Islamic Finance
Intellectual Property Rights
Angel Investment
NOVEMBER 2012 www.privatesectorqatar.com/en
PUBLICATION LICENSED BY IMPZ, DUBAI TECHNOLOGY AND MEDIA FREE ZONE AUTHORITY
Qatar's first of it's kind business incubator
qatar.smetoolkit.org/qatar/en Success Story
Global Entrepreneurship Week
TASDEER
ﺍﻟﻤـــــــــــــﺮﻗــــــﺎﺏ
ﺍﻟﻨﺠـــــــــــــــــــــــــــﺎﺩﺓ
ﺍﻟﺠـــــــــــــــــــــﺴﺮﺓ
AL MIRQAB
AL NAJADA
A L
CHOOSE YOUR OWN FLAVOUR With six new boutique hotels and nine new residences, Souq Waqif Boutique Hotels brings, exciting, creative, innovative five star luxury to Doha’s most precious tourist destination, Souq Waqif. The authentic souq, for many years the centre of merchant trading, now has a collection of uniquely different sanctuaries and retreats. From 14 rooms to 37 rooms, from traditionally Qatari to fashionably contemporary and modern, the six hotels will inspire and tailor make a wonderful memory for all guests, whether they be staying at leisure or on business.
swbh.com
|
reservations@swbh.com
|
T:
+974
44336666
|
Doha
|
Qatar
J A S R A
ﺍﻟﺸﻘــــﻖ ﺍﻟﻔﻨﺪﻗﻴــــــــﺔ
ﺍ ﺭﻣﻴــــــــــــــــــــــــــــﻠﺔ
ﻣﺸــــــــــــــــــــــــــﻴﺮﺏ
RESIDENCES
A R U M A I L A
MUSHEIREB
ﻭﺟـــــــــــﻬﺘﻚ ﻟﻸﺻـــــــــﺎﻟﺔ
ﺗﺤﻘﻖ ﺳﻠﺴﻠﺔ ﻓﻨﺎﺩﻕ ﺍﻟﺒﻮﺗﻴﻚ ﻓﻲ ﺳﻮﻕ ﻭﺍﻗﻒ ،ﻣﻦ ﺧﻼﻝ ﻓﻨﺎﺩﻕ ﺍﻟﺒﻮﺗﻴﻚ ﺍﻟﺴﺘﺔ ﻭ ﺍﻟﺸﻘﻖ ﺍﻟﻔﻨﺪﻗﻴــﺔ ﺍﻟﺠﺪﻳﺪﺓ ،ﻧﻘﻠﺔ ﻓﺎﺭﻗﺔ ﻓﻲ ﺍﻟﺼﻨﺎﻋﺔ ﺍﻟﻔﻨﺪﻗﻴﺔ ﺍﻟﻔﺨﻤﺔ ﻓﻲ ﺍﻟﻤﻨﻄﻘﺔ ﺍﻟﺘﺎﺭﻳﺨﻴﺔ ﻭ ﺍﻷﺛﺮﻳﺔ ﻣﻦ ﺍﻟﺪﻭﺣﺔ ﺍﻟﺘﻲ ﺗﻤﺜﻞ ٔﺍﺣﺪ ٔﺍﺑﺮﺯ ﻣﻌﺎﻟﻢ ﺍﻟﻌﺎﺻﻤﺔ ﺍﻟﺴﻴﺎﺣﻴﺔ .ﺍﺫ ﻳﺤﺘﻀﻦ ﺳﻮﻕ ﻭﺍﻗﻒ ﺍﻟﺬﻱ ﺷﻜﻞ ﻣﻨﺬ ﺯﻣﻦ ﺑﻌﻴﺪ ﻣﺤﻮﺭ ﻭ ﻣﺮﺗﻜﺰ ﺍﻟﺤﺮﻛﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ ﻓﻲ ﺍﻟﻌﺎﺻﻤﺔ ﺍﻟﻘﻄﺮﻳﺔ ،ﻭﻳﺘﺮﺍﻭﺡ ﻋﺪﺩ ﻏﺮﻑ ﺍﻟﻔﻨﺎﺩﻕ ﺍﻟﺴﺘﺔ ﺍﻟﺠﺪﻳﺪﺓ ﺑﻴﻦ ١٤ﻭ ٣٧ﻏﺮﻓﺔ ﻓﻨﺪﻗﻴﺔ ،ﺗﺘﻤﻴﺰ ﺑﻬﻨﺪﺳﺘﻬﺎ ﺍﻟﻤﻌﻤﺎﺭﻳﺔ ﺍﻟﻔﺮﻳﺪﺓ ﺃﺟﻮﺍﺋﻬﺎ ﺍﻟﺮﺣﺒﺔ ،ﺑﻴﻨﻤﺎ ﺗﺘﻤﺎﻳﺰ ﻋﻦ ﺑﻌﻀﻬﺎ ﺍﻟﺒﻌﺾ ﺑﺘﺼﻤﻴﻤﺎﺗﻬﺎ ﺍﻟﻤﺴﺘﻠﻬﻤﺔ ﻣﻦ ﺍﻷﺻﺎﻟﺔ ﺍﻟﻘﻄﺮﻳﺔ ٔﺍﻭ ﺍﻟﺤﺪﺍﺛﺔ ﺍﻟﻔﺨﻤﺔ ،ﻭﻫﻲ ﻣﺼﻤﻤﺔ ﻟﺘﻮﻓﺭ ﻟﻠﻨﺰﻻﺀ ،ﺳﻮﺍﺀ ﻣﻦ ﺭﺟﺎﻝ ﺍﻷﻋﻤﺎﻝ ٔﺍﻭ ﺍﻟﺴﺎﺋﺤﻴﻦ ٔﺍﻭ ﺍﻟﻤﻘﻴﻤﻴﻦ ﻓﻲ ﻗﻄﺮ ،ﺿﻴﺎﻓﺔ ﻭﺭﺣﺎﺑﺔ ﺗﺨﻠﺪ ﻓﻲ ﺫﺍﻛﺮﺗﻬﻢ.
swbh.com
|
reservations@swbh.com
|
ﻫﺎﺗﻒ:
٤٤٣٣٦٦٦٦
+٩٧٤
|
ﺍﻟﺪﻭﺣﺔ
|
ﻗﻄﺮ
CONTENTS November 2012
Business growth 18 THE FIRST OF ITS KIND The Stakeholder’s Workshop for Qatar Business Incubator (QBI) was organised by Qatar Development Bank and Social Development Centre to discuss how business incubator can help entrepreneurs and SMEs. Private Sector Qatar shares with you the main conclusions from the very constructive group discussions.
18
22 Snapshots We bring you snapshots from the workshop held at the Al Sharq Village, Doha.
Success story 24 JUST GO AHEAD AND DO IT!
Qatar Business Incubator
News
About town
10 UPDATES
16 FORGE A LINK
Get to know about the latest events and happenings in Qatar that will have an impact on SMEs and large enterprises.
SILA Angel Investment Network Launch Dinner took place on the evening of 16th October 2012 at the Four Seasons Hotel, Doha. Private Sector Qatar was there to support this Silatech’s initiative and to bring you coverage of the whole evening.
About town 12 LOOK NO FURTHER! Private Sector Qatar was at GITEX, which took place from 14th to 18th October 2012, to bring you a snapshot of the event and the experience of Login4IT.com, a Qatari company, which showcased its Website at the event.
14 Power to women! The empowerment of women population was underscored for the third time at the Qatar International Businesswomen Forum organised by the Qatari Business Women Association in collaboration with Interactive Business Network (IBN). Private Sector Qatar brings you an insider’s view of this high-profile event.
16
Tamara Pupic got talking with Abdulaziz M. Aldelaimi, CEO and Managing Director, National Petroleum Services Group, on how he managed to successfully face the group’s fiercest competition.
Finance 28 SHARE THE BENEFITS Kamel Fathi Fayed, Financial Controller, QDB, gives details about Islamic finance and explains why it can be considered as a solution for the current financial crisis.
Entrepreneur 32 Going Global Private Sector Qatar thought it would be a good idea to check with the organisers of the Global Entrepreneurship Week (GEW) in Qatar how this event will add value to the already existing initiatives in Qatar.
34 PICTURE QATAR! A good picture says more than a thousand words and can substantially improve your business image. Aparna Shivpuri Arya met up with Razan Suliman, Founder and CEO, BYLENS, to collect advice on entrepreneurship from this artistic Qatari businesswoman.
24
Legal 38 don’t jump the fence Upon its accession to the WTO, Qatar adopted several intellectual property laws to comply with its standards. Malik Al Kammaz, Country Manager, Saba & Co Intellectual Property – Qatar, provides an overview of the Law No. (17) of 2011 on the Border Measures for the Protection of Intellectual Property Rights.
Investment 42 PLAN A, PLAN B AND PLAN C
34
The Women Investing in the Stock Market programme was completed in early October 2012 in Doha and resulted in increased investment skills of many Qatari women. Marzena Hallam, Founder and CEO, Mibx, shares with us her experience with young Qatari women who demonstrated the right techniques and mental attitude to manage their investment activities in the future.
TASDEER 48 SERVICES We provide you with details on TASDEER’s export development and promotion services.
49 A bIG STEP FORWARD TASDEER is supporting participation of Qatari exporters in the Dubai Big 5 Exhibition, to be held from 5th to 8th November 2012 in Dubai.
54
50 LEARN HOW! After reading TASDEER’s analysis of export opportunities for one particular product you will learn how to plan export of your products.
52 GOING EVEN FURTHER Majid Siddiqui, Business Developemnt Manager, QPAC, explains how TASDEER is supporting them in exploring new attractive markets and further diversifying their products offering.
54 TARGET: TUNISIA! It is important for exporters to critically evaluate a market from an export perspective. TASDEER highlights Tunisia as an attractive market for Qatari exporters.
EDITORIAL Publisher Dominic De Sousa
Solving the puzzle...
Group COO Nadeem Hood Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126
To succeed in anything is all about putting the pieces together. And that’s the theme of our November issue- to help entrepreneurs get the building blocks right.
EDITORIAL Senior Editor Aparna Shivpuri Arya aparna@cpidubai.com +971 440 9133 Assistant Editor - English Tamara Pupic tamara@cpidubai.com +971 440 9130 Contributing Editors Mike Byrne mikeb@cpidubai.com +971 440 9105 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 CIRCULATION Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 OPERATIONS AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9148 Photographer Jay Colina jay@cpidubai.com +971 4 440 9108 DIGITAL SERVICES www.smeadvisor.com
An important step in that direction was taken at the launch of Qatar Business Incubator- the first of its kind in Qatar, where all the institutions came together to brainstorm and discuss the relevant issues. This incubator will be a one-stop-shop for entrepreneurs in Qatar to get a strong foundation. We’ll keep you posted on the latest developments in this regard. Besides the launch of the incubator, we were also there for the Third Qatar International Businesswomen Forum, which highlighted the role of women entrepreneurs and offered a very good opportunity to network and to learn from the best in the region. The forum also witnessed the launch of SILA Angel Investment Network. And as always we bring some very interesting stories, starting with BYLENS, which is the first Qatari-themed photo library, followed up by a chat with the CEO of National Petroleum Services. We also highlight some important issues dealing with intellectual property rights and Islamic finance. And last but not the least, TASDEER gives us some valuable insights into the world of exports. These are exciting times for entrepreneurs, with so much going on at all fronts. We hope you’ll enjoy reading this issue. We’ll be in Doha for the Global Entrepreneurship Week and hope to see some of you there.
Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya Louie Alma
Till then,
online@cpidubai.com +971 4 440 9100 Published by
1013 Centre Road, New Castle County, Wilmington, Delaware, USA
Branch Office PO Box 13700 Dubai, UAE
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
Tel: +971 4 440 9100 Fax: +971 4 447 2409
Printed by
Al Warq Printing Press, Qatar
Distributed by
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 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
Rashid Nasser Sraiya Al Kaabi
Mr. Al-Emadi is the Deputy CEO, Silatech.
Mr. Al Kaabi is the Chairman of the Board of Energy City Qatar Holding (ECQH).
For more information, please visit www.privatesectorqatar.com/en
Get your FREE* copy of Private Sector every month! Subscribe to Private Sector for valuable business advice that will help develop your business. Maximise your opportunities and growth through our initiatives spanning magazine, events, Website and social media. Be part of a community of forward-looking businesses. Subscribe to Private Sector today!
Full Name: Company: Job Title: Address: Country: City: P.O.Box number: Phone number: Mobile phone number: Fax Number: E-mail: Website: Subscribe to: English
Arabic
* Business decision makers in Qatar are eligible for the complimentary subscription. International and bulk subscriptions will be charged nominally. Please send the details to rajeesh@cpidubai.com. Our distribution team will be in touch with you.
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
News
Woven Sacks (2007-2011), QR Mn
Breakdown of Qatar exports of Woven Sacks by country of destination (2010), in QR Mn
35.0
G
A
C
R
=
Saudi Arabia 36% United Arab Emirates 31%
0%
12
Sudan 22%
18.8
Somalia 6%
MENA prospects strengthen Others 5%
7.3
Total = QR 18.8 Mn
2009
2010
2011
The global economic outlook looks more downbeat as major world economies struggle with low real GDP growth. However, prospects for the MENA region have strengthened due to higher oil prices and increased government spending, according acks imports of World (2010), in QR Mn to a QNB Group review of the IMF’s October 2012 World Economic Outlook, released on Europe 59% of the annual IMF meeting held the occasion in Tokyo.
US 11%
Real GDP Forecasts (2012-13) China
(-0.2) 7.8 (-0.2) 8.2
India
(-1.3) 4.9 (-0.6) 6.0
Brazil World
(-1.0) 1.5
(-0.7)
4.0
(-0.2) 3.3 (-0.3) 3.6
Breakdown of Qatar exports of Woven Sacks by country of destination (2010), in QR Mn GCC Global 1% real GDP growth has been revised (+0.1) 2.2
US (-0.1) 2.1 downwards to 3.3% in 2012 and to 3.6% (-0.2) 2.2 in 2013. The growth outlook for the global Japan (-0.3) 1.2 Others 26%has deteriorated as the recovery inSaudi Arabia 36% economy -0.4 (-0.6) 2012 UK 1.1 the 35 advanced economies has remained United Arab (-0.3) 2013 Emirates 31% (0.0) 0.9 (+/-) Revision expected.Mn As advanced Germany Total weaker = QRthan 19,279 (-0.5) 0.9 from July 2012 Sudan 22% economies account for 51.1% of global GDP, this has caused a major drag on the world Somalia Source:6% IMF and QNB Group analysis economy.
GAFTA 3%
Others 5%
GDP growth for the advanced economies has been cut by 0.5% to 1.5% in 2013. The main factors holding growth back in advanced economies is the implementation of austere fiscal policies to reduce deficits. The IMF has warned these austere measures could impact sustainable long term growth. Another key factor is the weak loan growth Real GDPthrough Forecasts (2012-13) disbursed the banking system due to risk awareness, despite an accommodative (-0.2) growth. 7.8 monetary policy that supports
Total = QR 18.8 Mn
China India Brazil World US Japan UK Germany
(-0.2)
(-1.3)
4.9
The US is now forecast to(-0.6) a reduced 6.0 growth of 2.1% in 2013 due to both (-1.0) 1.5 (-0.7) 4.0 external and domestic risks. External risks are (-0.2) mainly posed by3.3 spillovers from the Eurozone (-0.3) 3.6 debt, while domestic risks emerge from a (+0.1) 2.2 much (-0.1) larger 2.1 fiscal contraction, as budget cuts and end of tax holidays come into (-0.2) 2.2 1.2 2013. A deterioration of the play(-0.3) in early -0.4 (-0.6) US economy has a wide 2012 ranging impact on (-0.3) 1.1 2013 global investor confidence and raises the risk (0.0) 0.9 (+/-) Revision (-0.5) 0.9 aversion at a global from level. July 2012
Source: IMF and QNB Group analysis
10
8.2
november 2012
MENA Real GDP Growth (2012-13) MENA MENA Oil Importers
(-0.2) (-1.0) 1.2
MENA Oil Exporters
5.3
3.3
(+0.1) 3.8
(+1.8) 6.6
(+0.5) 5.2 (-0.1) 3.3
GCC Advanced Economies
(-0.3)
(+1.1) 3.6
(-0.1) 1.3 (-0.5) 1.5
2012 2013 (+/-) Revision from July 2012
Source: IMF and QNB Group analysis
The second engine for global growth comes from developing Asia, which accounts for 25.0% of global GDP. The growth forecast for developing Asia has also been MENA Real GDP Growth (2012-13) reduced by 0.3% to 7.2% in 2013 owing to weaker external demand and concerns on (+1.1) 5.3 MENA domestic demand in China.(-0.2) 3.6 MENA Oil Importers
(-1.0) 1.2
(-0.3)
3.3
Meanwhile, growth prospects for the (+1.8) MENA Exporters (+0.1) with MENAOilregion have strengthened a 3.8 (+0.5) 3.6% 5.2 forecast growth GCC of 5.3% in 2012 and (-0.1) 3.3 in 2013. Advanced Economies
(-0.1) 1.3 (-0.5) 1.5
6.6
2012
2013
Growth in the MENA region is (+/-) Revision from July 2012 two-dimensional – with a clear distinction between oil exporters and importers. The Source: IMF and QNB Group analysis gap in the growth outlook between them has widened. While growth prospects for oil exporters have improved to 6.6% in 2012 (up from 4.8% in the April 2012 forecast), the prospects for oil importers have substantially declined to 1.2% in 2012 (down from 2.2% in the April 2012 forecast). Higher oil prices and increased government spending have been the key differentiating factor that has brightened the growth prospects for oil exporting countries. The outlook for oil importing countries remains subdued as political turmoil and change have led to declining economic activity. Looking at oil prices based on the futures market, the IMF has revised downwards its oil price assumptions to USD 106.2/b in 2012 and USD105.1/b in 2013, from USD 114.7/b and USD110.0/b respectively in the April 2012 forecast. Supply increases from Saudi Arabia and the US and the worsening outlook for global growth, and hence oil demand, have led to lower expectations for oil prices. Further downside risks to oil prices are posed through weak demand from Asia and Europe according to QNB Group.
News
Euromoney partners with Qatar Euromoney Conferences, the events arm of Euromoney Institutional Investor plc (ERM.L), announced on 8th October 2012 a partnership with Qatar to develop a series of live events and related initiatives covering the development of the new global financial architecture. Euromoney will bring its editorial expertise, financial focus and global network to Doha to work with Qatari government and private institutions to influence the debate on the evolution of global finance. The first event in this three-year project will be the Euromoney Qatar Conference, under
the theme “Global Finance: Re-Designed” to be held at The Ritz-Carlton in Doha on 11th and 12th December 2012. It will be supported by an extensive online presence. At the first event, experts from around the world will discuss the global financial crisis and the new global economic pressures and opportunities facing dynamic high-growth nations like Qatar. The Qatar Central Bank, under the patronage of HE Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, Prime Minister and Minister of Foreign Affairs, has been the driving force behind this initiative and has mobilised much of Qatar’s financial community to contribute and take part alongside their international counterparts.
The Euromoney Qatar Conference is co-hosted by Qatar Central Bank, with senior lead sponsor Qatar National Bank, lead sponsors Commercial Bank of Qatar and International Bank of Qatar, co-sponsor Qatar Islamic Bank, and associate sponsor Qatar First Investment Bank. Euromoney’s Regional Director, Richard Banks, said, “We’re very excited about this, our first large-scale project with Qatar. We know that with the close support of the government and the Central Bank we can add a great deal not only to the debate on the future of global finance but also to the development of Qatar both as a financial market and as a global investor.”
November 2012 January 2013
Save the date! Date
Event
Location
November - December
Job Shadowing Programme
Bedaya Centre
2 - 3 November
India Property & Investment Exposition
Qatar National Convention Centre
5 - 8 November
Dubai Big 5 Exhibition
Dubai
5 - 14 November
Build Your Business Plan
Katara Building 22
6 November
Exporta's Middle East Capital Markets Conference
Doha
6 - 8 November
Energy Qatar
Doha Exhibition Center
11 November
2 Sunday Networking Event
Crown Plaza Hotel, Doha
11 - 13 November
5th Annual Bridges Middle East
The Ritz-Carlton Hotel
11 - 14 November
QMoney
Doha Exhibition Center
nd
11 - 17 November
Global Entrepreneurship Week
Doha
12 - 15 November
ICONIP2012
Doha
13 - 15 November
World Innovation Summit For Education (WISE)
Qatar Chamber
25 November - 8 December
United Nations Framework Convention on Climate Change
Doha Doha
1 - 6 December
Qatar Health 2012
4 - 8 December
World Petroleum Congress and Exhibition
Qatar National Convention Centre
9 -12 December
MENA Gas Processing Summit 2012
Oryx Rotana Hotel
9 December
2nd Sunday Networking Event
Katara Building 22
10 - 11 December
HSE in Construction Qatar
Crowne Plaza Doha-The Business Park Doha
10 - 11 December
Doha Goal Forum
Aspire zone
11 - 12 December
Euromoney Qatar Conference
Doha
4 - 14 January 2013
2013 IGLP Workshop
Doha
7 - 9 January 2013
World Congress on Engineering Education 2013 (WCEE 2013)
Doha St Regis Hotel Doha
13 - 15 January 2013
World GTL Congress
21 - 23 January 2013
Offshore Middle East Conference and Exhibition 2013
Qatar National Convention Center
31 January – 2 February 2013
Forum Mobile Phone – ICT Qatar
Doha
november 2012
11
About town
Look no further! GITEX Technology Week, which was held in Dubai from 14th to 18th October, 2012, provided a platform to know about the various advancements in technology in the region. Private Sector Qatar was there and brings you a snapshot of the event and the experience of Login4IT.com, a Qatari company, which showcased its Website at GITEX.
G
ITEX Technology Week is the Middle East, Africa and South Asia’s largest and most specialised ICT trade event. Now in its 32nd edition, GITEX featured more than 18,000 regional C-level executives and more than 3,500 international technology companies. This year, GITEX saw an increase of 23% in exhibitors from countries like Algeria, Egypt, Libya, Morocco, Nigeria and South Africa. Strong trade delegations were also present from countries like Zambia, Kenya, Nigeria, Rwanda, Uganda, Tanzania, South Africa, Lesotho, Tunisia, Algeria and Morocco. The first day of the event witness the launch of e-services across the government entities. During the following days, GITEX dealt with the latest developments and threats posed in the field of cyber security, including recent energy sector attacks in the region, wireless security and mobility threats.
12
november 2012
In addition to networking with the top regional and international industry brands, visitors had access to upcoming technologies including mobile wallets and ticketing, smart TVs, 4G enabled phones, new-to-market tablets and much more. Qatar’s presence at GITEX was marked by Login4IT.com, which is an online IT yellow pages, for right information on companies, brands, products and dealers. Login4IT.com is the only IT-centric job portal in the region and gives the option to search and choose the best IT jobs. Apart from all the right IT information and jobs, one can also find latest IT news, blogs, forums, directories, events, certifications and much more. Login4IT.com is part of the Zain Sheen Website Developers, which started operation in Qatar in 2011. It is an SME which provides cost-effective e-commerce solutions to companies in Qatar.
Luthfi Ahmed, Business Development Manager, said that his experience has been very good at GITEX, “We have got a very good response and a lot of trade visitors. And more than quantity, we are happy that we got to meet some quality customers. We hope to build on these connections.” Talking about the genesis of this Website, Luthfi explained that for a long time he felt that there was a need for such a portal in Qatar, which would cater to all the needs of IT professionals. He has been working on this Website for a year and a half and officially launched it in GITEX. It’ll be a one-stop shop for IT professionals in Qatar. GITEX Technology Week wrapped up on the 18th October after five days of exciting discussions, innovations and an opportunity to get to know the latest from the experts in the field.
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
About town
Power to women! Under the kind patronage of H.E. Sheikh Hamad Bin Jassim Bin Jabr Al Thani, Prime Minister and Minister of Foreign Affairs in Qatar, the Third Qatar International Businesswomen Forum (QIBF) was inaugurated by H.E. Yousef Hussain Kamal, the Minister of Economy and Finance in Qatar. Private Sector Qatar was there to bring you highlights from this impressive event which took place on 15th and 16th October 2012 at the St. Regis Hotel, Doha.
D
uring the first day’s opening session, delegates heard the thoughts of H.E. Yousef Hussain Kamal, Minister of Economy and Finance in Qatar; Aisha Al Fardan, Vice Chairwoman of the Qatari Businesswomen Association; Raed Chehaib, CEO, Interactive Business Network – Qatar; Wael Sawan, Executive Vice President and Country Chairman, Qatar Shell; and Barton Cahir, President and General Manager, Exxon Mobil – Qatar. This was followed by the honouring of the following personalities: • H.E. Sheikh Hamad bin Jassim bin Jabor Al Thani, Prime Minister and Minister of Foreign Affairs in Qatar. • H.E. Yousef Hussain Kamal, Minister of Economy and Finance in Qatar • H.E. Reem Badran, Member of Parliament, Second Vice Chairman, Amman Chamber of
14
november 2012
Commerce, Jordan • D r. Saad Al Barrak, Chairman, ILA Group, Kuwait • H.E. Fatima Al Jaber, the Chairman of the Emirates Businesswomen Council, UAE • Dr. Hayat Nazar, Director of the Al Noor Institute, Qatar
• D ana Al Hammadi, Loyalty Programme Manager, Etisalat, UAE • Dr. Sabah Abdel Rasoul Al Tamimi, Baghdad, Provincial Council Member - Iraq • Dr. Hayat Nazar, Director, Al Noor Institute Each of them conveyed their personal experience and proved that women can have it all.
Uniqueness of the forum’s agenda was that the main sessions were combined with the sessions titled “Is Having it All’ Possible for Women? – How I Did It”. Through these sessions the following successful women addressed the question whether businesswomen can have it all by combining career, marriage, children, success and happiness: • Clare Harris, Vice President Gas Development, Technical, Shell – Qatar • Dr. Basmah Mosleh Omair, Executive Director of AlSayeda Khadijah Bint Khouwailid Businesswomen/Lobbying Centre, Jeddah Chamber of Commerce and Industry, KSA
The session “Prospects for the Arab Economies in the Aftermath of Political Change”, which was the main topic of the forum, examined the effect that the Arab revolutions have had on economic growth in the region, inter-Arab economic relations, and the ramifications of regime change to the pace of economic reform. During the session, one of the speakers HE Reem Badran, Member of Parliament, Second Vice Chairman, Amman Chamber of Commerce, Jordan, stated that the Arab spring has brought achievement of only few goals for women even though they played an important role in the revolutions. She further supported that
About town
point by saying that only modest presentation of women is still present in government authorities and Parliaments across the region. For that reason, she encouraged amendments of various laws to allow greater participation of women within the political systems in the region. A very interesting discussion took place during the session “Women Entrepreneurs” as the speakers and the audience tried to define what attributes make a successful entrepreneur and do businesswomen have them? Speaking about overcoming obstacles and constraints to be a successful entrepreneure, Sheikha Mayes Al Thani, Director of Administration & HR, Silatech – Qatar, explained, “Access to information and knowing how to collect data is very important for startups. In addition, and opposite to the usual belief, I would say that for startups mentorship programmes are as important as obtaining finance.” On the importance of believing in yourself and planning your future success, Dr. Maryam Matar, Founder & Chairperson, UAE Genetic Diseases Association, was kind enough to share with the audience that back in 1999 she had made her career plan till 2030 which includes being a Nobel Prize winner in 2022. The audience warmly applauded her. The discussions and workshops which took place on 16th October 2012 addressed the following topics: • Businesswomen and Corporate Social Responsibility • Discussion on Investment and Asset Management Decisions Under Conditions of Economic Uncertainty • The Role of NGOs in Empowering Arab Women – A Continuing Assessment • The Use of Social Networking as a Business Tool • The Promise of Leadership and the Role of Businesswomen. Aisha Alfardan, Vice Chairwoman, Qatari Businesswomen Association, said about the forum, “The main message we wanted to give to the female attendees in general was – You can do it! You can make progress in what is still a maledominated business environment! I think we have
succeeded in doing that for two reasons. Firstly, the speakers at the event come from the very top of their professions, and therefore know exactly what they are talking about. Secondly, and this was highlighted to me many times over the last two days, was the real appetite, ambition and thirst for learning shown by our female delegates. The face of Qatar is changing, and women are playing an increasingly important role in that change.”
Speakers Corner On the sidelines of the forum on both days, the British Council, which manages the “Springboard” women’s development programme in Qatar, sponsored a “Speakers Corner”. The idea was to additionally invite speakers from Qatar and the region to discuss topics of interest to women, with the aim of engaging participants in dynamic side conversations.
more opportunities for them to be involved in different areas according to United Nations promises of equality. • Emphasis on the empowerment and training of women in order to develop small companies and motivate them to compete. • Establish an investment fund in the Arab countries to support youth and women, with a priority to project finance, which depends on strategies and economic feasibility. • Invite companies of the private sector to follow up on strengthening the idea of corporate social responsibility in the Arab world, to achieve a permanent development with a financial return in the future. • Create awareness among the community about the woman’s role and her contribution in facing challenges through the political and commercial crisis. • Achieve diversity for investments; small and medium projects, real estate sectors, health care, governmental bonds for GCC, investments at emerging countries, and providing best experiences and foundations for investment management. • Constant cooperation between Arab countries to serve social projects and enriches women’s productivity in all sectors. • Support the idea of establishing an Arab bank to enforce productive projects for Arab women.
After two very dynamic and successful days, Aisha Alfardan, Vice Chairwoman, Qatari Businesswomen Association, summarised the key recommendations which came out from the event as follows: • Extend the working domains for women including the energy sector, and provide
The two-day forum attracted a roster of high calibre speakers, reflecting the importance of the event which has been built on the success of the preceding forums in 2010 and 2011. In addition to the keynote speakers, VIP attendees, distinguished businesswomen and businessmen, and more than 800 delegates took part in the QIBF 2012.
ICT Workshop Running parallel to the main events was the ICT Investment Opportunities Workshop during which ictQATAR discussed the investment opportunities for women in the following fields – cyber-security, digital content, digital advertising, healthcare applications, ICT training and education, and e-commerce. In all of the above discussions, moderation and contribution came from experts within their respective fields.
november 2012
15
About town
• Dr. Tarik Taleb, Founder and CTO, MulKom Corporation • Dr. Yahya Al-Salqan, Founder, Qatar Mobile Banking, Palestine • Ziad Sankari, Founder, Cardiodiagnostics, Lebanon
Forge a link On the evening of 16th October 2012, Silatech launched SILA, an initiative aimed at transforming the startup ecosystem in Qatar by forging closer ties between investors and entrepreneurs, at the SILA Angel Investment Network Launch Dinner which took place at the Four Seasons Hotel, Doha. Private Sector Qatar engaged in live streaming of the event via Twitter and also brings you coverage of the whole evening.
S
ilatech, a social initiative based in Qatar, was founded in 2008 by Her Highness Sheikha Moza bint Nasser, with an aim to promote large-scale job creation, entrepreneurship, access to capital and markets, and the participation and engagement of young people in economic and social development. Through SILA, which means “connection” in Arabic, Silatech is aiming to grow the Qatari startup sector into a vibrant enterprise culture to boost the success rate of early stage new businesses. That will be done by filling an identified startup equity gap, as entrepreneurs in Qatar find it difficult to obtain funding for their business ideas. “Qatar is the leader in several initiatives around the world. It can also lead in filling this gap. Qatar
16
november 2012
can be a hub for investing,” said Dr Tarik M Yousef, CEO, Silatech. He explained that majority of young entrepreneurs have excellent business plans but do not have an investor. Therefore, SILA can be an ideal network to support them. The event included short presentations from inspiring entrepreneurs, interviews with international business leaders and some of the influential investors in the Middle East. The following six entrepreneurs, first to be selected within the SILA network, gave presentations of their business ideas to a panel of investors: • Ala Suleiman, Founder and CEO, Masmoo3, Jordan • Dr. Hesham El Gamal, Co-Founder and President, Inmobly, Egypt • Layla and Sarah Al Dorani, Co-Founders, Raw ME, Qatar
In addition to Silatech, the new angel investment network is launched in partnership with Qatar Development Bank (QDB), Bedaya Center for Entrepreneurship and Career Development and Enterprise Qatar (EQ). The idea of an angel investor originates from NYC Broadway theatre, where wealthy individuals would provide funds to aspiring directors for theatrical products. In business today, an angel investor is someone who is motivated by a combination of return on investment and by a sense of responsibility to contribute to his / hers community or country. Attendance of the event was by invitation only and many prominent figures from Qatar’s government, business, academia and NGO circles, were present. The event’s programme was followed by a networking dinner. SILA will continue to host entrepreneur seminars, angel investor trainings, business networking mixers and innovation forums. Potential angel investors or entrepreneurs interested in participating should contact SILA directly at www.silanetwork.com.
http://www.PrivateSectorQatar.com/en
Valuable business advice that will help develop your business. Be part of a community spanning magazine, events, Website and social media.
business growth
Qatar Development Bank (QDB) and Social Development Centre (SDC), member of Qatar Foundation, with the support of CREEDA Projects Ltd, Australia (CREEDA), organised the Stakeholder’s Workshop for Qatar Business Incubator (QBI), a first of its kind project in Qatar whose implementation will lead to a sustainable business eco-system. Private Sector Qatar brings to you the main conclusions from very constructive group discussions.
T
he Stakeholder’s Workshop for Qatar Business Incubator (QBI) was held on 8th October 2012 at the Al Sharq Village, Doha, with the objective to: • Enhance survival rate and sustainability of local startup SMEs and to further utilise the developed know-how, to support Qatar’s private sector. • Build competitiveness of SMEs by strengthening the value chains through horizontal, vertical and clustered linkages.
18
november 2012
• P romote efficient and best business practices that lead to sustainable business eco-system. • Provide outreach programmes to raise awareness and attract all potential entrepreneurs.
the objectives of Qatar National Vision 2030. The process for the development of QBI requires extensive stakeholder engagement, of both the public and private sectors, to ensure it is properly suited to the local environment and culture.
Business incubation is one of the several economic-development tools and strategies that support the growth of private sector enterprises and, thus, can assist in Qatar’s national development and the achievement of
The programme of the event started with introductory presentations and progressed on the basis of an agenda developed by international consultants Julian Webb and Steve Giddings, CREEDA Projects. After their introductory
business growth
presentation, the participants were devided into working groups to initiate discussion on four important issues – growth entrepreneurs, market opportunities, business ecosystem and technology. Introductory presentations were given by: • M s. Amna Al-Sultan, Business Counselor, QDB • Mr. Julian Webb, CREEDA Projects • Mr. Steve Giddings, CREEDA Projects In his opening speech, Abdulaziz Al Khalifa, Executive Director, Strategic Planning and Control, QDB, said, “It gives me great pleasure to welcome you all today at our Stakeholder’s Workshop for Qatar Business Incubator as participants from different segments of entrepreneurship ecosystem in Qatar. QBI is a first of its kind in terms of general use of an incubator and the first of its kind project which comes just in time to promote the local economy.” He further added, “Both, QDB and SDC see this project as the project of national interest and completely aligned with Qatar National Vision 2030. We didn’t want to develop QBI alone and this is why we tried our best to engage and discuss with all prominent institutions. QDB and SDC have made serious steps in making QBI a reality and we cannot continue doing this without your support and help through your serious and active engagement.” After the welcome speech, Amna Al-Sultan, Business Counselor, QDB, explained that QDB and SDC are creating a state-of-the-art incubation centre which is first of its kind in terms of the number of people it will support and in terms of the number of services it will provide. QBI supports local entrepreneurs for national development projects. Having said that, Amna provided an overview of the project’s development and stated that, since the preliminary business plan was developed in 2011, QBI project has already reached few of its milestones, and added, “In 2012, QBI Joint Venture Company was formed between QDB and SDC.” QBI will be established at two different locations - Al-Bidaa Park and the Industrial
Area. Through this, it will provide for increased accessibility and cater to the different needs of targeted clients. Talking about targeted clients Amna clarified, “QBI is aimed for all Qatar based entrepreneurs who have an idea to establish a business or are in the initial phase of setting it up.” Amna’s presentation was followed by the presentation of Julian Webb, CREEDA Projects, who highlighted the benefits of the business incubation and explained that most of the new businesses don’t succeed, but 80% of incubator’s clients don’t fail. Going forward, Julian said, “Business incubation is a public and/or private, entrepreneurial, economic and social development process designed to nurture businesses from idea generation to startup, through a comprehensive business support programme to help them establish and accelerate their growth and success.” The QBI project relates to establishing a physical space or facility that accommodates a business incubation process which is the most important segment of the project. Namely, Julian explained that stages of the business incubation start with raising awareness among stakeholders and the whole society on the need to support startups through business incubation. In the next, pre-incubation stage potential startups are being selected on the basis of their idea. The value of the idea allows them to enter the incubation
process by starting up the company and developing its profitability. In the last stage, which includes their integration within post-incubation parks, the startups reach maturity and prepare for an autonomous path. Working group on growth entrepreneurs The growth entrepreneur session focused on identifying factors which impede the growth of entrepreneurs in Qatar. To begin with, it is difficult to establish a company in Qatar as a minimum account balance of QR 200,000 is required. Secondly, there is absence of non-equity funding and seed capital. One of the participants also highlighted that the legal structure in Qatar is very complicated for entrepreneurs and that the sponsors should guide and support them. Keeping all this in view, the group identified three sectors – engineering, education and customer service, which offer growth opportunities to the locals. However, to take full advantage of these opportunities, the Qataris would need the following identified enablers: • The possibility of having a special economic zone (SEZ) • An A to Z guide on the company registration process in Qatar • Access to angel investment • Coordination between all business support organisations • Support to commercialise an innovation into a commercial product
november 2012
19
business growth
cost of machinery is not an issue, but information about which machinery to procure for a certain type of business is an issue.”
• Guidance on Intellectual Property Rights (IPRs) • Help build trust for Qatari products in the market Working group on market opportunities The second session dealt with the issue of market opportunities. The first point highlighted was that the main features of a market opportunity are feasibility, accessibility and viability. However, due to a small market, startup and SMEs in Qatar face difficulties in scaling even a good opportunity. Participants suggested that the first solution could be in expansion of the local content requirement during procurement procedures to SMEs and introduction of the rules on import substitution. In addition, startups and SMEs would benefit from support to compete internationally, especially in IT and services sectors which were identified as advantageous. The second solution can be found through cooperation with the private sector, which can help through supply chain intervention. Since Qatar is a small market, and even though a lot of opportunities exist, the competition is very high leading to a price war. Therefore, concentrated efforts need to be made to not only find an area that offers opportunity but also to help entrepreneurs with the marketing and financial aspect of it. Important point raised related to whether the entrepreneurs should identify the opportunity
20
november 2012
themselves or QBI should be the place to offer that kind of support. Since opportunities lie in areas where higher skills are needed which makes them highly niche opportunities, the entrepreneurs would benefit from assistance in this regard. Working group on business ecosystem A long list of stakeholders to be involved with QBI and the list of issues to be improved, developed by this working group, is one of the most valuable contributions of the event to the QBI project. Furthermore, the group jointly presented few gaps which need to be addressed: • Creation of a roadmap for entrepreneurs to guide them in cases they need help for a certain issue • Subsidisation of quality professional advice • Provision of incentives for local and foreign companies to integrate entrepreneurs in their value and supply chains • Establishment of a single window for licenses and clearance procedures for entrepreneurs A substantial part of the discussion focused on quality market research data. It was concluded that updated and comprehensive data about the market and existing SMEs which would facilitate market intelligence. In addition, the entrepreneurs would benefit from collecting useful data versus pure statistics. Iqbal Kaundal, Head of Advisory, QDB, illustrated the importance of possessing correct and useful information with an example from QDB’s work with clients, “It happens that
Shareefa Fadhel, Co-Founder and Managing Director, Roudha Center for Entrepreneurship and Innovation, also shared her experience stating, “In the Roudha Centre we have two employees for whom we cannot submit application for gratuity since according to the current legal framework in Qatar, SMEs are not eligible for filing pension application for its employees. This could be one explanation why many Qataris preserve public sector jobs even after establishing their own startups.” Inspired by this, group members discussed various policy restrictions and concluded that regular meetings are needed in order to jointly identify them all out and seek for possible solutions. Working group on technology Within this working group participants shared opinions on how QBI can facilitate access to good and cost-effective technology. In addition to the support provided through linking the entrepreneurs with supply chains to gain more opportunities, they would benefit from advice on how to use technology (cloud computing, social media and similar) to increase production and profits. The main point of the discussion was that facilitating transfer of good technology is necessary also for entrepreneurs and not only for large enterprises. That would increase their productivity and profits. The workshop brought together entrepreneurs, representatives of SMEs and large corporations, banks, government institutions and the NGO sector, to present and exchange their views on business incubator and how it can help entrepreneurs and SMEs. The content generated from the workshop will be used to design and develop QBI business strategy and model and to guide implementation and business planning.
november 2012
21
snapshots
Abdulaziz Al Khalifa, Executive Director, Strategic Planning and Control, QDB, welcomes the participants Amna Al-Sultan, Business Counselor, QDB, talks about the start of QBI
Julian Webb, CREEDA Projects, presents the business incubator model
22
november 2012
snapshots
Munther Al-Dawood (Right), Project and Investment Manager, SDC, interacts with a participant
Participants at the QBI workshop
(Left to right) Shareefa Fadhel, Co-founder and MD, Roudha Centre, and Aysha Al Mudehki, Executive Director, INJAZ-Qatar
Participants networking during the workshop
Participants during the group discussion on growth entrepreneurs.
november 2012
23
Success story
Just go ahead AND do it!
As one of the leading privately-owned GCC service providers in the oil and gas sector, Qatar’s National Petroleum Services Group is a proof that dedicated and knowledgeable management can face the fiercest competition and lead the company from strength to strength. Tamara Pupic got talking with Abdulaziz M. Aldelaimi, CEO and Managing Director, National Petroleum Services Group, about his continuous professional success and collected some valuable advice for Qatari entrepreneurs.
24
november 2012
Success story
What was the idea and the plan behind the formation of the NPS Group? The idea is very simple – 2/3 of the world’s oil and gas reserves are within the northward or southward radius of 1000km from Qatar. If you expand your radius of investigation, you’ll notice that even more oil is available close to us. In addition to that, all CIS countries have vast resources and distance from there to here is not that much. But, even if we do not include the Far East Asia’s reserves, 60% of the world’s reserves that are present here are more than enough. The question was whether, with 60% of the world’s reserves available under our feet, should we be without a national oil and gas service company? Of course, not! We have the knowledge and we have the money. Thus, we realised that together we can make more profit and compete heavily against multinational companies which are present in the Middle East. And we have been very successful. Please tell us more about your company. The NPS Group was established in 2007. The plan was to gather few local and regional companies with already established businesses in various fields, but especially in the oil and gas sector, under one umbrella. All these companies have been operating in the Middle East for 15 to 30 years already. Within that time they have cooperated with many internationally recognised companies, but also with the national ones like Saudi Aramco, Qatar Petroleum, and many others. We started only in Qatar and KSA and gradually expanded our business. Since 2007, we have been growing organically by geographical expansion and non-organically through strategic mergers and acquisitions. Our current portfolio includes subsidiaries in 14 different countries, ranging from Lybia all the way to the State of Brunei. Add to that branches and associates and our footprint covers more than 23 countries. We are one of the few companies in the oil and gas sector which is ISO certified while in the region we are the only company with that certification.
Abdulaziz M. Aldelaimi
Please tell us more about NPS’s development strategy. Many national services companies are fragmented across different places and their style of business and concentration on operations is not as focused as ours. We have started with a base company and acquired different companies within the business. In certain countries we do go for acquisitions while in some other cases we open our own branch and compete directly.
it was successful. Now, we have already been working with Brunei Shell for the past five years. Even further, we are now expanding in terms of equipment to meet the demands the contract. So, slowly, once we get the first contract and manage to do a good job, we then establish an operating base and our people start looking around for new business opportunities. At the same time, operating companies there can hear about us and the services we provided to that first client. It’s been like that – we gradually expand
The question was whether, with 60% of the world’s reserves available under our feet, should we be without a national oil and gas service company? Of course, not!
Sometimes, before establishing a branch in a new country, we first participate in their tendering process. Oil and gas companies operating in those countries accept our documentation and allow us to compete on the basis of our price and qualifications. That point triggers all the subsequent steps – to win for the first time and establish a base. From that moment, the door is opened in that country for us to expand further. Like that, we have received invitation from Shell to compete against international companies in Brunei. That was our first attempt in the Far East Asia and
from our small presence in those countries. For example, from Brunei we managed to get into Malaysian market since we got a contract with one of the operating companies there. Sometimes we do get calls for big contracts. But, we tend to shy away because it will take a lot of equipment, management, capital and similar resources. Thus, our policy is to expand slowly, but to preserve. For example, we consider it better to go with one single unit requirement for operations in Brunei than to go with ten drilling RIG operations in Malaysia.
november 2012
25
Success story
Every region has certain specifics and to succeed, you have to find the right combination for opening the lock, how to get in.
RIG operations are very demanding in terms of time, commitment of our staff, and capital. More importantly, any possible problems may significantly influence our reputation in the new market. Firstly, the competition which has lost the contract is keeping an eye on our progress. Secondly, the operator is also watching us. The first mistake is usually unforgivable. So, we don’t want that to happen. For that reason, we usually tend to seek clients who require reasonable amount of capital and investment and will not take away a lot of resources from our other projects. It’s a careful approach because we don’t want to default. In oil and gas business is difficult to recover after a mistake. Therefore, the percentage of our business expansion doesn’t have to be 50% per year in that particular country. It is enough if we reach 15% per year, because we build on a strong base. What challenges do you face and how do you solve them? The biggest challenge is that we are competing with multinational oil and gas service companies which have been in the business for more than 80 years – since oil has been discovered in the USA. In addition, those companies are listed on the stock exchange and, thus, with unlimited financial power. To explain you the difference – compare the geographical presence of even the smallest among them, which is within 150 to 200 countries around the world, to ours which is in only 14 different countries. So, their size is more than ten times bigger than ours. One of the things that differentiate us is that we are strong in certain services in which other companies are not. Second important feature is the quality of our services and the fact that we are environment and safety conscious. We have been awarded accredited certifications such as ISO 9001:2008 (Quality),
26
november 2012
ISO 14001:2004 (Environment) and OHSAS 18001:2007 (Occupational Health & Safety) which are being applied in all NPS’s locations worldwide. Multinational companies definitely apply high standards, but they hide behind their name since they are not officially certified like we are. What are the NPS Group’s ambitions and growth plans and how do you plan to achieve them? Our group gained value from the growth of its companies. In a short period of time we have created strong presence in our own market and a network in 14 different markets. In those particular countries, we have additional expansion plans because each of them is also developing. At the same time, we continually seek new market opportunities in countries like Algeria or Oman.
other areas, as we speak. A couple of years ago we opened offices in India. We are also expanding in Iraq and Algeria which is our new market in the North Africa. We are proud of that. We do explore foreign market opportunities, but being successful there also depends on the partner we chose in that particular country. We require a local partner who understands the business or has done similar business before, but not the one which would be in competition with us. It is easier if the partner understands the oil and gas business, its capital intensiveness and the dedication it requires. In addition, we refrain from having a partner who is a beginner or avoids being involved in the business. I think that choosing a silent business partner is not a good idea. Is development of the oil and gas sector limited by the availability of natural resources? Due to the expansion of global economy, several major economies are increasing their demand for energy, such as China, India, and Russia. This demand will have to be covered from different sources. However, new types of energy production will require long time to develop and provide what is currently provided by oil and gas.
Sometimes we do get calls for big contracts. But, we tend to shy away because it will take a lot of equipment, management, capital and similar resources. Thus, our policy is to expand slowly, but to preserve.
For the future, we are looking at CIS countries. All of them have quite a bit of reserves and require quality services. We think we could do a good business there. But, we still haven’t found the right company to partner with. Every region has certain specifics and to succeed, you have to find the right combination for opening the lock to get in. How do you assess the competition within the industry? We cannot say that we can take all the work from the multinational companies, but our business is expanding in KSA, Qatar, UAE and
Many different operators in the world now can take oil from places which they could not reach before and the most successful ones are in the US. In various countries, nobody was paying a lot of attention to carbohydrate type of production since it was considered out of reach due to very high costs involved with deep water drilling. Also, in the past 20 - 25 years, industries have developed horizontal well drilling which provided for extension of exposure area – instead of drilling in the one place (vertically), now it’s possible to drill 10 - 15 wells at once.
Success story
Business opportunities in Qatar and the whole Middle East are tremendous, especially for local people. My advice for the youth is to select certain area of business, invest in it, specialise and focus on its development.
Please tell us more about yourself in the leading position within the NPS Group? My background is in petroleum engineering. I have worked for Qatar Petroleum for many years. Upon retirement, I was appointed as the Chairman of the NPS Group. I supervise the company’s performance and follow the group’s vision. Within a long period of operation of our companies, we consistently have to update, upgrade, meet the client and satisfy his needs. Actually, that’s what keeps us operating in the right direction. Managing is not easy, but a lot of it depends on one’s history of management, style and trustworthiness. In addition, a good manager needs to preserve focus on the business line he or she is in. The style of operation, the integrity in business which is earned through constant focus on client’s needs, and the commitment to solve their problems is what really captures their confidence for many years.
Lastly, the US based oil and gas companies have developed new type of drilling to extract oil from the ground – shale oil production. I’ll give you an example from Colorado. The oil is within a certain type of a rock which is being boiled to the point in which it expands and oil drips out of it. This technique was considered as impossible before. The amount of reserves accessible through these shale formations is huge, so it’s adding to the reserves again. Due to increased quantities of oil and gas, gas prices in the US have tremendously fallen when compared with gas prices in Europe. The final result is that the US will soon become a net exporter of gas instead of a net importer.
Familiarity with the business is extremely important when working with oil and gas service companies. All oil and gas operators are very meticulous about their services because they deal with high-pressure and hightemperature wells. For that reason, we have to be very selective regarding the people we employ and the equipment we use. We have a very good management team whose members are recruited mostly from multinational companies. The key element of our success is to capture the wealth of knowledge that they have. The group is not managed as a family business, since we insist on our corporate image
with the hierarchy of decision making and tasks performance. Being a small company allows much faster decision-making process. That is actually our strength – we are small, so we can move faster. Are there any steps you would advise a young manager to follow in order to be successful in leading highly-demanding, multinational business one day? To follow the same footsteps – patience and concentration on the chosen line of business. Firstly, avoid mixing a lot of different businesses at the same time. Secondly, specialise – be independent because of the knowledge that you have. If your background is in a certain field, it would be the best to do business in that particular field. For example, if you are an IT person and develop various businesses among which only one is in IT, most probably that will be the most successful one. I have done businesses in different domains – contracting, trading and similar. But, none was as successful as the one related to oil and gas. It is a matter of expertise. Business opportunities in Qatar and the whole Middle East are tremendous, especially for local people. My advice for the youth is to select a certain area of business, invest in it, specialise and focus on its development. Growth of private sector is bigger than public sector, but there should be some kind of incubation centre to support development of their ideas. In any case, they need to start and should not be shy and ask, “What is the best way to do it?” Don’t look for the best way to do it, just go ahead and do it!
november 2012
27
finance
Islamic finance is a very attractive market, with superior growth and profitability opportunities. Half of the 1.4 billion of Muslims worldwide would opt for Islamic finance if given a competitive alternative to conventional services. Kamel Fathi Fayed, Financial Controller, QDB, gives an overview of its foundations, future growth opportunities and explains why it can be considered as a solution for the current financial crisis.
S
ince 2000, the Islamic finance market has been growing at the rate of over 30% annually and is set for continued strong growth. At the end of 2007, it encompassed total of USD 660 billion of assets and USD 53 billion of revenues. Islamic finance profit pools total USD 15 billion and will increase more than two-fold to USD 32 billion over the next five years. QDB estimates that Islamic assets will reach almost USD 1,600 billion with revenues of USD 120 billion by the end of 2012. Interest has spread beyond Islamic countries and leading financial centers, like London, are now pushing to position themselves as major Islamic finance hubs. Currently, Islamic finance market participants are divided in the following three categories: • Islamic banks • Commercial banks with an Islamic finance window or a subsidiary • Commercial banks evaluating an entry into Islamic finance
28
november 2012
The challenges and opportunities facing each of these categories will be different given different starting and desired positions. From Islamic banks’ perspective, greater focus is needed for some of the areas which can be divided in two levels – external and internal.
• • • •
External to the institution Growth markets and scope of services Standardisation Fee services/transaction banking Benchmarking
Internal to the institution • P roduct configuration and process orchestration • Corporate governance • Greater operational risk • Cost management • KYC norms • E-documentation • Credit risk scoring and modeling
What is Islamic finance? Islamic finance is an outcome of the need to extend the tenets of religious faith to economic activity in such a way that benefits are evenly shared among all the stakeholders and the economy as a whole. Some of the other underlying features of Islamic finance include: Time due of money Under Islamic finance, time due of money is not recognised – once the sale price is fixed for financing, the institution cannot claim more than the pre-fixed sale price. The dues to the institution, once fixed, remain fixed. Asset backed Typically, all Islamic structures have an underlying asset backing the deal. As such, financing under Islamic structures has a propensity to control inflation.
finance
Means and ends Though profitability can be stated as a common end for both Islamic and conventional financial institutions, the Islamic institutions carefully structure and adhere to procedures and process steps (means) to ensure that the profits earned are in line with the Shari’ah prescriptions. Process orientation Each of the financing structures is composed of processes and tasks. Even if a transaction is to be fulfilled regardless of the absence of one of the tasks, the transaction will be rendered invalid in the eyes of Shari’ah. For example, in a Murabahah transaction the institution is permitted to earn profit only as a reward for the risk undertaken. The proof of the undertaken risk lies in the fact that the institution has take prior possession of the asset. If the institution did not have the prior possession, and hence faces the risk of destruction, the transaction would be invalid. The basic pillars Basis of Shari’ah - Shari’ah (Islamic law) forms the basis of the framework of Islamic finance. The five sources of Shari’ah • The Holy Qur’an • The Sunna of the Holy Prophet (PBUH) • ‘Ijma’ - consensus among the jurists • ‘Qiyas’ – analogy • ‘Ijtihad’ – reasoning Schools of thought Over time, various schools of thought have shaped and lead the development of Islamic finance. The popular schools are Hanafi, Maliki, Shafi and Hanbali. Prohibitions The following are specifically prohibited: Riba – interest, Gharar – uncertainty, Maysir - gambling, and dealing in unlawful goods or services. Islamic institutions structure their products and processes to ensure total compliance.
Islamic finance is an outcome of the need to extend the tenets of religious faith to economic activity in such a way that benefits are evenly shared among all the stakeholders and the economy as a whole.
Major Islamic finance products are the following: Istisna’a The Istisnaa allows the second kind of sale where a commodity is transacted before it comes into existence. This allows the bank to order for the goods or equipment required for a construction project according to the choice of the client and delivers them to the client. The client agrees to pay in installments at specified dates. There are two sub-types of Istisnaa contracts which are classified based on the commodity bought or sold. Ijarah (fixed and variable rental) Islamic investment’s Ijarah is the process by which “usufruct of a particular property is transferred to another person in exchange for a rent claimed from him/her.” It is the equivalent of leasing in commercial banking. This allows the bank to order for capital assets required for the customer against a rental agreement with him. The title remains with the bank until the maturity of the lease, but the lease uses the equipment during the lease period. On maturity the asset belongs to the bank. • Ijarah Corporate Operational – Leasing • Financial Ijarah Murabaha (car finance, home finance, real estate finance, and similar) and Murabaha LC Murabaha contract revolves around the purchase of an asset by the bank and the onward sale of the same by the bank to a customer. The purchase may involve commodities, homes, real estate, vehicle, and similar. The bank makes a profit on the transaction, which is the difference between the price which it pays to the supplier of the goods and the price at which it sells the commodity to the customer. This mark-up will be agreed between the bank and the customer in advance. The financed amount and profit are due and payable on terms agreed between the two parties. The Shari’ah principles require that
goods have to be purchased, owned by the bank and therefore, the bank bears all the risks related to the unforeseeable events (goods damage, war, customer bankruptcy) until the goods are sold to the customer. Musharaka (corporate LC, IDBC) Musharaka contract revolves around partnership, normally of a limited duration, formed to finance a project. The bank enters into a partnership with a client in which both share the equity capital. Net profit will be divided according to the equity shareholding, regardless of the management fees. Mudaraba (savings account and investment deposit) Mudaraba module allows customers to invest funds in Mudaraba transactions which will have to be invested by the bank using Islamic investments. The funds taken from the customer are then given to the dealers who will make the necessary investments using all or part of the funds in one or more IS contracts respectively – the customer’s funds can be used along with bank’s funds to make an IS contract. Depending on the profit the dealer generates from the IS contract, he will then give a rate for the customer’s funds which normally is lower than the rate of the profit made on the IS contract. Therefore, the customer’s investment becomes a normal deposit with the bank with a profit (interest) rate and maturity date (the final sell payment date of the IS contract) associated with it. The customer can do the following things with his Mudaraba investment: • On the maturity date customers can take back his capital and profit and let the contract mature. • Customers can take back his profit at maturity and roll the capital over for an additional time period. • Customers can ask the bank to add the profit
november 2012
29
finance
to the capital and roll over the whole amount for an additional time period. • The Mudaraba contract can be early matured – the customer can come to the bank and ask them to break the investment. In that case the profit is calculated up to the date on which the customer asks the bank to break the investment.
participate in the design of regulatory standards, primarily in the framework of Islamic Financial Services Board. Both types of standards have only the legal quality of recommendations, but these recommendations are translated into authoritative standards by governments and central banks of an increasing number of Muslim countries.
Other Islamic finance products include tawarruq (consumer and corporate), current account (qard hassen), post dated cheques, teller transaction, funds transfer, hajj loans, salam, and other personal finance without profit.
The improvement of techniques, the refinement of accounting standards, and the regulatory integration into existing financial systems clearly remove possible obstacles which might originate from the prohibition of interest. It remains to be seen whether the modernised Shari’ah compliant financial toolbox will be used by ideologically motivated bankers in order to address the financial needs of new entrepreneurs, self-employed people and local communities, who so far are widely neglected by conventional banks. If this happens, Islamic finance could make a distinctive contribution towards the development of Muslim countries even if the overall economic system remains mainly secular.
Is it the answer to the financial crisis? The global financial crisis started with the rise of interests which caused the inflation and banks started expanding their loans. In the USA, for
Kamel Fathi Fayed
The rise and acceptance of Islamic finance can be counted among the most significant innovations the financial industry has witnessed.
example, mortgages led to the sale of debt due to the inability of debtors to pay. For that reason, after the global financial crisis the Islamic financial industry proved to be the only possible system able to avoid recurrence of the crisis, due to the fact that this economy is not based on the interest rate which actually caused the crisis. The world is involved in USD 600 trillion transactions, while the real economy does not exceed USD 60 trillion dollars. This is not the case with Islamic finance, which requires access to property rights, and, as we see now, most of the international regimes are calling to take advantage of it. Islamic supervisions Today’s Islamic bankers are not worried about systemic superiority, as were the Islamic economists in the 1970s and 1980s, but are content with the legal Shariah compliance of
30
november 2012
their new techniques and products. Their prime objective is no longer ideology, but market performance. New interest-free tools as such hardly promote development, but efficient techniques are by all means a necessary precondition. The replacement of outdated techniques removes some impediments to the progress of Islamic finance and thus enhances the chances for an integration of an Islamic economic subsystem into secular market oriented economic systems in Muslim countries. This tendency is supported by authorities for supervision and regulation of financial institutions and markets in many Muslim countries. They observe with great interest the formulation of accounting and auditing standards issued by organisations of the Islamic finance industry like the Accounting and Auditing Organisation for Islamic Financial Institutions. In addition, many of them actively
The foundations of Islamic finance can be considered as the “new global system after the fall of capitalism,” without denying the need to solve some relevant issues, such as individual errors and standardisation of the Shari’ah standards. The rise and acceptance of Islamic finance can be counted among the most significant innovations the financial industry has witnessed. A lot has been accomplished by innovatively addressing the financial needs of customers within the framework of underlying tenets of religious faith.
About Kamel Fathi Fayed is Financial Controller, CPA, in QDB. He worked as Chief Financial Officer at Kuwait International Bank and as Financial Manager of the Control Department at Kuwait Finance House. He graduated from the American University in Cairo and has over 15 years of experience in driving a bank’s strategic growth. Kamel can be contacted at kamel@qdb.qa
Excellence. At Carnegie Mellon.
For more than a century, Carnegie Mellon University has been inspiring innovations that change the world. Consistently top ranked, Carnegie Mellon has more than 11,000 students, 90,000 alumni and 5,000 faculty and staff globally. In 2004, Qatar Foundation invited Carnegie Mellon to join Education City, a groundbreaking center for scholarship and research. Students from 39 different countries enroll at our world-class facilities in Education City. Carnegie Mellon Qatar offers undergraduate programs in biological sciences, business administration, computational biology, computer science and information systems. Carnegie Mellon is firmly committed to Qatar’s National Vision 2030 by developing people, society, the economy and the environment. Learn more at www.qatar.cmu.edu
Entrepreneur
Going global
For the first time ever, Qatar is officially joining more than 120 other countries to participate in the Global Entrepreneurship Week (GEW) from 12th till 18th November 2012. The national initiative is being driven by the GEW Qatar Board, an influential group of organisations involved in the promotion of entrepreneurship and economic development within the country. Private Sector Qatar thought it would be a good idea to check with some of them how GEW will add value to the already existing initiatives in Qatar.
G
32
lobal Entrepreneurship Week (GEW) is the world’s largest celebration of the innovators and job creators who launch startups that bring ideas to life, drive economic growth and expand human welfare.
competitions and events to intimate networking gatherings, connect participants to potential collaborators, mentors and even investors, introducing them to new possibilities and exciting opportunities.
During one week every November, GEW inspires people everywhere through local, national and global activities designed to help them explore their potential as self-starters and innovators. These activities, from large-scale
The initiative kicked off in 2008 and was launched by Gordon Brown, former UK Prime Minister, and Carl Schramm, President and CEO of the Ewing Marion Kauffman Foundation. Since then, it has grown to 120 countries and with
november 2012
nearly 24,000 partner organisations planning more than 37,000 activities that directly engage more than seven million people. Silatech, a Qatar-based social initiative focused on youth employment and entrepreneurship, is the official host organisation for Qatar and chairs the GEW Qatar Board. Silatech considers that hosting GEW would demonstrate its commitment to be a convener of significant events and activities
Entrepreneur
Silatech, a Qatar-based social initiative focused on youth employment and entrepreneurship, is the official host organisation for Qatar and chairs the GEW Qatar Board. Silatech considers that hosting GEW would demonstrate its commitment to be a convener of significant events and activities in the enterprise and policy arena.
in the enterprise and policy arena. When asked about GEW Qatar’s aim for 2012, Elaine Gold, Silatech, explained, “We aim to deliver a programme of innovative and stimulating events which will raise awareness, educate and inform the population of Qatar about the benefits of entrepreneurship to the individual and the country.” Furthermore, Yasmeen Hasan, Entrepreneurship Development Manager, Bedaya Centre, was quick to point out some additional benefits of the event, “GEW’s main goal will be to promote the culture of entrepreneurship. Also, through bringing key players together it will be a great platform to discuss the problems and issues entrepreneurs face specifically in Qatar, and work together in finding solutions or lobbying for change.” GEW in Qatar is bringing together a wide range of organisations accross a variety of sectors. With the help of the platinum sponsors Enterprise Qatar, and also gold sponsor Shell, a programme of workshops, business simulations and focus groups, will be delivered by organisations including Bedaya Center, Enterprise Qatar, Entrepreneurs’ Organization, ICT Qatar, Qatar Chamber of Commerce & Industry, Qatar Development Bank, Qatar Science & Technology Park, Virginia Commonwealth University, Think Big Qatar, Shell, Injaz Qatar, How Women Work,
SpinnCreative, Qatar Skills Academy, Roudha Center, Grow, and The Youth Company. “By combining our efforts together, we can create a far greater effect than our individual organisations would have by promoting entrepreneurship individually,” said Dr. Tarik Yousef, CEO, Silatech, and added,
• • • • •
I CT Qatar Qatar Chamber of Commerce & Industry Qatar Development Bank (QDB) Qatar Science & Technology Park (QSTP) The Youth Company
In 2011, Bedaya Center for Entrepreneurship and Career Development and Qatar Science and Technology Park (QSTP) ran an unofficial GEW event showcasing young Qatari entrepreneurs with over 200 people attending. Based on that experience, Silatech decided to elaborate on the idea and make the event a regular part of Qatar’s Entrepreneurial Calendar. As GEW Qatar is now part of the official International GEW Network, this year the event will be on par with other countries and will hold a number of activities for the whole week.
“By combining our efforts together, we can create a far greater effect than our individual organisations would have by promoting entrepreneurship individually,” said Dr. Tarik Yousef, CEO, Silatech.
“Participating in Global Entrepreneurship Week gives us the opportunity to link with an established worldwide network to advance skills such as problem solving, creativity, and resourcefulness that are valuable to everyone, not just aspiring entrepreneurs.” For efficiency reasons, Silatech has formed a small GEW Qatar Board to plan an exciting programme of activities which will involve a wider range of private and public sector organisations, and will appeal across a range of interests and age groups. The board includes: • Bedaya Center • Enterprise Qatar (EQ) • Entrepreneurs’ Organization (EO)
Silatech and its partners recently launched the first Angel Investment Network in Qatar that was named SILA. This new initiative aims to close the funding gap for startups and early stage companies in the local market. SILA is an ongoing movement that will change the future of entrepreneurship in Qatar. The beauty of GEW, however, is that it brings all the organisations together. Thus, in true collaboration spirit we all work with each other in running events, workshops and programmes with the one main objective – promoting entrepreneurship. There is a great value in this as it allows us, at Bedaya, to work closely and learn from the other organsiations in the eco-system and vice versa. I believe the knowledge-sharing among us will be extremely important.” Organisations interested in participating in GEW Qatar can submit their information to Silatech via email (gew@silatech.com) with a defined agenda of the events, activities, competitions, or workshops they will be hosting.
november 2012
33
Entrepreneur
Picture Qatar! Even one photo can serve as the point of difference between you and your competitors. Aparna Shivpuri Arya spoke to Razan Suliman, Founder and CEO, BYLENS, on how they created the first Qatari theme photo library and what are their future plans. Make sure to read carefully entrepreneurial advice from this young and artistic Qatari businesswoman. Please give us a brief background about BYLENS. BYLENS’s focus is the distribution and production of stock images. It serves Qatar’s business network of both editorial and commercial clients. We at BYLENS, have created the first Qatari theme photo library through which we reflect the business photography in a Qatari sense with an aim to fulfill the needs of creative assignments. These photos can be used in brochures, reports, books, flyers, and advertisements. They are produced in
34
november 2012
studios using a wide variety of models posing as professionals, stereotypes, and expressing stereotypical emotions. Our aim is to give the correct image of Qatar and Qatari people. It can serve as the point of difference between our client and his or hers competitors. How and why did you decide to set up this business? As photographers we struggled, not due to the lack of creativity and talent, but because of the lack of business knowledge. So, we
decided to create our own stock photography which would include more Qataris to better represent the character and personality of any organisation. This is important because, for example, certain stock imagery has been so overused that they have become meaningless. It conveys no information value and carries no positive emotional message. Even when you choose to use stock photography there is no reason why it needs to be confined to a box! Instead seek ways to
Entrepreneur
The greatest fear we had when starting our business was the instability of it all - the lack of revenue and the uncertainty whether we would be able to make ends meet. After working hard and brainstorming, persistence paid off and our fear passed.
better integrate it with your design by breaking out of the grid. This can take even relatively poor photography and give it a new life. People choose to become entrepreneurs for many reasons. For us, those reasons run the gamut and encompass everything from the need for more schedule and flexibility to experiencing a glass ceiling. In our case, we were dissatisfied working for someone else. We had a desire to be our own bosses and lead our own company. We followed our dream, and today we are the owners of the first online Qatari stock images. What were the challenges that you faced while starting your business? The greatest fear we had when starting our business was the instability of it all - the lack of revenue and the uncertainty whether we would be able to make ends meet. After working hard and brainstorming, persistence paid off and our fear passed.
Do you think that Qatar offers opportunities for entrepreneurs in niche areas such as yours? We believe that there are those great institutions such as Roudha Center for Entrepreneurship and Innovation which help, support and encourage female entrepreneurs. Enterprise Qatar also supports entrepreneurship, as well as Injaz Qatar which honours students with entrepreneurial skills. Also, Bedaya Center celebrates young entrepreneurs and supports them and, most importantly, ictQATAR which was our number one supporter and provided us with incubation. Entrepreneurship spirit in Qatar is growing more and more every day – a lot of companies are targeting and assisting entrepreneurs and business owners.
How did you prepare before getting into the business? Anyone with an eye for original images, the right equipment and film, and excellent technical skills can take good pictures. But, to make a living out of taking stunning photographs requires more than photography skills – you must also be a savvy businessperson. To succeed in this business, you need to know about the financial, legal, management and marketing aspects of starting and running a photography business. Here are some of the steps we needed to take when we started our own business: • Writing our business plan • Establishing our legal business identity • Opening a business banking account for business and financial expenses • Getting our equipment • Joining professional organisations • Finalising supply and photo lab arrangements • Creating our corporate identity • Finalising our Website • Promoting our business
At first people thought it won’t work and that there was no place for such business. In order to get over this fear of being judged, we surrounded ourselves with people who would support us whether our business succeeded or failed. This gave us the room to build a business without worrying about what our peers thought. These supporters were a key in building our business into what it is today. The biggest challenge was finding people who would model for us, and getting approvals from different locations for our photo sessions and obtaining signatures for property release forms. In addition, it was also about spreading the word and getting people to believe in us and buy our photos.
Razan Suliman and Mohammed Abdullah
november 2012
35
Entrepreneur
In five years’ time, we see ourselves as being the leading Qatari online photo library. We are also thinking that by then we can franchise! The stories of entrepreneurs who have become both well known and well heeled due to franchising their small businesses are legion and not just stories.
What are the do’s and don’ts of being an entrepreneur or a startup in Qatar? Do’s • Start something, a Website, a group – whatever you prefer. Action is what counts, so take action, even if it’s not a very significant progress towards your business. This step would get the ball rolling. Try it! • Get rid of all your debts – this is very important because you don’t want to be in debt when starting your business. Since you will have many things to worry about in your business, you might need occasional credit card swipes to support your business. Thus, the last thing you need to hear is a call from your bank or collector. • Solve a problem – to find out what is business, look at the current players and their services, interview a few customers and identify a problem or issue with a current product and service. Then, solve it. • Network – talk to anyone and everyone, tell them about your business when they ask what you do. Soon, you’ll master your business pitch and be connected to lots of people, because you never know who you’ll bump into. Don’ts • Wait for the perfect time, it’s an illusion – tell me about one thing you did in perfect time? Perfect timing doesn’t exist. It’s either now or never. What’s your pick? • Hire friends unless they are equally, if not more, excited and motivated for the business. Enough said. • Try to do it all by yourself – no one can. So, learn the art of delegation and outsourcing.
36
november 2012
Did you finance the business yourself or you approached the institutions in Qatar? We financed our business ourselves. What support do you think Qataris need to do business in Qatar? We need more government assistance for entrepreneurs. The government must give out more money to small business owners and provide more government grants for small businesses which can be used for start up costs! Also, government should provide more entrepreneurs with assistance by offering free information for small business owners. Starting a business and managing a business are two different things. What was your approach on managing and growing your business? Our approach was like this: Penetrating existing market The first thing that came to our mind when we were thinking of growing our business was getting new customers. But, the customers we already had were our best bet for increasing our sales. It’s easier and more cost-effective to get people who are already buying from us to buy more than to find new customers and persuade them to buy from us. Asking for referrals Getting new customers was another approach to growing our business. One of the easiest way to do this was by asking our current customers for referrals.
Innovating products or services Discovering and promoting new uses for our products or services was a great way to both get existing customers to buy more and attract new customers. Extending market reach We extended our reach through advertising! Once we identified a new market, we advertised in selected media that targeted that market. Participating in trade shows We also participated in trade shows. Where do you see yourself five years from now? Any expansion or diversification plans? In five years’ time, we see ourselves as being the leading Qatari online photo library. We are also thinking that by then we can franchise! The stories of entrepreneurs who have become both well known and well-heeled due to franchising their small businesses are legion and not just stories. If we have a successful business and can develop a system which ensures that others can duplicate our success, franchising may be the fast track for growing our business. We are also hoping to expand into international markets. Like franchising, this is a way of growing our business that requires quite a commitment of time and resources.
About Razan Suliman is an artistic entrepreneur, founder and CEO of BYLENS - Fanilla Couture - Demure Collection. She is the artist behind the creative designs of RazanGraphics. com. Designer, illustrator and web developer, Razan’s career began 10 years ago, learning the art and craft of the industry. Over the years, she’s worked at several corporations and has done a lot of freelance, honing her craft and developing her own unique style of design. In 2011, Razan and her partner Mohammed Abdullah launched BYLENS, the first Qatari stock photography Website, to help the creative and editorial communities to produce distinctive work. For more information, please visit www.bylens.qa and www.bylens.net.
LEGAL
Don’t jump the fence
In 1995, the Emir of the State of Qatar issued the Emiri Decree No. (24) of 1995 ratifying the accession of Qatar to the World Trade Organisation (WTO). Following this accession to the WTO, the Qatari government have enacted and revised several intellectual property laws that implement its obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Malik Al Kammaz, Country Manager, Saba & Co Intellectual Property – Qatar, provides an overview of one of them – the Law No. (17) of 2011 on the Border Measures for the Protection of Intellectual Property Rights.
W
TO Agreement On Traderelated Aspects of Intellectual Property Rights (TRIPS) sets down minimum standards for many forms of intellectual property regulations as applied to nationals of other WTO Members. In fulfilment of its obligations, the Qatari government has enacted the following IP laws: • Law No. (7) of 2002 on Copyrights and Related Rights, • Law No. (9) of 2002 on Trademarks, Commercial Indications, Trade Names, Geographical Indications, Industrial Models and Designs, • Customs Law No. (40) of 2002, • Trade Secrets Law No. (5) of 2005, • Integrated Circuits Law No. (6) of 2005,
38
november 2012
• Patents Law No. (30) of 2006, • Emiri Decree No. (53) of 2009 on the Establishment of the Intellectual Property Protection Center, and • Law No. (17) of 2011 on the Border Measures for the Protection of Intellectual Property Rights.
• • •
Zoom out Following are the salient features of Law No. (17) of 2011 on the Border Measures for the Protection of IPRs: • T he customs authority can suspend entry into Qatar of alleged counterfeit and pirated products. • The rights holder may request for the inspection of the imported goods which
•
involve an infringement, and such request must be supported by a sufficient evidence of the occurrence of such infringement. The customs authority shall notify the importer and the rights holder of its decision. The decision of the customs authority may be appealed before the court. The rights holder may submit an application at the customs for the registration of all the information related to his rights. Any person importing infringed products and knowingly doing so, will be punishable by imprisonment of a term not exceeding one year or a fine of not more than QR 10, 000, approximately USD 2,750, or both.
However, the following items are not subject to the provisions of this law:
LEGAL
• S mall quantities of goods of a non-commercial nature and gifts contained in travelers’ personal luggage or sent in small consignments. • Goods in transit. • Goods put on the market of the country of origin by or with the consent of the rights holder. • Goods entering from a neighboring country that is member of a customs union with Qatar where all controls over movement of goods across said borders have been substantially removed. Zoom in The long awaited Law No. (17) of 2011 was issued on 17th November 2011, and was published in the Official Gazette Issue No. 12, dated of 22nd December 2011. The law is said to be a mirror reflection of the provisions of Section 4 of TRIPS on “SPECIAL REQUIREMENTS RELATED TO BORDER MEASURES”. Administration According to the law, the Ministry of Economy and Finance will be administering this law through the General Department of Customs. In addition, legal actions related to this law can be filed with the Administrative Circuit at the Court of First Instance.
Suspension of release by customs authorities According to Article (3) of the law, entry to Qatar of any goods which involve infringement of any rights that are subject of protection is prohibited. And, once there is prima facie an infringement of the right holder’s intellectual property right, the customs department must take the necessary procedures to prevent the entry of the infringing goods into the country. Application According to Article (3) of the law, “a right holder can lodge an application with the Customs Department to stop the clearance process and request suspension of the release into free circulation of the imported goods which involve an infringement of the right holder’s rights.” For this purpose, the application must be supported with adequate evidence of infringement and supply a sufficiently-detailed description of the infringing goods. The right holder in this regard would be the owner of any of the rights that are subject of protection under the laws named above. The department shall decide on the suspension application within one week of the application date while the
Right of inspection and information According to Article (6), the right holder may request the customs department the right to inspect the imported goods which involve an infringement of its rights. Such request must be supported by a sufficient evidence of the occurrence of such infringement. In this regard, according to Article (1) of the law, the goods will mean the goods defined in the Customs Law No. (40) of 2002. Since the definition of goods in the Customs Law No. (40) of 2002, is not an all-compassing one, it would be helpful to refer to the definition of goods in TRIPS as binding to the members. Therefore, if we read the definition of goods in Customs Law No. (40) of 2002 in conjunction with the one under Article 51 of TRIPS, then the definition of goods shall extend to goods including “packaging, bearing without authorisation a trademark which is identical to the trademark
WTO Agreement On Trade-related Aspects of Intellectual Property Rights (TRIPS) sets down minimum standards for many forms of intellectual property regulations as applied to nationals of other WTO Members.
lapse of this period without a response by the department is an implicit rejection thereof. The department shall, within one week of the date of the issuance of its decision, notify the importer and the right holder of its decision, as per the previous article, by delivering the notification to their place of residence or business address or through any other means confirming the due delivery of the notification of the decision.
Malik Al Kammaz
suspecting that the importation of counterfeit trademark or pirated copyright goods may take place, to lodge an application in writing with competent authorities, administrative or judicial, for the suspension by the customs authorities of the release into free circulation of such goods.”
It is worth mentioning here that the text of the above cited article matches in its majority that of Article 51 of TRIPS which provides for “a right holder, who has valid grounds for
validly registered in respect of such goods, or which cannot be distinguished in its essential aspects from such a trademark, and which thereby infringes the rights of the owner of the trademark in question under the law of the country of importation; also, the goods will mean any goods which are copies made without the consent of the right holder or person duly authorised by the right holder in the country of production and which are made directly or indirectly from an article where the making of that copy would have constituted an infringement of a copyright or a related right under the law of the country of importation.”
november 2012
39
LEGAL
It is worth mentioning that the countries of our region which currently offer customs recordaI are UAE, Cyprus, Morocco, Sudan and Tunisia. A customs watch system is available in Jordan whereby all trademarks registered at the Trademark Office are automatically placed on watch at the borders.
However, the following goods will be excluded: • Goods in transit. • Goods put on the market of the country of origin by or with the consent of the right holder. • Goods entering from a bordering country with which Qatar forms part of a customs union where all controls over movement of goods across said borders have been substantially dismantled.
one or more experts to carry out the inventory and prepare a detailed description of the specifications and the labeling of the goods.
Security or equivalent assurance The law requires the applicant to submit a cash deposit at the court sufficient to cover any expenses and compensations, or provide a bank guarantee decided by the court, which will be re-funded to the applicant once a final verdict is issued in its favour.
Punishment and penalties Without prejudice to any severer penalty provided by the law, any person entering Qatar with goods which involve infringement of any of the rights subject to protection, knowingly doing so, will be punishable by imprisonment of a term not exceeding one year or a fine of not more than QR 10,000 or both. The punishment provided for in the previous paragraph will be doubled in case of recurrence. In all circumstances, the court will publish, at the expense of the party convicted, a copy of the verdict in one or more daily newspapers, and order seizure of the goods found infringing on the rights subject to protection.
Notice of suspension The department shall, within one week of the date of the issuance of its decision, notify the importer and the right holder of its decision, as per Articles 3 and 4 of the law, by delivering the notification to their place of residence or business address or through any other means confirming the due delivery of the notification of the decision. Duration of suspension Suspension will remain for a period not exceeding seven days from the date the import is notified and during which the suspension decision may be appealed before the court. The court will decide on the appeal within three days of filing the appeal and said ruling may include: (1) ordering an inventory and a detailed description of the imported goods that infringe on any of the rights subject of protection as well as an inventory and description of documents or materials used in committing any of the acts mentioned, and may, for this purpose, appoint
40
november 2012
(2) ordering the applicant to submit a cash deposit at the court sufficient to cover any expenses and compensations, or provide a bank guarantee decided by the court, which will be re-funded to the applicant once a final verdict is issued in its favour.
De Minimis imports Small quantities of goods of a non-commercial nature and gifts contained in travelers’ personal luggage or sent in small consignments will be excluded from the application of the provisions of this law. Recordal of IP Rights with the customs department According to Article (7) of the law, the right holder may submit an application with the Department requesting registration of all data related to its rights, including its address in the country, in a registry specific for this purpose at the department. Minister will issue a decision on the registration procedures and fees upon
a proposal by the Director General of the Department. However, this recordal of IPRs will be possible upon issuance of the implementing regulations of the referenced law. Customs recordaI will undoubtedly help officials target, intercept and confiscate shipments of infringing goods. One fundamental premise of the recordation system, other than providing a central registry containing information for recorded trademarks, is that it allows customs officials to adopt an ex-officio border system. An ex officio system is different from the standard border system in which a judicial authority orders customs to detain the infringing shipment after identifying the infringing goods. The key advantage of the ex-officio system is that it allows for prompt and proactive action by customs officials thus avoiding the delays inherently involved in seeking judicial action. Customs officials are always on the lookout for infringing goods and are thus able to act quickly to confiscate counterfeit and pirated merchandise. It is worth mentioning that the countries of our region which currently offer customs recordaI are UAE, Cyprus, Morocco, Sudan and Tunisia. A customs watch system is available in Jordan whereby all trademarks registered at the Trademark Office are automatically placed on watch at the borders.
About Malik Al Kammaz is Shareholder and Country Manager of the Saba & Co Intellectual Property – Qatar. He joined Saba & Co. in Amman in 2000 and relocated to Doha in 2003, and was promoted to a country manager in 2005. Since 2011, Malik has become a shareholder of Saba & Co. (TMP) Limited, the holding company of all Saba & Co. entities in the Middle East and North Africa. He is currently doing his post-graduate diploma in laws at the University of London. Malik can be contacted at mkammaz@sabaip.com
* The information contained in this article is intended to provide an update of intellectual property news and should not be relied upon as legal advice. Legal or other professional counseling should be sought from the Saba & Co Intellectual Property - Qatar.
TUESDAY, DEcEmbEr 4 ArmAni Hotel DubAi, burj KHAlifA
Recognising Industry Excellence at the Big Project ME Awards 2012 ConstruCtion Categories • Outstanding Development of the Year • Iconic Structure of the Year • Joint Venture Project of the Year • Consultant of the Year • Contractor of the Year • Developer of the Year • MEP Contractor of the Year • Quantity Surveyor of the Year Behind the ProjeCt • Architect of the Year • Project Manager of the Year • Young Engineer of the Year sustainaBility • Best Water Conservation Project • Energy Efficiency Project of the Year • Green Building Project of the Year • Sustainable Solution of the Year editor’s ChoiCe Category • Infrastructure Project of the Year
Submit your Nominations Now Nomination Deadline Tuesday, October 23
SPONSORSHIP OPPORTUNITIES AVAILABLE TABLE BOOKING AND FURTHER INFORMATION
MARKETING MANAGER | Carole McCarthy +971 4 440 9157 | carolem@cpidubai.com NOMINATION ENQUIRIES EDITORIAL | Melanie Mingas +971 4 440 9117 | melanie@cpidubai.com SPONSORSHIP OPPORTUNITIES PUBLISHING DIRECTOR | Raz Islam +971 4 440 9129 | raz@cpidubai.com COMMERCIAL DIRECTOR | Michael Stansfield +971 4 440 9128 | michael@cpidubai.com
TO SUMBIT YOUR NOMINATIONS AND FOR MORE INFORMATION VISIT
Gold Sponsor
Category Sponsor
Endorsed by:
Organised by:
Investment
, plan
Plan
and plan “Should I invest in order to secure my future? What am I doing about my retirement?” Not exactly the most riveting topic you can imagine. “Boring, turn to the next page,” that little voice in your head says. Marzena Hallam, Founder and CEO, Mibx, answers these questions after the world’s first custom designed investment seminar series “Women Investing in the Stock Market” which completed in early October 2012 in Doha.
M
ost people have a basic understanding of the importance of securing their future since they have only wondered what they are going to do about. Yet more often than not, they convince themselves that they don’t have to do much about it now. This is in much the same way that we wonder about what to do about our career or our physical health. Invariably, the tides of life carry us to a shore without a great deal of planning
42
november 2012
on our part. Too often, these shores are not where we wanted to be and we feel a great deal of regret and guilt that we did not do more with our lives to avoid outcomes which are below our desired goals in life. So, how we answer these questions will undoubtedly determine the quality of life for our later years on this earth. It sounds a bit morbid, but it is a fact of life – metaphorically and quite literally. Physical well-being is beyond the scope of
this article, but investing for your future and your career are definitely within the remit. Current financial circumstances over the world have deteriorated significantly. We are now into the fifth year of a global recession in the aftermath of the global financial crisis. The result is that with a world that is rapidly aging a growing number of people in the later years of their life, are being forced into a financial reality that was unthinkable even a few years ago.
Investment
It is often misunderstood that women actually have some quite distinct advantages over men when it comes to investing.
People have lost their jobs, their retirement fund values have dropped significantly and worse still, given the generational low in yield income, the ability to generate income from these funds has deteriorated significantly. I am not a person that enjoys scaring people, but given the severity of the situation, it sometimes is a worthwhile tactic. But, as bleak as that is and given that here in Qatar we are blessed with an abundance of hydrocarbon fuelled economic growth, things can still change quickly. Look at Spain! In 2006 it was in a boom and now the whole country is facing record unemployment and possibly being declared bankrupt. Economic circumstances change quickly and relying on the concept of things being better in the future than they are now, is fraught with danger. What if they are not? That is why people have to have a Plan A, Plan B and Plan C. After 20 years of experience in financial markets investment, advising clients and research into the combination of the two, there are a number of common themes which experts promote as the issues to consider in terms of a strategy for investing in your future. Financial markets will rectify themselves in time and savvy investors will reap rewards beyond their wildest dreams. But, this takes skills and that is where people need to educate themselves. Those are: • Take control • Start early • Be prepared to pay • Gain knowledge • Set a plan that suits your risk profile
• E njoy the process – set goals and rewards • Be disciplined • Have a side business The Women Investing in the Stock Market (WISM) programme gave the participants significant help in ALL of these issues. Sponsored by Bedaya Centre and Thomson Reuters, the WISM programme targeted Qatari women who want to become financially empowered and knowledgeable. The four week programme began in Doha in September 2012 and was composed of series of four weekly sessions designed with a number of practical real life examples taken from the Qatar market. The course provided the participants with the full range of investment requirements from the beginning on how to place trades right through to a number of different investment techniques that were both simple and profitable. The programme was taught by international industry experts, Matthew Hallam and Marzena Hallam, Founder and CEO of Mibx. Mibx is based in Qatar and its major objectives are business consulting, business setup (supporting SMEs) through knowledge transfer and practical activities and then using international connections and experts to help facilitate these outcomes. Essentially, this is what WISM is about too.
what is taught in investment books and degrees going deeper into the tricks of how a profitable investor thinks and acts to be able to beat the majority of the market majority of the time. “I was really very surprised and thrilled about how quickly the girls picked up the investment techniques. Each week there was a lot of information to go through but they managed majority of the content superbly. They actually gave me the inspiration to get back to the books and start studying again!”said Marzena Hallam, Managing Director, MibX, who will soon introduce the programme with other organisations and individuals. The female advantage in investing It is often misunderstood that women actually have quite distinct advantages over men when it comes to investing. They tend to be more careful, less ego driven and do more research and are better able to allow a portfolio to grow by constantly building through smaller profits in the same way that they would raise a child. But, in this male dominated financial world their voice is often not heard. It is time to change that. Also, the Qatari women who have expressed their interest have shown a huge amount of knowledge, dedication and
Marzena Hallam
By being specifically designed for women interested in investing in the stock market, during programme the ladies were shown one live prediction which used the mentioned techniques and resulted in a profit of 16% in just over one week. The course was designed to go beyond
november 2012
43
Investment
“Traditionally investing has been a male dominated area but the trend is changing fast. These Qatari women showed how with the right techniques and mental attitude this is going to continue to be the case,” Marzena Hallam, Founder and CEO, Mibx, pointed out.
outright determination to succeed in this field. An emphasis on these learning outcomes will go a long way. After the first week the girls had a number of learning outcomes to complete before beginning of the next week. These were designed using the content of what was learnt. To ensure that it was relevant and timely only current real time market examples were used. The majority of examples were from the Qatar Exchange, but the techniques were also proven by showing how they could have saved over 50% of their money by not investing in the Facebook IPO until one very straight forward signal said that the selling had finished. Throughout their work, Hessa Mohammed Al Thani and Muneera Abdualla Al Dosari were inspiration for a lot of the participants, “These two girls amaze me with their energy, drive and maturity for their age and are the reason that we chose them, and are the type of people this programme is all about,” Marzena said. The main idea behind the programme was that it is very, very practical. The features within this were that participants were not only being taught a number of very powerful investment techniques and theories provided and shared by industry experts. Furthermore, they were being reinforced with either practical examples, real time simulated trading, which was sponsored by Thomson Reuters. The course also went deeper into the area of psychology, money management and other
44
november 2012
life skills approaches. They were also shown a number of inspiring stories of females who have succeeded in the area of investment. This was where the internationally renowned best-selling author Charmel Del Santos (“High Heeled Traders”) gave helpful insight into how she approaches her successful investing. “Traditionally investing has been a male dominated area but the trend is changing fast. These Qatari women showed how with the right techniques and mental attitude this is going to continue,” Marzena pointed out. This kind of knowledge will benefit women in a number of ways. Firstly, it will allow them to build into an area which is both immensely enjoyable and fulfilling but also potentially financially rewarding. Being able to contribute financially gives women a greater sense of security and fulfillment and confidence. Also, learning the economic and business specific skills will either allow them to be better business owners and managers or give them the confidence to start a business. It will also allow them a better work life balance since the methods do not require vast amounts of research or time-consuming work. They are taught techniques that can allow their money to be working for them, whilst they are doing something else. Also, as markets are open only during school hours it fits neatly with a lot of women’s daily routine and even better still, markets are now accessible through mobile applications such as iPhones or SmartPhones which mean people can monitor easily whilst on the go.
Now is the time Given such proactive and visionary leadership, Qatar has an undeniably strong chance for a sustained market rally. Currently, the world’s stocks have been buffeted by the Eurozone debt crises and its related contagions, but we are now almost five years into the crisis and one day it will end. When it does, there will be a new bull market. This will also be likely to fit in with the growth that Qatar will be encouraging through the 2022 World Cup and 2030 National Vision. So, now is the time to educate and practice as history shows us that investors should always be watching and waiting in the bad times as the good times eventually come around again. Candidates were chosen more for their willingness to learn new concepts and interest in the markets and not because of their previous work experience. “The course would not have been possible without the help of Yasmeen Hasan from the Bedaya Center for Entrepreneurship and Career Development. She was very helpful in supporting the programme through use of the facilities at Katara to help with equipment and other support functions. We also managed to give the participants access to the Reuters programme which gave them access to real time data from the most successful financial markets data provider in the world,” Marzena concluded.
About MibX is a business consultancy based in Qatar that specialises in strategy and planning, management consultancy, business startup (supporting SMEs) through knowledge transfer (training), advisory services (transforming ideas into business opportunities), innovation and execution of business plans. Marzena Hallam is a Polish-Australian entrepreneur, business consultant, change promoter and talent developer / trainer and is founder and CEO of Mibx. After completing Business degree at Victoria University in Australia, her professional career progressed in business analysis, strategy and management consulting and project management. Marzena can be contacted at on mhallam@mibx.com.au.
Qatar’s export
development agency
TASDEER TASDEER, Qatar’s export development agency, was launched by Qatar Development Bank (QDB) in 2011 with the objective to develop, support, and globally promote exports from Qatar through export financing and export development and promotion services to Qatar-based SME exporters. It provides access to finance, credit insurance and advisory services for exporters and supports businesses to develop their export capabilities through export development and promotion. As part of its offering, TASDEER offers two different sets of services: • Export financial services • Export development and promotion services TASDEER’s export development services focus on products and services offered to the exporters in the area of capability and capacity building, market and business-related intelligence and market advisory services. As part of its export promotion services, TASDEER is focusing on facilitating the participation of exporters in identified exhibitions in the targeted markets
PLATINUM SPONSOR
GOLD SPONSOR
FOUNDING PARTNERS
CONNECT PARTNER
COUNTRY HOST PARTNER
ORGANISED BY
OFFICIAL MEDIA PARTNERS
SOCIAL MEDIA PARTNER
KNOWLEDGE PARTNERS
TASDEER
Export Development Services Product Offering
Key Objective
Product Description
Training Workshops
Capacity building through workshops which educate exporters on key policy initiatives
Workshops on aspects like Single Window System, GSP, free trade agreements, and similar
Trade Map and Market Access
Enabling the exporting community to gain market and business intelligence through public domain sources
Training workshops on the use of Trade Map and Market Access Map through ITC
Trade Secrets
Capability building among small and new exporters through a primer on exports and international trade
Preparing a Trade Secrets Document through interactions with the exporting community. Publishing and holding one-to-one workshops to educate and train small and new exporters
Country Market Surveys
Helping the exporting community penetrate identified new markets which offer opportunities
Conduct market studies on the identified set of products, target new markets and share the insights with the relevant exporters
Newsletter Programme
Enabling market and business intelligence and relationship building with the exporting community
Initiating a quarterly newsletter with information on appropriate topics and showcasing a key country and exporters
Importer Database
Enabling market and business intelligence in specific target markets and building relationships with exporting community
Provide information on importers in key target markets to the relevant exporting community through a database
Product Certification Programme
Capacity building among domestic focused companies to enable them to compete internationally
Programmes to facilitate SMEs to obtain relevant product certifications, like ISO and other industry-specific certificates, which will enable their access to international markets
Market Certification Programme
Capacity building among exporting community to enable penetration of specific targeted markets which require certain local standards to be met and help diversify exports
Programmes to facilitate exporters to gain knowledge about the specific market certifications and help in the approval process through training and invitations to the approving authorities
Export Promotion Services
48
Product Offering
Key Objective
Product Description
Exhibition Programme
Export promotion through facilitating the participation of exporters in identified international exhibitions in targeted markets
Programmes to facilitate exporters to participate as a group under the TASDEER umbrella in specific, targeted exhibitions aligned with the strategy
Matchmaking Programme
Export promotion through matchmaking events in targeted countries and in Qatar to showcase capabilities
Programme inviting trade facilitators and importers from specific countries either in Qatar or in that particular country and exposing them to the capability of Qatari exporters
Exporter Awards Programme
Raising the public profile of exports by showcasing the exporting community and facilitate data gathering on exports for TASDEER
Programme to award the best performing exporters in various categories through appropriately designed criteria by an independent organisation
Exporters Directory and Export Brochure
Export promotion by showcasing Qatar exporters in appropriate international forums
Publishing the profile and capabilities of the exporters in Qatar as a directory for marketing purposes
Exporter Publicity Programme
Export promotion by facilitating creation of appropriate publicity material for specific exporters
Programme to enable the design and production of suitable publicity material for exporters targeting specific markets
november 2012
Export strategy
A big step forward As part of its export promotion services, TASDEER is facilitating the participation of 24 Qatari exporters linked to the construction industry in the Dubai Big 5 Exhibition, the largest trade show for the construction industry in the Arabian Gulf, to be held from 5th to 8th November 2012 in Dubai.
O
ne of the most commercially successful trade fairs in Dubai, the Big 5 Exhibition features national pavilions from all major exporting countries in the East and West, alongside the important local developers, contractors, importers and distributors. It will present around 2,000 companies from 50 countries to more than 50,000 visitors. TASDEER will be promoting a group of 24 Qatari exporters, at the Qatar pavilion. As part of the preparations, multiple round of meetings have already been completed with all the relevant exporters in this regard. TASDEER has booked 300 sq. m. space for the Qatar pavilion and is going to provide a professionally designed stand to each of the 24 Qatari exporters. TASDEER has also shared a list of 2400+ importers with the Qatari exporters and invited these importers to the Qatar pavilion. In addition, TASDEER has arranged for a directory of all the Qatari exporters in the Qatar pavilion and undertaken some additional marketing activities to invite maximum visitors.
List of Qatari exporters in the Qatar pavilion »» Al Misned Trading and Joinery »» Al Muftah Polymer »» Al Shams Advanced Lighting Technologies »» Almana Group »» Amiantit Qatar Pipes Company »» Aziz Factory for Advanced Technology Products »» Chainlink Qatar Trading Company »» Doha Cables »» Doha Extraco »» Doha Plastic »» Future Pipe Industries »» General Switchgear and Lighting Industries »» Hepworth PME Qatar »» Khalid Manufacturing »» Metals Forming Centre »» Qatar German Pipes Company »» Qatar International Cables Company »» Qatar National Aluminium Panel »» Qatar Paving Stones »» Qatar Plastic Additives »» Qatar Technical Steel Fabrication »» Specialty Engineering Chemicals »» Tietan Fiberglass »» Uniplast
Product focus
Learn how! If you have been wondering what to export or how to plan the export of your products, pay attention to TASDEER’s analysis of export opportunities for one particular product – woven sacks.
W
oven sacks offer a cost effective packaging solution for both smaller and bulk requirements. The key product can be classified into two main categories:
Qatar exports of Woven Sacks (2007-2011), QR Mn 35.0
• PP woven jumbo bags – used for storage of material within a weight range of 750 - 1500 kg • PP woven sacks and bags – used for storage of materials in the weight range of 25 - 100 kg The key applications of using jumbo and other smaller woven sacks include packing of cement, fertilizers, bales or wool, agricultural products like potatoes, grains, flour, coffee, sugar, tea, carpet packing, chemicals, and usage as military sand bags or for storage of anything in powder granular and flakes form. The key HS codes applicable for the export of
50
november 2012
C
R
G
A
=
0%
12
18.8
11.2 7.3 4.0
2007 Source: TASDEER
2008
2009
2010
2011
Product focus
to again bounce back and reach QR 19 billion in 2010. Europe is the largest import market with 60% share of world imports while GAFTA countries including GCC account for 3% share of total world imports.
Breakdown of Qatar exports of Woven Sacks by country of destination (2010), in QR Mn
Saudi Arabia 36% United Arab Emirates 31%
Import demand in Europe is quite fragmented with Germany being the largest (2007-2011), QR Mn Sudan 22% Qatar exports of Woven Sacks market with 12% share. Other key markets include France, UK, Spain and Netherlands. 35.0 Somalia 6% Although the GAFTA market share is small, in absolute terms, it is less than 30 times of Others 5% Qatar’s current exports. Iraq, UAE and Saudi 0% Arabia are 12 the key importers of woven sacks = R within G the GAFTA region together accounting A forC 50% of the 18.8 total imports. Within GCC, UAE and Saudi Arabia account for 80% share Source: TASDEER of the total imports with a cumulative value of 11.2 woven sacks are 630532 (flexible intermediate production activities like extrusion, weaving, QR 200 million. bulk containers of manmade textile materials), lamination and blown film production. Nearly 7.3 4.0exported to 630533 (sack/bag for packing of polyethylene/ 80% of the total production is Apart from the existing GCC markets where polypropylene strip, exc. flexible) and 630590 countries like Saudi Arabia, UAE, Sudan, Qatar is currently trying to export, most of the Real GDP Forecasts (2012-13) MENA Real GDP Growth (2012-13) (sacks and bags, for packing of goods of Somalia and other countries. They also have European markets and other large GCC markets 2007in some of the 2008 2010highly attractive 2011 textile materials, nes.). key customers key European 2009like, UAE, provide opportunities. (-0.2) 7.8 (+1.1) 5.3 The most attractive markets are Jordan, Yemen, countries like UK, France, Denmark and MENA (-0.2) 8.2 (-0.2) 3.6 Having experienced a dip in 2008, exports Holland. UAE, Sudan, Lebanon and Kuwait. By effectively (-1.0) (-1.3) 4.9 1.2 MENA of woven sacks have experienced a strong targeting new markets, Qatar’s exports of woven (-0.3) 3.3 (-0.6) 6.0 Oil Importers growth of 120% in the last three years to Having experienced strong growth till 2008, sacks can grow to QR 80-90 million in the long (+1.8) 6.6 (-1.0) 1.5 MENA reach total exports of QR 35 million in 2011. global imports of woven sacks dipped in 2009 terms (by 2016). Oil Exporters (+0.1) (-0.7) 4.0
Total = QR 18.8 Mn
China India Brazil
World
3.8
(-0.2) 3.3 Currently, are primarily to the (-0.3) exports 3.6
neighbouring GCC countries with Saudi Arabia (+0.1) 2.2 and UAE2.1 accounting for 67% of the total (-0.1) exports in (-0.2) 2.22010.Other key export destinations apan (-0.3) include 1.2 African countries like Sudan, Somalia and -0.4 (-0.6) similar. 2012 US
UK
(-0.3) 1.1
2013
Qatar Polymer Industrial (0.0) Currently, 0.9 (+/-) Revision many (-0.5) fromexporter July 2012manufacturing 0.9 Company is the only these products. It accounts for the entire exports happening in this category at the ource: IMF and QNB Group analysis moment. Since its foundation in Doha in 1999, it has developed as one of the largest woven bag producers in the Middle East. It has two large manufacturing plants with a combined installed capacity in excess of 20,000 tons per annum. The company engages in key
(+0.5) 5.2
GCC
(-0.1) 3.3 Breakdown of Woven Sacks imports of World (2010), in QR Mn
Advanced Economies
(-0.1) 1.3 (-0.5) 1.5
2012 2013 (+/-) Revision from July 2012
Europe 59%
Source: IMF and QNB Group analysis
US 11% GCC 1% GAFTA 3% Others 26%
Total = QR 19,279 Mn Source: TASDEER november 2012
51
Company focus
Going even further A leader of Qatar’s packaging industry, Qatar Polymer Industrial Company (QPAC) trusts in exploring new attractive markets and further diversifying their products offering. Majid Siddiqui, Business Developemnt Manager, QPAC, explains how TASDEER is supporting them in achieving this goal. Please tell us about Qatar Polymer Industrial Company (QPAC) and the products you offer? Qatar Polymer Industrial Company (QPAC) is a packaging industry specialist in providing a range of packaging solutions. The company was founded in Doha in 1999. We produce a wide range of packaging products used in a variety of sectors like PP woven bags, flexible intermediate bulk container (FIBC)
52
november 2012
jumbo bags, blown film, fibrillated yarn and packaging tape. We operate from two manufacturing facilities situated in the Doha Salwa Industrial Area. The annual output capacity is in excess of 20,000 tons per annum. The company also operates a large capacity lamination line together with an LDPE blown film line for the production of bags and bagliners.
What has been the past and current focus on exports for QPAC? QPAC is heavily focused on exports for the sale of jumbo sacks and PP woven sacks which are the key focus products for the company. We are one of the largest woven bag producers in the Middle East. We export more than 70-80% of our production capacity every year. Though we have customers in many countries like UK, France, Italy, Spain, Holland, Morocco, for a long time the exports have been concentrated on GCC countries like Saudi Arabia and UAE. We also export to some African countries like Sudan, Somalia, and other countries. Going forward the thrust is on exploring new attractive markets and further diversifying our exports to European and African destinations. Exports for QPAC have grown by a CAGR of more than 100% in the last three years.
Company focus
We are looking at a robust growth rate of 20% for our export revenue. In order to achieve this kind of strong growth, we hope to strongly engage with TASDEER and continue to benefit from the various export development and promotion initiatives which it is offering to the Qatari exporters.
TASDEER has recently launched several initiatives to support the growth of Qatari exporters. Which services from Majid Siddiqui TASDEER have you utilised? As part of its export promotion services, TASDEER facilitated the participation of 13 plastic related exporters in National Plastic Exhibition (NPE) 2012 held in April 2012 at Orlando, Florida, US. The NPE Exibition is a triennial event providing access to North America’s USD 400 billion/per annum plastics market and serving as a trade hub for plastics companies from South America, Europe, and Asia. QPAC was a part of the Qatar pavilion, sponsored by TASDEER. TASDEER also invited about 400 US importers to the Qatar pavilion and many of these importers actually visited us. TASDEER provided us a detailed report on the scenario
of imports for our products in the USA and the opportunity available. We have also been receiving great support from TASDEER in terms of market intelligence for our products in new markets. It has been providing us with country reports and importer contacts in new markets on a regular basis. This has helped us to a great extent in getting the required knowledge, knowhow and contacts to develop new markets for our products. How fruitful was the participation in the NPE 2012 Exhibition in USA? Participating in the NPE 2012 was extremely beneficial for our company. We received a significant number of enquiries for our products at the exhibition. A reasonable number of enquiries have been converted into actual orders. Currently, we are constrained in terms of capacity for supplying to new customers. This is being addressed by laying down additional capacity.The NPE 2012 was an excellent opportunity for us to showcase our products in USA, which is one of the very big markets for our products. We met
the importers and distributors from not only the USA but also from other nations like Mexico. The exposure through the exhibition will go a long way in helping us to develop our exports. Going forward, what are your export plans and how do you see the role of TASDEER in helping your company to achieve its targets? Going forward we plan to continue the strong focus on exports for our products. We have acquired new land of about 10,000 square meters in the Doha New Industrial Area. This will be our third factory and the approval for the layout is under process by the government authorities for construction. This factory will be constructed with a clean room facility production line to manufacture jumbo bags (FIBC) and for the expansion for other products. We are also planning to buy new machinery that would be operational in about nine months to a year and would enable us to export to different parts of the world. We are looking at a robust growth rate of 20% for our export revenue. In order to achieve this kind of strong growth, we hope to strongly engage with TASDEER and continue to benefit from the various export development and promotion initiatives which it is offering to the Qatari exporters. We really appreciate the efforts being made by TASDEER to promote the SMEs in Qatar and we hope to receive their continued support to help us grow our exports.
november 2012
53
country focus
With an aim to address and tap export markets beyond the GCC region, in this issue TASDEER focuses on Tunisia as an important market for the key products of Qatari origin. Tunisia has a diverse and market-oriented economy, with important agricultural, mining, tourism, and manufacturing sectors. Having achieved four decades of 4-5% annual GDP growth, Tunisia’s newly elected government is facing immediate challenges to stabilise its economy post overthrowing of the political leadership in January 2011. The major industries include petroleum, mining (particularly phosphate and iron ore), textiles, footwear, agribusiness and beverages. It has capitalised on its proximity to Europe and relatively lower labour costs to achieve steady growth, low inflation and today exports about 80% of its exports to the European Union. With a GDP of QR 376 billion in 2011, Tunisia imported products worth QR 86 billion in the same year including key commodities like textiles, machinery and equipment, hydrocarbons, chemicals, foodstuffs. France and Italy have been the key trading partners’ together
54
november 2012
accounting for 43% of exports and 40% of imports in 2010. The total trade between Qatar and Tunisia in 2010 was QR 65 million. The balance of trade is highly skewed in favour of Qatar with Qatar’s exports accounting for QR 41.5 million of the total trade. The key commodities exported currently include plastics, mineral fuels, oils, aluminum and aluminum articles. However, most of these products currently are being exported by the QP companies. Tunisia is an attractive market in terms of its size for many of the key non-oil and non-QP product categories which have been identified as part of the Qatar’s Export Strategy. These include electric wires and cables, medical solutions, parts of air conditioning machines, plastic packaging products, plastic tubes and pipes, polystyrene insulated sheets, powdered soap, plastic sheets and rolls, valves and
woven sacks. Tunisia’s total imports across these product categories in 2010 were QR 2,161 million with medical solutions being the biggest category and accounting for QR 657 million. This is followed by valves, electric wires and cables and plastic tubes and pipes, with them accounting for imports worth QR 387 million, QR 332 million and QR 191 million respectively. Moreover, given that Tunisia has the Greater Arab Free Trade Agreement (GAFTA) with Qatar, the import duty rates for all these products are 0% which otherwise are in the range of 27% to 43%. Thus, taking into account parameters like import market size, presence of trade agreements and proximity of the market to Qatar, Tunisia is a highly attractive market for many of the key product categories where Qatari exporters are competitive. In conclusion, it is important for the exporters to critically evaluate this market from an export perspective.
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