Private Sector Qatar - July 2012 - En

promoting youth

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JULY 2012 www.privatesectorqatar.com/en

Are you heading in the right direction?

Entrepreneurs, SMEs & ICT

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CONTENTS July 2012

Business advice 18 Lead the way

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It always helps to have some to support us on our journey. Enterprise Qatar is doing just that for entrepreneurs and SMEs in Qatar.

Huda Kamal talked to EQ’s CBOO, Hamad al-Abdan to know more about EQ’s objectives and its role in supporting SMEs.

Marketing 20 ARE YOU READY? Huda Kamal explains why self-preparation and positive thinking is important for attracting the audience’s attention and making a good presentation.

Invest in the future!

News 10 UPDATES

12

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

Management 22 MANAGE YOUR BUSINESS NEEDS Quality management systems and methodologies are important for efficient and cost-effective way of doing business. Osama K. Jbarah, Senior Engineer, Qatar Petroleum, brings to our notice how to choose the best system for our company.

About town

SMEs

12 FINDING THE ELEPHANT IN THE ROOM

24 DEFYING OBSTACLES: WHAT CAN SMEs DO?

The Youth to Entrepreneur Forum was held in Doha’s Qatar Foundation Student Center.

PSQ was there and brings you new ideas and thoughts of the Qatari youth.

14 INVEST IN THE FUTURE! The importance of ICT cannot be undermined in today’s business environment. To discuss this issue, the ICT Investment Forum was held in Doha. PSQ gives you the highlights of the event.

Shelf life 16 PRODUCTS Take a look at the new launches this month that will make your work life easier. It’s not like you need an excuse!

20

Although the Government of Qatar strongly supports SMEs, the sector is still pressured by various obstacles. In the part two of the article on SMEs, Reji Cherian, Director, Investment Strategy, State Holding Group, lists possible solutions for overcoming existing challenges faced by them.

Success story 28 THE WHOLE WORLD IS YOUR MARKET Aparna Shivpuri Arya and Tamara Pupic got talking with Ashraf Abu Issa, Chairman and CEO, Abu Issa Holding, on how years of setting new trends and reinventing the company to achieve success has lead him to receive the Ernst & Young Entrepreneur of the Year 2011 Award.

Sector study

Entrepreneurs

Technology

32 SURVIVAL OF THE FITTEST: QATAR’S HOTEL INDUSTRY

38 WHO’S THE BOSS?

44 GET SMARTER!

It is easier to dream about, than to actually become a successful entrepreneur. Salwa Atiyyah, Senior Carrier Guidance Manager, Silatech, helps in figuring out whether entrepreneurship is for you.

Bashar Kilani, Territory Manager, Gulf Countries and the Levant, IBM, points out the great potential of ICT for various industries in the region.

Is there a reason to explore the latest developments and opportunities in Qatar’s hotel industry? We thought of at least one – 2022 FIFA World Cup. Tamara Pupic writes about the challenges and opportunities that await this industry.

46 WHAT’S IN THE CLOUD?

Entrepreneurs

Legal

36 TALENT AND TECHNOLOGY

40 GET BACK WHAT’S YOURS

Qatar Science and Technology Park (QSTP) supports innovators and entrepreneurs in achieving the goals of Qatar National Vision 2030. PSQ brings more details about one of QSTP’s most prominent programmes.

In the time of world financial crisis, security of financing is more important than ever. Kamal Hafez, Financial Markets Associate, Simmons & Simmons Doha Office, explains the concept of transfer of assets by way of security and its application in Qatar and the regional countries.

38

Cloud computing is expected to seriously impact the security of enterprises in the coming years. For that reason, Mike Small, CEng, FBCS, CITP, advises us on how to choose the right cloud solution for our business needs.

Finance 48 GO FROM STRENGHT TO STRENGHT Huda Kamal catches some advice for SMEs from Moataz El Rafie, CEO, Ahli Bank, especially on how to reap the dividends.

50 BE REALISTIC: BE PREPARED Tamara Pupic got talking to Ahmed Yousef Al Sheeb, Executive Director, Projects Finance, QDB, about financing options for SMEs, and realised that a feasibility study is a crucial document for the future success of any business.

Women in business

48 52 TOMORROW’S WORKFORCE Elsbeth Blekkenhorst and Danielle Duttenhofer, Co-Founders and Directors, Global Women Qatar, explain why it is reasonable to expect that Qatari women will play a key role in the country’s economic future.

Survey 54 FEEL THE PRESSURE PSQ brings you conclusions from the QNB’s survey on the inflationary outlook in Qatar in 2012.

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

The best is yet to come

Assistant Editor - Arabic Huda Kamal huda@cpidubai.com +971 440 9140 Contributing Editors Mike Byrne mikeb@cpidubai.com +971 440 9105

We have been trying hard to not let the heat get us down and be out and about getting interesting stories for you.

A few months back, we had done our cover story about the importance of technology for business and in this issue again we have got a lot to say about technology.

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 CIRCULATION Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 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 Art Director Kamil Roxas kamil@cpidubai.com +971 4 440 9112 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

In June, Qatar saw a flurry of events and all focused on the issues that are at the core of Private Sector Qatar – entrepreneurship, youth, SMEs and ICT. So of course, we had to be there to feel the pulse of what the country is talking about. First, there was the Youth to Entrepreneur Forum organised by the Bedaya Centre and AIESEC Qatar, which held various panel discussions and gave the entrepreneurs and startups an opportunity to network and to present their ideas. Renowned speakers from Qatar’s educational, business and non-profit sector advised participants on various topics, like how to start a business, to develop a brand, to understand market environment in order to build market strategy.

Moving on, we listened to the interesting discussions at the ICT Investment Forum, which was organised by ictQATAR. This forum reiterated in the importance of information and communication technology for the social and economic development of the country. Qatar needs to have a robust ICT in place in order to sustain the boom it is going through.

In the midst of all this activity, we took out the time to sit down and have a chat with Ashraf Abu Issa, winner of the Ernest & Young Entrepreneur of the Year Award 2011, to highlight the triumph of the entrepreneurial spirit and the never-say-die attitude. At the same time, we also got talking to Mr. Hamad Abdan Al Marri from Enterprise Qatar, to pick his brain on what opportunities await entrepreneurs and the work his organisation is doing and got to know that there is much more to look forward to!

On this optimistic note, we hope you’ll enjoy this issue and give us your feedback.

Until then..

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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Dar Al Sharq Distribution © Copyright 2012 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

qatar.smetoolkit.org/qatar/en

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

Bassam Salman

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

Mr. Salman is Executive Assistant, Qatar Chamber of Commerce & Industry.

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

News

15th German-Arab Business Forum To improve and enhance German-Arab business relations, seek new opportunities and contacts, the Ghorfa Arab-German Chamber of Commerce and Industry hosted the 15th German-Arab Business Forum from 13th to 15th June 2012 in Berlin.

The Forum was organised in cooperation with the Qatar Chamber of Commerce and Industry (QCCI), the Association of German Chambers of Commerce (DIHK) and the General Union of Arab Chambers of Commerce (GUCCIAAC). It was attended by more than 600 decision-makers from politics and business.

The Forum is the most important bilateral economic platform between Germany and the Arab world. This year the Forum focused on infrastructure and construction, logistics and trade, environment and water management, energy and financial services. The theme of “Women in the Arab business world” played a special role, but new topics such as food security, retailing and the role of SMEs in the German-Arab cooperation had also stimulated the discussions.

The Forum has established itself as the leading bilateral business platform between the Arab World and Germany.

Qatar is considered as one of the most interesting markets in the Arab world.

Major German companies are already active in the country. On the other side, Qatar is also a very active investor in Germany. Recently, the country invested in Siemens AG while purchasing more than 3% of shares. It also holds about 17% of the Volkswagen’s voting shares, and is involved in the Porsche and the construction company Hochtief, with about 10% in stocks in each case.

Lastly, Solar Technologies Qatar is a joint venture between the German Solar World AG, the Qatar Foundation and Qatar Development Bank.

INJAZ Al-Arab amongst world’s top 100 NGOs Director INJAZ Al-Arab and Senior Vice President of MENA for Junior Achievement Worldwide, stated, “Across the region Arab youth have stood up and actively stated “we need work, we need opportunities” – it is now time for governments to answer them. At INJAZ Al-Arab we believe that all sectors of society have a role to play in harnessing the power of our youth and that creating employment opportunity is the responsibility of all. In doing so youths will be able to channel their energy and become entrepreneurs in their own right, which in turn makes than an asset to society.”

INJAZ Al-Arab has been acknowledged as one of the world’s most influential NGOs by The Global Journal. As the first international ranking of its kind, the list recognises the dynamics and innovations of the non-profit world and the level of impact its key players have on a social, economic, and humanitarian level.

The accolade places the organisation on par with world-leading NGOs including, Oxfam, Doctors without Borders, TED Talks

10

july 2012

and the Wikimedia Foundation amongst others. INJAZ Al-Arab is additionally one of the only two organisations from the MENA region to join the global ranking, reaffirming its commitment, dedication and influence in tackling the grave issue of Arab youth unemployment.The second MENA organisation listed is Mideast Youth, set up

by Esra’a Al Shafei.

Commenting on The Global Journal’s acknowledgement, Soraya Salti, Regional

Founded in 2004, INJAZ Al-Arab now operates in 15 countries across MENA as a confederation of national operations.

More than one million Arab youth have participated in the programme to date.

The NGO is unique in the sense that it emphasises the importance of education and career initiatives to young Arabs, providing equal opportunities to them regardless of gender, background or social status.

News

TASDEER prepares for Big 5 2012 TASDEER, the exporting arm of Qatar Development Bank (QDB), held its first preparatory meeting for companies which will participate in the international exhibition of building and construction works Big 5 2012. The exhibition will be held at the Dubai International Convention and Exhibition Centre from 5th to 8th November 2012.

Hassan Khalifa Al Mansouri, Executive Director of TASDEER, chaired the meeting which was attended by representatives of more than 20 Qatari companies which had previously confirmed its willingness to participate in the exhibition, in addition to a number of QDB staff.

At the beginning, Al Mansouri said that the purpose of holding the meeting was to inform the Qatari companies on the steps to be carried out by TASDEER in order to prepare

and organise for the exhibition as well as about arrangements to be undertaken to ensure the adequate presentation of Qatari companies.

Speaking on the steps already undertaken, Al Mansouri assured that QDB, through TASDEER, has booked an area of 300 square meters at Big 5 2012 exhibition site, which will be used to establish a national pavilion representing the State of Qatar and participating Qatari companies to offer their products.

Al Mansouri also said that TASDEER had sent invitations to more than 62 companies operating in the construction industry in Qatar, out of which the majority had confirmed their willingness to participate. He called all companies to continue supporting the participation and representation of the quality of national products in the exhibition.

Save the date!

A summary presentation about the strategy of the Qatari non-oil exports development was also presented by TASDEER. The presentation outlined that the strategy was developed to achieve the objectives of QNV 2030.

June-September 2012

Date

Event

Location

1 - 10 July

Doha Trade Fair 2012

Doha Exhibition Center

2 - 3 August

Strategies, Governance & Social Research Conference

Mövenpick Doha Tower

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

18 - 19 September

Capital Markets Conference

Qatar Central bank

18 - 19 September

MEED Qatar Banking Summit 2012

Doha

23 – 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

july 2012

11

about town

AIESEC Qatar and Bedaya Center organised a two-day event targeting young entrepreneurs and startups, which consisted of various panel discussions, workshops as well as a career fair tailored for startups. A lot of participants explored the networking opportunities provided by the event and PSQ was there to bring you their new ideas and thoughts.

The Youth to Entrepreneur Forum was held on 11th and 12th June 2012 in Qatar Foundation Student Center with the objective to: • Achieve Qatar’s National Vision, in terms of formulating a culture of entrepreneurism in Qatar.

• Engage young entrepreneurs about the opportunities available to them in terms of incubation services.

• Provide a platform for startups to access human capital, because the career fairs in Doha are not properly tailored for startups.

• Provide a platform for startups to create awareness about their product and services to potential buyers.

• Provide networking opportunities for startups to get contacts in the incubation community and the investment community, such as angel investors.

• Help create a network of young entrepreneurs under AIESEC, to keep them engaged in entrepreneurship.

• Be part of creating an innovative and achievable youth-driven project to ensure the human, social, environmental and

economical development of the country.

12

july 2012

The structure of this event, in terms of covered topics, was due in part to questionnaires filled out by entrepreneurs as well as personal interviews with startups.

In line with that, the event provided for a platform to get the reality check of entrepreneurs’ status in Qatar, to identify opportunities and issues they face in the process of starting a business in Qatar, as well as to propose possible solutions.

Within seven panel discussions, renowned speakers from Qatar’s educational, business and non-profit sector advised participants on various topics, like how to start a business, to develop a brand, to understand market environment in order to build market strategy and also enhanced their understanding of legal framework and financing options for new business in Qatar.

The last panel discussion “Entrepreneurship – The Realities & Challenges” was moderated

by Mr. Matthew Johnson, Director of External Relations, AIESEC Qatar.

The panelists for the discussion were: • Mr. Abraham Kamarck, Maendeleo Ventures, LLC • Dr. George M. White, Associate Teaching Professor of Entrepreneurship, Carnegie Melon University • Ms. Tracy Price, Principal, Learning & Development, Enterprise Qatar • Mr. Felice D’Antonio, President, AIESEC Qatar • Mr. Saleh Al-Khulaifi, Manager, Bedaya Center • Mr. Faisal Al-Muraikhi, Senior Relationship Manager, QDB • Mr. Ahmed Lailai, Strategy and Business Development Section Manager, ictQatar Qatar, and Middle East, in general offers a lot of opportunities for starting a business. In market terms, starting a business in Qatar has its positive and negative aspects. From one side, Qatari market is very small and at the same time, the regional outlook is characterised with several small and fragmented markets which have not yet reached the stage of cooperation and exchange of information. On the other

about town

side, Qatar has one of the best locations in the world for doing business worldwide since various parts of the globe are reachable within just a few hours.

Entrepreneurial spirit So, where is the impediment for enhancing entrepreneurial spirit in Qatar? Is it a cultural issue or it relates to existing policy?

Qatar is famous for its entrepreneurial spirit within Qatari families. Nevertheless, a survey done by the Bedaya Center among high-school pupils provided for contradictory results – around 80% of pupils answered positively when asked about their intentions of starting their own businesses in the future.

But, surprisingly, 60% out of the same group of surveyed pupils stated government job as preferred one in the future.

The security of public services jobs was recognised as the biggest impediment to boosting entrepreneurial spirit. One of the few cultural issues referred to fear of failure among potential entrepreneurs and startups.

For that reason the resilience factor, which is crucial for entrepreneurship, needs to be advanced through similar panel discussions and trainings. As a possible solution, provision of successful role model as well as adequate support system and financing options would cause entrepreneurship to spread.

Regarding policy issues, starting a business in Qatar is to some extent more difficult and riskier than in other parts of the world due to the fact

that entry costs are high and that various risks are associated. Incubation services, offered by ictQATAR, are seen as a useful and available tool which is not still sufficiently used by potential entrepreneurs and startups. In addition to that, Enterprise Qatar offers various business support services and entrepreneurship programmes (life-long learning).

A feasibility study done by Enterprise Qatar has shown that it is not easy, but only easier, for Qataris to set up a business, as compared to expats. Therefore, it highlighted that policy barriers represent an issue that is faced by both Qatari and foreigners. In line with that, the “elephant in the room” is the policy, which can be changed only by lobbying from all relevant stakeholders.

Financing options for startups and entrepreneurs can be difficult and QDB, as

the only development bank, offers direct financing for projects in seven different sectors (manufacturing, education, tourism, health, agriculture and fishery and livestock).

The project needs to show potential added value to Qatar and fulfil certain additional criteria. Lack of awareness about the QDB and its role in supporting entrepreneurial spirit in Qatar is the main obstacle to using this kind of existing support. The mandate of the QDB does not aim to make profits, but to boost Qatari economy by encouraging those industries whose share in GDP is less than 2%.

Many entrepreneurs indicated that the event, including a startup trade show and career fair, was a very good meeting ground for startups, entrepreneurs, potential buyers and investors, and proved beneficial to the entrepreneurial outlook of Qatar.

About Bedaya Centre was launched in August 2011 and it is a joint partnership between Qatar Development Bank and Silatech. The Centre allows young entrepreneurs to have access to a range of activities every month in order to assist and develop their skills and accelerate the entrepreneurial spirit. For more information, please visit www.bedaya.qa.

AIESEC Qatar is a chapter of AIESEC - the international platform for young people to explore and develop their leadership potential to achieve a positive impact on society. AIESEC is present in over 1,600 universities in 107 countries and territories.

For more information, please visit www.aiesec.org.

july 2012

13

about town

Invest in the future Qatar’s information and communication technology (ICT) sector is growing rapidly, creating a

wide range of investment opportunities in the country. The Supreme Council of Information and Communication Technology (ictQATAR) presented its assessment and analysis of these ICT investment opportunities, along with its National ICT Development Strategy, on 17th June 2012 at its ICT Investment Forum. We bring you the highlights of the event.

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he ICT Investment Forum brought together leaders from `across sectors that have an interest in developing Qatar’s ICT sector, including policy makers, corporations, small and medium enterprises, investors and regulators. The Forum’s objective was to raise interest in investment opportunities in the ICT sector and to facilitate collaboration among the different entities with a stake in its development.

“Qatar is currently witnessing an unprecedented boom in economic and social development, and is stressing on the importance of information and communication technology sector for the achievement of any development that will hopefully happen in the future,” said Mohammed bin Ahmed bin Towar Al Kuwari, Deputy Chairman of Qatar Chamber of Commerce and Industry (QCCI), during his opening speech at the ICT

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Investment Forum. The Forum was organised

by QCCI, in cooperation with the Supreme Council of Information and Communication Technology (ictQATAR), to invest in the field of communications and information technology and to present investment opportunities available in this sector.

ICT is one of the most important pillars that countries around the world depend on in terms of technical and evolution process.

Al Kuwari explained that this sector in Qatar has gone a long way with a remarkable development, although continuing ambition is expected to achieve further goals, which extends its horizons indefinitely.

“We hope for the private sector to carry out its role in achieving economic and social development, and to have a head start in the field of investment in communications, information technology and other sectors, “he added.

He hoped that the Forum will be a starting point towards technological development and serve Qatar’s plan to make a comprehensive renaissance in all aspects of life within the country.

Faleh Al-Naemi, ictQATAR Assistant Secretary General for Shared Services, praised His Highness Sheikh Hamad Bin Khalifa Al Thani for his leadership in driving Qatar’s economic and social progress, “I believe that the Qatari economy will continue its positive momentum as a result of the multi-sector developmental path outlined by the National Development Strategy. Qatar’s ICT sector is positioned at the core of this sustained economic and societal development, both as a driver and enabler of economic development.”

“Qatar’s ICT market grew in value by more than 20% between 2010 and 2011. We fully expect the market to maintain this momentum.

about town

subject to ictQATAR’s endorsement on a detailed business case of the undertaken opportunity,” said Abdulaziz Al-Khalifa, Executive Director, Strategic Planning and Control, Qatar Development Bank.

undertaken by the government with international companies, such as Yahoo!, and local institutions, like Al Jazeerah, to develop digital content sector in Qatar. The workshop discussed the importance of encouraging innovation and entrepreneurship and stimulating growth on the Internet, in line with Qatar’s National Strategy for Communication and Information Technology 2015.

To conclude the Forum, breakout sessions were held on a number of the prioritised investment opportunities to allow for deeper discussion. Some of the areas addressed were digital content, e-commerce, integrated data management and smart systems. To keep the momentum, ictQATAR will conduct a regular quarterly market review to ensure that identified opportunities are being pursued, and will also promote the opportunities that have not yet been pursued.

In the “E-commerce Workshop”, participants discussed the role of communication institutions, such as Qtel, in the consolidation of e-commerce. It also outlined that Qatar’s wider mobile sector had realised great benefits from initiatives and partnerships and considered this sector as vital for the future. It was concluded that the Qtel would have to be part of the deal as people may not trust local websites, but they trust in their telecom company, web apps

Qatar’s ICT market grew in value by more than 20% between 2010 and 2011.

Further development of Qatar’s ICT sector requires the involvement of both public and private entities. The National ICT Development Strategy recognises that the government can play many roles in fostering growth, including the role of direct developer, facilitator and even financier. Balancing these possible roles with the interests and capacities of the private sector and individual investors is the key to the success of our strategy,” said Ali Al-Khulaifi, ictQATAR’s ICT Market Development Manager.

The ICT Development Strategy identifies specific ICT development and investment opportunities in Qatar over the coming three to five years. The Strategy’s aim is to develop the required ICT capabilities in Qatar, while also identifying areas for innovation, expansion, and marker differentiation for the country. It also takes into account the impact that major infrastructure projects, such as the new Doha Port, Lusail City and FIFA 2022 initiatives, will have on the growth of the ICT sector. It is also based on other key differentiators inherent in Qatar’s ICT market that make it prime for development, including a world-class ICT infrastructure, availability of financial resources, and business-friendly laws and regulations.

Qatar Development Bank is committed to supporting the ICT Development Strategy.

The “Digital Content Session” discussed efforts provided to develop digital content and licenses and permits required. It also covered obstacles that the sector faces and the investment opportunities present in digital content with new partnerships

and transactions over the phone. Participants agreed also that Qatar needs e-commerce to be managed under one umbrella in order to protect free trade undertaken electronically on the Internet, like is done within the Dubai Silicon Oasis in UAE.

The ICT Development Strategy included a comprehensive assessment of investment opportunities in the country with 68 distinct areas being identified, of which 17 are considered priority opportunities, both in terms of potential value and benefit to the country’s continued development.

QDB has been actively involved in promoting investment and entrepreneurship in the region.“Qatar Development Bank is committed to supporting the ICT Development Strategy.

We believe in its aspirations, and I am glad to announce that all the 68 opportunities outlined today will receive a pre-approval to Al Dhameen loan programme,

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shelf life

It’s magic! iSpace, part of Darwish Technology, has announced the launch of its latest innovative product, The Magic Cube.

The Magic Cube is a projection keyboard and a multi-touch capable mouse, known also as the “virtual keyboard” or “laser keyboard” – an all-in-one and easy-to-use product.

It connects easily via Bluetooth to your tablets and SmartPhones, including iPads and iPhones.

The Magic Cube is an outstanding product that really simplifies typing on

Silent effects SmartPhones and tablets. This new innovative product is so compact that the customers will be able to carry it with them wherever they go. The Magic Cube will cater to the majority of people in Qatar as most of them carry iPhones or iPads.

Redirect your focus!

BenQ presented mercury-free BlueCore light engine to LX60ST and LW61ST, its latest shortthrow education projectors. These projectors deliver superb energy efficiency, projection performance and instant readiness, saving money and helping the environment at the same time.

Designed to bring images to life while keeping the total cost of ownership down, the cutting-edge BlueCore light engine utilises the unparalleled qualities of a unique laser light source rather than a traditional mercury lamp to achieve up to 90% less light source power consumption. BlueCore also provides an average of 20000 hours of reliable brightness in Eco Mode and 80000:1 ultra-high contrast ratio for outstanding mages and crisp clear content.

One of the most impressive features of the BenQ BlueCore projectors is the ability to lower light source power consumption

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significantly by up to 90% compared to only 0% a laser light source can be dimmed down.

In addition, the latest BlueCore projectors also has the unique features, such as the SmartEco Mode, that automatically determines the optimal brightness level by the input source to generate the best image contrast.

The projectors also has the Eco Blank Mode that enables teachers to blank the projector screen when the projector is not in use to redirect students’ focus back on them while lowering the light source power consumption to only 10%.

The camcorder market gets even better with these new high-end additions by Panasonic.

Panasonic has introduced a full 6-model lineup of Panasonic FHD camcorders with exceptionally high image quality in the Middle East. In the high-end 900 Series, 3MOS System Pro achieves a dramatic improvement in performance with a totally re-engineered lens, sensor, and engine.

Crystal Engine Pro II employs high-speed processing for the massive number of pixels that are produced by the Advanced 3MOS Sensor.

This allows the new system to produce Full-HD images with breathtaking color, detail and gradation. 3MOS System Pro is a next-generation imaging system that exhibits outstanding effects even under dim lighting, and produces bright, beautiful images with minimum noise.

The newly developed High Sensitivity Sensor in the 700 Series greatly improves image quality in low light levels. They are highly compatible with TVs and BD players, allowing users to easily enjoy high-quality 3D viewing at home.

Business advice

lead the way SME and entrepreneurs are widely recognised as the key drivers of employment and economic growth and Qatar has made sure that these are provided with all the support they need to flourish.

One such initiative is Enterprise Qatar (EQ). Huda Kamal talked to EQ’s Chief Business Operating Officer, Hamad al-Abdan, to know more about EQ’s objectives and its role in supporting innovativeentrepreneurial SMEs. Tell us more about EQ’s vision and objectives?

EQ was established in February 2011 through an Emiri decree to develop an appropriate model for the new entity and build a culture of excellence in, and for Qatar. Enterprise Qatar is committed to building a flourishing SME sector in Qatar through partnerships that create a supportive environment to enable innovative entrepreneurs to succeed. Enterprise Qatar will serve as a gateway between innovative companies and the financial and business support institutions. It will incorporate three key strategic principles of partnership, public purpose, performance and value through partnerships that create a supportive environment to enable entrepreneur’s projects.

The idea behind establishing EQ is to create an environment and an added value to the national economy. EQ also aims to

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strengthen the SME business sector making it more viable for SMEs to take a prominent role in Qatar’s economy.

EQ began its operations for SMEs with the “Al Fikra” national business plan competition that took place under the cloak of Qatar Exchange and was met with great success. “Al Fikra” is a good opportunity for young participants to be integrated into the competitive business landscape and contribute towards sustainable development and economic diversification in Qatar. “Al Fikra” has been instrumental in identifying some of Qatar’s future business leaders, who are waiting in the wings to be discovered.

We don’t aim to have the largest share, we want the private sector to become an active participant and provide valuable support that can achieve the desired success.

How do EQ programmes help SMEs? In addition to the “Al Fikra“, EQ will provide several tools and services we believe innovative entrepreneurs need such as incubations, workshops and audit programs, in addition to the guidance and training to serve them in an overall integrated learning experience that attracts promising initiatives which will shape the future of the State of Qatar.

We are going to launch new services that will contribute in finding solution for what entrepreneurs consider as a challenge due to lack of education and information.

For example, we offer guidance to small and medium enterprises with regard to funding - when a small company goes to a bank for funding, the bank will ask about the balance sheet, feasibility study and contracts which the company doesn’t have.

There comes our role to work with them to provide those papers and submit them to the competent authorities.

Business advice

Enterprise Qatar is committed to building a flourishing SME sector in Qatar through partnerships that create a supportive environment to enable innovative entrepreneurs to succeed.

Also we offer more privileges to small and medium businesses participating in our programme, such as connecting them with service providers and helping them get cost-effective prices which will help them to start managing their business in an effective way.

Please give us some examples of success stories?

Success stories take time and EQ is only one and a half year old, so we are still in the beginning. But, we have already supported a Qatari entrepreneur Mr. Ashraf Abu Issa, Chairman of Abu Issa Holding, who has been named as the winner of the Ernst & Young’s Entrepreneur of the Year award 2011.

He was chosen among the seven finalists representing six leading corporate players in Qatar. The EOY Awards 2011 were held for the very first time in Qatar under the patronage of HE Sheikh Jassim bin Abdul Aziz Al Thani, Minister of Business and Trade. Abu Issa was chosen to compete in the 12th Ernst & Young World Entrepreneur of the Year Award in Monte Carlo, Monaco. And Qatar has a lot of talent and creative entrepreneurs.

This event offers opportunities to meet entrepreneurs from across the world, build relationships, share experiences and learn from other successful models.

How do you see the presence of Qatari women in SMEs? The number of female business owners in Qatar is growing and women have a noticeable presence in SMEs and private sector in general.

We can say that 70% of entrepreneurs interested in our programme are women and this could be because women are more engaged in the private sector, especially in the non-oil and gas sector.

What advice would you give to our readers who might be aspiring startups and existing SMEs? Awareness is the key. Through our workshops and conferences we help SMEs to transform ideas into reality and enable them to qualify and engage in government tenders. This guidance helps them deal with the barriers and obstacles in doing business conditions and offer the right knowledge they need to survive in the market.

And what about the Arab spring and its impact on SMEs in Qatar?

I do not think the Arab spring affected Qatar, we have stability in Qatar to a large extent. EQ started within the of Arab Spring, yet it has not affected our operations or projects negatively because of Qatar’s wise decision makers. The government has provided support to obtain economic and political stability as well as the special support given by the Emir to the private sector and SMEs. Qatar is fully dedicated to promote and assist those with a passion for innovation and creativity. Qatari SMEs are expected to move the country to a new era that focuses particularly on the private sector and its role in promoting economy and diversity in the country. Our support is continuing to help entrepreneurs transform their promising ideas to real projects.

There has been a lot of talk about the opportunities being created because of the World Cup 2022, how can EQ help SMEs take advantage of these opportunities?

We are working closely with the World Cup Qatar 2022 and are well informed about the ongoing projects, whether it’s in transportation infrastructure or services in general. I believe that the coming years will be for SMEs. I do not think at all that the World Cup opportunities are for large companies only. We work strongly to ensure that these opportunities go to small and

medium enterprises, and are, thus, working hard to make sure SMEs cover the big share of the market.

In this regard, we are in discussion now with the government and we are working together to ensure this. I am sure we will witness a massive participation of SMEs in the economic transition.

How do you see the future of SMEs in Qatar?

I’m very optimistic. The government directives and objectives are clear, while the support is already provided to SMEs. I insist on the necessity and importance of Qatar-owned companies’ initiatives to support private sector, especially SMEs. As long as there is sincerity, genuine political support and financial guidance to strengthen small and medium enterprises I guarantee we will be able to confront all obstacles and challenges by maintaining an integrated network between buyers, companies and SMEs. I ask the government and companies to open their arms to small and medium businesses and strive in supporting this sector. Local SMEs must be recognised and involved in projects which will happen in the next ten years.

All the institutions should work together to help SMEs through each and every step.

They should also guide them on how to share their ideas, build more bridges and remove more barriers and obstacles until they have their own well-known brand around the world.

Hamad al-Abdan

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Marketing

ARE YOU READY? Do you get nervous before public presentations? Are you afraid that the audience may storm the stage and drag you off? Well, take a deep breath and relax. Huda Kamal explains how you can attract your audience through self-preparation and positive thinking.

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ccording to the “Presentation Skills and Influencing Audiences”, Library of Lebanon, external positive appearance is vital to successful presentation.

For that reason, you must project your strengths and use affirmations and positive thoughts to improve your self-confidence. Try and come up with a few positive words of reassurance that suit you to boost your selfcontrol, such as: »» “I am fully aware of my presentation materials and the audience will realise that from the beginning.” »» “The presentation is very interesting and contains great ideas, so I’m sure the audience will love it. “ »» “Other speakers are also very confident and I am ready for my presentation.”

Imagine success and visualise an excited audience, their movements and your eye contact with them. Increase your self-confidence and behave normally and only then you will see the reaction you seek from the audience.

To complement that, Hernry H. Calero and Gerard I. Nierenberg in their book “How to Read a Person like a Book”, said, “Confidence depends on trust in your own strengths and abilities. This trust enables us to control ourselves and overcome anxiety and fear when presenting our message.”

Confidence leads to success and not vice versa – you control the factors that affect your confidence and you have the power to beat negative thoughts that create a wall between you and your confidence. Look for your strengths and stop bullying yourself!

Self-control The second main factor is self-control and how to use positive thoughts when confronting your audience. Self-control depends on your inner dialogue, which includes ideas, concerns and questions that can help you reach your inner peace and control.

Self–confidence (Don’t bully yourself!)

We control our confidence and, thus, we can increase it and strengthen it

And there is nothing better than the questions Dr. Ibrahim Al-Feki asked in his book “The Power of Self Control”: • Do people like to be around you?

• Do you trust people like they trust you?

• Do you judge others quickly?

• Do you take responsibility for your mistakes? Or blame others?

• Do you have the ability to use humor when needed?

William James, famous American philosopher, said, “The greatest revolution of our generation is the discovery that human beings, by changing

Dr. Ibrahim believes those questions will determine your outlook towards situations, whenever you engage in negative self-talk.

Self- preparation depends on three main factors: • Self-confidence • Self-control • Audience understanding

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the attitude of their mind, can change the outer aspects of their lives.”

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Audience understanding Now you may ask yourself – “I may be able to control myself, but how can I control audience responses?”

Khalid Aziz, author of “Presentation Skills”, says, “Audience is the most important of these three elements. Most communications fail as a result of poor audience analysis. This is true whether your audience is an individual or a large group.

Be aware that your message will have a completely different impact on different audiences. News that might raise cheers from the shareholders could easily bring boos and hissing from the workforce. You must research your audience to determine what their reaction is likely to be to the message you want to deliver. Talk to your colleagues and use as many sources as you can to build a profile of your audience.”

Also, pay attention to the messages your body reflects and facial expressions and care about your external appearance – clothing and hair should be neat and clean. Keep your hands out of your pocket and, of course, smile!

There are many programmes and courses that can help you get prepared for presentations. But, remember that these preparations come from within us and our ability to influence and interact with the audience.

Beat your fear and overcome negative thoughts, free the positive energy, be optimistic and confident!

Management

Manage your business needs

Most business managers are not very familiar with the quality management systems or methodologies, which are essential to deliver products and services in an efficient and cost-effective manner. Osama K. Jbarah, Senior Engineer, Qatar Petroleum, explains how to choose a particular system which will work best for your company.

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f I got a dollar for every time someone asked me about my favourite quality tool or system to use in an organisation, I would be very rich by now. In my mind, the response to this type of question really sets the difference between a true professional quality management consultant and a sales person. For that reason, my answer is usually in the form of a new question – “Why? What is the business issue you are trying to resolve?” or “What is the advantage you are looking for?”

We all know that businesses are run to realise a profit regardless of the nature of the service or product they deliver. But, what sets businesses apart is the customer value which is, in short, the thing that makes the customer keep coming back.

In that context any activity the business performs, or invests money and time doing must yield some return that impacts the customer value. Otherwise, what’s the point?

Start with your business needs The journey towards establishing a quality system in your organisation must logically start with a clear definition of the needs – your business case. To help illustrate, ask yourself the following questions: • What is the threat that the business is facing?

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• What is the strategic advantage of having this particular system?

• What is it that I want to improve in my business?

Once you have a clear and documented answer to those basic questions, only then you will begin to look around for and educate yourself on what is available and what fits most with your business needs.

Consultants find it easier to speak with business leaders who have taken the time to educate themselves on quality management tools and systems. This makes the process of selecting the right system or tool much easier and faster. It is also very critical if you are attempting to address real and imminent threat that requires immediate remedies. A seasoned qualified consultant would also help you verify if your reasons are valid and that you did not make a mistake in diagnosing the business ailment or requirement. In many cases, projects did not realise their full potential or even completely failed because this critical step was either not done or was very poorly done.

I have seen a number of businesses saddled with management systems that started with a great deal of fan fair and enthusiasm, and ended up with the after hour job of a reluctant employee.

In addition to very little value gained, there were cost pressures on some small business since there is nothing for free, including the certified management systems.

In one case, the general manager of one organisation I was working with confessed that they are doing this simply because they were asked by a higher authority. This made for a very painful experience for both myself and everyone in the organisation, in addition to again the zero value gained.

It is also important to point out that implementing management systems, such as ISO 9000, or any of the improvement methodologies, such as six sigma, total quality management and others, will not resolve chronic organisational problems like mismanagement, serious company’s cultural and environmental ailments and so on.

Quite to the contrary, they will make matters worse, and will put more undue pressure on a business already struggling with limited resources.

In cases where the company has deeply rooted issues, it is best that first they are resolved and then a management system is introduced to make good things better.

Standard vs. methodology Additionally, the differences between the choice of implementing a management standard, like ISO 9000, or a quality improvement methodology, are not always clear to business leaders and they are often left confused.

ISO standards are just that – standards! Thus, they require a great deal of effort into establishing a system that complies with the requirements set forth by the standard you choose. In short your

Management

Today’s business managers have the responsibility not only to keep up with what the competition is doing, but they also have to be creative on a wide range of issues including which quality management system or methodology works best . company will develop procedures describing how processes within the company work, thereby, assuring that they are followed which ultimately will result in consistency of services and products.

Once the system is established, a certifying body authorised to examine the system will, upon satisfactory results, award your company a certificate indicating that the company has a working quality management system that meets the standard.

As a consultant, I am very quick to remind everyone that getting certified is only the beginning, and the work involved in keeping that certificate involves a great deal of up keep and improvements to the system, otherwise, the company risks losing the certificate.

On the other hand, quality methodologies, such as six sigma, are different from ISO standards.

They are methodologies implemented to drive improvements in the company’s processes and its products. For that reason, there is no certificate associated with those methodologies and they are often applied in conjunction with a certified management system. A methodology, such as six sigma, requires a great deal of preparation and work that must be done to make it a key business process. Depending on the situation, a company must go through some degree of change that

may be organisational, cultural, and systemic for it to work. But, the companies who have adapted six sigma, with an aim to improve business performance, have gained substantial market share, achieved significant cost savings and were able to provide superior quality products and services.

Find your own mix The past two decades have seen the emergence and, to some extent, also the disappearance of some methodologies that were introduced by many companies in order to respond to business challenges, mainly to cost pressures from low wage countries. This lead some companies to hastily pursue a system that was proven effective in other companies, only to realise very little gains.

This is where companies have to be cautious not to go for “flavour of the day” solution and to really understand their own culture and capabilities prior to deciding the direction they need to take.

I recall a conversation with one of my neighbours who worked for a global manufacturer of materials handling equipment. He mentioned that they were planning on transforming the company through the implementation of TPS (Toyota Production System). My response to that was –”Can your company morph itself into a clone of Toyota?” He was somewhat taken aback by my comment as though I was making a point worth considering.

The moral of the story is that managers need to be very careful and think things through to avoid the pain of having to undo things half way and cause irreparable long term damage to the organisation.

It is prudent to mention that it is not necessarily true that a company must adapt a system exactly the way it is. Often you will find that you need to improvise and invent a unique mix of tools and methodologies that you believe will address key problems and, at the same time, can be easily accepted by your company.

Osama K. Jbarah

During my time at Rheem Water Heaters, headquartered in Montgomery, Alabama, we

developed a system that blended lean tools to target waste, six sigma to drive process improvements and theory of constraints to eliminate bottle necks. The system has been a great success and the gains made through it have helped the company realise efficiency and financial targets as it delivers superior quality products.

Quality and management systems and methodologies are proven tools to help business raise the performance bar and compete in a cost effective manner, but could also result in unintended consequences if not done right or, at best, yield very little results if not utilised correctly.

The value of management systems and methodologies to businesses or government agencies cannot be overstated. In today’s world of shrinking market shares and financial constraints, it is becoming increasingly evident that businesses must be creative.

In the field of quality and management, there has not been anything newly invented for many years and all we have are systems that blend thoughts and approaches with proven tools that have been in existence for a long time. They are the results of creative work by many people from a wide range of specialties and sectors. Nevertheless, quality management is much like any other discipline, it will continue to evolve with evolving business challenges. That being said, today’s business managers have the responsibility not only to keep up with what the competition is doing, but they also have to be creative on a wide range of issues including which quality management system or methodology works best.

About Osama K. Jbarah is an ASQ certified quality engineer and a six sigma black belt with over 23 years of experience in manufacturing and oil and gas in Canada, the US and the Middle East. Osama currently holds the position of senior engineer with Qatar Petroleum where he is responsible for the continuous improvement system.

He is an experienced technical trainer in many quality topics, with interests in the human side of quality and change management. Osama holds degrees in metallurgical engineering, business management and currently pursuing a masters of science in quality strategic management.

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SMEs

Entering new geographic areas and business segments also enable SMEs to scale up their operations.

defying obstacles:

What can SMEs do?

In part two of the article on SMEs, Reji Cherian, Director-Investment Strategy, State Holding Group, talks about challenges faced by SMEs in Qatar and provides suggestions for possible solutions which would enable this sector to flourish.

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espite the various measures taken by the Government of Qatar to promote SMEs, the sector continues to be plagued by various pressing obstacles. We look at some core issues that hamper the growth of SMEs in Qatar and possible solutions.

Size and scale Qatar’s domestic economy is too small to benefit from economies of scale and to attract significant foreign investment focused on internal markets. The SME aspirants, therefore, have to target the export markets, including Gulf Cooperation Council (GCC), regional and

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Entrepreneurship Public sector jobs in Qatar are perceived to be more prestigious and are more sought after by the public at large than private sector jobs and entrepreneurial projects due to the following: • Good pay package and benefits • Convenient work timings and office locations • Ease of obtaining personal loans Proactive measures are required to encourage youngsters and experienced local entrepreneurial aspirants to take the bold step away from a comfortable public sector job to a more challenging and rewarding entrepreneurial world. It may be advisable to provide a feel of entrepreneurship to fresh aspiring local entrepreneurs by employing and training them with existing private sector projects and successful SMEs. These private sector projects and SMEs may be offered incentives in addition to compensating them for the cost of employing and training Qatari entrepreneurial aspirants. Furthermore, it is also essential to provide training and mentoring support to ensure that entrepreneurial ideas are properly screened, their financial viability assessed and the requirements of regulators, bankers and investors are properly addressed before the project is implemented.

The optimal solution for solving this obstacle is to try and attract international companies to establish a production hub in Qatar and to supply to the regional and international markets.

It requires a combination of lower costs of production and sound legal framework to woo the international manufacturers to shift base to Qatar.

Finance Access to bank finance and finding venture capital or strategic equity investors continues to be tough in Qatar. Understanding the requirements of banks and investors and developing the required expertise to fulfil those requirements is a big challenge for SMEs in this market. In addition, the reluctance of banks and financial institutions across the region to provide acquisition finance is a serious bottleneck for SMEs trying to grow vertically and horizontally in the region and beyond.

Integration and multi-nationalisation of SMEs is another way to combat the difficulties posed by the small size and scale. Integration, backward and forward in the value chain, is an option to generate synergies and expand the size of SMEs.

Qatar Development Bank (QDB) is the premier financial institution that lends to startup projects, including SMEs. In order to encourage local commercial banks to lend, QDB has launched the Al Dhameen credit guarantee programme.

international markets, in addition to the local market to sell their products and services.

SMEs

Various local commercial banks have enrolled in the programme, which is expected to make it easier for SMEs to raise finance.

Integration and multi-nationalisation of SMEs is another way to combat the difficulties posed by the small size and scale.

Integration, backward and forward in the value chain, is an option to generate synergies and expand size of SMEs.

Governance One of the major reasons cited by the banks in the region for their reluctance to finance SME projects is the absence of reliable and comprehensive feasibility studies and financial information to support the startup projects. In order to have access to capital, it is essential to win the confidence of the lenders and investors. This can only be achieved by adhering to best practices, transparent financials and water tight feasibility studies, which are typically expensive and beyond the budget of most SMEs.

• Standardised format for feasibility study, approvals and clearances • Single window for all clearances and approvals for SMEs • Time bound execution – rejection or approval of all applications • Establishment of industrial parks with ready infrastructure for core industrial sectors

This issue may be solved by offering concessional advisory services to SMEs and offering subsidies to SMEs that engage approved advisors to support them. Certain efforts in this regard have already

Dumping and consumers’ preference for overseas products SMEs across the world face competition and dumping by larger industrial units and multinational

With a committed government in place and having attracted the attention of the policy makers about the possibilities for SMEs in Qatar, it is only a matter of time before this sector flourishes in the country and steal the limelight as a significant contributor to GDP and employment generation and supporting the social cause in Qatar.

Legal structure and regulations It might sometimes take considerably longer time to convert a feasible idea into an operating project in Qatar compared to some neighbouring GCC countries, due to the time lag in various approvals, permits, clearances, licensing, land allotment and so on. Hence, several international companies prefer to set up manufacturing base in more investor friendly locations. Some of these locations also offer 100% equity ownership to foreign investors in special zones.

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In order to create a successful stream of SMEs, which will entice other aspiring entrepreneurs to take up the challenges of entrepreneurship, it is essential that various government agencies offer support and protection for home made products.

This may be implemented through various measures including: • Use of locally-manufactured products in all government and semi-government organisations • Price preference for locally made products in all government contracts • Price subsidies may be offered to locally manufactured products for a certain period to enable them capture market share With a committed government in place and having attracted the attention of the policy makers about the possibilities for SMEs in Qatar, it is only a matter of time before this sector flourishes in the country and steal the limelight as a significant contributor to GDP and employment generation and supporting the social cause in Qatar.

been initiated by the QDB and Enterprise Qatar (EQ) with the objective of enhancing the quality of financial reporting by SMEs.

Simplifying and speeding up the approval and licensing process for SMEs may be ensured by the following:

players who have the muscle power to woo customers through promotional efforts and often better quality standards. The scenario is all the more precarious in Qatar because the very small size of the market is a deterrent for local manufacturing.

About

Reji Cherian

Reji Cherian is the Director-Investment Strategy for State Holding Group in Doha and is in charge of developing the SME investments of the Group.

A private equity professional with more than 18 years of experience, he has held senior positions with the Industrial Bank of Kuwait and with the corporate finance division of Big 4 consulting firms in Singapore and Kuwait previously. He has been active in supporting SME projects in India and Kuwait and has served the Board of Industrial and Financial Reconstruction in India in restructuring sick companies. He has a Bachelor in Commerce from Mahatma Gandhi University, India and is a Chartered Accountant.

He can be contacted at cherian@state-holding.com.

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success story

The whole world is your market!

Ashraf Abu Issa, Chairman and CEO, ABUISSA Holding, has been a pioneer in the Middle East, setting new trends by creating his own retail concept stores and also reinventing his company to achieve successes in other business areas. Aparna Shivpuri Arya and Tamara Pupic met up with him to hear his success story just before he raised Qatar’s flag at world-class business gathering – 12th Ernst &

Young’s Entrepreneur of the Year 2011 Award ceremony.

Please tell us about yourself and how did it all begin three decades ago.

With his end of service benefit and a loan from the bank, Abdul Rahim Abu Issa, my late father, started a small distribution company to sustain his retirement and leave something for the next generations to come. At a very early age, I decided to be closer to the family business and, thus, worked after school and during summer holidays in the warehouse, sales and delivery.

I used to observe my father managing the company or join his meetings with suppliers.

After his sudden death, five years after the company started, I decided to put my university studies in the USA on hold and to come back to Qatar. Even though I was only nineteen, I chose to support my family (a younger brother and two younger sisters) and to become the

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new leader of the 36 employees company with a USD three million turnover. At that time the main activities of the business were the distribution of Fujifilm and Samsonite luggage.

What inspired you to set up your first departmental store back in 1981 – the Blue Salon?

In the 90’s our main focus was to sign exclusive retail agreements with luxury brands.

I managed to sign with brands like Cartier, Boucheron, Clarins, Thierry Mugler, Versace, Dolce & Gabbana, and Burberry to name just a few. I found it very difficult to persuade jewellers and high end watch makers to work with me without prior history in that industry.

To sustain the luxury division development, in 2001 I created my own headquarter building, housing our main offices and flagship

department store, Blue Salon.

How did you set up your business and what advice you can give to new entrepreneurs?

Since the beginning, my brother Nabil Abu Issa and I focused on innovation and customer service. Those are the key factors behind the phenomenal success of our group.

But, we never stopped looking for new opportunities to grow and reinvent our company. For that, I have created a very innovative company structure that allows us to jump start an activity and grow it successfully into a leader in its category very smoothly. In line with that, I would advise entrepreneurs to always have the courage to challenge not only themselves, but everyone around them.

success story

I advise young entrepreneurs not to be limited to and discouraged by our small market, but to look beyond it and consider the region and even the world as their potential market. Keep in mind that there is no better base than our local market in Qatar.

What challenges did you face and how did you solve them?

Being a leader of a company with 36 employees at such a young age was very challenging since they were all older than me. It didn’t stop me from laying the foundation for a relationship with all my future employees based on mutual trust and respect – characteristics that are still strong in the company culture today. Meanwhile, I had to build stronger relationship with the suppliers at that time and prove to them my business capability and professionalism. Step by step I gained the trust of new brands making the company portfolio grow till to more than 30 companies and 2000 employees, as of today.

What is your opinion on opportunities and challenges in the retail and distribution sector in the region, particularly, in Qatar?

Middle East and, particularly, Qatar are full of promises for the future. In retail sectors, we expect a huge change with openings of many new malls. So, some malls which are not up to a new standard will have to exit the market while the others will really flourish. But, the existing ones that can work out will save the neighbourhood. So, both the opportunities and challenges are there.

Also, since the world biggest players are now eying our market, local companies should be creative and innovative enough to keep their hands on the market. Globalisation can be a threat to a country like ours. But, we should look at the positive side because we are a small country, there’s a chance to have so many different brands here as not many players are present at the market. So, if you have good exposure to a brand and can create good relations with them, you can use those contacts to expand outside Qatar. Consequently, the whole world is your market.

For example, with the experience I gained from the local market and the international partners, I created my own retail concept stores – Momento, Karisma, Mosafer, Gold Gourmet and Arabesque.

The biggest advantage we have is that we know our customers. Nevertheless, due to limited population which represents consumer group we are expanding outside the Qatar.

What is your advice for an SME or an entrepreneur starting a business within the retail and distribution sector?

In line with the previous answer, I advise young entrepreneurs not to be limited to and discouraged by our small market, but to look beyond it and consider the region and even the world as their potential market. Keep in mind that there is no better base than our local market in Qatar.

Ashraf Abu Issa delivers a speech at the Ernst & Young Qatar Entrepreneur Of The Year 2011 Award ceremony

Other important thing is to get your hands dirty in the beginning of any business. Only that way you will really understand it. You need to have some failures here and there in order to learn what are the key elements you should control in the future. This is the difference between a good company and a very good company.

Lastly, you have to monitor those whom you have delegated parts of your business. So, you can do that only if you went through the first two steps. If you didn’t get your hands

I want the world to know that Qatar has its own vision in terms of how we want to approach the international arena and we do not want to copy anybody else.

Since you now handle different sectors and different types of businesses, what is your management style?

My success today is in having several businesses which are all successful.

In order to do that, you have to delegate very well. Although I run different type of businesses I still manage it as a family affair. All new employees are more than just another number or employee code, they are part of the family. I value their opinion, listen to suggestions. For me it is important to let them share with me their achievements and ideas.

dirty before, you could not know what your parameters are and whether you are going in the right direction.

What are your ambitions and growth plans and how do you plan to achieve them?

We will grow organically in Qatar in both sectors of our business.

Firstly, in retail and distribution business, which is our core business, with more malls opening we have to be very careful in choosing where we want to be. In the next three years we will open around 50 new stores.

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success story

New ideas that add value to community and cannot be copied in the future should be focus of new entrepreneurs – they should focus on creating value and not creating wealth.

But, the major growth is going to be outside Qatar. We have just started opening shops in KSA, UAE and Bahrain. We promote our travel concept “Musafir”. It is an international concept, but it comes from the Arab world.

In a few words, it’s a shop that will have everything a traveller wishes to have and that for tourist, business and first class. The concept is derived from the fact that we are already representing more than 300 brands and, thus, we have touched each industry somehow.

Therefore, since we know what is happening in all these industries, we use the expertise from all of them to put it in one concept which is “Musafir”.

For this, we have our have R&D department that does market research, designs products, looks at trends, and so on. The main target is always consumers’ satisfaction – to solve the problem for the consumers and make them

satisfied and come back. Therefore, the concept gathers various items in one shop, but it can also be fragmented. So, the concept is quite flexible and there is nothing like this in the world. Even if you find something similar, it is always local concept, not international.

Secondly, five years ago, we focused on government spending in Qatar. I personally, as a Chairman, left the core business to my brother and my brother-in-law, and created a very good management team to focus only on these projects, We have created joint ventures with multinationals in infrastructure, construction, events, facility management, and similar. We do not run the business ourselves; we just manage a joint venture between us and a specialist in infrastructure, a specialist in oil and gas, and so on.

Ashraf Abu Issa receives the Ernst & Young Qatar Entrepreneur Of The Year 2011 Award

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Within a joint venture, we appoint management for that company between the two of us. They look at the know-how and all the technical support for that company, while we come up with the know-who, since we know our local market very well and know where we have chances for good business and where not. We want to capitalise on our contacts and to be a part of big changes country is going to face in the next ten years.

What was your message at the E&Y World Entrepreneur Of The Year Award ceremony in Monte Carlo: From Qatar to the world I want the world to know that Qatar has its own vision in terms of how we want to approach the international arena and we do not want to copy anybody else. We are more focused on culture, education, health, sports, and conference events and less on tourism and attracting investments unless it’s an industry which will add value to the country.

For that reason, the message was that Qatar is no longer just a rich country with no clear vision and intelligence – we are really going forward with the knowledge-based economy and Education City and Qatar Foundation are playing a very big role in that.

As a successful business man to entrepreneurs that are now starting their businesses In the beginning, each entrepreneur should focus on something that is unique, that has not been done before and on something that adds value. New ideas that add value to community and cannot be copied in the future should be focus of new entrepreneurs – they should focus on creating value and not creating wealth.

Since, if you can copy, so can everybody else and you will end up having a price war. So, check what your unique position is and try to capitalise on that.

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Sector study

SURVIVAL OF THE FITTEST:

Qatar’s hotel industry Since 2nd December 2010 when Joseph S. Blatter, FIFA President, announced that the world’s most prestigious tournament, 2022 FIFA World Cup, will be brought to the Middle East for the first time in the tourney’s 92-year history, all eyes across the world are fixed on Qatar. One industry that is gearing itself up to deal with the changes that will come in the coming years is the hotel industry. Tamara Pupic thought that it will be a good time to take a look at the latest developments and opportunities.

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atar is centrally located on the globe, close to Europe, Africa and Asia. As a gateway between East and West, Qatar has welcomed travellers for centuries, but is now selective in what areas to develop in terms of tourism and hospitality.

Qatar Tourism Authority (QTA) is active in organising initiatives to encourage investment in leisure, business, culture, education and sports.

Nevertheless, in order to achieve its highly-set goals, Qatar has identified sports, culture and the MICE (Meetings, Incentives, Conferences

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and Exhibitions) sectors as the main ones.

The QTA has adopted an ambitious strategy of increasing number of visitors by 20% over the next five years. Over the same period, QTA plans to spend USD 17 billion on enhancing Qatar’s tourism infrastructure. There is no denying that the FIFA World Cup 2022 will have a positive impact on the hotel industry.

According to Russell Loughland, Group Director of Sales and Marketing, Souq Waqif Boutique Hotels, Doha is quickly becoming a hub for business and leisure travellers from all over the world. As stated by the Qatar Tourism

Authority, there have been tourism increases of 58% from Asia, 19.13% from the Arab world, and 15% from Europe. A total of 72% of this tourism is business motivated. Further, by hosting some major international collaborative events, such as the United Nations Conference on Trade and Development (UNCTAD) XIII and the World Petroleum Congress, he believes that the nation has already established itself as a key business destination.

Julian Crane, Director of Marketing, Four Seasons Hotel Doha is quick to point out that based on the recent 2012 Middle East Hotel Survey (HVS), Qatar is driven almost entirely by

Sector study

The QTA has adopted an ambitious strategy of increasing number of visitors by 20% over the next five years. Over the same period, QTA plans to spend USD 17 billion on enhancing Qatar’s tourism infrastructure. There is no denying that the FIFA World Cup 2022 will have a positive impact on the hotel industry.

corporate demand. However, as the country positions itself in the global sporting arena, government demand is being generated through involvement in recreational and sporting events, as well as through the meetings and conference segment. The leisure market is still developing.

Qatar is working actively on positioning itself as the key business and leisure destination in the Middle East. “Qatar’s direction is very clear – to become a leader in MICE business, cultural tourism, sport tourism and extended stay tourism. In addition to that, the new Qatar International Airport will represent a serious competition to existing neighbouring hubs connecting the East & West,” says Wael Rashed, Area Director of Sales and Marketing Gulf and Saudi Arabia, Starwood Hotels and Resorts.

With around 42 exhibitions in QNCC alone, Qatar has also become a hub for international conferences and trade fairs. The government is working hard to ensure that the infrastructure is in place, with the Doha airport to open in 2012 and the port in 2015. “Qatar has one of the largest convention centers and is now bidding to get the most important conferences worldwide. Last year Qatar hosted World Petroleum Conference, while this year we had UNCTAD XIII and end of 2012 will be marked by hosting UN Framework Convention on Climate Change (December 2012). This will be the biggest conference since its expected number of participants is 17, 000,” highlights Fadi Al Wazaifi, Director of Sales and Marketing, Merweb Hotel Central Doha.

Opportunities galore Approximately 77 hotels are currently planned or under construction according to the QTA. Talking about the investment opportunities, Russell Loughland said that, “Given the rapid growth across Qatar’s various sectors that demand hospitality services, the investment opportunities in Qatar’s hotel industry are enormous. In the past

Wissam Suleiman opined about how Kempinski Residences & Suites is aggressively penetrating the market, offering a unique concept of a 5-star residence with a short-stay option.

Qatar is building 77 new hotels and 42 hotel apartments ahead of the FIFA World Cup in 2022, in a bid to accommodate the onslaught of tourists and football fans. Some hotels are also looking at joint ventures. Fadi Al Wazaifi mentioned that the Merweb Group will, in cooperation with Katara Hospitality, open a new hotel in the city centre next year.

According to the Qatar Tourism Authority (QTA), Qatar has attracted over 1,6 million tourists in 2011. The number of foreign visitors

Qatar’s direction is very clear – to become a leader in MICE business, cultural tourism, sport tourism and extended stay tourism.

four to five years, Qatar has risen to prominence in the international hospitality industry, and with all eyes on us; this is the ideal opportunity to present unique and creative concepts. Tourism development plans are being implemented to diversify and expand the local economy. Therefore, there is great conviction in building and supporting projects that are unique in atmosphere, design, and most importantly service delivery.”

recorded at 12.3% increase in the first half of 2011 when compared to the same period in the previous year. One of the interesting facts is that Qatar has faced large increase (39.1%) in visitors from GCC countries, especially from Saudi Arabia and the UAE. These figures had their influence on the hotel occupancy rate which amounted to 63% in the first half of 2011 representing increase of 2% compared to 2010.

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Sector study

One of the interesting facts is, that Qatar has faced large increase (39.1%) in visitors from GCC countries, especially from Saudi Arabia and the UAE. These figures had their influence on the hotel occupancy rate which amounted to 63% in the first half of 2011 representing increase of 2% compared to 2010.

The roadblocks However, no task is without its challenges.

“One of the main challenges that success brings is maintaining the high standards and internationally renowned reputation that are set by an organisation. In essence, you become a prisoner to your own image.

And this is a challenge that we, as a team, are well-prepared for,” remarked Russell Loughland. All the other hotels we talked to, echo the same sentiment – the biggest challenge is to maintain the high standards and hire the right management and team.

With all this activity and the excitement around the World Cup, market dynamics in this industry are bound to change. However, the hotels are all prepared for the impact this will have on competition and prices.

“With the planned significant number of hotel rooms entering the market, this will of course bring with it more competition. We anticipate that pricing will be competitive and to what levels will be determined by several factors which include the rate of market demand growth and the pricing strategies of the respective hotel brands in the market,” remarked Julian Crane.

Wael Rashed, reiterate the spirit by stating that competition is healthy and that it helps in keeping the service levels at a high. Good quality of service brings added value to the destination.

Pricing policy will continue to be driven by

One of the main challenges that success brings is maintaining the high standards and internationally-renowned reputation that are set by an organisation. In essence, you become a prisoner to your own image.

demand and hotel operators will have to better manage their expenses during soft demand periods.

Fadi Al Wazaifi is quick to point that previously, there was limited option of hotels, but with new market entries strategic plans of the existing hotels have changed. Hotels are now offering new options or packages for clients which mean they are now more in compliance with market and consumer needs.

For that reason, all hotels are now adding value to their services.

With the QTA setting up the Qatar Hotel Committee in April 2012 to look into the industry, we can be left in no doubt about the importance of this industry for the economy of Qatar and the investment opportunities that it offers.

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entrepreneurship

means of diversifying the Qatari economy. It proves that entrepreneurship is not a privilege of the naturally gifted few, but is comprised of a set of skills that can be learned by many.

High-level technologies are brought on board so that leading edge research from Qatar and around the world can help solve problems that are faced by both developed and developing countries. This process ensures that human, economic, and social development is simultaneously delivered through the creation of new capabilities, startup ventures, and innovations that solve societal challenges.

talent and technology

Qatar Science and Technology Park (QSTP) recognises the importance of innovators and entrepreneurs in achieving Qatar National Vision 2030. PSQ brings more details about QSTP’s Technology Innovation and Entrepreneurship Programme (TIEP).

Q

atar Science and Technology Park (QSTP) supports a range of initiatives through which innovators can express their ideas and showcase them to enthusiastic entrepreneurs in an environment that simulates a real-world setting. Within these simulations, innovators and entrepreneurs can test the commercial feasibility of technical inventions and they can practice pitching ideas.

Technology Innovation and Entrepreneurship Programme (TIEP) One of QSTP’s most prominent programmes is the Technology Innovation and

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Entrepreneurship Programme (TIEP). Once a year, this capacity-building programme selects a highly enthusiastic group of participants interested in learning about technology-entrepreneurship through an interactive action-based programme.

Hands-on development of real innovation projects is combined with simulated business cases and advanced theory in technology entrepreneurship.

TIEP aims to create a sustainable platform for corporate-innovation and venture-creation.

The purpose is to build an entrepreneurial culture that adopts and disseminates innovations in technology to the world as a

The stigma of failure is a leading cause of aversion to entrepreneurship in many cultures; therefore TIEP teaches that knowing when to abandon projects and move on to new ones is a necessary part of the challenge of driving social progress.

The ability to adapt to change is a measure of success in the uncertain world of entrepreneurship. The programme provides the tools and skills necessary to identify opportunities and create value, not by picking winners, but rather through an evidence-based approach.

Key lessons and valuable tools The first step in the process of assessing the commercial value of an invention is to define its application. Once the application is defined, the next step is to create a “map” of the technology system that the invention will be a part of within the selected application area, thus, creating a technology market map. For example, for an innovative battery technology with superior performance, possible application areas would be in computing, automotive technology or mobile communications.

Each market map would be unique to the application. Once the application and

entrepreneurship

technology market are mapped out, a thorough technical and economic analysis is performed to identify the technical functions of a particular innovation, the performance of each function and the relevant utility. By linking technical and economic indicators, such tools help pinpoint the most valuable asset of the invention and also provide a useful visualisation that can be understood by a non-technical audience.

What do customers need?

The role of innovation is to meet and satisfy the needs of customers. Therefore, to lower the risk of failure in adopting innovation, an accurate understanding

The stigma of failure is a leading cause of aversion to entrepreneurship in many cultures, therefore, TIEP teaches that knowing when to abandon projects and move on to new ones is a necessary part of the challenge of driving social progress.

• What are the barriers to entry into the value chain?

• Is the innovation sustaining or disruptive?

• What are the different potential market segments? Which one was chosen?

• What are the main needs of the customer?

Which utilities are most important?

The role of innovation is to meet and satisfy the needs of customers. Therefore, to lower the risk of failure in adopting innovation, an accurate understanding of what customers want is essential. of what customers want is essential.

Through TIEP and as part of the market analysis, participants carry out extensive investigation of customers’ needs to understand the jobs, tasks or activities customers need to get done.

This part of the market analysis follows renowned innovation leader Anthony Ulwick’s outcome-driven approach to growth and innovation, which seeks to reduce the variability in innovation.

Additionally, as part of the market analysis, entrepreneurs need to be aware of the local and global market. Some of the issues entrepreneurs need to address in relation to technology markets are: • Description of the market they plan to enter or create.

• Who are the participants in the value chain? How do they interrelate?

• Who drives the profitability in the value chain? Why?

• How does the technology compare to competing technologies in satisfying the key utilities?

• Description of the conditions of the industry • Understanding which participants have the bargaining power • Understanding the types of substitutes that exist in the market • Understanding how easy it is to enter the industry and to provide barriers for others to enter The third type of analysis is conducted in relation to technical inventions. This is the control position analysis. Tools related to analysing the intellectual property status and creating a strategic control position are taught and practiced within this part of TIEP. The analysis includes exploring matters such as: • What does the patent landscape look like?

• How many patents are related to our

technology or innovation? Is it changing over time?

• Who is patenting in the technology or innovation space?

• Title clearance • Identifying the creators of the invention (inventors and contributors) • Identifying the proprietors of the invention (who can claim ownership) • Inventors (by creative contribution) • Employers (by employment contract with inventors) • Financiers (by funding agreement with inventor or employer) • Collaborators (by collaboration agreement with inventors or employers) • Freedom to operate • What is the scope of your innovation?

• Do other actors have patents covering your innovation?

• If so, how will you address this situation?

By conducting the right level of analysis and using an evidence-based approach before investing more time and money in a technology startup, entrepreneurs can actually lower the risk of failure, especially as they will have a better understanding of the industry they are about to enter.

About The Technology Innovation and Entrepreneurship Programme (TIEP) is accepting applications for the 2012-13 cycle of the programme until September 2012. For more information, blossoming entrepreneurs can visit www.qstp.org.qa/tiep or contact at tiep@qstp.org.qa.

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Entrepreneurs

Who’s the boss?

Many of us would prefer to be our own boss, work hard and run our own challenging and exciting business, but only a few of us actually end up being successful entrepreneurs. Salwa Atiyyah, Senior Career Guidance Manager, Silatech, helps us figure out if we have it in us.

What is an entrepreneur?

We hear a lot about entrepreneurship nowadays.

For that reason, let’s define what an entrepreneur actually is. An entrepreneur is simply someone who starts his or her own business. It doesn’t matter what your background is, how much experience you have, whether you have an advanced degree or a lot of money.

Although all of these can help you on your journey, they are not requirements. The only “must” for becoming an entrepreneur is your own passion, motivation and your willingness to learn from your mistakes and those of others.

Entrepreneurship requires a certain mindset. In order to decide whether entrepreneurship is the right choice for you, follow these steps: Explore yourself This step is the foundation of the whole decision-making process and is essential for your professional success. You need to understand who you are and what your strengths and weaknesses are before you can make effective career decisions.

Self-assessment involves learning more about yourself and collecting more information about your ambitions, your personality, your skills and your interests as they affect your career search.

Ask yourself the following questions: • Am I a self-starter?

• Am I a risk taker?

• Do I like to lead and direct others?

• Do I prefer being innovative and creative?

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• Do I prefer working independently and being my own boss?

• Do I have decision making, management, organisational and problem solving skills?

• Am I capable of achieving difficult goals?

Understanding your preferences, your likes and dislikes, and what you are capable of doing is essential in deciding whether entrepreneurship fits you.

One way to learn about yourself is through specialised personality assessment tools.

Assessments are key to successful career exploration, as they are the first step in finding the careers that fits you best.

One of them is the Tamheed assessment (www.tamheed.org.) which provides different assessments to learn more about your personality and whether you might make a good entrepreneur. This important step will put you on the right track toward deciding whether selfemployment fits you.

To further discover yourself, look carefully at the subjects you enjoyed in school and college, projects you participated in, extra activities and volunteer work you took part in. Does this give you any hint regarding your interests, abilities and your general characteristics? Entrepreneurs tend to be strong in areas such as leadership, decisiveness, competitiveness, self-discipline, planning and the ability to work with others. Are you?

Examine how you spend your leisure time. Have a look at your hobbies and talents in terms of your interests, abilities and special traits. Listen to the advice of your friends, family members and, of course, entrepreneurs. Do they see an entrepreneur in you? You might not take their advice into consideration, but it will help you expand your horizon and help you “think outside the box.”

Know your options Learn as much as you can about your different career options. If you decide you want to be an entrepreneur, you will be faced with the choice of what field you want to open a business in. There is a room for entrepreneurs in most economies around the world, and there are many industries in which you can start your own business such as Internet and IT, personal services, media, engineering, food service or small local business.

Moreover, there are a lot of different ways to be your own entrepreneur. This might include starting a new business concept, buying a franchise, buying an existing business, using an existing concept, becoming a one-person firm or starting a “workat-home” business. Gather realistic and objective information about different options and different fields. Knowing more about what is possible will help you discover the option that most suits you.

Don’t limit yourself to one option, though, and keep your choices open, list all the business types that might appeal to you and match your personality, interests, abilities and ambitions with them. Then get detailed information about each. For example,

Entrepreneurs

The only “must” for becoming an entrepreneur is your own passion, motivation and your willingness to learn from your mistakes and those of others. you can interview experienced entrepreneurs and ask them questions pertaining to their business. An interview with someone who has already travelled the road you are thinking about going down is one of the most valuable sources of information you can use when considering your career options.

Common questions that you can ask an entrepreneur, might include: • Why did you choose to start your own business?

• How did your business idea come about and how did you develop it?

• What have you found are the major key elements for starting and running a successful business?

• Could you tell me more about your daily work routine?

• What are your hobbies? What do you do in your non-work time?

• What influence did your self-employment have on you and on significant others in your family?

• What sacrifices have you had to make to become a successful entrepreneur?

• What was your profit during the last year?

• What do you like the most about being an entrepreneur?

• Could you give me an example of a tough decision you had to make, and how you were able to handle it?

• Where do you see yourself and your business ten years from now?

One of your first steps should be to find a mentor who can help guide you, once you’ve selected the field you want to enter or the business you want to start. They play an important role in the careers of most successful entrepreneurs. Select a mentor with entrepreneurship experience, who can provide you with some of the guidance, knowledge, skills, advice and wisdom that you will need. They are people ready to donate their time and knowledge to you free of charge and you should learn from their successes and failures which will hopefully increase your chances of success as a result.

Your mentor should also help you in setting your goals and monitoring your progress towards achieving them. Of course, like other healthy relationships, the mentoring relationship is a two-way process. While you will definitely benefit from the experience, the mentor will be exposed to fresh ideas and talents, as well as improve his or her communication, management, coaching, and problem-solving skills. Most importantly, they will make a difference in a young entrepreneur’s life.

Make a good decision To ensure that becoming self-employed is the right career choice for you, have a look at your different choices and weigh the pros and cons of each. Dig for more information regarding each alternative and think of the consequences and the likely outcome of each of your choices, ruling out those that don’t work for you. Think of the problems that might arise, as well as the risks that might be connected with each. Rank your alternatives in order of your preference.

Give enough time for this step, but, at the same time, try to set a time limit. After you have narrowed your list of alternatives down to your top two choices, it is time to learn as much as possible about each one by using resources, such as reliable Websites, interviews, job shadowing and more.

Study the details of each alternative.

Salwa Atiyyah

This information gathering will help you choose the best alternative that meets your career goals.

Ask yourself the following questions: • How do I feel about this decision?

• Am I confident enough to take responsibility for this decision?

• Am I satisfied?

• Am I ready to evaluate the outcomes of my decision and make another choice if needed?

Move ahead or rethink!

If you are confident that you’ve reached the right decision and are fully satisfied with it, then move ahead to implement the decision. If not, then you need to rethink it. After thorough evaluation of your choices, it is time to make a decision and prepare a plan to move your decision into the action phase.

To be able to implement your decision and put it into action, you need to prepare a detailed plan of the different short-term and long-term objectives that you want to achieve. In this plan, you also need to identify the different steps that must be taken, the resources required, and the deadline for achieving each step, taking into consideration the difficulties that might arise.

Always remember to have a Plan B in case your original plan does not go as expected. These steps will ensure a systematic approach to career decision making, and will help you decide whether entrepreneurship is right for you.

Not everyone is cut out to be an entrepreneur. But if you are, starting out on the entrepreneurship path might be the best decision you make in your life.

Consider the issues, and decide if it’s for you. If it is – go for it!

About Salwa Atiyyah graduated with a master degree in Educational Psychology, Guidance and Counselling from the American University of Beirut. She has worked for many years as a counsellor and for six years as a career counselling consultant at the Higher Education Institute – Qatar. Salwa currently holds the position of Senior Career Guidance Manager at Silatech. In addition to her career in trainings for counsellors, she has numerous publications in this field on topics such as a guide for career counsellors, how to make an informed career decision, job hunting strategies, career portfolio and much more.

Salwa Atiyyah can be contacted at satiyyah@silatech.com.

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39

Legal

Get back what’s yours

Since the onset of the world financial crisis, financiers have been

developing various methods to improve ways of providing security for financings. Kamal Hafez, Financial Markets Associate, Simmons & Simmons’ Doha Office, provides comparative analysis of regulation on transfer of assets by way of security in various Arab jurisdictions, with a special emphasis on Qatari law.

What is a transfer of assets by way of security?

One way of providing security is to borrow against a particular asset, where a borrower transfers the ownership of a particular asset to the lender by way of security for the loan pursuant to a sale and purchase agreement (instead of a more traditional method of creating a “security arrangement” which does not transfer ownership of the asset). Such a sale and purchase agreement would include an option for the borrower to buy back the asset (a buy-back option), which may be exercised by the borrower upon paying off the whole or a specific amount of the loan. The buy-back option and when it could be used, would be set out in the terms of the specific loan agreement.

The transfer of assets associated with a buy-back option, provides strong security to the lender, as the title to such assets transfers from the borrower to the lender. This means that, if the borrower defaults under the relevant loan agreement then, the lender has an option to sell the assets without the need to go to court, which is generally a costly and time-consuming process.

Under a traditional security arrangement, a pledge or mortgage arrangement is used as security, in which case the pledge or mortgage arrangement gives priority rights (not ownership) over the particular asset. This means that it is a complicated procedure to

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recover the amount of the loan, if there is a default. The buy-back option is, therefore, more attractive.

“Buy-Back Option” under the Qatari Law A sale agreement which provides the seller with a buy-back option would generally be void under Qatari law. Article 474 of the Qatari Civil Code No. 22 of 2004 (the “Civil Code”) provides that, “If the sale contract provides that the seller retains the right to recover the sold asset, the contract shall be void.”

The Egyptian scholar Abdul Raziq Al Sanhouri believed that a sale agreement which includes an option for the seller to buy back the asset is void under 465 of the Egyptian Civil Code. The statutory prohibition against a buy-back option under a sale agreement is intended to protect the seller from unfair contractual terms, as in practice, a sale agreement which incorporates a buy-back option is recognised as an indirect arrangement of security and not merely a sale agreement.

Article 465 of the Egyptian Civil Code provides that, “If the sale contract provides that the seller retains the right to recover the sold asset within a specific period [from the sale], the contract shall be void.”

Security arrangements, namely mortgages and pledges, are regulated under relevant provisions of the law. Under the law which regulates security arrangements, creditors with security by a mortgage or pledge, are not entitled to receive more than the amount of their secured rights from the proceeds of selling the mortgaged or pledged asset. However, where a lender possesses security by way of title transfer, with an option to the borrower to buy-back the asset, a lender may receive an amount more than the amount of their secured rights from the proceeds of selling the asset, if the borrower defaults under the relevant loan agreement.

In Qatar there are no available court precedents or commentaries on the application Article 474 of the Civil Code. However, there are a number of commentaries on sale agreements which include a buy-back option under the Egyptian Law.

However, a sale contract which includes a buy-back option is a conditional contract which terminates upon satisfaction of a specific condition. If the satisfaction of that condition is subject to the discretion of the borrower (the borrower recovers its asset by

The wording of Article 474 of the Civil Code is similar to the wording of Article 465 of the Egyptian Civil Code No. 131 of 1948 (the “Egyptian Civil Code”), Article 454 of the Libyan Civil Code No. 29 of 1396 Hijri (the “Libyan Civil Code”) and Article 433 of the Syrian Civil Code No. 48 of 1949 (the “Syrian Civil Code”).

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expressing his intent to exercise the buy-back option set out under the sale agreement), the sale contract is void. If, however, the satisfaction of the condition is not subject to the discretion of the borrower, but of the lender or a third party, the sale contract will be valid.

Accordingly, Abdul Raziq Al Sanhouri believed a sale contract will be void if the borrower (seller) retains the right to recover the sold asset. This prohibition, however, does not apply where the sale contract provides the lender (purchaser) or a third party with an option to sell the assets back to the borrower (a sale contract is valid if it provides the lender with an option to sell back the asset to seller at a specified date and/or specified price). When such option is exercised by the purchaser at its discretion, the seller will be obliged to buy-back the sold asset from the purchaser.

However, if Article 474 of the Civil Code is intended to prohibit indirect arrangements of security, as per Abdul Raziq Al Sanhouri, it would appear that a sale contract may be found by a court to be void, if it includes an option for the lender or the borrower to buy or sell the assets back from or to the seller or borrower.

The Qatari Commercial Law No. 27 of 2006 (the “Commercial Code”) recognises assignment of rights as a security (pledge).

Article 235(4) of the Commercial Code provides that rights may be pledged by way of assignment of rights. Also, Article 439 of the Commercial Code provides that securities (like shares, bonds and so on) may be pledged by way of assignment which provides that such assignment is provided by way of security.

Accordingly, although a sale contract which includes a buy-back option may be found to be void, an assignment of rights by way of security could be valid. However, courts in Qatar have not had the opportunity properly to consider disputes in relation to sale contracts which include a buy-back option and, therefore, it is still open to argument as to whether such arrangements would trigger the application of Article 474 of the Civil Code. However, in the absence of Qatari

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Legislation in various Arab jurisdictions, namely Qatar, Egypt, Libya and Syria, prohibit the inclusion of a buy-back option in sale contract, with the result that they are void. court judgments on the subject, Egyptian jurisprudence may guide what the courts in Qatar will decide.

Situation in regional countries Article 1333 of the Iraqi Civil Code No. 40 of 1951 (the “Iraqi Civil Code”) provides that, “A sale agreement which provides for a right to recover an asset which is sold, is considered to be a pledge.”

Therefore, a sale agreement which provides the seller with a buy-back option would be valid in Iraq. However, a court in Iraq would consider the provisions of the Iraqi Civil Code which deal with pledges, rather than those dealing with sales (the court will re-characterise the transaction as a pledge).

The approach of the Libyan Civil Code and the Syrian Civil Code mirrors that under the Egyptian Civil Code, with each of Article 454 of the Libyan Civil Code and Article 433 of the Syrian Civil Code prohibiting sale contracts which provide the seller with a buy-back option.

However, the approach in Lebanon is different, as a sale contract which provides a buy-back option is permitted under the Lebanese Obligations and Contracts Code (Articles 473-486), provided that the period during which the buy-back option may be exercised is set out in the sale contract.

However, such period may not exceed three years from the date of the sale contract. If the period agreed between the parties in relation to exercise of the buy-back option is more than three years from the date of the sale contract, the sale contract will be valid, and however, the

court will reduce the period to three years.

To buy-back or not to buy-back Legislation in various Arab jurisdictions, namely Qatar, Egypt, Libya and Syria, prohibit the inclusion of a buy-back option in sale contract, with the result that they are void.

The purpose of this is to compel the parties to rely on mortgages or pledges which are separately regulated to protect the interests of the parties.

Strictly, Qatari law does not prohibit inclusion of a buy-back option in a sale contract, if the option is exercisable only by the seller (lender) or a third party. However, there are no available precedents in Qatar that confirm this interpretation. Qatari law has also recognised assignment of rights and securities by way of security (assignment and reassignment once the loan is repaid). In contrast, some countries consider sale contracts which include a buy-back option to be a pledge (as in Iraq). However Lebanon considers such an arrangement to be valid Considerable care should, therefore, be taken in Qatar when structuring arrangements, which include transfer of assets by way of security, namely sale contracts which includes buy-back options.

About Kamal Hafez is a financial markets associate based in Simmons & Simmons’ Doha office. He has extensive experience on banking and finance (conventional and Islamic finance), derivatives and capital markets matters.

He also advises on real estate, construction, employment, and commercial contractual and regulatory issues.

Kamal qualified in Egypt in 2006 and is a member of the International Bar Association and associate member of the Chartered Institute for Securities and Investment. He holds a Master’s degree in international and comparative law and postgraduate studies in Islamic finance. He has published several articles on various legal topics, including managing the risk of decennial liability, contractual set-off, REPO transactions, listing SMEs in the Venture Market, and maritime collision under Qatari Law. Kamal can be contacted at Kamal.Hafez@simmons-simmons.com.

Technology

Get smarter!

The ICT sector in Qatar is one of the fastest growing sectors in the region.

Bashar Kilani, Territory Manager, Gulf Countries and the Levant, IBM, sees a great potential in the region for various industries and tells us about it.

W

ith the upcoming world events, Doha is well positioned to become a model for smarter cities around the world. In addition to that, Qatar has the required vision and a track record of delivering successful projects which all makes it a very attractive market. A market like that provides a lot of opportunities around business analytics, cloud computing and next generation data centers in the coming few years.

For all these reasons, IBM opened its office in Qatar in April 2012, as part of IBM’s Geo Expansion strategy in the region and after opening offices in Abu Dhabi, Riyadh and Dubai.

IBM is already engaged with Business Consulting Services, Technology Services and Business Process Services and there is an increased focus on IBM’s

Bashar Kilani

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software solutions as well as new announcements on the systems (servers and storage) side.

In addition to the direct engagements with customers, IBM will also focus on strengthening the channel and partner network in Qatar giving better support and improved access to programmes and initiatives that would boost the value proposition around IBM services, products and offerings.

IBM has a strong focus on SMEs under the mid market offerings, which is one of the fastest segments in the IBM business today.

The offerings vary from cloud based solutions to consulting around technology services and software solutions. We have also recently launched the SME Toolkit to help SMEs with their business planning, execution and development in cooperation with Qatar Development Bank and International Financial Group (A Member of the World Bank Group). The SME Toolkit offers entrepreneurs free, online, and around-the-clock access to expert information, interactive tools and educational resources to help them implement sound business management practices, access finance, and enter new markets.

Doha as a model smarter city The World Cup 2022 will drive a lot of transformational projects across all sectors within Qatar and help in transforming Doha to a model smarter city.

IBM helped many cities around the world in their preparation for hosting such world class events.

We have assets around managing traffic, public security, aviation control, crisis management and integrated portal that collects information from all systems and allows decision makers to have instant access to information. Our smarter planet initiative also covers smarter healthcare, education, banking and government solutions, which are all key to the success of hosting such an event. IBM can also provide services around business process outsourcing around HR, education, finance and accounting. This helps in scaling up and down in preparation for such events.

IBM software portfolio is probably one of the most comprehensive in the industry covering application integration, information management, security, asset management, testing and monitoring. In recent years, IBM bough more than 100 software companies in an effort to achieve comprehensive offering that caters for different industries and sectors.

About Bashar Kilani is the IBM’s Territory Manager in the Gulf Countries and the Levant. In 2000, he joined IBM Middle East as Head of the Software Business and was involved in a number of transformation projects in banking, government, telecommunication, airline and manufacturing sectors across the region.

Bashar joined IBM in the UK in 1995 based out of the Hursley lab south-west of London, working on development of transaction processing, application integration and e-business transformation solutions. He was also on assignment in the United States, where he worked with IBM’s clients in the US on the role-out of their infrastructure and transformation projects.

Partnership opportunities Private Sector (Al Kitaa Al Khass) is an Arabic and English magazine, presented and supported by Qatar Development Bank (QDB) and published

by CPI. It is aimed at business owners and senior executives in the private sector in Qatar. Armed with practical advice, it highlights key issues for the business community.

The driving force for regional economies is the private sector – a catalyst for growth, development and job creation. With the world’s spotlight on Qatar’s development activities and the buzz being created around 2022, this sector is going to grow by leaps and bounds. That’s great news if you’re targeting the private sector, which spans across almost all industry verticals, but the problem you face is identifying the most dynamic and competitive companies amongst a sea of competitors.

A key answer for the past half decade has been CPI’s UAE-based magazine SME Advisor Middle East, which has delivered valuable business information to leading SMEs across the region, helping them develop their businesses, putting them in touch with valued partners and fuelling growth even in a stalled global economy.

Now, with the support of QDB as our presenting partner, we have launched the same business values, tailor-made for Qatar in the form of the brand Private Sector. This will encompass magazine, events, online and several other initiatives to drive Qatari entrepreneurship and the private sector.

This is your chance!

This is a market you cannot afford to miss. This is a market that you can reach in an intelligent, focused way, working with the expert team that brought you SME Advisor Middle East and has now launched Private Sector magazine in Qatar.

For more information about advertising and other partnership opportunities, please visit www.privatesectorqatar.com/en For marketing ideas and opportunities, please contact richard@cpidubai.com

Technology

In a recent survey by global IT association ISACA, 30% of the 3,700 respondents said cloud computing is one of the top issues expected to impact their enterprise’s security in the next one year. Mike Small, CEng, FBCS, CITP, warns that, although adopting cloud computing can save money, it is important to choose the right cloud solution for your business needs.

T

he cloud provides an alternative way of procuring IT services that offers many benefits, including increased flexibility as well as reduced cost. It extends the spectrum of IT service delivery models beyond managed and hosted services to a form that is packaged and commoditised. However, a good understanding of cloud is critical, as is effective governance over the cloud.

The cloud covers a wide spectrum of types of service and delivery models ranging from in-house virtual servers to software accessed by multiple organisations over the internet.

For example, an organisation can run the IT services in-house which is the most flexible, but usually the most expensive arrangement.

It can contract the running of the services through a managed service or hosting agreement which is less flexible, but may be cheaper. Infrastructure as a service provides a commoditised and packaged hosting service which requires no capital expenditure. A similar spectrum applies to business applications. An organisation can develop its own applications

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that can be designed to the organisation’s exact requirements, but it is very expensive. It can use commercial applications, which are tailored to the organisation’s need, that is usually cheaper, but still involves the management and running costs. Software as a service provides access to a packaged application, which is managed and run by the service provider and can be bought on a charge per use basis.

It is important to understand the varieties of cloud services and deployment models to choose the one most suitable for your needs.

What’s your type of cloud service?

• Infrastructure as a Service (IaaS) provides basic computing resources that the customer can use to run software (both operating systems and applications) and to store data. IaaS allows the customer to transfer an existing workload to the cloud with minimal if any change needed. The customer does not manage or control the underlying cloud infrastructure, but remains responsible for managing the OS and applications. IaaS removes the need to buy, house and maintain the physical servers and can provide the ability for an organisation to

respond quickly to changing demand.

• Platform as a Service (PaaS) provides and environment upon which the customer can use to build and deploy cloud applications.

These applications may be for use by the customer or offered as a service to others.

Building applications using PaaS means that they are inherently cloud enabled and the PaaS provider also provides the service upon which these applications run. The benefits include no need for capital hardware investment and rapid deployment. The major downside is “lock-in” – most PaaS platforms are based on proprietary programming interfaces (APIs), so it can be very difficult to change provider at a later date.

• Software as a Service (SaaS) provides an application and data that can be accessed via a network (usually the internet) using a variety of client devices such as web browsers, and mobile phones. The major benefit of SaaS is the immediate availability of a working solution for a specific business problem with no need for up-front investment. This is particularly valuable for areas such as mature business processes which are essential, well understood and need to be delivered at minimal cost. SaaS

Technology

When moving to the cloud it is important that the business requirements for the move are understood and that the cloud service and deployment models are selected to meets these needs. provides an opportunity for service vendors to offer the best solution to this kind of problem at the lowest cost. The risks associated with SaaS include loss of governance, data privacy issues and return of customer data.

Mature business processes are often subject to regulations and laws and organisations have invested heavily in IT to ensure compliance.

Using SaaS means devolving control to the SaaS provider and it is essential to have independent confirmation that the provider will comply with the regulatory requirements. The SaaS provider also has control of the business data held by the service. Contracts need to specify how this data will be returned in a useable form at termination of contract to allow business continuity and provide flexibility to switch provider.

Public vs. private cloud services Public cloud services are available for anyone to subscribe to and use. The key benefit of a public cloud approach is one of scale – the cloud provider can potentially offer a better service at a lower cost because the scale of their operation means that they can afford the skilled people and state of the art technology. The public cloud model inherently provides service on demand.

The cloud provider can dynamically reallocate resources as they are required. Spreading the service delivery across multiple locations also improves resilience. Local problems with power supplies, telecommunication, natural disasters and so forth can be managed more effectively when there are several data centres in multiple geographies.

The downside of the public cloud is the risks of compliance and data security. For example, data privacy laws in the EU mandate that personal data must be processed within defined guidelines. The cloud service customer, who is the “data controller”, is responsible in law and needs to ensure that these guidelines are adhered to. Large cloud providers have recognised this

need and can offer compliant services. Sharing applications and infrastructure with unknown cotenants can lead to concerns over data security and data leakage. There are standards and best practices for this and it is essential to check that the cloud provider is externally certified as adhering to these.

A private cloud service is used exclusively by a single organisation. The private cloud allows organisations to outsource the management of their IT infrastructure while retaining tighter control over the location and management of the resources. The price to pay for this is that the costs are likely to be higher because there is less potential for economy of scale, and resilience may be lower because of the limit on service resources available.

Isolation is one of the key techniques for ensuring security and, while in the public cloud applications and data exist in a shared environment, the private cloud offers greater isolation by dedicating resources to a particular customer.

A community cloud service is for the exclusive use of a specific community of organisations that have shared concerns (for example, mission, security requirements, policy, and compliance considerations). A community cloud provides many of the benefits of scale of the public cloud while retaining greater control over compliance and data privacy. community cloud services already exist but under a different name!

Take a good governance approach When moving to the cloud it is important that the business requirements for the move are understood and that the cloud service and deployment models are selected to meets these needs. Taking a good governance approach, such as COBIT, is the key to safely embracing the cloud and the benefits that it provides: • Identify the business requirements for the

Mike Small

cloud based solution. This seems obvious but many organisations are using the cloud without knowing it.

• Determine the cloud service needs based on the business requirements. Some applications will be more business critical than others.

• Develop scenarios to understand the benefits and risks. Use these to determine the requirements for controls and questions to be answered. Considering the risks may lead to the conclusion that moving to the cloud is not appropriate.

• Understand what the certification and accreditations offered by the cloud provider mean and actually cover and how these support your needs.

• In most organisations cloud computing will co-exist with other IT service delivery models.

Therefore, an approach to governance and management is needed which covers both traditional and cloud models.

About ISACA (www.isaca.org) is a leading global provider of knowledge, certifications, community, advocacy and education on information systems (IS) assurance and security, enterprise governance and management of IT, and IT-related risk and compliance.

Mike Small is a Fellow of the BCS, a Senior Analyst at KuppingerCole and a member of the London Chapter of ISACA. Until 2009, Small worked for CA where he developed CA’s identity and access management product strategy. He is a frequent speaker at IT security events around EMEA. Mike can be contacted at Mike.Small@kuppingercole.com.

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Finance

Go from strength to strength!

Banking sector in Qatar has grown rapidly due to solid financial base and sound regulations put in place by the Qatari government. Moataz El Rafie, CEO, Ahli Bank, talks to Huda Kamal about the banking sector and guides SMEs on how to reap the dividends.

What is Ahli Bank’s mission statement and objectives?

Ahli Bank remains committed to the core attributes that make it a truly unique organisation.

Therefore, we are driven by our firm business principles, our belief in the best client service, commitment to our culture and an understanding that we have a responsibility to the society. We also recognise that service and professionalism in the banking industry are fundamental and we are dedicated to continued excellence in customer service, staff development and stakeholder return. Adapting to change

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drives us forward. Holding to our fundamental principles makes us who we are today.

Regarding the objectives­­­ – maximising shareholding value for our customers is at the heart of what we do. In order to ensure the best results for our customers, we focus on maintaining the highest international standards of corporate governance and regulatory compliance, ensuring that our financial solidity is without question. We have adopted a disciplined risk and cost-management culture which protects both customers and staff. Within the business we have developed a cross-cultural management

structure and demonstrate our commitment to our staff through career training and profit-related incentives.

We acknowledge that we are part of the community we serve and endeavour to contribute to its social and economic advancement.

Tell us a bit more about your operations in the Middle East, particularly, in Qatar Over the last 30 years, since it’s foundation in 1983, Ahli Bank’s client base has grown rapidly.

Ahli Bank has a large integrated network of 18 branches in Qatar providing a huge range of

Finance

I am sure SMEs will gain credibility if they take some relatively simple measures, such as maintaining proper financial statements and balance sheets and also ensuring careful transaction processing. products and services from which range from corporate banking, treasury and investments and retail to private banking and wealth management.

Beyond Qatari market, Ahli United Bank, our strategic partner, is present in eight countries (Bahrain, Qatar, Kuwait, Egypt, Oman, Iraq, Libya and the United Kingdom) through its group companies. This gives us a unique advantage as we are able to serve our customers in those markets as well. The flow of cross border business activities in Qatar is increasing, and Ahli Bank along with its strategic partner Ahli United Bank can extend its banking services beyond its home markets.

Again, Ahli Bank received a credit rating of A(Stable) by Fitch ratings and Capital Intelligence.

These ratings bear testament to Ahli Bank’s strong underlying business fundamentals based on well-defined strategies within a prudent risk management framework.

How has the banking sector changed in the past few years?

The banking sector in Qatar has actually grown and gone from strength-to-strength. Much of this is because of a solid financial base, but it is also underpinned by sound business fundamentals.

Since the government is realising this, talks for public-private partnerships (PPPs) have started.

This is another very exciting prospect and we see opportunities in this area. We see an expansion of the private sector with Ahli Bank playing a major part in it.

The challenge we face is tough, but healthy.

It is the professional competition between all the 18 banks in Qatar. However, this challenge can be transformed into an opportunity as well. The sheer size and number of projects expected require huge funding and this will entail sophisticated and creative approach and ultimately cooperation between banks.

What is your advice for an SME or an entrepreneur looking for a loan or financial help?

Qatar has clearly identified the SME sector as a future engine of growth as part of the Qatar National Vision 2030 and the National Development Strategy. Within that, Qatar has embarked on some entrepreneurship development programmes, which will be a worthwhile step forward.

Qatar is showing rapid development and growth of its economy which is having a positive impact on all banks. I think part of this financial resilience stems from the support and sound regulations that the Qatar Central Bank has provided.

I am sure SMEs will gain credibility if they take some relatively simple measures, such as maintaining proper financial statements and balance sheets and also ensuring careful transaction processing. If all of this is supported by a sound infrastructure and a proper and structured way of doing business, SMEs can go from strength to strength - no matter whether they are big or small!

What is your opinion on opportunities and challenges within the banking sector in Qatar?

There is real opportunity in Qatar’s upcoming projects which are fuelling markets and growth.

Do you provide any support system for SMEs? In Ahli Bank, we have systems and processes in place to assist, measure, and monitor SMEs. Currently, the bank offers a range of products and services tailored specifically to SMEs, such as loans,

Moataz El Rafie

trade finance services, electronic banking and comprehensive insurance.

Qatar is also set to introduce a wide range of projects over the next few years that will involve the participation of the local private sector. Small and medium enterprises will have a key role in this and are set to reap dividends.

What would be financial dos and don’ts in starting a business?

I firmly believe that it is very important to ensure that the knowledge is imparted to SMEs in order to help them grow and contribute to Qatar’s National Vision 2030. This is something we should all be contributing to, regardless of the size of our business, as we move towards a bright future for Qatar.

About Moataz El Rafie was appointed to his current post in 2012 after having previously served as General Manager for Corporate Banking and Treasury at Boubyan Bank, Kuwait.

Before that, he worked as General Manager of the Strategic Planning and Business Development Group at National Bank of Kuwait. Al Rafie was born in Cairo, Egypt, and earned his BSc in Business Administration from Cairo University.

El Rafie is also a Chartered Financial Analyst, CFA.

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49

Finance

Be realistic: Be prepared

Although many supports systems are offered to enable financing of SMEs and entrepreneurs, the biggest task is still on them – to prepare a serious and reliable feasibility study. Ahmed Yousef Al Sheeb, Executive Director Projects Finance, QDB, talks to Tamara Pupic about why a feasibility study is a crucial document for future success of business and gives detailed advice with relation to project financing and cash management.

What is project finance and how is it different from other kinds of direct loans?

The financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cash flow generated by the project. In other words, project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary security or collateral.

Project finance is especially attractive to the private sector because they can fund major projects off balance sheet. This what differentiate QDB from commercial banks QDB is purely a project-financing bank and, therefore, our principal and interest repayment depends on future cash flow of any project that we finance. Our collateral is mainly the project itself. So, that’s why we are different from any other commercial bank in Qatar.

What is the duration of the loan and how is it calculated?

Our financing can go up to 15 years, including three years of grace period, because for most of the projects the repayment period requires longer term, where the client does not need to pay interest to us.

Subsequently interest and principal are being repaid

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after grace period. Moreover, our repayment is very flexible since the client can pay quarterly.

We all know that competitive Interest rates are the magnetism to attract most of the clients and QDB’s interest rates are very low when compared to any other banks. Even among development banks our interest rate is one of the lowest since it varies from 3% to 5% for the industrial sector and from 2% to 4% for the health, education and tourism sectors, depending on the project itself and the risks associated with it. The interest rate is calculated on the basis of a comprehensive model developed internally in order to determine how much interest we can charge to any project that comes to QDB. The model captures many other qualitative elements like value added by the project, partners experience and reputation, also a quantitative method is used like the projected cash flow, leverage and repayment period, how this project fits with Qatar National Vision 2030 and so on.

Do you provide finance to all sectors or certain specific industries have been identified?

QDB initially focused only on the manufacturing sectors. But, in time we have evolved to finance the following sectors as well: education, tourism, health, agriculture, fishery and livestock. Government has given us the mandate to support and populate these seven different sectors which are considered as very important for the Qatar economy.

What are the main criteria that QDB assesses in a project in order to approve investment?

We want to see what is the value added by this project to Qatar. Then, if we consider the project valuable for Qatar, we check the feasibility of the project. The determination of the project feasibility includes analysis of the market, the technical aspect of the project and its financial forecasting. If we reach the conclusion that it is a feasible project and that it will add value to Qatar’s economy, the financing will be approved.

In more details, for market analysis we are specifically looking at competition, gap analysis, pricing, product mixture and so on. Regarding technical part of the project, we check how friendly it is to the environment, layout of the plan, source of machinery, specification of the machinery and similar. Besides all this study, we also do our own financial forecasting to assess whether the project will be useful for Qatar.

How do you monitor the development of a project?

We analyse three phases to make sure that our money has gone to the right place – the construction phase, the development plan and civil works.

Firstly, we do not provide cash. QDB opens a letter of credit (LC) to the machinery supplier in order to make sure that the machinery will come

Finance

directly to the project that we have financed.

Regarding the construction part, QDB supervises all the construction works and organises frequent meetings with the consultants of the project and the contractor to check whether the project is being implemented according to the budget and time plan. So, QDB will be the client to the contractor. After the construction is completed we transfer it to the client. This is to ensure that the project is executed according to the plan and the budget.

Secondly, there is a well established follow up mechanism with the client. The client is visited by the QDB team once in every quarter in order to check their development and offer financing or advisory support. As a final step on our monitoring, each year we ask for clients’ audited financial statements which are reviewed and checked in light of the initial agreement signed with the client. If there is breach of any part of the agreement it will be taken seriously. So, our follow up is continuous from the inception of the project till its settlement.

Even more, our relation with the client continues as their business grows. I remember a client whom we financed with only QR 500, 000 while today their turnover is QR 100 million. Now, it is a highly profitable business which covers most of the market demand and also exports within the region.

In line with their business growth, we now offer them many other services, like financial services to support their export needs, raw material facility, and fixed asset facility. Thus, our mission with them still grows.

How do you assess if a project has been successful?

Since its establishment in 1997, QDB has supported quite a lot of successful projects. When we say successful, it means that the project started according to the budget, stuck to the time plan and has covered its loan principal and interest.

Nevertheless, most of the projects face difficulties in the first two to three years, in terms of market positioning and the quality of the finished product. We do not consider it as a failed project within this period as it is a learning phase.

After that it can take off.

I always suggest to our clients that they need to have well written and prepared feasibility study. But, as I have noticed during my career, for most of the clients the feasibility study is just a piece of paper. I always try to indicate to the client that it is not.

Many projects that we finance today are very successful since they can cover a big part of market demand, and also export outside Qatar.

Of course, there are some failures which try to reposition themselves back and reprioritise. So, there is a second chance.

Are there any processes and policies for securing finance which organisations should be aware of?

I always suggest to our clients that they need to have a well written and prepared feasibility study. But, as I have noticed during my career, for most of the clients the feasibility study is just a piece of paper. I always try to convey to the clients that it is not.

Feasibility study will give you all inside information and point out some issues that were missed or not considered properly, but which are as important as they might cause the project to fail. For example, one project included a plan to export to Europe, but the client did not consider the currency fluctuation.

Assuming that the euro will remain at high levels, he later realised possible business threats if euro declines. This analysis was made during the preparation of the feasibility study and saved the client from many potential problems.

What is your advice on cash management for an SME or an entrepreneur?

With regard to cash management, SMEs create most of their problems by mismatching their cash allocation. An example would be if they take short-term loans to invest in long-term assets.

This causes bankruptcy for many SMEs. In addition, they are eager to construct and set up their projects, but neglecting the most important part which is working investment. The problems occur when they start their operations and then realise they will need a big working investment which is not affordable or available to them.

Ahmed Yousef Al Sheeb What would be “don’ts” in relation to project financing?

In relation to the technical side of the project, they need to make sure to buy the right machinery equipment in terms of specification, the output and the source. For example, I’ve seen clients that had bought the machinery equipment far exceeding the market requirement capacity. This is wrong because it represents over-investments.

Lastly, they need to concentrate on their technical team. It is very important to have the right technical team even before the construction of the project starts.

On market side of the project, most SMEs don’t pay enough attention to market analysis and strategies to determine where they will position their products. This is a very serious issue, but it is rarely considered.

About Ahmed Yousef Al Sheeb has a Bachelor in Industrial Engineering degree from USA and MBA in Banking and Finance from the UK. He has joined QDB since inceptions in 1996 and currently holds a position of Executive Director Projects Finance. He has participated in many domestic and international programmes and trainings. Ahmed Yousef Al Sheeb can be contacted at ahmed@qdb.qa.

july 2012

51

Women in business

TOMORROW’S workforce Since the late 19th century, with the increase of women in the labour force gaining momentum, women have come a long way. Across the world more women are now working than ever before and their economic empowerment is one of the most remarkable revolutions of the past 50 years. And Qatar is not an exception. Elsbeth Blekkenhorst and Danielle Dunttenhofer, Co-Founders and Directors, Global Women Qatar, give an overview of Qatar’s developments towards expanding business opportunities for women.

Q

atar has witnessed a big increase in women joining the labour force. For example, the expansion of higher education in the country has boosted job prospects for women, improving their value in the job market and shifting their role models from stay-at-home mothers to successful professional women. Women enrol in college more than men, and their workforce numbers have improved.

Qatar Statistics Authority has conducted a survey on the labour force in the State of Qatar.

One of the main points of this 2011 survey is the increase of female percentage in labour force during the last years of the survey. It was 10.7% of the total labour force in 2008 and increased to 12.4% in 2011. Regarding the expansion of higher education in the State, the survey shows that 61% of female Qataris employed by the government obtained a degree higher than secondary school. Also, women tend to work longer hours than men – the average weekly working hours for females is 53 whereas for men it is 51 hours.

52

july 2012

Future role of women When looking at the local women in the country, Qatari women will likely play a key role in the country’s economic future, according to a study conducted by Rand. They are entering the labour force in increasing numbers, and once employed they tend to persist in their professional commitments even through child-bearing years. Furthermore, while in some parts of the world the absence of legal rights and protections restrict women’s economic participation, Qatar has made important political, educational and social changes that expand opportunities for women.

A few pointers on why women are successful in the working place: • They are more intuitive about bringing in all points of view: This allows for more collabouration and win-win situations. In today’s complex working environment, this way of doing business is essential.

• They have different values than men: They’re much more empathetic to the diverse workforce needs. If an employee is conflicted between work and other aspects of her life, a

woman in a senior position would more likely notice the needs of her employee.

• Women are possibly stronger with networking, sponsoring and supporting each other.

The trend towards more women working is almost certain to continue. For example, in the European Union women have filled six million of the eight million new jobs created since 2000.

Life in the workplace has become much more diversified as an increased number of women have made their presence felt in many industries and professions. More and more companies are now diversifying their workforce and taking on board more women. This diversity in the workplace is a key to the competitive advantage of firms. And while women dominated first in teaching and nursing, their upward mobility has led to a new tier of professional success beyond those careers.

As women everywhere have entered the workforce and gotten more education, a whole new set of professional jobs is opening up to them. Women are on the verge of taking over

Women in business

word-based professions, like journalism, law, marketing, and communications. Once thought to be too sensitive, or tender hearted to succeed in business, women have proven that they have what it takes to not only succeed, but excel in roles long thought to be best suited to men.

Women will also be the beneficiaries of the growing “war for talent.” The combination of an ageing workforce and a more skill-dependent economy means that countries will have to make better use of their female populations.

More and more companies are now diversifying their workforce and taking on board more women. This diversity in the workplace is a key to the competitive advantage of firms.

retirement. Child-bearing years will, thus make, up a smaller proportion of women’s potential working lives. Spells out of the labour force will become less a mark of female exceptionalism.

In Qatar there are many initiatives to help women open up their own business such as Roudha Center, a Women Centre for Entrepreneurship and Innovation and Bedaya Center, entrepreneurship services for the youth of Qatar from the age of 18 to 30.

And even bigger change is likely as women exploit their economic power. Many talented women are already hopping off the corporate treadmill to form companies that better meet their needs. The number of privately owned companies started by women is steadily increasing. In Qatar there are many initiatives to help women open up their own business such as Roudha Center, a Women Centre for Entrepreneurship and Innovation and Bedaya Center, entrepreneurship services for the youth of Qatar from the age of 18 to 30.

Companies are even rethinking the structure of careers, as people live and work longer.

Companies are allowing people to phase their

Elsbeth Blekkenhorst and Danielle Dunttenhofer

Work – life balance However, one main issue is work - life balance.

For some women this can be big struggle in terms of making a good career for herself, but also to properly take care of her family. But, Qatar’s National Development Strategy 20112016 supports women in the workplace and for them to stay in the workplace.

The extent to which women are able to participate and remain in the labour market is intrinsically linked to the support available to help women balance family and professional responsibilities. The government will improve support for working families, particularly for women, by expanding child care facilities and family-friendly employment practices and by encouraging gender- sensitive working environments. One of the targets is to put in place measures that support working women, including revising the current human resources law and maternity leave policy. This will certainly help to further increase the number of women in the workforce.

Employers will be challenged to provide family-friendly solutions for working people who need flexibility for child. Solutions to increase a good work/life balance may include: • job sharing, • part-time employment,

• staff working from home or telecommuting, • flexible starting and stop times and flexible core business hours, and • periodic paid and unpaid work interruptions for child care.

Attendance systems that are inflexible will drive qualified and committed employees to employers that address family issues with creativity and concern.

Still surprisingly unequal While there is no doubt that women have come a long way from the discrimination and struggles they faced in the previous century when it came to getting an education and finding a job, there is still some inequality when it comes to women’s role in the working world.

A couple of surprising statistics on women in the workplace: • Women business owner employ 35% more people than all the Fortune 500 companies combined • Four in ten businesses worldwide have no women in senior management • The more education a women has, the greater the disparity in her wages • Women earned less than men in 99% of all occupations • Only 53% of employers provide at least some replacement pay during periods of maternity leave

About Global Women Qatar was established in January 2012 as Qatar’s first employment agency to focus exclusively on the recruitment of women who already reside in Qatar. They are a very dynamic, rapidly growing employment agency with both local and expatriate women in our database. Their candidates come from different educational backgrounds with a variety of qualifications and skills.

For more information please contact co-founders Elsbeth Blekkenhorst or Danielle Duttenhofer at info@globalwomenqatar.com.

july 2012

53

Survey

Pronounced inflation in the transport and communications category, which averaged 6.4% during 2011, came in the wake of a 25% increase in the price of fuel by the Qatari government in January 2011. This was a significant contributor to overall inflation in 2011. Inflationary impulses stemming from this component are, however, not expected to feature to the same extent in 2012.

Meanwhile, depressed rental prices which contributed to a decline of 4.9% y/y in the rent, fuel and energy component of the CPI in 2011 continue to exert a deflationary effect. Even though prices have been stabilising over the last year, there is little expectation that they will increase in the near term while supply continues to outstrip demand.

QNB survey determines that inflation, as measured by the change in the consumer price index (CPI), leveled at 1.2% year-on-year for the third consecutive month, hinting at a moderate rise in inflation in 2012.

B

y the end of 2011 inflation had averaged 1.9% year-on-year (y/y), rising on the back of a rapidly growing economy, expansionary fiscal policies, burgeoning global fuel, food and commodity prices (especially in the first half of 2011) and a stabilising rental market (as shown in Chart 1).

Chart 1: Consumer price inflation 8 6

4

2

2

0

0

-2

-2

-4

-4

-6

-6

-8

-8

Jul 10

Oct 10

Jan 11

Apr 11

Jul 11

Oct 11

Jan 12

Among the four largest components of the CPI, entertainment, recreation and culture posted the highest year-on-year change, of 5.5%, followed by food, beverages and tobacco, which increased by 3.4% y/y.

Transport and communications gained 2.0% y/y, while rent, fuel and energy, the largest category, continued its deflationary pattern, declining by 5.7% y/y.

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july 2012

Table 1: Consumer price inflation – Monthly 2012

6

4

Apr 10

Despite depressed housing rents, headline inflation in 2012 is expected to continue to rise gradually over the course of the year, by an average of 2.0% y/y. Inflationary impulses are likely to stem from the government’s capital spending plans ahead of the 2022 World Cup, burgeoning credit growth, accommodative monetary policies and recent public sector pay and pensions increases in 2011. The inflationary outlook in Qatar in 2012 will still be at the low end of forecasts for its neighbors in the GCC, however.

8

Headline CPI CPI excluding rent, fuel & energy

Jan 10

Data from Qatar’s producer price index (PPI), which tracks prices of industrial sector output across 3 categories (mining, manufacturing and electricity and water) and which is heavily correlated with hydrocarbon prices, point to high but perhaps moderating inflation. The PPI in Q4 of 2011 was 29% y/y, down from the 43.4% y/y observed in Q3. Within both the mining and manufacturing categories, condensates and refined petroleum products, respectively, have experienced declining prices over the final two quarters of 2011.

Index weight

% m/m

% y/y

%

Jan

Food, beverages & tobacco

13.2

-0.3

0.7

0.7

3.1

3.5

3.4

Garments & footwear

5.8

1.6

-0.3

-0.7

5.4

3.6

2.9

Rent, fuel & energy

32.2

-0.5

-0.4

0.0

-5.9

-6.1

-5.7

Feb

Mar

Jan

Feb

Mar

Furniture, textiles & home app.

8.2

-0.4

-0.1

0.1

5.0

4.4

4.3

Medical care & med. services

2.0

-0.5

0.1

0.0

2.2

2.3

1.1

Transport and communications

20.5

-0.2

1.1

-0.4

2.3

2.5

2.0

Entertain, recreation & culture

10.9

-0.1

-0.1

-0.1

5.0

4.9

5.5

Miscellaneous goods and serv.

7.2

2.3

1.4

-0.5

6.7

8.1

7.6

CPI ex rent, fuel & energy

100.0

0.2

0.6

-0.1

4.0

4.0

3.8

General index (headline)

100.0

0.0

0.3

0.0

1.2

1.2

1.2

Source: Qatar Statistics Authority / IBQ

START YOUR BUSINESS

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

RUN YOUR BUSINESS

GROW YOUR BUSINESS

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

qatar.smetoolkit.org