Private Sector Qatar - October 2012 | English

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OCTOBER 2012 www.privatesectorqatar.com/en

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CONTENTS October 2012

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Finance 32 BALANCE AMBITION WITH REALISM Tamara Pupic got talking to Steve Troop, CEO, Barwa Bank, who gave some insightful tips on how SMEs can contribute to the transformational period in the history of Qatar.

Private Sector Forum on Business and Finance

Entrepreneur 34 Be your own gUARANTOR

News

34

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

Aparna Shivpuri Arya asked Shareefa Fadhel, Co-Founder and Managing Director, Roudha Center for Entrepreneurship and Innovation, about challenges faced by the Qatari women interested in developing their own businesses.

Private Sector Forum SMEs

14 OVERVIEW The Private Sector Forum on Business and Finance, organised by CPI and presented by QDB, highlighted the most important issues for SMEs and entrepreneurs – finance. It provided an interactive platform for discussions and solutions. We bring you the exclusive coverage.

15 DISCUSSIONS Get to know what the speakers had to say about the opportunities and challenges faced

by SMEs and the entrepreneurs in the region, when it comes to finance.

22 SAY CHEESE We bring you snapshots from the forum, held at the St.Regis, Doha.

30 The uNSUNG HEROES Meet the team behind the scene, the unsung heroes who made the forum a huge success.

36 FASHION FOR BUILDINGS

36

Nasser Al Maadeed, President and Industrial MD, Qatar SAT, explained to Tamara Pupic about how they not only developed a successful business out of constructing tensile membrane structures, but also made it a fashion.

Women in business 40 wealthy and wise Qatari women are increasingly educating themselves on investment and business opportunities. For that reason, insights of Elsbeth Blekkenhorst and Danielle Duttenhofer, Co-Founders and Directors, Global Women Qatar, ensure better understanding of how this money can be invested.

40

Business advice 42 ENTREPRENEURIAL MINDSET: FAIL OR SUCCEED!

42

Salwa Atiyyah, Senior Career Guidance Manager, Silatech, tells us where is that thin line which marks a new entrepreneurial endeavour a success or a failure.

Legal 46 HOW TO CLOSE? Emma Higham, Senior Associate, Clyde &Co, provides an overview of the members’ voluntary winding up provisions under the QFC Insolvency Regulations (Regulations No. 5 of 2005, Insolvency Regulations).

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52

Technology 50 THINK OUTSIDE THE BUILDING! Co-locating is stressful for a company’s staff, but even more for its IT managers. Robert Campbell, Managing Director, Ecommnet Limited, advises us on how to implement and manage secured access within this period.

Management 52 WEAR THE STRATEGY HAT! Planning ahead is vital in today’s business world. Nada Al Mahmeed, Corporate Planning Officer, QDB, advises on how to plan the growth of your business.

EDITORIAL Publisher Dominic De Sousa

Marking a milestone

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

In September we celebrated the first anniversary of the Arabic version of Private Sector Qatar. And we shared the celebration with 150 plus people who attended our Private Sector Forum on Business and Finance on the 25th of September. If you were unable to attend or would like a recap, turn the pages, as we have all the details – presentations, discussions, pictures, from the event in this issue.

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

As I mentioned during the event, our interactions with the various private sector stakeholders over this last year, made us realise that the one recurring issue, which was a cause of concern for all was – finance.

So we thought that there could be no better time to provide a platform for discussions on this issue. And we did witness some interesting discussions!

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 Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya Louie Alma online@cpidubai.com +971 4 440 9100 Published by

1013 Centre Road, New Castle County, Wilmington, Delaware, USA

Branch Office PO Box 13700 Dubai, UAE

With speakers ranging from entrepreneurs, lawyers, bankers and international experts, there was no dearth of information to soak in. We have uploaded all the presentations on our Website for you to take a look. You’ll also get to see the team behind the magazine and the event, who have toiled hard to exceed everyone’s expectations.

The event also provided us with the opportunity to meet a lot of interesting people, who we hope to cover in our magazine in the coming issues.

Besides the event coverage, as always, we bring you stories of Qatar’s entrepreneurial brigade.

So don’t forget to read about the Roudha Centre for Entrepreneurship for Women and Qatar SAT and get to know about their journey. Also, in this issue, you’ll get some useful tips about the importance of corporate planning.

As we step into our second year, we believe that the teething issues are behind us and we will only go from strength to strength.

Thank you so much for all your support and encouragement. We look forward to hearing from you.

Till then..

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

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

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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

Third Qatar International Businesswomen Forum The Qatar International Businesswomen Forum (QIBF) has announced its return for a third successive year in October 2012, following the huge successes of 2010 and 2011. The event will be held on the 15th and 16th October 2012, at the St. Regis Hotel Doha.

In 2011, under the patronage of HH Sheikha Moza Bint Nasser, the event attracted nearly 800 delegates from the GCC, Europe and the Americas. Hugely successful and influential in its scope, the decision to reconvene for a third time in 2012 was an automatic one, with the goal of attracting and engaging more delegates from a larger number of countries also.

The forum, which has gained recognition as one of the most successful events in the region focusing on issues of Arab women in business and economic life generally, will again be organised by the Qatari Businesswomen Association (QBWA) in collaboration with Interactive Business Network.

The political upheavals taking place in the Arab world since the beginning of 2011 will continue to impact the course of economic and social developments in the region for many years to come, and one of the key questions is whether this process of change underway will boost the political and economic role of women in the region. The forum will thus look at the personal freedoms to promote greater empowerment of the Arab women and to help them achieve their causes. In addition, it will assess whether the Arab businesswomen will be able to strengthen their leadership and executive positions in an environment of change and uncertainty, and what, in fact, are the new economic and business challenges that they should expect to face in this prevailing environment.

10

October 2012

Aisah Al Fardan, Vice Chairwoman, QBWA, explained, “The Qatar Businesswomen Association, and the forum itself, were born out of the recognition that women’s issues are growing in importance and gaining support in the Arab World. This third annual forum will reinforce its reputation as one of the leading and most relevant women’s events, and will discuss important topics and hopefully come up with practical solutions that can be implemented.”

Some of the topics which will be examined at the forum include – perspectives on the post-revolution Arab economies, challenges facing Arab businesswomen in this transitional economic period, investment and asset management strategies during conditions of uncertainty and risk/reward scenarios for Arab women entrepreneurs within prevailing cultural constraints, among others. There will also be workshops on corporate governance in Arab companies, branding and other topics.

“In 2011 the forum has witnessed a superb participation and the State of Qatar is dedicated to the empowerment of women, which is represented in the National Strategy 2011-2016. This strategy includes various initiatives to support women in education, professional training, employment in the private sector and establishment of small businesses,” explained Sheikha Al Anood Bint Khalifah Bin Hamad Al Thani, President, Qatari Businesswomen Association.

In 2011 the forum attracted an array of influential delegates and VIPs among them was HE Abdulla Bin Hamad Al-Attiyah, Deputy Prime Minister of Qatar and the Head of Emiri Diwan, HE Dr Ibrahim Al Ibrahim, Secretary General - General Secretariat for Development Planning in Qatar, Lebanese MP HE Bahia Al Hariri, Jordanian Senator HE Suhair al Ali, Dr Sabah Abdel Rasoul Al Tamimi, President of the Iraqi Businesswomen Association, Reem Badran, Jordanian MP, Fatma Al Jaber, COO of the UAE’s Al Jaber Group, German television anchor Astrid Frohlof, and many others.

News

Compete with Qatar’s economy Qatar has retained its title as the region’s most competitive economy in the Global Competitiveness Report 2012-2013, released in the beginning of September 2012 by the World Economic Forum.

for goods and services, and its institutional framework,” officials from the Qatar Businessmen Association (QBA) and Qatar University have said.

However, the report points to difficulty in obtaining finance, inflation, restrictive labour regulations and an inadequately educated workforce as the main barriers to doing business.

In 2012 Qatar ranks 11th in the world, up three places from 2011. Switzerland tops the rankings for the fourth year running.

Elsewhere in the Gulf region, Saudi Arabia also has a place in the top 20, ranking 18th.

The UAE is also up three places at 24th, but Kuwait ranks as the least competitive country in the GCC, at 37th in the world, down three places on 2011.

“Qatar has maintained its position by improvements in its macroeconomic environment, the efficiency of its markets

Opportunities for all Qatar Chamber, the host of the ICC WCF 8th World Chambers Congress, announced the opening of the registration to attend the fourday event that will take place in Doha from 22nd till 25th April 2013 at the Qatar National Convention Center.

Chamber representatives and businesses in Qatar and worldwide are encouraged to register now at www.worldchamberscongress.com to receive a 20-40% early bird discount.

Chamber of Commerce (ICC) and the World Chambers Federation (WCF), the 8th World Chambers Congress will welcome chamber and business leaders from more than 100 countries to develop and strengthen partnerships, exchange best practice, and network with members. Chamber leaders will also be joined by a peer from each of the world’s 48 least developed countries, as part of the corporate social responsibility (CSR) efforts of Qatar Chamber.

Being held in the Middle East for the first time and organised by the International

Under the theme “Opportunities for All”, the unique platform will feature dynamic

plenary sessions and interactive working sessions on topics at the heart of a chamber’s local and international agenda. These include SMEs and the world economy, education and unemployment, women in business, and youth entrepreneurship.

The Congress will also feature the ICC Business World Trade Agenda Summit, to take place on 22nd April 2013. All delegates are invited to attend the summit, which aims to make recommendations on business priorities for a 21st century agenda for world trade.

october 2012

11

News

Save the date!

12

October – December 2012

Date

Event

17 September - 19 October

Gulf-European Partnership Forum Under the Patronage of HE Prime Minister

Qatar Chamber

30 September - 04 October

Investment Management Forum

Doha

October - December

Job Shadowing Programme

Bedaya Centre

1 - 3 October

3 Annual Global Petrochemicals Technology Conference

Doha

2 - 3 October

ITS and Road Safety Forum Qatar 2012

Renaissance Doha City Center Hotel

5 October

Made in Italy 2012

Qatar Chamber

7 - 10 October

Tower Tech 2012

Doha Exibition Center

8 - 10 October

HSE Forum in Energy

Doha

13 - 27 October

Build Your Business Plan Workshop

Bedaya Centre

15 - 16 October

CFO Congress Qatar

Doha

15 - 16 October

3rd Qatar International Businesswomen Forum

St. Regis Hotel Doha

16 - 18 October

Diyafa Exhibition

Doha Exhibitions Center

16 October

Doha Transport and Rail Exibition

Doha Exhibitions Center

17 - 18 October

2nd Annual LNG Technology Global Summit

Doha

21 - 24 October

Ground Support MENA Congress

Doha

22 - 24 October

Career Development Qatar

Doha

6 November

Energy Qatar 2012

Doha Exhibitions Center

6 November

Exporta's Middle East Capital Markets Conference

Doha

11 - 13 November

5th Annual Bridges Middle East

The Ritz-Carlton Hotel

11 - 17 November

Global Entrepreneurship Week

Doha

12 - 15 November

ICONIP2012

Doha

13 - 15 November

ECO-Q

Doha Exhibitions Center

13 - 15 November

World Innovation Summit For Education (WISE)

Qatar Chamber

14 - 17 November

Q-Money 2012

Doha Exhibitions Center

20 - 22 November

16th ARABAL

Grand Hyatt Doha

25 November - 8 December

United Nations Framework Convention on Climate Change

Doha

1 - 6 December

Qatar Health 2012

Doha

9 -12 December

MENA Gas Processing Summit 2012

Oryx Rotana Hotel

10 - 11 December

HSE in Construction Qatar

Crowne Plaza Doha-The Business Park Doha

rd

October 2012

Location

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

PRIVATE SECTOR FORUM

Paving the way forward The Private Sector Forum on Business and Finance was organised on 25th September 2012 at the St. Regis Doha in order to provide a platform for all stakeholder to dicuss a very important issue - access to and management of finance. The forum also marked the first anniversary of the magazine. It attracted an array of more than 150 prominent attendees from the government, foreign diplomatic missions, business community, academia, and the NGO sector in Qatar. We bring you the highlights from what proved to be a very important business event in Qatar.

I

n September 2012, the Arabic version of our magazine celebrated its first anniversary and, in just a few months, the English version will also reach its first milestone. Throughout this time we have been listening to and writing the stories of many Qatari entrepreneurs, SMEs and large corporations. Some of them were kind enough to share with us their success stories and advise others on how to overcome difficult periods. Others were honest to describe the tough trials their businesses were going through. But, all of them were unified in appreciating the support given by the government of Qatar for the fulfilment of the Qatar National Vision 2030 goals.

Although each business path is different and majority of business problems turn out to have several solutions, our team worked hard to present both the successes and the obstacles hoping that each of the stories will find its way to our readers and help them to further develop their businesses. In this way, we tried to give our humble contribution to the attainment of the QNV 2030 with the aim of being recognised as a facilitator of the private sector in Qatar.

14

OCTOBER October 2012

The event was opened by Richard Judd, Managing Director, CPI Business. In his welcome speech, Richard took us back in time and said, “Private Sector Qatar is now officially one year old. A year ago, I was looking at the first issue just before it went to press. It has evolved quickly into a leading magazine in Qatar that offers business advice and, with these events, we continue to grow. The objective of today’s event is to help business owners and aspiring entrepreneurs to understand business and finance better and, hopefully, help your businesses to flourish in a competitive local and global market.”

out, “When we decided to organise this forum, we were debating on what our focus would be. And then we realised that during our discussions and meetings with a number of companies, startups and entrepreneurs in Qatar over the last one year, the one recurring issue that was a cause of concern to everyone was – access to and management of finance. So, we decided that this is a good time to put forth a platform for discussion on this important issue and bring together all the stakeholders.

The forum will highlight step by step the process related to accessing finance and then managing it.”

In line with the experience gained throughout last year, we decided to focus on SMEs since it is them and the entrepreneurs that fuel the innovation and growth within the private sector.

For that reason, the agenda followed a step by step approach to the topic of financing in order to highlight all the important issues for SMEs and entrepreneurs by providing an interactive platform for discussions and solutions.

The six sessions invoked much participation from the audience. Distinguished international and local subject matter experts gave their thoughts and tips on opportunities and challenges regarding the financing of SMEs and entrepreneurs. Attendee reactions were very positive and constructive discussions within small groups continued even during the lunch organised upon official closure of the event.

Regarding this, Aparna Shivpuri Arya, Senior Editor, Private Sector Qatar, pointed

Tamara Pupic, Assistant Editor, Private Sector Qatar, brings you synopsis of the discussions.

PRIVATE SECTOR FORUM

SMEs lead the growth With an attempt to generate more understanding around the topic of financing of SMEs and entrepreneurs, the flow of our topics followed a step by step approach. Thus, we began by checking why SMEs and entrepreneurs matter to the economy and how much support they need from it. William James Gohary, Regional Manager, IFC, assured the audience that their importance for the economy is bigger than the help they seek for.

W

illiam James Gohary is the Regional Manager of Financial Market & PE Funds within the International Finance Corporation (IFC) and is responsible for leading IFC’s financial markets activities in MENA. Gohary has over 20 years of experience in acquiring, integrating and growing banks and non-bank financial institutions. Prior to joining the IFC in 2008, he worked at the GE Capital where he held a number of senior leadership positions. He last served as the Vice President Finance for the consumer finance business, based in Stamford, Connecticut.

James started the presentation by giving us an overview of the global economic scenario.

According to him, growth expectations in developed countries for 2013 are finally being adjusted downwards as has been anticipated. Contrary to the previous forecasts which expected a pick-up in 2013, updated consensus figures have diminished growth expectations for all regions. Growth momentum in the US economy is diminishing.

In Europe only a few countries are doing well and they cannot be considered to be drivers of the economy. The same applies for some emerging economies in Asia.

Within this short overview of the world’s economy, James posed a question where the growth was in today’s world? He went on to explain that in such a situation the growth and job creation will have to follow bottom-up approach and to start at home! That makes the best moment to check what the role of SMEs should be for the GDP growth and employment as James added, “We cannot rely on the global economy to help our local economy anymore.”

Statistics show that formal SMEs contribute up to 39% of GDP and up to 55% of employment in developing economies while the ratios are even higher when taking the informal SMEs into account. Talking specifically about characteristic of SMEs in the GCC region, James pointed out, “GCC region has a relatively smaller portion of the informal sector than in the other markets. That is one characteristic of SMEs as they typically operate outside the formal sector. But, in most of the GCC countries, the largest number of registered companies is actually SMEs.” He further provided an example that in Qatar the share of SMEs in the registered businesses is at high 75%. However, these SMEs contribute less than 20% of employment in Qatar which is a very small portion when compared with other markets, like 40% in Saudi and 43% in Oman.

Focusing on Qatar, he expressed a concern that the banks’ lending proportion to SMEs is low across the region with Qatar ranked at the very bottom (0.5% when compared to GCC average of 2%) and stated, “Financing of the banks is going to large corporations since the banks are afraid of the lack of transparency among SMEs. So, there is obviously a big gap there. One of the reasons why banks don’t want to lend to SMEs is that they don’t find it profitable. Sometimes it’s the banks’ fault – they don’t know how to lend to SMEs! It requires entirely different methodology to lend to SMEs when compared to large corporations.”

In conclusion, he recommended some important steps in order to develop an enabling environment for promotion of the growth within the SME sector. Firstly, it relates to creation of a proper regulatory framework which should include simplifying registration processes, creating a registry of movable inventory and building up information systems.

Secondly, awareness of the importance of alternative options such as guarantee programmes and venture capital funds, and of private equity funds for growing businesses should be raised. Lastly, James highlighted that the banks need to understand that lending to the SMEs can be profitable for them.

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Where is the challenge?

At the beginning of what proved to be an entertaining and informative discussion, Shams Hasan, Board Member & Co-founder, CarSemsar.com, presented statistics which proves that entrepreneurial spirit is present among 33% of the Qatari youth. He also added that the leadership and public sector in Qatar are really engaged in creating and supporting business opportunities. At the end of the session, he discussed with the audience where the challenge lies, if the wise and the young already share the same ideas.

S

hams Hasan is a Middle-East based technology leader and entrepreneur with global experience. Currently, he is the Board Member & Co-founder of the CarSemsar.com serving in an advisory capacity as the gadgets, technical solutions, and strategy guru for the team. He is also the Director of IT at Carnegie Mellon University.

Shams is also engaged as an advisor to many international businesses, inside and outside the region, on business strategy, ICT strategy, technical infrastructure and operations and Middle East business development.

The statistics, according to him, represent the brighter side of doing business in Qatar and is relevant in order to better understand what are the challenges, “The top and down are definitely engaged – the youth is inspired by the vision of the leadership. So, the challenge is somewhere in the middle.”

According to the “Global Competitiveness Report 2012-2013” by the World Economic Forum, Qatar is evaluated as the most competitive economy in the region which constantly improves its provision of services

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to help businesses boost their economic performance. However, Shams was quick to point out that the results of the World Bank Doing Business Report states that the ease of doing business in Qatar is not that high since Qatar obtained only 36 out of a maximum 183 points, behind Bahrain (38), Oman (49) and Kuwait (67). Going further on this, Shams explained that the bigger problem comes up when these figures are broken down to a subject that is important for startups and SMEs – starting a business. Coming to this point Shams said, “We have created an environment which is very healthy to do business, but in which is also extremely difficult to start a business. That is the problem.”

Shams made an interesting approach to the topic regarding ease of starting a business by analysing whether it really could be done out of the garage, “The nature of the business today is that it is very dispersed – it’s mostly conducted online, outsourced to a great extent, and we don’t need an office anymore in order to start a business. But, in Qatar for starting a business you need QR 200 000 and a real estate property. So, we can’t do it from the garage. With this I want to say that although we have all these programmes, like the ones

offered by QDB or EQ, we need to build better awareness on what entrepreneurship really is. For me, it is filling a gap, a niche, in an innovative way.”

With an aim to address need for change in people’s mindset regarding entrepreneurship, Shams explained that Qatar, which is developed enough to be focused on niche elements, is in the top among the GCC countries in attracting particular talents. But, the challenge again is in raising the awareness among the youth that the private sector is more interesting than the public sector. On this Shams shared his personal experience in recruiting local talents, “For growing a business you need talented people. I want to employ local people. But, how to do that when local talent is stirring their careers towards the public sector?”

He concluded by putting to rest the belief that all the responsibility is on the government, “We need to build a different culture which would accept failure as a part of the learning process. In addition, we need to avoid starting a company in our spare time since it will not turn out to be a success story. Lastly, people need to aspire to be more innovative.”

PRIVATE SECTOR FORUM

Where to start?

Entrepreneurship is the result of skills and experience which can be built upon. This holds even more true for the entrepreneurs and SMEs in the MENA region. For that reason, make sure you implement the advice offered by our distinguished international economic expert – Dr. Salvatore Zecchini, Chairman, OECD Working Group on SMEs and Entrepreneurship.

D

r. Salvatore Zecchini is the Chairman of the OECD Working Group on SMEs and Entrepreneurship. He has held various prestigious positions within international organisations such as Executive Director of IMF (1984-1989), Deputy Secretary General of the OECD, Director of the OECD Centre for Cooperation with Economies in Transition, and many others. In addition to his engagement as a consultant on SMEs, entrepreneurship and finance in several economic sectors and foreign countries, since 1997, he is also professor of the international economic policy at the University of Rome “Tor Vergata”.

Dr. Zecchini started his presentation by highlighting that the smaller and more innovative the enterprise is, the harder it is for the entrepreneur to find the necessary financing. In the MENA region, SMEs receive a lower share of the total lending than in other areas, due to the lack of transparency on SMEs conditions, poor protection of lenders’ rights and higher SME risk perception, together with the lack of reliable collateral.

Dr. Zecchini presented that the actual SME

lending in the GCC region is much lower than expected with the average of 2.02% and 33 banks with the SME lending programmes.

Within the region, Morocco and Lebanon are the most active in SME lending, with 23.79% and 16.14% respectivelly, while Qatar (0.49%), Bahrain (1.14%) and Saudi Arabia (1.70%) are surprisingly at the bottom of the list.

Within the region, among the selection criteria used for targeting SMEs, the banks value the most existence of SME’s clients (76%), growth prospects of the specific SME sector (73%) while the export orientation is the least-valued criteria with only 16%. He went on to explain that the GCC banks require higher collateral (78%) from SMEs than from large corporations when compared to the non-GCC banks due to their assumed lack of stability (51%), less competent management (53%) and difficiluties in their evalutaion (64%). For that reason, statistics show that the GCC SMEs mostly rely on financing from family and friends (255%) and internal funds (32%), and underutilise other financing sources like trade credit (-50%) or local commercial banks’ loans (-51%).

Talking specifically about conditions for doing business in the region, Dr. Zecchini admitted that access to financing and restrictive labour regulations are the most problematic factors. In order to ensure that the audience understood, he listed the main SMEs’ weaknesses – the lack of business track record, poor management capabilities, and information assymetry vis-a-vis the lenders because of which they are marked with higher financing risk.

SMEs would greatly benefit by taking Dr. Zecchini’s advice on how best to overcome these weaknesses. Firstly, invest time and skills in analysing potential market demand and prepare a thorough business plan with a horizon of three to six years and a capital budgeting plan. Secondly, try to enhance credit worthiness by participating in a supply chain, an innovation chain and/or mutual credit guarantee schemes. This approach should ensure fulfillment of the banks’ main requirements from SMEs within the loan application, such as existence of the proper business plan, cash flow, equity base, management capabilities, and customer base, in addition to favourable market trends, financial guarantees or collaterals.

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Sustainability

as a business model In order to advance professionalism, local businessmen need to learn how to gain sustainability and to develop the ability to take calculated risks. Dr. R. Seetharaman, Group CEO, Doha Bank Group, shared with the attendees many useful insights on how to upgrade local business standards with the latest benchmarks of global businesses.

D

r. R. Seetharaman is the Group CEO of Doha Bank Group, Chairman of Doha Brokerage and Financial Services Limited and the CEO of Doha Bank Assurance Company. He is a chartered accountant and also holds certificates in IT systems and corporate management. Prior to joining Doha Bank in 2002, Dr. Seetharaman held senior management positions in three banks in Oman. He started his professional career at PriceWaterhouseCoopers before moving to the banking sector.

“We are living in an interconnected world. To ensure the success of your business operations you need to understand not only the economics of your local market, but also the regional and overall global economic conditions,” stated Dr. Seetharaman.

With these introductory words, Dr. Seetharaman drew attention of the attendees to the state of play of today’s business world and added, “Look at the challenges happening in the world today.

Political, social and economic stability are integral in real terms and countries are setting disciplines

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for trading opportunities of SMEs. That is the big change we are witnessing in the world today – focus is not on the large corporations anymore, but on SMEs.” In the period after financial crisis, the liquidity, or lack of it, is affecting the supply chain. Therefore, in order to follow the pace, business owners need to think long-term and plan strategically. Dr. Seetharaman advised that a successful businessman needs to prepare a business plan that is aligned with these global economic dynamics and to adopt sustainability as a credible and viable business model.

Shifting the focus of the discussion on Qatar, Dr. Seetharaman pointed out that the goal of sustainability is already integrated in the Qatar National Vision 2030 and that the business community in Qatar has the responsibility to execute it.

Since Qatar has a stable and functional financial market and many plans and projects to be developed, the question Dr. Seetharaman put in front of the audience was how to exploit all these opportunities in order to convert a business

model in a substantive journey? He said, “If you start with a short-term objective, you will fail for sure. But, if you have a medium- or long-term vision and run with a discipline, you can seize more opportunities in Qatar than anywhere else in the world at this moment.”

The businessmen need to ask themselves how they can recognise the right opportunity and cash it. To achieve this, Dr. Seetharaman advised them to prove their sustainability. Furthermore, he added that proper understanding of what sustainability is and how to ensure it is crucial for the development of a successful business. Doha bank considers that the sustainability of their client’s business exists if the business is structured in a disciplined form and substance. In order to demonstrate the success of this approach, Dr. Seetharaman provided an example of one of the bank’s clients. By being disciplined, an optician, who started his business with QR 700 000 and six outlets, has achieved sustainability of his business which grew to 23 outlets and reached annual turnover of QR 23 millions. In the closing words, he explained, “We educate and discipline our clients to understand the dynamics of proper business making.”

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Learn more at www.qatar.cmu.edu october 2012

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PRIVATE SECTOR FORUM

A good legal advice Whatever kind of business you are in, familiarity with the legal system is crucial for its development. Closer to the end of the forum’s learning curve, especially designed for SMEs, Mohammed Khodeir, Partner and Head, Al Tamimi & Company’s Qatar office, gave valuable advice on the legal system in Qatar.

M

ohammed Khodeir is the Partner and Head of Al Tamimi & Company’s Qatar office with a diversified practice in advising and representing corporate, institutional and government GCC and international clients on different areas of law. He has been extensively involved in major M&A and IPO deals in the UAE, which are currently his principal areas of practice along with corporate governance and family businesses. Mohamed has been consecutively selected in the Asia Law Leading Lawyers Survey (in 2008, 2009, and 2010) as one of the leading lawyers in the area of general corporate practice.

What businesses in Qatar need to know from a legal point of view in order to properly structure their operations? What types of legal establishments are envisaged by its legal system? What kinds of documents are needed within the life-cycle of a business?

How to secure enforcement of payments?

These are all the questions Mohammed addressed during his session in order to advise participants on the easiest way to comply with business requirements of Qatar’s legal system.

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Qatar is a civil code system, but it has also undertaken a novel step in applying a common law based regime in the financial sector – the Qatar Financial Centre (QFC). The QFC allows certain transactions and activities relating to financial sector to be regulated on a precedent basis. This is important to distinguish since in many instances different kind of documents will be required depending on the regime in place.

Mohammed then turned to explain in more details available options for establishing a legal entity which include contracting, setting up a limited liability corporation (LLC) or a branch. The LLC is the most common type for establishment of an SME and it includes signing of shareholders’ agreement and quite extensive set of application documents. In both cases, Mohammed highlighted the importance of structuring these documents with a long-term business perspective in mind, “A company should be considered as a life-time story since it is important to understand what kind of documents will be needed within its life-cycle. In terms of compliance, it all helps an SME to secure its current and future position – as a setup or as a growing business.”

Speaking about the aspect of enforceability, Mohammed gave insightful tips on how to avoid a key default for the provider of goods or services – non-payment. It is crucial that all contracts and other business related documents envisage mechanism for enforcement which will pressure other party in the event of a default. He further advised business owners to constantly check whether all relevant documents are signed, especially when in some later stage they decide to expand the scope of their services.

Therefore, make sure that each business expansion is covered by legal documents.

Closely connected to the enforceability is the issue of the courts’ jurisdiction. Local courts are organised through the Court of First Instance, Court of Appeal and Court of Cassation, while the QFC has established a new regime. With this Mohammed wrapped up his session, “In choosing the legal regime which will be applied in case of a dispute, make sure you know your options and are secured in terms of enforceability. Believe me, when I say that you don’t want to receive a judgment you cannot enforce.”

PRIVATE SECTOR FORUM

Partners for growth You are now ready for financing! But, which option is the best for your business? Jawaher Al-Naimi, Programme Manager, Al Dhameen, and Faisal Khalifa Al Muraikhi, Senior Relationship Manager, Business Finance Department, QDB, presented the most sought after financing options in Qatar – programmes of the Qatar Development Bank (QDB).

J

awaher Humaied Al-Naimi is the Al Dhameen Programme Manager at QDB. She has a ten years’ long experience in the retail banking and customer service sector. From 2003 she has held some of the supervisory and managerial positions in the Commercial Bank of Qatar and the International Bank of Qatar. In 2011, she joined QDB in order to enlarge her experience in corporate banking.

Faisal Khalifa Al Muraikhi is the Senior Relationship Manager, Business Finance Department at QDB, with eight years’ of experience in the banking sector. Before joining QDB in 2011, he worked in the National Bank of Umm Al Qaiwain, Abu Dhabi Br, and the Qatar Islamic Bank.

Established in 1997, Qatar Industrial Development Bank was fully funded by the State of Qatar to shift the focus from the hydrocarbon industry by creating a robust and diversified private sector that would stimulate economic growth. From 2007, when it was renamed to Qatar Development Bank (QDB), the bank was constantly increasing the portfolio of its services.

Faisal spoke to the attendees about the range of services offered by the bank, stating that QDB provides financial aid to startups and existing companies by offering highly competitive interest rates and terms that include lengthy repayment periods. The loans, facilities and guarantees are intended mainly to meet the costs of key production equipment, import of raw materials, innovation and invention, selected tangible fixed assets and similar. In addition, he explained that the bank has also covered other than industrial sectors which are healthcare, education, tourism, agriculture & livestock, and fisheries.

able to borrow money from banks due to the lack of collateral. Jawaher began by explaining that only an SME with a complete feasibility study can approach a partner financial institution which will further process the request and seek the guarantee for the project from QDB. Upon analysing the request, QDB decides and issues the guarantee to the partner bank. In the last stage, the partner bank disburses the fund to the client. Nevertheless, Jawaher pointed out that their work with the client does not end at that point since QDB had established regular follow-up meetings with their clients.

Since 2011, QDB has implemented many valuable initiatives – launch of the Al Dhameen programme and the Qatar Export Development Agency “TASDEER”, as well as the introduction of the Bedaya Center, Qatar Business Incubator, Private Sector Magazine, and many others. Faisal finished his presentation by saying that 2012 was marked by the launch of the SME Toolkit, but that many new plans are yet to be announced.

Jawaher provided historical overview of the programme stating that it started in 2010 in cooperation with QNB, while other banks started to partner since January of 2011. The success of the programme was recognised by the Banker Middle East Product Awards 2012 when it received the award as the best SME finance scheme in the Middle East. Nevertheless, she assured attendees that the potential of the programme is being proven on a daily basis through the growth and development of their clients’ businesses.

Al Dhameen is an indirect lending initiative launched by QDB to assist SME’s that are not

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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

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Private sector team

Together we can do it all! That has been our mantra through all the good and the bad times we have gone through. Therefore, I am more than proud to present each and every member of the team without whose efforts this success would not have been achieved.

Senior Editor - Aparna Shivpuri Arya

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Tamara Pupic

Fahed Sabbagh

Abey Mascreen

Tamara joined CPI in April 2012 as the Assistant Editor (English) of Private Sector Qatar. She moved to Dubai from Belgrade, Serbia, and brings with her eight years of experience in matters relating to international trade law and policy.

Fahed joined CPI in September 2011 as the Head of Arabic Design. Apart from the design element, he is a self professed geek and can be found tweeting regularly on anything from comic books to technology (@MrNerdyFace). Fahed also has a passion for typography and blogging.

Abey is the Web Developer for the Business Department at CPI since May 2012. Apart from building websites, He’s also a guitarist and a technology enthusiast. Follow him on twitter @abeymac or abeymascreen.com

October 2012

Private sector team

Amy Linney

Siobhan Jensen

Shweta Santosh

Amy is our events and marketing manager since 2010 when she joined CPI. She is in charge of implementing over 40 events for the business and technology division with Siobhan and Shweta. Amy is from London with eight years of experience in events, ambient media and publishing.

Siobhan is the events and marketing coordinator at CPI. She works with Amy and assists with all of our events. Siobhan arrived in Dubai in June 2011 and has been with CPI since November 2011. She has four years of experience in hospitality management and is from Christchurch, New Zealand.

Shweta is the operations manager and is engaged in organising events together with Amy and Siobhan. Shweta has lived in Dubai for over 18 years and has been with CPI since November 2010. She has four years of experience in publishing and a year long experience in financial management. She hails from Mumbai, India.

Jay Colina

Rajeesh M

Marilyn Naingue Biduya

Jay Colina is the main photographer and social media coordinator for CPI’s Technology and Business Group magazines. He loves photography which has been his work for the last seven years. Jay is from Cebu City, Philippines, and came to Dubai in June 2011.

Rajeesh joined CPI in 2008, after working with Macmillan Publishing Company in Bangalore, India. He is our Manager for circulation, distribution, database and branding services.

Rajeesh is originally from the south Indian State of Kerala.

Marilyn was born and raised in Mandaluyong City (The Tiger City), Philippines. She joined CPI in 2005 and has been working as company administrator, assisting everyone in the office with a smile.

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Finance

Balance

ambition

realism with

Qatar offers an extremely dynamic business environment with a great deal of potential and opportunities. Tamara Pupic got talking to Steve Troop, CEO, Barwa Bank, on how they intend to help and facilitate SMEs as well as major corporations to contribute to this.

Please tell us more about Barwa Bank’s operations in the Middle East and, particularly, in Qatar.

At present, we are focussed on Qatar and have no operations overseas. However, part of our medium-term strategy does involve selective regional and international expansion. I am sure that we will do so in the future once we identify the right opportunity.

Here, in our core market, we aspire to become the most recommended Islamic bank group, acknowledged for its progressive ethos, excellent service, outstanding results and contribution to the society. We are selectively active across a number of different business areas - corporate, SME and retail banking, leasing, consumer finance, asset management and investment banking.

How has the banking sector changed in the past few decades in the Middle East?

The sector has changed very dramatically indeed over the last 30 years. As, of course, has also the whole region and especially Qatar.

From our perspective, our customers are far more sophisticated than they used to be. With that sophistication comes far higher expectation of a service, product range and executional capability. Banks now have to work much harder to meet those expectations.

Equally important is the fact that the customers’ underlying needs are changing. As a consequence of booming

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economies and rapid growth, people are now much more prosperous. Wealth brings with it a new set of challenges and opportunities.

Another key aspect is the inexorable and ever accelerating rise of technology, its progressive affordability and almost universal adoption. A good example would be mobile telephony. Twenty years ago, cell phones were very expensive and limited in their functionality with ownership as a mark of sophistication. Now everyone has a mobile.

Indeed, not having one is unusual. As a consequence, banks are now working very hard on mobile banking and payment systems via cell phones. Thus, that is the latest technology-led new frontier.

Since Barwa Bank is the newest Islamic bank in Qatar, please explain to us the concept of a modern Shari’ah compliance which you have conceived.

As a central part of our mission, we see upholding to the traditional values whilst, at the same time, embracing progressive ideas and technologies as a modern, forwardlooking financial institution. Let me put it in a different way, we believe that our service standards and customer propositions should be both equally good as anything available at conventional banks and consistent with Shari’ah.

Shari’ah, of course, underlines all our values including our commitment to long-lasting partnerships with our customers through a relationship driven approach. Within that we keep constant focus on their success, create a

finance

The opportunity in Qatar is self-evident - to play a role in what is a transformational period in the history of the nation as we now embark on the massive infrastructure and development projects laid out in the National Vision 2030.

long-term value for our shareholders through the growth of profitable and sustainable businesses and provide full contribution to the development of the society and the economic well-being of its residents.

Which Shari’ah compliant products you offer to SMEs and entrepreneurs?

All our products are Shari’ah compliant. Services and products most appropriate for SMEs include deposits and savings accounts, all forms of customer financing including term loans, leasing, trade finance (to support both imports and exports), asset-finance, as well as the full range of deposits, and account-related services including Internet banking.

We were also among the first Shari’ah compliant banks to join Qatar Development Bank’s Al Dhameen indirect lending programme for startups, aimed to guarantee commercial bank loans to the private sector. The programme is particularly useful for new businesses with a limited credit history or lack on collateral to obtain access to finance for starting or growing their businesses.

Entrepreneurs require banking solutions that offer a great deal of convenience as they often have particularly busy schedules, trying to get their fledgling businesses off the ground.

What would be your advice for an SME or an entrepreneur in this regard?

Firstly, we would always encourage SMEs and entrepreneurs to balance ambition with realism.

Entrepreneurs are, by their nature, upbeat and optimistic, but are not always patient. There are very few examples of commercial “overnight success” stories while the vast majority of the world’s high-profile businessmen have been at their trade for many years, improving and refining their ideas through experimentation and progressive improvement.

Secondly, to listen to advice. Some of us are “professionally miserable” and spend our time in risk assessment, looking for what might go wrong. We are, thankfully, not always right but, at the very least, entrepreneurs should understand the potential downside of their plans.

Thirdly, get a good “numbers man” (or a woman!). Banks want to see the numbers before they lend money. An entrepreneur, and his team, that can speak professionally about their numbers inspires trust and confidence.

Once credit is granted, a failure to provide regular financial statements on a timely basis is equally powerful in eroding confidence between banks and entrepreneurs According to you, what are the opportunities and challenges in the banking sector in Qatar?

The opportunity in Qatar is self-evident - to play a role in what is a transformational period in the history of the nation as we now embark on the massive infrastructure and development projects laid out in the National Vision 2030. It includes the development of rail and road transport, the construction of stadiums and related services following Qatar’s successful bid to host the 2022 Football World Cup. The principal challenge is the same one making sure that the institution remains suitably positioned, resourced, equipped and with the right people to carve out a niche for itself during that period and make the most of the opportunity.

What is your opinion on investment opportunities in Qatar?

At present, Qatar is one of the world’s largest and most conspicuous exporters of capital as the nation’s sovereign wealth-fund seeks, very wisely, to invest that money for the benefit of future generations. Qatari corporates and individuals are also interested in overseas

investment and with some quality assets, particularly in the mature markets, they can offer a real value in historic terms. Thus, one can understand their desire to do so.

Closer to home, across the region and domestically, local equity markets remain relatively buoyant. Nevertheless, the valuations have been affected, somewhat inevitably, by global sentiment – whether or not this is “fair” is neither here nor there.

It is worth remembering, perhaps, that Qatar’s future economic growth is not all about large, publicly-listed corporations. Equity investment in smaller and unlisted companies (“private equity”) is not easy to find, but is often worth looking at if the opportunity presents itself, sometime via specific investment or opportunity funds offered by the banks.

If equity holds no appeal, companies and individuals can invest in debt, either conventional bonds or their Shari’ah compliant equivalent, sukuks, which are issued by the region’s largest banks and corporations.

Debt capital markets in the region are expanding rapidly and Barwa Bank has been part of that growth story with lead management roles for a number of recent sukuk issues, not least the spectacularly successful State of Qatar 2018/23 issue. They are, however, still away from maturity as market depth and liquidity are not what they are in other parts of the world – it may not always be easy to exit a regional bond or sukuk quickly and at a sensible price.

About Steve Troop is Chief Executive Officer of Barwa Bank since September 2010. On graduation from Cambridge University in 1979, Steve first joined HSBC and has worked extensively in the Asia-Pacific region, most of the GCC countries, South America and Europe. In 2007 he was appointed Chief Operating Officer at Saudi Hollandi Bank. Steve has spent more than three decades in leadership roles in the financial services industry and has far-reaching international experience in retail and branch banking, corporate lending and relationship management, investment banking, insurance, operations and support services.

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Entrepreneur

Be your own

r o t n a r Gua

Paving the way to entrepreneurial success for Qatari women, Roudha Center for Entrepreneurship and Innovation is a must-stopand-check place for all women interested in creating and developing their own businesses in Qatar. Aparna Shivpuri Arya got talking to Shareefa Fadhel, Co-Founder and Managing Director, Roudha Center for Entrepreneurship and Innovation, on challenges and changes faced by the Qatari women on this path.

How did you come up with the idea of setting up the Roudha Centre?

The idea of the center came to life after an 18 month long research conducted by Renna Al-Yassini, Aysha AlMudhakei and Shareefa Fadhel which was supported by the Tepper School of Business in Carnegie Mellon University.

The research focused on the question of how to increase the number of Qatari women entrepreneurs. It concluded in the creation of the “One Stop Shop” for women, which is envisaged to provide them with all the essential soft and hard skills required for opening a business.

What programmes are available for women?

Our programmes vary from the very basic to the more advanced ones. Thus, the topics spread from the ones related to how to chose and evaluate an idea to those related to how to grow your existing business.

How do these programmes help an individual to prepare to be an entrepreneur?

The programmes we offer help women understand their own personal potential as well as the potential of their business idea. This is achieved through consultations with professional experts and through various trainings and workshops.

What has been the response in Qatar?

We have been overwhelmed with the response from local Qatari women. Though our initial intention was to target all women in Qatar, we found our workshops and events occupied by not less than 80% of Qatari women. We believe this is the real success. Furthermore, we received a lot of support and encouragement to continue

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on our path as it touched an area that was previously left void.

What, according to you, are the challenges that women face in Qatar, if they want to be an entrepreneur?

The challenges of being an entrepreneur are faced equally by both men and women.

However, in the conservative culture of Qatar, women face the challenge of breaking the barriers and allowing themselves to feel comfortable in doing things on their own without the help of their families. Last but not the least, finance and support is always the biggest struggle for all, let alone for women. For that reason, they additionally have to face the question – “Who is your guarantor?”

If a young individual wants to start her business, what advice would you give to her? Are there any dos and don’ts?

Start with a business that you have a passion for and which is close to your heart, because that’s what will make you go on.

Today with the Qatar National Vision 2030 and FIFA World Cup 2022, Qatar offers a lot of opportunities that can be siezed by potential entrepreneurs. The question they should ask themselves is – “What can I offer?”

Do’s Follow your dream and don’t give up. Take advice and just do it.

Don’ts Don’t share your idea with everyone and don’t let others put you down!

Finances are an important aspect of starting and sustaining a business.

What advice would you give and what support does the Roudha Centre provide?

We do not offer funding to individuals, but we provide financial consultations and advice.

In addition, we organise specific workshops on financing, such as book–keeping, balance sheet, auditing, and similar.

Please share with us some success stories that can be an inspiration to our readers.

Our biggest success is our OWN! We started as three young local women believing in an idea and, thus, faced most of the challenges that women entrepreneurs face today. Yet, we have achieved so much in such a short period of only one year.

I would highlight the first ever exclusive Qatari women exhibition held last February through which women have presented the progress and growth of their businesses.

Through our business consultations, we have advised a number of local businesses, whether they were startups or already existing ones. Both have grown and developed in different ways.

SMEs

for

buildings

Tensile membrane engineered structures are a cost-effective, flexible, and practical solution for warm climates. In addition to manufacturing them, Qatar SAT has created a fashion out of this process. Tamara Pupic got talking to Nasser Al Maadeed, President and Industrial MD, Qatar SAT, on how they succeeded in catching the beauty in the eyes of their customers.

Please tell us more about your company and its operations in Qatar?

Qatar SAT is a company for design and structural engineering of tensile structures.

Tensile membrane structures, which represent a construction of elements carrying only tension, are most often used as roofs as they can economically and attractively span large distances.

The company was established in 1990 and focused only on regular construction activities. Since we build outstanding structures, in 1999 we shifted to designing and aerodynamic engineering in order to, later on, transfer to industrial modelling. I like to say that we create fashion for buildings.

For that reason, our projects include a lot of

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October 2012

art work. Consequently, we consider that our customers mostly have an eye for beauty.

In the beginning, creation of these kinds of structures was done manually, but now IT developments have brought many improvements. Also with time we have expanded our manufacturing to three different factories that we now have within our company.

What kind of services do you provide to your clients?

The idea of our business is derived from our environment and its heat. It was realised that something for cooling the buildings, except from energy, was needed. We were studying various areas and countries and developed

our knowledge first with German software.

Nevertheless, not one software package is fully accepted since we create tailor made solutions for our clients.

How did you set up your business?

Qatar SAT has a smart team of people who are well-trained for the construction of structural steel and installation of fabrics as membranes for tensile structures.

Our work starts with the design. Our design team has in-house capabilities for 2D drawings, 3D drawings, 3D studio movie presentations and full size mock-ups. Further process includes analysing calculations for tensile structures. For that our engineering department uses the latest software

SMEs

developed within the tensile structures industry. Engineering process may include conceptual design, survey and marking the site, physical and computer modelling, and similar. In the last stage, upon client’s approval, we turn to manufacturing of the tensile structure while the surface treatment is done according to project specification and SSSP standards.

During these meetings, we set targets and determine execution time for each of the phases. In the following process, we stick to the timing and monitor planning, scheduling and production.

We are very proud of our projects for Qatar Petroleum, Hamad Medical Corporation, Doha Golf Club, Qatar Foundation and many others.

Because of the specific nature of each of our projects, we are extensively engaged in R&D. To sum up, I would say that our business is set up of gathering, brainstorming and R&D. In line with that, people still are and will remain crucial in our industry, since only they can communicate and develop ideas.

Upon introduction of automation machines and software designing we have substantially decreased number of employees. Previously, we had only drawing software which was just a tool for manual drawing. But, automation software is smarter and, thus, requires fewer employees. For that reason, number of our employees now varies from 70 to 80, depending on the project.

Access to finance is difficult in the first years of business development, how did you gain access to finance?

For financing businesses in Qatar, QDB offers the best conditions since other available options are only from commercial banks. QDB offers two possibilities of support – to finance either 60% of the total project or 80% for the machinery.

We do not work with mass production items, since all our orders are on case by case basis. Within each of the projects, our work is highly creative and includes a lot of brainstorming during our staff meetings.

Thus, I’m just one of the employees.

Nevertheless, our growth plans include engagement on many new projects. For now, we are not working abroad. We are focused

I agree that FIFA World Cup 2022 will bring new and big projects, but for now all launched projects are not directly related to that, but to normal and usual city growth. I consider that 2022 is still far for everybody and, especially, for our business.

We took both options. In the beginning, we accepted financing of 80% for the new machinery since, at that time, only machinery fund was available. A year later, new management immediately accepted to support us in our aim to construct a new factory. As a result, the facility was built in only ten months.

Nasser Al Maadeed

only about 20%.

From 2005 till 2007, 50% of our activities were for government projects and that percentage has increased up to 94% from 2008 onwards.

How did you develop your business within the Qatari market? What are your future growth plans?

In the period from 1999 to 2004, around 80% of our customers were individual businesses, while government projects took

on the Qatari market since it indeed offers a lot of opportunities. For that reason, we have nearly finished construction of our new factory. With this expansion of our production we intend to cover future demand.

What differentiates you from the competition within the Qatari market?

Qatar SAT is the biggest factory in the Middle East in terms of machinery and spacing, because textile roofs require big spacing for big machines and similar. But, within this line of business, we cannot call other companies as competitors because each one of them has its own style and offers specific solutions. Our

october 2012

37

Report

All the business in the GCC region comes from real estate development. For real estate sector is usual to be composed of SMEs and large companies, while in the GCC region we have SMEs and huge real estate companies. It is specific for GCC region and not present anywhere else in the world. customers check our solutions in advance and decide whether they feel comfortable with our idea.

companies in Qatar wait for FIFA World Cup 2022 projects and keeping them on hold is dangerous.

In line with that, we cannot be precise about the percentage of demand that we cover, because various companies work with different materials to cater different types of demand. Thus, our market share for each of the materials that we use is different.

What is your opinion on challenges within your sector in Qatar?

Challenges are derived from the manner in which our market functions.

What is your opinion on the opportunities FIFA World Cup 2022 will bring?

I agree that the FIFA World Cup 2022 will bring new and big projects, but for now all launched projects are not directly related to that, but to normal and usual city growth. I consider that 2022 is still far for everybody and, especially, for our business. The reason is that nobody can predict which new materials will come to usage within the following few years and cause change in our production. In addition, the building that is currently new will be old by 2022 and we will have to work on it again.

I think that the normal period for start and execution of FIFA World Cup 2022 projects should not be earlier than 2016/2017.

Nevertheless, in last eight months, many big size projects were announced, and not launched up to now.

To conclude, I think that FIFA World Cup 2022 will bring a lot of opportunities, but need to highlight that businessmen are often impatient. From one side, we need to be more patient. From the other side, a lot of

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All the business in the GCC region comes from real estate development.

For the real estate sector is usual to be composed of SMEs and large companies, while in the GCC region we have SMEs and huge real estate companies. It is specific for GCC region and not present anywhere else in the world.

I think it’s not healthy to have two or three huge companies as it is now. So, if they are huge and we, as those who provide services to them, are small there is no balance. In order to work for huge real estate company, you need to be huge as well. Let me explain in more details, if they chose roofing from me, the whole market will be covered by my services since the client is a huge company.

Consequently, other companies within my line of business will not have any business within the market for a certain period of time.

For that reason, I think we should introduce limitation on the size of each of the companies to small and medium sized ones. It will allow us to survive with them.

That will also bring more energy to the market, since many different companies will have their own style and different demand for our solutions.

In real life, we need the middle sector that invests and provides regular business opportunities for us. It would also ensure proper business development since circulation of money within economy is currently lacking.

What do you see as the existing obstacles in doing business within your sector in Qatar?

The most difficult is to track changes in the legal system. In the last decade, we had a lot of amendments to the laws and regulations. I consider it as a good thing, but at the same time it is quite demanding in terms of time and efforts needed for becoming familiar with it.

But, the main obstacles will actually come as a consequence of many projects lined up in Qatar. Official projects that are at the moment launched for tenders are bigger than anyone’s capacity. For that reason, they are being delayed. At the same time, new projects are coming. I think it will all create a chaos with regards to the quality of project execution and its time of delivery.

In relation to tender procedures, policies change over time. In 2007-2009, the timely execution of the project was important, after that the price was important. Qatar SAT has only one single policy which we cannot change – quality is important!

About Nasser Al Maadeed is President and Managing Director of the Qatar SAT. He completed engineering management training programmes at the Technical University (TU) in Berlin , Barcelona and Brussels.

Nasser has more than 25 years of professional experience in designing, engineering and manufacturing management. For more information, please visit www.qatar-sat.com

October 15-16, 2012 - St. Regis Hotel, Doha Qatar

Under the patronage of

H.E. Sheikh Hamad Bin Jassim Bin Jabr Al -Thani

Prime Minister and Minister of Foreign Aairs of Qatar

Women Counted: Challenges Become Opportunities Oct 15 & 16, 2012 - St. Regis Hotel - Doha, Qatar +974 44877442 I 44881525 I 44880627 Fax: +974 4483196 P.O. Box: 96494 I Doha - Qatar www.qibwf.org Organized by

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Women & investment

Wealthy and wise Today’s women are taking control of their financial future by investing or starting a commercial business they believe in. Among them are also Qatari women who are increasingly educating themselves on investment and business opportunities. Elsbeth Blekkenhorst and Danielle Duttenhofer, Co-Founders and Directors, Global Women Qatar, give tips for better understanding of how their money is being invested.

I

n the US, women now own half of all US private wealth, which means they control or influence at least USD 16 trillion in assets. In addition, about a third of all US households are headed by women.

In the Arab region women are estimated to control 22%, or about USD 500 billion, of the region’s investments, growing at 8% a year, according to a recent BCG Global Wealth report.

Change in generations The majorities of these ultra-wealthy women live in the oil-and-gas-rich nations surrounding the Arabian Gulf and include countries like Saudi

Within the “older generations” the men were taught all about finance and business while

October 2012

the women didn’t have those expectations and education.

The story now Last year’s GCC (Gulf Cooperation Council) Federal Report showed that Saudi women alone held USD 15 billion, mostly in cash accounts and trust units, while women in the less populated countries of Kuwait, Qatar and the UAE had amassed a total of USD 18 billion.

Wealth in the Gulf countries only came into being, and for women in particular, about 20 to 25 years ago when women started inheriting cash and real estate from their families. Not all of them were very well educated or very well informed. They didn’t understand inflation or that their money was actually devaluing in the bank.

Given those statistics, you can see why women now represent the greatest potential market, as well as a great recruiting opportunity for the financial services industry.

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Arabia, Kuwait, Qatar, Bahrain, Oman and the UAE. In those countries women hold more than USD 40 billion in personal wealth.

Today, though domestic life is still steeped in traditional family values that see men dominate politics and religious life, women are using their newfound inheritance and education to find their own way.

Unlike their mothers, these women speak openly about money, investment and financial opportunities and the need to secure their financial future. Topics that were once considered immensely private are now discussed freely over coffee.

They are very successful entrepreneurs, they hold very high positions in government and private companies and they are taking over control of the wealth in family companies.

Women & investment

Qatar’s acceptance of women’s equality The Qatari government is investing significant resources to training women and supporting their rise in business, recognising the significant input they will have to the region’s economy.

The financial industry sees the opportunity to attract local and expat women to invest.

Not only Qatar Exchange has held a special introductory meeting for Qatari Business Women Association (QBWA) as part of a strategy to unleash the potential of women in the investment sector, but international banks have started to add women funds to their portfolios as well.

Qatar Ladies Investment Company, the first of its kind in the whole region, was established in 1998. It is equally shared by a group of Qatari ladies and Qatar National Bank.

Qatar’s first lady, Her Highness Sheikha Mozah Bint Nasser al Missned is looking at women’s contribution to the long-term economic and social development of this nation by creating organisations, such as the Qatar Business Women Forum, and drafting policies to pave the way for more widespread social acceptance of women’s equality.

In November 2000, the Business Women Forum was set up after securing the approval of the Qatar Chamber of Commerce and Industry, which had decided that the Forum would serve as one of the Chamber’s committees. By doing that, the Chamber

Elsbeth Blekkenhorst and Danielle Duttenhofer

Qatar’s first lady, Her Highness Sheikha Mozah Bint Nasser al Missned is looking at women’s contribution to the long-term economic and social development of this nation by creating organisations such as the Qatar Business Women Forum and drafting policies to pave the way for more widespread social acceptance of women’s equality. tried to provide an encouraging social atmosphere for women to play their role in the development process, increase their contribution in small trades and industrial projects and enhance their potential to take economic decisions.

Women’s way of investing Conventional wisdom has it that men are interested in investment performance, while women are more concerned about security and having enough so as not to become a “shopping bag lady” in their older age.

A lot of what we read says that women are not as concerned about performance as men, since they are more concerned about feeling secure. Women tend to be more diligent than men, as men are quicker to make a decision and just trust that it’s going to work. Not that they’re afraid to do their own due diligence, but women want to know that they made the right decision to begin with. They are also less apt than men to want to make changes in their portfolio at the drop of a hat.

A Barclays Wealth survey in the Middle East states that women prefer to make their investments close to home and look for an advisor who can help them make empowered decisions. Women investors typically study the product more thoroughly before investing and go into details of the product and seek clarifications. Women like to take a balanced portfolio of different types of stocks and diversify their investment options. They prefer investing in reputable financial institutions and banks or firms with whom they have developed a trustful and faithful relationship.

Women also want to feel special. They like to come into a room that is calm and nice and they don’t like to enter a room that is too crowded.

They like to have a personal relationship with their managers, so that they can sit down and discuss very deeply their financial situation and how they want to go about it. It’s not always easy for women, especially the older women, to share this kind of information. It takes a lot of relationship building.

Surveys show women now expect more and genuinely want to understand and have input into how their money is being invested. They attend regular seminars in order to educate themselves on investment and business opportunities. Financial institutions hire women relationship managers to target and meet their growing needs.

At last, six tips for well-considered investments: • Diversify.

• Do your research.

• Run the “stars” and sell the “dogs”.

• Reinvest dividends.

• Be contrarian.

• Take the long view.

About Global Women Qatar was established in January 2012 as Qatar’s first employment agency to focus exclusively on the recruitment of women who already reside in Qatar. They are a very dynamic, rapidly growing employment agency with both local and expatriate women in our database. Their candidates come from different educational backgrounds with a variety of qualifications and skills. For more information please contact Elsbeth Blekkenhorst or Danielle Duttenhofer at info@globalwomenqatar.com.

october 2012

41

Business advice

Entrepreneurial mindset:

fail or succeed!

Every year, many people opt to set up their own businesses. Some succeed, but there are also those that fail within the first three years. Salwa Atiyyah, Senior Career Guidance Manager, Silatech, answers where is that thin line between success and failure.

T

he word entrepreneur was originally used to describe “someone who takes risks between buyers and sellers or someone that starts a new business venture�.

However, there are many myths behind this word that have been passed from one generation to the other. Some of them are so far removed from the field of entrepreneurship since they destroy the dreams and ambitions of young entrepreneurs before they even start their endeavor. Such misleading myths include:

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October 2012

Entrepreneurs are born with innate qualities and cannot be made

You need to be a risk taker to succeed as an entrepreneur

Many studies have shown that every person has the potential to become an entrepreneur.

Becoming an entrepreneur is, in fact, influenced by environmental factors and is not a genetic endowment. Therefore, one can learn to become an entrepreneur by acquiring certain skills, knowledge and personality traits that he or she was not born with but through the amount of effort and hard work put into improving oneself. Entrepreneurs think differently, which is a trait that is acquired over a period of time through experiences.

The truth is that most entrepreneurs are moderate risk takers. One does not need to risk everything to be a successful entrepreneur. Some of the most renowned entrepreneurs today succeeded by following well-organised plans from the outset, while others simply followed their hearts and did what they enjoyed doing and were good at it.

In order to succeed as an entrepreneur, you need to start at an early age Research shows that successful entrepreneurs

Business advice

An entrepreneur is an ordinary person, young or old, male or female, rich with business ideas or focused only on one idea, who makes mistakes just like the rest of us. Entrepreneurship is more and more becoming a career option that appeals to those who want to be their own boss and believe in what they are doing.

do not start straight away, but rather after years of work experience and upon acquiring a lot of skills through working for others. Many opt to start their own businesses because they are tired of working for others.

You can only be an entrepreneur if you are highly educated In fact, many successful entrepreneurs have fewer educational qualifications than you might think. There is a logical explanation for this correlation. Without formal qualifications, one has to search for other ways to succeed.

Successful entrepreneurs can also be highly intelligent people who possess non-academic types of skills.

Entrepreneurs are always coming up with great business ideas Actually, great ideas are not unique to entrepreneurs – they’re all around us! The difference between an entrepreneur and the rest of us is that the entrepreneur can look at something and see an opportunity in it. The rest of us don’t notice the opportunity and end up asking ourselves, “Why didn’t I think of that?”

Some entrepreneurs simply create something that they really need in their lives, while others decide to turn their hobbies into a business. Still, others simply adopt what they have already seen working successfully somewhere else in the world.

An entrepreneur is an ordinary person, young or old, male or female, rich with business ideas or focused only on one idea, who makes mistakes just like the rest of us. Entrepreneurship is more and more becoming a career option that appeals to those who want to be their own boss and believe in what they are doing. They are also positive thinkers and have the right attitude. It is all about creating the right mindset, which can be learned.

Simply put, they believe in themselves and have enthusiasm for what they do. They might not be the most skilled, or the most knowledgeable, but they have passion.

The ultimate achievers do not get where they are because they are chasing money. They achieve success by pursing their passion. They are more performance-oriented and processesoriented and perceive the finished work as a mean to a goal, not an end in itself. They set no boundaries to their job roles and their position within it. They work more closely with others who might impact their work and focus their attention not on their responsibilities, but rather on their interconnected responsibilities.

If you are thinking of becoming an entrepreneur, take into consideration the following:

It is not about what you do that determines your success and your market leadership, it is about how you do it.

Entrepreneurship is not about intelligence. It is about mastering the entrepreneurial mindset and taking full responsibility for results. It is a passion, a commitment to results, and a willingness to give your all to achieve what you’re seeking to achieve. It is not about what you do that determines your success and your market leadership, it is about how you do it.

The right mindset

Of course, keeping the right mindset can be a real challenge sometimes. The most important thing to remember is that you need to focus your attention on what you think about daily.

Remember, “If other people have done it, then I can do it as well.”

While we don’t expect everyone to be as successful as Bill Gates, anyone has the potential to become an entrepreneur. The good news is that there are no rules to become a successful entrepreneur.

If you can do it differently, then you can do it better, thus, building a unique identity for yourself. You might question why some people in your industry succeed in spite of themselves.

Passion and attitude Passion and a good attitude are absolutely essential. If you believe in what you want to achieve, you will enjoy doing it. Once the passion is there, it will be followed by selfconfidence and the belief that you will succeed.

It will motivate you to learn what is needed to succeed. Irrespective of the problems you might face, you’ll persist and find the right solution to them. Your absolute passion will make you stand apart.

Curiosity and motivation Curiosity will drive you into exploring new options, and not be blinded by your belief in one fixed idea. Exploring new possibilities will make your business grow better while openness to new information will help you shape an entrepreneurial mindset. Curiosity goes beyond asking about facts and figures. It

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Business advice

Mentors Another great way to shorten the “learning curve” is to find a mentor who will help you learn and grow by sharing his/her knowledge and wisdom with you. Mentors are usually positive people who can help you through tough times and will show you how to find an opportunity in any difficulty you might face.

A good mentor really cares about you and is willing to devote some time to helping you learn.

Learning from the experiences and the lessons of someone else will often help you avoid some of the mistakes they may have made, and can give you an edge that might help you succeed in your new career.

Salwa Atiyyah

The ultimate achievers do not get where they are because they are chasing money. They achieve success by pursing their passion. They are more performance-oriented and processes-oriented and perceive the finished work as a mean to a goal, not an end in itself.

involves thinking outside the box and always asking “What if?” What really motivates entrepreneurs is not the financial side, but rather the satisfaction they get from following their passion, growing and exploring, and proving to others that they are capable of achieving great things. To them, money is a smaller part of the overall story.

Positive thinking and problem solving Entrepreneurs are positive thinkers and they need to be optimistic.

This does not mean that an entrepreneur is a dreamy person, and not “down to earth.” It rather means that they are always looking for solutions to different problems.

Their main emphasis is on possibilities, options

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October 2012

and outcomes. No matter what obstacles come their way, entrepreneurs truly believe that their goal is attainable. In fact, often a “relentless optimism” can help to transform what might seem impossible to some into reality. The first step to changing something is just envisioning it strongly.

While entrepreneurs are usually relentless optimists who imagine the “impossible” and then make it happen, that doesn’t mean that they’re out of touch with reality. They routinely assess their situation objectively, get honest feedback about what works and what doesn’t, and make course corrections to ensure they stay on track to meeting goals. By keeping their eyes fixed on the goal and constantly adjusting to meet new challenges as they arise, they keep moving forward until they succeed! They are never afraid of failure and perceive it as a lesson to be learned.

The mentor will help you in setting your goals, and will monitor your progress toward achieving them. You can also benefit hugely from their experience, and their knowledge will help you to avoid some of their mistakes as well.

So, while you don’t need to have an advanced education, a lot of experience, or even a constant stream of great business ideas, if you have the right mindset, meaning a passion for what you do, curiosity to explore and learn, and a focused but optimistic attitude, then you have what it takes to be an entrepreneur!

We as individuals need to change the way in which we think and start thinking about things that we do want in our life, so that we can attract them to us. If you think this might describe you, then what are you waiting for?

Get out there and start your new career as an entrepreneur!

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

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

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45

Legal

How to

close

The Qatar Financial Centre Law, Law No. 7 of 2005, established the Qatar Financial Centre as an international business centre for financial service providers. Emma Higham, Senior Associate, Clyde &Co, provides an overview of the members’ voluntary winding up provisions under the QFC Insolvency Regulations (Regulations No. 5 of 2005, Insolvency Regulations)as well as a discussion of certain issues relating to insolvency practice.

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October 2012

legal

T

he Qatar Financial Centre (QFC) attracts international financial institutions and multinational corporations to establish businesses in investment banking, financial services, insurance, corporate head office functions and related services.

The QFC is organised into two authorities, a commercial authority – the QFC Authority (QFCA), and a regulator – the QFC Regulatory Authority (QFCRA). Both the bodies are independent of each other and from the Government of Qatar.

The QFCRA permits regulated activities primarily related to financial, insurance, brokerage and fund management services. In addition to licensing entities which provide regulated activities, the QFCA licences unregulated activities such as ship broking, professional services, and classification services.

The entities registered within the QFC may operate and trade without a local sponsor or service agent, thus allowed for 100% of nonQatari ownership. They are governed by the QFC rules and regulations, including tax and employment regulations.

The insolvency regulations A company established in the QFC may be wound up voluntarily or compulsorily, by order of the QFC Tribunal, under the Article 56 of the Insolvency Regulation.

In all cases, once the relevant authority or decision is made to wind up a company, one or more liquidators are appointed to attend to the winding up. Article 57 refers the reader to Schedule 1 of the Insolvency Regulations which sets out the powers of a liquidator.

This Article also provides that an officer of a company commits a contravention and is liable to a financial penalty if the officer broadly fails to assist or comply with a reasonable request of the liquidator, or hinders or obstructs the liquidator.

Voluntary winding up Article 58 envisages that a company can undertake a voluntary winding up:

a) in accordance with its articles of association, b) if the company resolves to do so, or c) if the company resolves that it cannot by reason of its liabilities continue its business and that it is advisable to be wound up.

The procedure for a voluntary winding up is broadly similar to the procedure under English law and other common law jurisdictions. There are two types of voluntary winding up namely, members’ voluntary winding up and creditors’ voluntary winding up. This article only discusses the key features of the former, leaving the topic of creditors’ voluntary winding to be considered at a separate time.

Article 63 relates to the declaration of solvency and importantly provides that directors must make reasonable enquiries of the company to have reasonable grounds to form the requisite opinion. The making of a declaration without reasonable grounds by a director gives rise to a contravention of the Insolvency Regulations and liability to a financial liability. Practically, each director should have the most up to date financial reports to support the making of the declaration.

This is especially important because if the company’s debts are not paid in full within the period specified in the declaration, each director will be considered, at first instance, not to have had reasonable grounds for forming his opinion.

There are two types of voluntary winding up namely, members' voluntary winding up and creditors' voluntary winding up.

Members’ voluntary winding up The key provisions are set out in Section 2 of Part 3 of the Insolvency Regulations.

Directors’ declaration of solvency – To initiate a members’ voluntary winding up, the directors of the company must, at a properly convened directors’ meeting, make what is commonly termed a solvency declaration. This requires the directors to make a full inquiry into the company’s affairs and that, having done so, they form the opinion that the company will be able to pay its debts in full within such a period (not exceeding 12 months from commencement of the winding up) as may be specified in the declaration.

Because of the consequences relating to the making of a false or inaccurate declaration, it is advisable for directors to declare that the company would be able to pay its debts within 12 months to deal with any unforeseen events. This declaration can be made up to five weeks before the passing of the company’s resolution to wind up the company, or immediately before that happens. In the absence of a solvency declaration, the winding up would be a creditors’ voluntary winding up and further requirements, including the convening of creditors’ meetings, apply.

Resolution to wind up and appointment of one or more liquidators To undertake a winding up, the company must generally pass a special resolution which should be approved by more than 75% of its shareholders.

However, as most QFC companies are wholly owned subsidiaries of foreign companies or are otherwise closely held, it is expected that the company’s immediate parent company or other entity approve would approve a written resolution to wind up the company and to appoint one or more liquidators to wind up the company’s affairs and distribute its assets which are surplus to its liabilities. Once passed, the company must notify the QFC’s Companies Registration Office (CRO) and, if required by the appointed liquidator, place an advertisement in one or more local newspapers (Article 59). Although the passing of the resolution marks the commencement of the voluntary winding up and the company is taken to cease to carry on its business, its corporate status and powers continue until it is dissolved (Article 61).

Consequences of liquidator appointment After the appointment of one or more liquidators, all of the powers of the company’s directors cease, except to the extent that they are preserved by its shareholders in general meeting or otherwise permitted by the liquidator (Article

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65(2)). In addition, all transfers of shares are void from the commencement of the winding up (Article 62).

Presently, there are only two insolvency practitioners registered with the QFC who may be appointed as liquidators by a company.

QFC authorised insolvency practitioners Presently, there are only two insolvency practitioners registered with the QFC who may be appointed as liquidators by a company. Namely, Joanne Kim Rolls and Steven John Parker of RSM Tenon, both based in the United Kingdom.

It will be watched with interest whether the number of authorised insolvency practitioners will increase, possibly from the relevant departments of the “Big 4” global accounting firms. As part of preparatory steps, companies should contact these individuals or the firm to obtain a quote for winding up. It is accepted practice in some jurisdictions for two liquidators from the same firm to be appointed jointly to each company to deal with any unforeseen events happening to either of them.

Meetings during the winding up process Once the company’s affairs are fully wound up, the liquidators must account for their activities and present that account at a general meeting of the company (Article 67). If the winding up lasts for more than one year, the liquidator must convene a general meeting within three months of the end of the first year, as well as within each succeeding ones, to provide an account of the liquidators’ winding up activities (Article 66).

Insolvency and conversion to a creditors’ voluntary winding up If the liquidators consider that the company will be unable to pay its debts within the period stated in the directors’ declaration of solvency, the liquidators must convene a meeting of the company’s creditors within 21 days of forming that opinion, providing not less than 14 days notice (Article 68). Once held, the winding up

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would become a creditors’ voluntary winding up and certain deeming provisions apply for the winding up to proceed in that manner.

Other issues in practice Distribution of company property and priority of payments Article 91(2) provides that in a winding up, the priority of payments is as follows: a) secured creditors to the extent of their security, b) costs and expenses, including the liquidator’s remuneration, properly incurred by the liquidator in the exercise of its functions, and c) ‘preferential creditors’ which are defined in Article 148 as: i) a person who is or has been an employee of the company who is owed remuneration by the company, including any notice period not exceeding three months, of up to USD 50,000, ii) a person who is or has been employee of the company who is owed by the company reasonable accrued holiday remuneration and reasonable contributions to occupation pension scheme, and d) the State, the QFCA, the QFCRA and the CRO (presumably in that order of priority) in respect of taxes, financial penalties and fees owed by the company, then e) unsecured creditors.

Notification requirements When a company is being wound up, every document issued by or on behalf of the company or the liquidator on which the company name appears must contain a statement to the effect that the company is being wound up. Practically, the words “in liquidation” should suffice. The type of documents this would apply to include a business letter, written order for goods or services, invoice receipt, written demand for payment and similar documentation.

Mutual credit and set off Article 107 of the insolvency Regulations broadly provides for a statutory set off of mutual credits, mutual debts or other mutual dealings between the company and any creditor of the company.

As a result, only the net amount, if any, is payable or receivable by the liquidator of the company.

This is commonly used by insolvency practitioners to minimise the cost of winding up a company and preserve the amount of distributable property.

About Emma Higham is a corporate and commercial lawyer with over nine year’s experience. Having been based in Qatar for nearly seven years, Emma incorporates her extensive knowledge of the local law when advising both local and international clients. Emma joined Clyde & Co in October 2007, having previously worked for another international law firm for six years, both in London and Qatar. Prior to that Emma worked for Price Waterhouse for eight years in both audit and corporate recovery. Emma can be contacted at emma.higham@clydeco.com.qa

Technology

In case you are thinking of co-locating your staff under one roof, be aware that it might cause logistical nightmare for the IT team aiming to secure adequate data access and protection. Robert Campbell, Managing Director, Ecommnet Limited, talks about implementing and managing secured access in a period of rapid change.

I

t is no secret that the UK Government is still running at a significant loss. It is therefore no surprise that organisations have to cut costs, and for the public sector, this has fast become its mantra.

The NHS, children’s services, housing and regeneration, local government, the police force - everywhere you turn there is a generic call to introduce changes that will save money.

One popular initiative has seen many local councils consolidate their operations by colocating their staff. NHS, education, council employees and others are all congregating together in one central location in an effort to reduce property costs. While on the surface this seems a practical solution, for the IT team it’s a logistical nightmare.

Physical connectivity Imagine if you will, each department existing in its own locale. Part of the infrastructure would typically include a physical IT network. Just like a building has walls protecting the contents

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inside, the network too would have barriers, or gateways, to prevent external access.

As organisations come together, under one roof, so do the networks on which they function and this is where the complexity begins.

Sticking with the physical building analogy, if you give someone a key to the front door, without a thought to the security within the building, then that person is free to roam all the floors, corridors, offices and potentially rifle through the unlocked drawers and filing cabinets within. Similarly, a physical network is made up of several layers and it’s reliant on someone physically locking all the areas, or compartments, to prevent unauthorised access.

It is imperative that a company controls which individual has access to which services, applications and information and from where.

They also need to ensure that each individual is actually who they claim to be. While this sounds pretty straight forward, it can be very complex to manage without the right tools.

Before I continue its worth clarifying that inadequate data protection will get you into a whole heap of trouble. If you’re in any doubt a quick Internet search of “public sector data breaches” will bring up a long list of organisations that stand testament to the size of the problem, and the penalties they’ve incurred as a result.

Networkless connectivity Instead of building separate physical or rigidly constructed networks for each organisation, one method that is gaining popularity is to create one network, and to control access to the services and data it houses at the point of entry.

Networkless connectivity removes the dependency on how the network is physically constructed and is instead dependent on an individual’s role within the organisation. Using access control technology, such as Cryptzone’s AppGate Security Server, the services and information each individual is granted access to will be determined at the point that they attempt to connect to the network. Returning again to the building analogy, it is akin to each person having

Technology

Networkless connectivity removes the dependency on how the network is physically constructed and is instead dependent on an individual’s role within the organisation.

their own unique key to the building that, when they unlock the front door, automatically opens all the doors within the building that they can legitimately enter, but also seals all the doors that they should not.

Access can be further controlled by what type of device is being used to connect and where people authenticate themselves. For example, if a user connects to the network from a PC within the organisation’s premises then they can access all files and information needed to perform their duties. However, if they connect from a laptop from home, they may be restricted to just calendar information or basic applications. Taking it a step further, access can be further controlled by the day of the week and/or time of day that the person is accessing the network to determine what they can do and see.

While this might all sound extremely complex, fundamentally networkless connectivity is far more flexible, with the underlying infrastructure easier to build and manage.

Secure authentication A key security consideration is proving that the

Robert Campbell

user is who they claim to be. Historically, many access gateways required an individual to enter their username and password combination to authenticate themselves. While this may have been adequate for one organisation functioning from one location, as soon as you start colocating, or even allowing remote access, single factor authentication is woefully inadequate and easily circumvented.

For this reason the introduction of two factor authentication (2FA) is increasingly being driven by legislation and/or the need to be more secure. 2FA fundamentally is the combination of two of three elements: • Something you know – a username or password, • Something you have – an authentication device such as a SmartCard, • Something you are – referred to as biometrics it involves retina or fingerprint scanners.

Just so we’re all straight, a username and password combination is not 2FA as it is two variations of one element – two things you know.

Now that we’ve established what 2FA is, it’s time to look at what the options are. Fundamentally there are two main forms of authentication device: • A physical token or SmartCard, • A virtual token – a mobile phone used to receive a passcode via SMS message or generate the code via an app.

While physical tokens have been used for numerous years, many would argue that they’re an outdated technology. In addition to the administrative nightmare of configuring each token, and the logistical headache of distributing them to users, they also have a shelf-life, typically two to three years. In contrast, virtual tokens on SmartPhones are far cheaper to manage,

practically every pocket houses a device, and people are comfortable with their handset so user acceptance is easily overcome.

Networkless connectivity combined with strong 2FA allows straightforward user access, without constraints, to deliver a completely dynamic set up at the time of connection. So, whether you’re merging, re-merging, demerging or just looking to introduce a more flexible working practice, securely, make sure its future proof and cost-effective. Instead of getting physical, it’s time to start thinking outside the box, and even the building.

About Robert Campbell, Founder and Managing Director, Ecommnet Limited, qualified as an engineer at the Newcastle University and spent the first 12 years of his career working in production engineering in the manufacturing and automotive industry. In November 1998 Robert established Ecommnet, as a specialist IT security and mobile application development company. For more information, please visit www.ecommnet.co.uk.

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Management

Wear the

strategy hat!

Corporate planning is a holistic approach to formulating growth for the entire organisation.

Nada Al Mahmeed, Corporate Planning Officer, QDB, advises entrepreneurs and SMEs on how proper planning can lead to growth of their business.

C

orporate planning is a systematic approach which sets long term corporate objectives. It establishes strategic decision-making and progress-checking procedures towards meeting those objectives.

Basically, organisations employ three, five or ten year planning horizon depending on the nature of the industry. But today, due to trends in technology, emerging competition and changes in government policies and regulations, planning has to be more realistic in terms of time and alertness to incidence happening in the market place.

Planning is neither a feasibility study nor a business plan, since it covers the functioning of the organisation as a whole. It cannot be limited to its various parts or be considered as an aggregate of various functional plans like product plan, marketing plan, purchase plan or HR plan. Hence, it’s a comprehensive approach to analysing what are the organisation’s long term goals with an aim to develop a road map for achieving them.

Within QDB, corporate planning is used for monitoring the performance of the entire bank as the entity. We do not keep track to solely keep people responsible for their performance, but in order to find out areas of possible improvements. In that way we can assess the market better and contribute to the society through realising what is lacking, what do people need and what can we do better.

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Importance of long term business goals Organisations, and especially SMEs, should have a long term vision. It means moving from point A to point B which is a destination to be reached in a given time frame. So, once an entrepreneur is clear about the vision of his organisation, he can set his goals as outcomes of what he expects his business to achieve. Those could be goals which relate to becoming a highest profit performer or a technology leader or a market share leader in the industry. Setting such an outcome-based vision with a timeline is the starting point for developing business goals.

Business goals can also be set in terms of return on share capital or anticipated market share, level of customer satisfaction and many others. In a sum, business goals are the critical outcomes which determine the viability and sustainability of the organisation.

Business goals or corporate objectives need to be SMART (specific, measurable, achievable, realistic and time scaled). They represent fixed development objectives with suitable targets.

Today we are talking about linking corporate plan with budgeting and with monthly or quarterly performance review systems. Review systems include preparation of monthly performance reports against corporate plan targets. Tools like Balanced Scorecard facilitate such performance reviews and enable us to test and adapt the strategy on a periodic basis.

Management

Theory recognises two ways of planning: top-down and bottom-up planning. For SMEs, a hybrid version would be more suitable, since it is more helpful in evolving a realistic plan.

For that reason, SMEs should be careful not to prepare a plan and leave it on a shelf because it needs to be implemented.

Planning ahead: How it’s done?

Once a corporate plan is prepared, it needs to be cascaded to all the business units or divisions.

Targets need to be set at each of these levels, so that attainment of the objectives of business units will lead to attainment of objectives of the organisation. The next challenge is to determine what is the best way to apply it and which tools and techniques to use. This relates to the stateof-the-art application of tools and techniques like industry structure analysis, SWOT, value chain analysis, simulations, scenario planning and similar.

To achieve this, the organisation needs to apply tools and techniques to complex business situations and, more importantly, to posses skills needed to apply them. Experts are normally not available in SMEs due to incorrect belief that corporate planning is reserved for large and diversified businesses. Today even smaller organisations need to have a culture of corporate planning. They do not need to have a big corporate planning department, but CEO with outsourced consultants can do the plan themselves. The most important thing is to give priority to planning and to have the ability to foresee the trends which take place in the market. Next step is to synthesise them with respect to long term objectives and vision of the organisation. In that manner, the organisation will be able to evolve its plan.

Nada Al Mahmeed

Planning ahead is vital in today’s business world – technology has been advancing progressively, government regulations have been changing very fast, competition is making new trends in determining new factors on which success is evaluated.

QNV 2030 is the prime, leading light to show entrepreneurs of Qatar which direction they should take when they plan their entrepreneurial endeavours. Economic development is one of the pillars of QNV 2030 and the entrepreneurs have to fulfil the national dream of creating a truly broad-based economy, not solely dependent on oil and gas exports.

In line with that, the entrepreneurs and SMEs can exlpore potential growth opportunities in areas such as infrastructure projects and resource-based industries.

Challenges SMEs are focused on day-to-day operations, managing funds and getting the right people.

In such situations, the tendency is to look at short-term problems and to ignore long-term problematic trends. This is the starting point of a cycle in which they get trapped in dealing with everyday issues.

SMEs think that having a budget plan equals to having a business plan. This is not correct since budgeting is only for a short term period and, thus, does not take into account long term trends and overall impact of various parameters which have bearing on the performance of the organisation.

Another tendency is to think that a few separate individual plans sum up to having a corporate plan. That is not so, because corporate plan is concerned with changes and overall shape of a company rather than individually looking at departmental plans.

Some entrepreneurs are doing well without a plan, but for some entrepreneurs it is vital

The most difficult thing for a planner is to plan his resources which are always limited. The organisation must look for a way to make the best out of the available resources in order to compete successfully in the market place.

SMEs have a tendency to look at short-term performance results like sales, receivables, order back log, day-to-day production schedules and similar. By being focused on the short-term trends, they miss to realise potential paradigm shift in the business. For example, in order to increase volume of production, a company may plan to upgrade its plant and machinery instead of noticing a change in consumers’ perception. This change might require them only to introduce a new product and not to build a whole new plant. For that reason, decisions which have long-term impact have to be taken care of in planning ahead.

to have a plan, especially when it comes to technology.

For example, few years ago a startup for mobiles’ applications, would enter the market only with the iPhone, which was a major player, and ignore the other brands. So, when people started shifting to Samsung or other products, those startups were in trouble.

On the other side, technology advancements do not necessarily require from an entrepreneur to adapt immediately. For example, when SmartPhones were invented, the market share

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of the previous major player, Nokia, went down.

But, if Nokia decided to downsize and just keep producing the basic phones, it would not necessarily go bankrupt since there was still a need for cell phones. Thus, an entrepreneur needs to choose a target group and adapt technology to its needs. It’s really about deciding what you want to do and not necessarily just following the flow of technology advancements.

In any case, advice for entrepreneurs and SMEs would be to keep in mind that whatever plan they have set they need to ensure that it’s actually applicable.

Always have a plan B Once long-term objectives are set, the organisation must think in terms of strategies and initiatives that need to be implemented. Initiatives include determining what types of financial, marketing, IT or HR resources are needed and implementing them within the determined time period. The initiatives will have reflection on the performance of the objectives and successful achievement of the goals of the corporate plan.

The most difficult thing for a planner is to plan his resources, which are always limited. The organisation must look for a way to make the best out of the available resources in order to compete successfully in the market place.

Mobilising resources (IT, human, financial, and so on) which may have an impact on the performance of the organisation is crucial for success. Today, organisations are leveraging IT resources to effectively reach the customers and meet their needs. Online marketing has become a very successful tool and small organisations may find that this is a necessity. But, since most of the SMEs have limited resources and might not be in position to explore online marketing properly, they could consider additional options – plan B. For example, if you plan to do newspaper advertisement and find out that it’s beyond

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Planning is neither a feasibility study nor a business plan, since it covers the functioning of the organisation as a whole.

your budget, plan B would be to go for online resources (Twitter, Facebook and other social and digital media options) since it’s cheaper and will reach more people.

The advice for SMEs would be to know what resources are required to meet the changing consumer trends and competition dynamics.

Don’t blindly stick to the plan A corporate plan is normally prepared with a long term perspective in mind. However, a periodic review of a strategy and its performance needs to take place if there is a major shift or an emerging new trend within the market. It is done by comparing actual market situation with the goals, vision and plan of the organisation and realising existence of some of the triggers which require revisiting the corporate plan to make changes if needed.

It is crucial to be open to changes happening in the market. For example, Kodak and Xerox at some point failed because they didn’t consider market changes – market entry of the digital cameras and computers which forced Xerox to downsize. The advice for SMEs would be not to completely change their business, but to check how emergence of new market conditions can affect it and act and plan accordingly.

Dos and dont’s Dos • Try to wear the strategy hat! The entrepreneurs should have faith that planning is essential for growth in today’s competitive environment

• Rely on budget • Look for the major changes that can happen in your market place Dont’s • Planning is not only for large enterprises – it’s the first, fundamental belief that is required.

Planning is as essential for SMEs as for large enterprises.

• Planning is not budgeting – that’s the second mistake everybody makes. Planning is looking at overall shape of a company.

• Don’t start a business just to be called an entrepreneur! Start a business to fill a gap and because you think it will add value.

• Don’t hesitate to reach out for help if you find yourself in a problematic position. Seek advice from companies and entities which are willing to guide SMEs and entrepreneurs – Enterprise Qatar, Silatech, Bedaya centre, QDB and similar.

• Don’t feel that if you reach out for help you are a failure – you’re not! Even if you fail, you’ll learn from it and do better.

About Nada Al-Mahmeed is a Corporate Planning Officer in Qatar Development Bank (QDB) and is responsible for developing the corporate plan for QDB and implementing the Balanced Scorecard for corporate performance management which contributes towards improving the productivity and performance of the bank as a whole. Nada graduated from Carnegie Mellon University in Qatar with a Bachelor of Science degree in Business Administration and a minor in English Studies. Nada can be contacted at n.almahmeed@qdb.qa.

START YOUR BUSINESS

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The SME Toolkit is a joint project between Qatar Development Bank and International Finance Corporation (IFC), a member of World Bank Group.

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