish a foreign branch for the sole of purpose of performing the government contract.

For second category local consultancies, the project value should not exceed QR 10 million and the area under construction should not be more than 5,000 square metres. The local office is also required to accomplish a number of projects with a total value of not less than QR 30 million annually.

In this situation, the approval must be obtained from the Ministry of Business and Trade. There is no need for a local partner and the company will be fully taxable unless granted a special exemption.

Third category local office is suitable for smaller firms. The registration fee for this license is QR 10,000 and QR 1,000 per specialisation. The renewal fee, also to be paid every two years, is QR 6,000. Offices in third category can be smaller, but must not be less than 90 square metres. It must also be insured for QR 500,000. In addition, third category local consultancies can only operate in three specific areas of technical specialisation - civil engineering (not including surveying), architectural (not including town planning), and electricity and electronics engineering. The engineers employed can be registered as second class in the Register of Engineers. In the third category, the project value should not exceed QR 10 million and the area under construction should not be more than 2,000 square metres.

Although this type of option grants investors the peace-of-mind of full ownership and control of their businesses, they do come with certain trade restrictions. For instance, setting up a branch operation in Qatar can only remain in place for one specific project for a government client. Once that project has been completed the license is rescinded. There is no doubt Qatar offers one of the most buoyant infrastructure markets in the world. Engineering firms that position themselves correctly via the correct means of legal structure will be well placed to capitalise on these lucrative opportunities.

About Wayne Merrick is the Country Manager, Qatar, Links Group. He advises clients wanting to set up a commercial presence in Qatar. For more information, please visit www.the-links-group.com.

august 2012

Sector study

REAL eSTATE OF OUR FUTURE Outstanding economic growth guided by Qatar’s National Vision 2030 has caused rapid population increase in the country which has impacted the Qatari real estate market in a big way. Huda Kamal and Tamara Pupic bring you an analysis of the sector which is likely to remain a vibrant one for many years to come.

s the world’s wealthiest country per capita, Qatar remains one of the most attractive destinations for investors. While there are construction sites everywhere in Qatar, the real estate market is dominated by a string of eye-catching megaprojects, such as The Pearl-Qatar, Lusail, Msheireb, Sidra Village, Barwa Financial District, to name a few. With the announcement that the FIFA World Cup 2022 will be hosted in Qatar, the country’s real estate market got a new impulse. Qatar has planned huge investments of USD 170 billion out of which around USD 77 billion will flow into the construction of residential and commercial buildings. Speaking about the current situation within the Qatari real estate market and the desired behaviour of the present market players, Claude Khalil, Senior Marketing Manager, Mazaya Qatar Real Estate Development Q.S.C., says, “The Qatari market as you know is a promising one and the local infrastructure requires a lot of work and developments. The best thing we can do is to lead by example and demonstrate international best

August 2012

practices in all our endeavours. We ensure open and honest approach and willingness to learn from successes and failures of others. Along with that, we strive to show to each potential investor which had approached us or visited Qatar how dynamic this market is.”

For these reasons, interest of numerous international funds, especially those of the Arabic private investors, has enormously expanded which signifies Qatar as one of the most attractive markets in the world for various types of investments and partnerships.

Joint efforts Qatar National Vision 2030 foresees a vibrant and prosperous Qatar and establishes a long term vision of Qatar’s growth in terms of human, social, environmental and economic development. In line with the envisaged far-reaching effects, each and every sector of Qatar’s economy is influenced by its initiatives.

Foreign companies, having capabilities of handling large and complex projects entered the Qatari market either in partnership or joint venture with established local players. The partnership or the joint venture model mitigates the business risk of both the partners significantly.

In line with that, development of the real estate sector is one of the strategic aims of the Qatari government. For this, certain positive characteristics, which are already established within the Qatari market, are crucial for creating stable investment environment. Firstly, Qatar enjoys one of the highest sovereign credit ratings in the region. Secondly, Qatar was ranked as the least corrupt nation in the Arab world, according to the Corruption Perceptions Index 2011 by Transparency International.

On government’s engagement and possibilities of public-private partnerships within the sector, Claude Khalil explains, ”Again, the Qatari market is a particularly promising one, and replete with new investment opportunities present in so many sectors which range from education, health and tourism to construction of stadiums and transport facilities for the FIFA World Cup 2022 in ten years. Any public-private partnership is welcome if it can promote new projects within this sector and bring new foreign partners and investors. And these foreign partners are increasingly realising the potential for investments here as well as

Sector study

With the announcement that the FIFA World Cup 2022 will be hosted in Qatar, country’s real estate market got a new impulse. Qatar plans huge investments of USD 170 billion out of which around USD 77 billion will flow to the construction of residential and commercial buildings.

gaining confidence and trust in the political and regulatory institutions that Qatar is safe emerging market for their capital.” From the other side, the private sector also plays its role in supporting government initiatives. Claude Khalil provides one example about how a real estate company can achieve high standards of corporate responsibility towards a community, “At Mazaya Qatar Real Estate Development Q.S.C., we consider compliance with transparency and disclosure requirements to be of upmost importance. We always stay away from projects with high risk and conduct market research on an ongoing basis in order to always keep track of the latest developments and updates within the market. This helps us to ensure that our work provides continual added value to the economy. Plus, of course, we are developing projects of significance to all people in the country. We also champion various causes that should help the economy transition to its higher goals. For instance, Mazaya was one of the founding members of the Qatar Green Building Council which aims to foster the development of green infrastructure as a national resource capable of delivering a wide range of environmental, economic and social benefits.” One of Qatar government’s goals is to promote the development of SMEs. Claude Khalil expands on this point and provides advice for SMEs, “My advice is that this is absolutely the right time to start a business in Qatar and come up with new projects. The wealth of resources, upcoming FIFA 2022 World Cup, the far-reaching plans of the Qatar National Vision of 2030, and the determination within the leadership to diversify and ensure that wealth is invested with the long term goals in mind; all mean that investors from overseas, as well as SMEs looking to carve out a niche, can find their own opportunity.”

Supply outstrips demand According to National Development Strategy (2011-2016), Qatar’s total population of 1.64 in 2010 will increase to 2.5 million by 2020 and three million by 2030. This would mean that the population in 2030 will be tenfold that of 1980, out of which immigration will account for 75% of the increase. In line with these expectations, the Foreign Ownership of Real Estate Law (2004) opened Qatari market to foreigners. For all potential buyers, it may be interesting to know that Qatar’s real estate market is characterised with one of the lowest tax rates in the world.

Asked about the demand for retail spaces in Qatar, Claude Khalil, provided slightly different insight from the market, “For the time being, demand for retail space is high due to the fact that supply is currently low. That said, there are a lot of projects going on, or soon to start, to meet the demand. Within the coming two to four years demand will increase as an inevitable result of upcoming projects and the foreseeable foreign population increase, which will cover the employment needs for the new projects and the new investments. With this also comes greater demand for the retail sector – to support the needs of the population increase. So, yes, the demand will, for sure, increase in the medium term.” In the recent period, Qatar witnessed increase of land prices. Claude Khalil, “There is and will continue to be an increase in the price of land in Qatar – this is true in any market with a strong GDP growth, inward FDI,

“The wealth of resources, upcoming FIFA 2022 World Cup and the far-reaching plans of the Qatar National Vision of 2030, all mean that investors from overseas, as well as SMEs looking to carve out a niche, can find their own opportunity,” advises Claude Khalil, Senior Marketing Manager, Mazaya Qatar Real Estate Development Q.S.C.

Following a relative slowdown due to 2008 financial crisis, the real estate market has gradually recovered during 2011. For example, credit facilities extended to the real estate sector grew by 53% in year-on-year in May 2011. In the first half of 2012, only marginal rental increases were witnessed across Qatar’s residential locations while a strong demand for one and two-bedroom apartments pushed their rental rates up by 8%. Rental growth for the remainder of 2012 may be limited, as a significant amount of apartments are scheduled to complete by the end of 2012. Rental rates for offices remained static with no significant movement since the first quarter of 2012. However, continued supply through to 2013 will still outstrip improved demand especially from companies involved with infrastructure projects.

reasonable inflation and an increase in the standard of living of its residents. So, we must accept that increase is not a bad thing per se, but the natural consequence of the achieved progress. That said, any incremental increase in land prices will be followed by an associated increase in the end-users’ prices, which can potentially slow down the selling process, and even delay a return on investment. But, this is not insurmountable, and we are well aware of how to mitigate it. With wise management and long-term planning and forecasting, this all can be handled properly.” As for the long term, Qatar seems to be a promising market while Doha is expected to still emerge as an attractive destination for expatriates to work, live, and invest, which will contribute to the sustainability of the real estate market.

august 2012

Women in business

Investing:

a new women’s club

“Women Investing in the Stock Market” (WISM), a four week interactive and practical programme for financial knowledge empowerment of Qatari women sponsored by Bedaya Center and Thomson Reuters, will start in September 2012 in Doha. Marzena Hallam, Founder and CEO, Mibx, tells us how they will teach Qatari women to make the most of the next stage of Qatar’s market growth.

s there has been a tectonic shift in women’s role in society, so there has been a large shift in how women have been changing their view relating to their participation in the financial world. This should not come as much of a shock as traditionally in many societies, women were the ones that handled a lot of the household finances. In Japan, for example, the economy has been exposed to interest rates of below 2% since January 1994. This has been good for people wanting to borrow, but very bad for people who want to have an income from bonds or other fixed investments. As a result, the ever innovative Japanese have looked for ways to increase their income. Increasingly, the women of Japan looked to investing in the financial markets as a way of helping the family

August 2012

to meet their income requirements. This trend developed so that now Japanese housewives have increased the size of their investments to such an extent that they are currently recognised as a global force in currency markets through something called the “carry trade”. In the USA, UK and Australia female participation in financial markets has never been higher and, more interestingly, it continues to grow. Women are just better Traditionally, investing has been left to the “experts”. These were large investment banks and stockbrokers that took over the investors’ money and invested the proceeds into bonds, shares and other managed funds. But, the whole industry is changing and at a faster pace than ever before for two major reasons.

Firstly, there has been a string of very high profile instances where investors were scammed out of their money. Recently, there have been examples of Bernie Madoff and the biggest Ponzi scheme in history or the company liquidation of MF Global through the over-zealous investment of client funds by founder, John Corzine. Secondly, the real difference in this global trend of taking more control of personal investments is a mirror image of what is happening in the greater society. Never in history has there been access to so much information for private consumption. With the advent of the Internet and the proliferation of Websites, it is all there for people to learn and interact. This trend has evolved into the investment markets as well with a wider array of research and investment tools like never before. Newsletters, Websites,

Women in business

Women tend to be better and more thorough in researching investments, tend less to be driven by ego and, therefore, take less risk. This tends to mean that women are also more inclined to allow their portfolios to grow in the same way that their instincts allow them to nurture their children.

articles, books, TV programmes and newspaper are covering investment issues with increasing instances and accuracy. Previously, the access to information on investment issues was held by the large corporations such as the large retail and investment banks, fund managers, insurance companies and stockbrokers. However, today, this monopoly on information has been broken. Women now have a strong urge to contribute. Often, given the time constraints and traditional family roles they have, they looked at starting a business due to the increased flexibility it offered versus a full time job. For example, benefits of dealing with stocks as a job are: • no need for employees, • ability to access your whole business from your SmartPhone, • the need for only a small initial capital outlay, and, • the security that comes from knowing that when the market is shut nothing can happen to your business at all. This is quite different to most of the other businesses which require attention at all sorts of hours. Dealing in stocks offers women a much better work-life-balance as it can fit in with a lot of their other commitments.

Marzena Hallam

“I find that the percentage of successful traders is higher among women,” said Dr. Alexander Elder, one of the best authors of investment books of all times. Whether it is true, does not stop the fact that women are becoming increasingly aware that they have distinct advantages over men when it comes to the topic of investing. Women tend to be better and more thorough in researching investments, tend less to be driven by ego and, therefore, take less risk. This tends to mean that women are also more inclined to allow their portfolios to grow in the same way that their instincts allow them to nurture their children. Perfect time for Qatari women With the strong leadership of the current Qatari government, there is an enormous amount of economic activity that will have to be implemented in the next few years. This will, undoubtedly, lead to a high amount of opportunities to profit from the Qatari market. Currently, the market is not focusing a great deal on this opportunity. Foreign investors have left due to the issues in other parts of the world, but they will come back. So, it’s better to buy before they do. And, Qatari women again have an advantage as there is a very strong intuitive element to investing in a stock market. A good dose of common sense, patience and discipline and some form of strategy that you have learnt or been taught and you are well on the way to investing successfully. So, why wait? To capture this global trend and provide advantage to women of Qatar, MibX, using its expertise in the financial markets, has devised “Women Leading Investing” (WLI), a world-first custom designed project, providing financial education to women through international

industry experts’ knowledge share, global women integration, practical workshops, technology, real-time competition sponsored by Thomson Reuters, a series of investment forums, annual awards and similar. “Women Investing in the Stock Market” (WISM) is the hands-on part of WLI. It is a four week interactive and practical programme for females to become financially empowered and knowledgeable, which will begin in Doha in September 2012. Firstly, it will cover the basics of the major investment theories. Secondly, it will build on these with a wide range of practical examples and activities that reinforce what is learned. After that, participants will learn how to apply these teachings through a real time trading simulator and finally, will become proficient enough to be able to participate in national trading competition where the emphasis is on learning and not competing. It is being moderated by international industry experts that expose you to their investment secrets and approaches, supported by emerging Qatari leaders Hessa Mohamed Al Thani and Munera Abdulla Al Dosari. It is sponsored by Bedaya Center and Thomson Reuters. Skills learnt will go beyond simple investment techniques and give participants a range of innovative and common sense ways to look at investing, business and everyday life as well as the confidence to make the most of the next stage of the growth of the Qatari and global markets.

About MibX is a business consultancy based in Qatar that specialises in strategy and planning, management consultancy, business startup and SME support, through knowledge transfer, advisory services, innovation and execution of business plans. Marzena Hallam is a Polish-Australian entrepreneur, business consultant, change promoter and talent developer. She is the founder and CEO of Mibx. After completing Business degree at Victoria University in Australia, her professional career progressed in business analysis, strategy and management consulting and project management; delivering multi-million dollar projects for a number of large listed Australian and international companies. Marzena can be contacted at mhallam@mibx.com.au.

august 2012

Marketing

Record well to sell better!

In our previous issue we gave you tips on how to attract the audience and make a successful public presentation. But, giving a successful presentation in front of the camera is a new challenge. Stefan Lindberg-Jones, Founder, Think Big Qatar, explains how to give •

an effective video presentation.

•

ideo is the most effective form of selling a product, a service or an idea to a large audience. Harness that power with the power of the Internet, a medium so vast and unrestricted that it can reach huge audiences, and you have the ultimate marketing tool – an online video. Within the next 12 months, 80% of all companies which generate business from their Websites will feature an online video explaining their particular products or services. Arguably, the greatest strength of using video is its pliability. It can be used in many forms – as a traditional advert, an interview, a pitch, a demonstration, a testimonial. The list is almost endless. It’s cost-effective too. Advertising through online video has been shown to have a very high return on investment. No airtime charges and no regulation. Your online video can be broadcast 24-hours-a-day, 7-days-a-week, and 365-days-a-year. A word of experience Initially, we wanted Think Big Qatar to be a platform using video and the Internet, through which large or small companies could sell their products, inform the viewers of their services, launch sales promotions, update them on current developments, future plans and much more. What we were not expecting within this process was the hesitation and the worry of actually being in front of the camera.

August 2012

For that reason, I give you my dos and don’ts in giving a presentation or marketing pitch in front of the camera: • When you are deciding on how to go about your presentation or a marketing pitch, you have to bear in mind that many viewers decide in the first 10 to 15 seconds whether they are going to keep watching your video or not. So, within this time you need to hook your audience, which will keep them watching for the rest of the video. • The initial content that the viewer first sees should be compelling, whether it is your personality or the content of the video. You should address and welcome the audience, ask a question, spark the viewer’s curiosity. • Too often people giving presentations think they need to act or speak in a certain stiff way. This is not the case. Of course, you must be professional, but you must also show enjoyment and smile. Let your personality shine through and relax! • Your presentation is your opportunity to teach your audience something new and help them understand your business. • Be prepared! The more prepared you are the more focused your presentation will be and the more comfortable you will feel. • Think your presentation through. Write it and rewrite it. Practice your presentation with a partner or in front of a mirror. • Speak enthusiastically, use hand gestures to engage your audience. • Make sure you are standing securely and don’t start fidgeting in front of the camera. • Talk directly to the camera in a genuine

• •

•

manner, which will get the audience to listen and act. Keep your language clear and simple, speak slowly. Breathe! Don’t read word by word from a script. You can use short notes, but reading a presentation will make you look unnatural and can make it difficult for you audience to follow. Allow yourself to show as much of your personality as possible. Don’t try to cover too much material in the short span of time. Stay focused on the main message you want to give. Don’t make use of vocal pauses like “ummm, ah …” and similar. Instead fill the pause with a proper word like “now”.

Stefan Lindberg-Jones

About In 1990, Stefan Lindberg-Jones graduated Television Studio Engineering at the Ravensbourne College. Stefan worked for companies such as Quantel, Orbit, Mollinaire, ITV, Sky and Aljazeera. In 2006, Stefan helped and set-up two production companies in Qatar while in 2011 decided to set his own production company called Ginger Camel. Off the back of Ginger Camel, Stefan also set up the business website www.thinkbigqatar.com.

http://www.PrivateSectorQatar.com/en

Valuable business advice that will help develop your business. Be part of a community spanning magazine, events, Website and social media.

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Being healthy is wealthy

Academic Health System (AHS) is a partnership between Qatar’s prominent universities and healthcare providers aimes to lead medical research in the Arab world. Prof. Edward Hillhouse, Chief Policy Advisor on Academic Health Systems, Hamad Medical Corporation, Doha, reveals to us details on AHS’s collaboration opportunities with local businesses.

Benefits of the academic health systems to the community A healthy population is essential to social cohesion and sustainable economic success; without it a society becomes focused on the struggle of daily life. By delivering comprehensive care, from the basic to the most advanced, and by serving as a community’s health safety net, academic health systems provide support from birth to old age. The best systems also support healthy lifestyles both with programmes for disease prevention and for chronic disease management. The academic health system is there every day for the community. And, in times of disaster and need, whether in Haiti, Libya, or elsewhere, the global academic health system community is there to aid, organise, deliver care, and help re-establish the health infrastructure. In recent years there has been a resurgence of interest in academic health systems as a model for driving improvements in healthcare. They do this by adopting a laser-like focus on excellence and innovation across all their spheres of activity, questioning and challenging current dogma and introducing and testing new concepts, whether it is in clinical practice, research, administration or education. This is called “the virtuous cycle”, whereby each area is interdependent, such that advances in one will influence another. It means that the time lag in delivering new medical and scientific advances to the patients will be reduced. It will also become more self-sufficient by producing a national workforce that will equal

August 2012

the best in the world. Primary care and public health will no longer be “Cinderella specialties”, but take their rightful place with other healthcare providers as equal partners in the fight against ill-health and disability. The end result is simple – patients will receive the best possible care, meeting or exceeding international standards and best practices.

Qatar’s response to healthcare challenges Qatar is fortunate in having visionary and charismatic national leadership that has recognised the healthy concerns and responded decisively. This has resulted in a comprehensive National Health Strategy backed up by specific initiatives in cancer, primary care and mental health. The aim is to shift the focus from hospital-based care

Qatar is fortunate in having visionary and charismatic national leadership that has recognised the healthy concerns and responded decisively. This has resulted in a comprehensive National Health Strategy backed up by specific initiatives in cancer, primary care and mental health.

The state of health in Qatar The state of the economy in Qatar is robust and healthy and for this to be sustainable we need a similarly healthy and energetic population. In common with other wealthy nations, the main burden of disease in Qatar comes from those diseases associated with modern lifestyles, such as cardiovascular and metabolic diseases, with diabetes afflicting around 20% of the adult population. Cancer accounts for 10% of deaths and is the second most common cause of death after cardiovascular disease. As with diabetes, the incidence of cancer is expected to increase rapidly as the comparatively young population expands and ages. Other health concerns include women’s health, genetic disorders, infectious disease, mental health and the high incidence of major trauma.

to community care with an emphasis on healthy living and disease prevention. These initiatives have brought a robust response from the healthcare community. Our response at Hamad Medical Corporation (HMC), in collaboration with our partners Weill Cornell Medical College in Qatar (WCMCQ), the University of Calgary - Qatar, the College of the North Atlantic - Qatar, Primary Health Care Corporation, the Qatar University and Sidra Medical and Research Center (Sidra), has been to launch an Academic Health System (AHS) that brings together all the healthcare providers and academic institutions in Qatar as a partnership. The partners are working to deliver a single shared vision of providing the best and safest healthcare in the region. This requires a concerted and integrated

Opportunities

effort across inter-professional learning, research and clinical practice. Achievements The Academic Health System partners meet regularly as a Steering Committee under the joint chairmanship of Dr. Hanan Al-Kuwari, Managing Director, HMC, and Dr. Javaid Sheikh, Dean of WCMCQ. Our International Advisory Board, the members of which are key international leaders in the area of academic health systems, undertakes validation of the work. The main achievements during the first year of our activity are as follows: • Rolling out an ambitious clinical transformation programme in medicine, nursing and pharmacy, • Recruitment of a strong administrative and clinical leadership team, containing both Qataris and non-Qataris, that is capable of leading the transformational process across the entire spectrum of clinical services, including primary care, • Beginning the process of expanding and transforming our clinical workforce into one that is on a par with the best international centres, • Developing a domestic Qatari medical education and accreditation system that will be recognised internationally, • Implementing an advanced clinical information system across all our hospitals to support clinical practice and research, • Beginning the process of building our research capabilities and physical infrastructure to a scale seen in the top medical research organisations, centred on the state-of-the-art Translational Research Institute at the Medical City, • The launch of the National Center for Cancer Care and Research, • The launch of the Institute of Neuroscience that integrates clinical service, education and research. Benefits to the local economy There is good evidence worldwide that academic health systems act as strong engines of economic growth. For example, in the USA it has been estimated that they employ more than 3 million staff whilst pumping more than USD 500 billion into national and local economies. A good example is the Duke University Health System in North Carolina, which has attracted numerous high-technology and medical corporations to the Research Triangle Park, hoping to benefit from

the close association with leading edge medical research and clinical innovation. A similar story can be found across the globe with local communities benefiting from an investment in healthcare facilities and expertise. Could a similar process happen in Qatar? The simple answer is yes, but only if we work together and seize the opportunities as they arise. Our aim is to create a culture of enquiry and innovation similar to that seen in the most successful companies such as Apple, Siemens and Genentech. This will benefit our patients, our staff and the community, since innovation provides novel solutions to challenging problems, drives economic growth and creates interesting and skilled jobs. Potential for collaboration with local business First and foremost, our academic health system is a group of independent non-profit making businesses with varying degrees of complexity and a combined annual turnover in excess of many multi-national corporations. The annual turnover of HMC alone is around USD 2 billion, requiring us to employ highly sophisticated financial management tools and business techniques. This is likely to become even more important with the imminent introduction of a national health insurance scheme. The potential for collaboration is huge and we already work with leading businesses to make our systems and processes more efficient, and also in areas such as business development and marketing. At the moment we do not have any business or community leaders on our academic health system steering committee, but this may change as we evolve and mature. We have much to learn from each other and much to gain from working together. The process, however, will be two way and we will seek to improve the health of local business employees through championing a healthy lifestyle and providing regular health checks. Future business opportunities Our ambition is to become a leading international academic health system and this will provide a host of business opportunities. As our system matures and develops we hope to attract more healthcare and technology companies into the country to benefit from our innovative work and discoveries. We will encourage our staff to seek business

opportunities and to launch spin-off companies, some of which will mature into SMEs. We shall also explore the possibility of utilising specialised “incubator space” within our organisations to move inventions into the innovation area before passing them onto industry. This has been shown to reduce the inherent risk in “technology transfer” to a commercial partner, and maximise the potential return to both patients and the commercial enterprise. All of this will require strong partnerships between our academic health system partners, the funding agencies and commercial institutions. At the moment, Qatar sends a proportion of complex medical cases overseas for treatment at our partner institutions. This trend is set to slow and indeed reverse as we expand and develop our capabilities and reputation. Our aim is to become a beacon of excellence for the region drawing in talented and ambitious staff by providing the right academic and clinical environment. Providing we have the capacity, we anticipate a similar expansion in our ability to provide tertiary care to patients from around the region.

Edward Hillhouse

About Edward Hillhouse is Acting Chief of Medical, Academic and Research Affairs and Chief Medical Advisor at Hamad Medical Corporation and a founder member and Consulting Director of the International Association of Academic Health Centers. Prior to this he was Professor of Medicine at the University of Leeds where he held senior academic posts as Dean of the School of Medicine, Faculty Dean of Medicine and Health and Dean for International Development. He graduated in Medicine from St Thomas’s Hospital in London (King’s College) where he also studied for his Ph. D. He undertook general professional training in Oxford, London and Southampton before completing specialist training in Boston, Melbourne and London. For more information about Academic Health System, please visit www.ahs.hamad.qa.

august 2012

Opportunities

have developed Executive Brief Summaries for each of our activities.

Environment as a business opportunity UNESCO’s Natural Sciences Sector, Doha Field Office, tries to help regional and rapidly developing states in building capacity for environmental and engineering sciences, and suggest to them practical opportunities for application. Aparna Shivpuri Arya got talking with Benno Böer, Ecological Sciences Advisor, and Mark Sutcliffe, Project Officer, UNESCO Doha Field Office, about what business

Operations in Qatar started in 1972 while the office was established in 1976. Firstly, this was a project aimed to establish Qatar University. Over the years, the initial project office has become the office for the whole GCC and in 2009 Yemen was added as a new member state. Thus, from here we are serving seven member states which is basically the entire Arabian Peninsula.

August 2012

Basically, it is a Website done jointly with the Qatari Business Women Association, and it provides information on recycling data, activities and stakeholders throughout the Arab region. Overall aim is to identify gaps and encourage young people to set up a business in recycling sector. In addition, it aims to improve the overall cleanness of the ecosystems, in particular of the natural ecosystems which are exposed to land fill, and also by of reducing groundwater pollution through preliminary waste damage.

The UNESCO’s Natural Science Sector, that we are representing, is all about ecosystem, which includes manmade ecosystems, urban ecosystems and natural ecosystems with a special emphasis on water as a part of ecosystem, and water management.

We want to raise awareness regarding this, since as soon as somebody realises that converting waste into usable resource is actually commercial, it will become sustainable. In more details, it will make the society cleaner, but it will also treat the resources better – Qatar will import less, but will also export fewer resources to India and China. We want people to realise that it’s pointless since they are exporting resource below market value.

To explain this to you by an example – planet Earth is an ecosystem, but a flower plot is also an ecosystem. Therefore, everything that represents a community between living organisms, such as plants and animals, and nonliving components, such as soil, water and air can be defined as an ecosystem.

The initiative was launched in 2003 and has always depended on private sector. We depend on mobilising extra budgetary resources from the private sector and, thus, we are inviting them to support our activities since we are making progress only when we have available funds.

Within our sector, we try not to spend much time on planning and reporting and all the bureaucratic dimension of UNESCO, since we want to assist member states in their activities and we want to see improvements through realisation of our projects. For this reason, we

We are looking for long-term partnerships. But, we would like to support startups by providing them with help and support for their ideas. We can either do that through UNESCO or with our partner 2B Communications.

opportunities can arise in the process of protecting the environment. Please tell us about UNESCO’s presence in the GCC region, and particularly in Qatar. UNESCO covers five different sectors – education, natural sciences, social and human sciences, culture, communication and information. It is an organisation with a very broad mandate, established in 1945, the same year when UN was established. But, we even have more member states than the UN itself and all of them are contributing to the budget of our organisation.

Please tell us more about your activities in the GCC region, and particularly in Qatar. I will start with our “Arab Recycle Initiative” which is a Web-based information-hub and learning platform aimed for all Arab speaking countries (Mauritania, Morocco, Algeria, Tunisia, Lybia, Egypt, Sudan, Yemen, Palestine, Jordan, Lebanon, Iraq and the whole the GCC region). It encompasses 19 countries, but it was born here in Qatar.

Opportunities

What has been the bottleneck for getting investments or external project funding within the past three years? Bottle neck in the society is lack of people who are engaged within the waste-recycling industry. Waste is a good resource and offers some business opportunities. For example, it can be recycled and possibly exported to other countries. The bottleneck is that we need to establish companies which will be collecting waste and exploring these business opportunities. There are few companies who do this, but the aim is to generate one. The market is not quite reactive and there’s not a lot of competition. For that reason, companies which do logistics quite often charge a premium to pick up these goods, and then they are reselling them. So, there are inefficiencies within the logistical system. In addition to the lack of available clients which can do the recycling, it

Bottle neck in the society is lack of people who are engaged within the waste recycling industry. Waste is a good resource and offers some business opportunities. For example, it can be recycled and possibly exported to other countries.

it’s no surprise that there is still room for improvement. What opportunities does this sector offer to startups and entrepreneurs? Big companies can demonstrate their social and environmental community responsibility. But, both large enterprises and SMEs can profit from engagement in this field. If they set up a proper business plan and feasibility study, they can generate jobs and income for Qatar and its residents.

The major problem is that many of these companies do not notice market gaps because there is lack of information on entire waste management industry. That is what we are trying to do. Other waste management companies are not keen on information sharing because they are generating profits because of lack of information.

raises the costs of logistics. That is not in line with the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. The Convention is totally justifiable document for larger countries and acts as a safeguard, but it poses a problem for a country like Qatar which cannot enjoy the same economies of scale like the US or countries within Europe. In Qatar companies simply don’t produce enough waste to justify investments into plants. So, it will take time before this actually becomes commercially viable issue. The other important thing is that total cost of pollution hasn’t been quite filtered through policy making. Government policy needs to reflect and support industries and considering all development Qatar is going through,

The major problem is that many of these companies do not notice market gaps because there is lack of information on the entire waste management industry. That is what we are trying to do. Other waste management companies are not keen on information sharing because they are generating profits because of lack of information. So, if we make everything more transparent, people can identify in which areas they can support the industry or how can they integrate that into their own company. It doesn’t necessarily mean that they need to join waste industry. But, it does mean that they can save money from dumping waste in one place instead of the other. By doing this, they can start generating alternative sources of income or simply manage their own waste.

We want entrepreneurs to know what is available and, hopefully, we will also be able to influence policy. To conclude on this point, we need a proper policy to be established by the Ministry of Environment, and the General Secretariat for Development Planning. Also, statistic authority needs to be included. What are you doing to educate people? As an intergovernmental organisation, we are trying to allow people to cooperate on an independent platform through which we are trying to facilitate access to information. When we started with this imitative, the initial programme was turned into guidebook for children which was published in Arabic and English and distributed to schools. After various awareness raising activities, we started receiving calls from companies asking where they should put their waste. We precisely have in mind that startups can come to us with an idea, we would help them formulate it better in order to submit their proposals to QDB or similar institutions. Is there some mandate within Qatar government regarding recycling? Ministry of Environment and Urban Planning have the General Cleaning Project which is instituted throughout schools. They are focused on facilitating development of standard infrastructure. But, in any country you cannot expect one entity to accomplish the job 100%. There are things that are strictly within government mandate, but there are a number of opportunities for other actors and stakeholders.

august 2012

Opportunities

Can you give us overview of your other activities? »» The “Big Tree Society” It aims at encouraging and empowering young people in schools to become more aware of their environment, to realise that there are real environmental issues confronting the human population. It’s also aimed at developing activities that could reduce population’s environmental impacts due to water and energy consumption, waste production and pollution, as well as the issues of biodiversity conservation and climate change. It also seeks to invite the private sector to play a more direct and active role in helping schools develop solutions. We also believe that there is a lot of room for business within this, since young people can realise how certain things can be done better and choose their carrier path within environmental engineering. »» UNESCO’s old concept “At my heart” This project was developed in 1971 at the United Nations Conference on the Human Environment. Back then they had warned us that we are over using our resources and not using them in sustainable way. Let me highlight that the same warning has been repeated during 1992 United Nations Conference on Environment and Development (UNCED), also known as the Rio Summit, and at recent Rio+20 UN Conference on Sustainable Development. At 1971’s Conference, the biosphere reserves concept was suggested as a plan to set aside

Now, we have developed a master plan for “Quranic Botanic Garden” for Her Excellency Sheikha Mozah bint Nasser Al Missned and funded by the Maersk Oil Qatar. The idea is to take teachings of the Holy Quran which calls for good treatment of water and plants.

certain areas for nature conservation and certain areas for sustainable human living. 580 reserves of this kind exist in the world in more than 114 countries. One is also in Qatar and there is also one in Abu Dhabi. We would really like private sector to show to the governments what can be done within this and to function as long term ambassador. Now, we have developed a master plan for “Quranic Botanic Garden” for Her Excellency Sheikha Mozah bint Nasser Al Missned and funded by the Maersk Oil Qatar. The idea is to take teachings of the Holy Quran which calls for good treatment of water and plants. Let me stress that this was mentioned in 90% of suras. The aim is to make homage to the Holy Quran and to generate awareness among Muslims about responsibility for good environmental practices and behaviour. Nevertheless, it is not religious, but biodiversity educational project with an ultimate aim to establish centre of excellence of botanical education, research and conservation. This “Quranic Botanic Garden” should become the single most important biodiversity conservation project in the whole Arabian Peninsula and even in the whole Middle East.

»» “Floating Mangroves for Carbon Sequestration” project It is based on the idea to put mangroves on floating containers and allow them not to be limited only to coastal zones. This could influence atmospheric carbon levels in the best interest of mankind. Moreover, floating mangroves can also reduce land-based marine pollution by intake of potassium, nitrogen, and phosphates, which will possibly reduce harmful-algal-blooms. We want to develop prototype and our idea is three-fold: to produce oxygen, to benefit climate change, and to decrease land based pollution. Connections and business opportunities for oil and gas and fishing sector are obvious, while there is also room for agricultural sector since they are planned to be developed at places with fresh water input. We will eventually approach the Qatar Science and Technology Park and the Qatar Research Fund with this valuable idea. There are also plans to start this in Yemen, Kuwait, KSA, Oman, and Bahrain.

This project is unique because of its link to the Holy Quran and its rare and unique plant species which occur naturally in the Arabian Peninsula - 5,000 plant species that cannot be found anywhere else in the world. »» “Road Traffic in the Arab States of the Gulf” This is an old idea, but we try to bring society together and develop modules on road safety improvements by introducing first aid and first respondent systems.

Benno Böer

August 2012

Mark Sutcliffe

START YOUR BUSINESS

Introducing the SME Toolkit Qatar: An Online Platform to Support the Private Sector

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The SME Toolkit is a joint project between Qatar Development Bank and International Finance Corporation (IFC), a member of World Bank Group. By bringing together the global expertise of IFC and the local knowledge of QDB, the SME Toolkit Qatar provides small businesses in Qatar with the tools and resources that allow them to function to international standards. • Step by step guidelines for business start up and management • Downloadable software tools like Business Plan Maker, Website Builder etc. • Online library with information on topics like Finance Marketing, Technology and International Business • Business Directory Listing and Legal Updates

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