Private Sector Qatar English| June 2013

JUNE 2013 www.privatesectorqatar.com/en

LEAD STRATEGIC PARTNER

SUCCESS STORY We bring you the reasons why you should dine at the Al Balad restaurant

TECHNOLOGY Get to know about the growth of social media in the region

LEGAL Understand the working of the Qatar International Court & Dispute Resolution Centre (QICDRC)

PUBLICATION LICENSED BY IMPZ

WOMEN IN BUSINESS

G N I Y F I T N E ID BUSINESS ES I T I N U T R O OPP

H.E. Sheikha Mayes Hamad Al Thani talks about the different hats she wears

STORIES SUCCESS AR OF QAT

qatar.smetoolkit.org/qatar/en

CONTeNTS June 2013

22 Women in business 18 BE THE CHANGE! In a conversation with Tamara Pupic, H.E. Sheikha Mayes Hamad Al Thani, Director of HR and Administration, DFI, and Owner and Managing Director, Living Spaces Qatar, talked about her commitment to bring positive changes to the Qatari society.

Business opportunities 22 UP TO THE HIGHEST STANDARD!

UP TO THE HIGHEST STANDARD! The SME Engagement Opportunity Workshop was organised by Qatar Development Bank and Qatar Shell on 8th May 2013.

Private Sector Qatar brings to you detailed coverage of the event.

The SME Engagement Opportunity Workshop was organised by Qatar Development Bank and Qatar Shell on 8th May 2013. Due to its relevance for local SMEs, Private Sector Qatar brings to you detailed coverage of the event.

26 ENHANCE YOUR POTENTIAL!

News

Heat exchanger is a process equipment which is used for cooling or heating process materials. Within this business opportunity, Qatar Shell seeks to develop and build capability in heat exchanger re-tubing and fabrication services locally.

10 UPDATES

28 YOUR SUCCESS FACTOR!

A quick look at news and events in this region.

Qatar Shell is committed to help local SMEs to capitalise on the unique opportunity to manufacture stud bolts locally.

30 SAFETY FIRST!

About Town

The use of personal protective equipment is mandatory and aimed at reducing employees’ exposure to hazards. In line with that, Qatar Shell looks to develop capability of local SMEs to manufacture and supply these products.

14 A GAME CHANGER! Private Sector Qatar brings to you coverage of the 20th Arabian Travel Market (ATM) 2013 and details of Amadeus’s air traffic analysis of passengers’ trends in Qatar, Saudi Arabia, and the UAE.

32 NO MORE BOUNDARIES Although Qatar is an Arab country, it has to ensure provision of all information in two different languages in order to reach, both, the national and foreign residents. Therefore, Qatar Shell is looking to enhance translation services locally.

16 A DECADE OF SUCCESS! Project Qatar 2013 was held from 6th to 9th May 2013 at the Doha Exhibition Centre. Private Sector Qatar shares with you the main highlights.

4

18

34 SNAPSHOTS We bring you snapshots from the workshop held at the Four Seasons Hotel in Doha.

Entrepreneur 42 TAKE A DEEP DIVE INTO BUSINESS Do you enjoy scuba diving? Abdullatif AlNaemi, PADI Course Director and Owner of Qatar Divers, told Tamara Pupic how this hobby motivated him to create the leading PADI Five Star International Development Center in Doha.

Management 46 ENGINEERING SUCCESS Jenny Kassis met with Engineer Eisa Al Hammadi, Engineering Projects Manager, QDB, to hear more about the Engineering Projects Department of Qatar Development Bank.

48 Technology 36 THE VIRTUAL SOUQ Since businesses have reaped the benefits from the continued growth of social media, Hayfa Abdulrahman Ahmed, ICT Research Manager, Qatar Science and Technology Park (QSTP), presents her study on the regional utilisation of social commerce.

Legal 40 GOOD LAW MEANS GOOD BUSINESS Robert Musgrove, CEO, QICDRC, explains that, since its establishment in 2009, the Qatar International Court and Dispute Resolution Centre (QICDRC) has been moving at the same rapid pace as Qatar’s economic development.

42

46 Success story 48 DINE WITH A DIFFERENCE Jenny Kassis spoke to Roland Haddad, Vice President, Al Mannai Group, whose Al Balad restaurant was one of the “Best Five Projects in Qatar” awardees by Qatar Development Bank (QDB), to find out how they were able to prove themselves within the Qatari market.

SMEs 52 HAVE A SMOOTH SAIL

52

Jenny Kassis visited the factory of Halul Boats and spoke to Salah Mohamed Al-Khazraiji, Manager, Halul Boats, to learn more about their operations in this unique industry, which is sparkling among the other industries in Qatar.

JuNe 2013

5

edITOrIal Publisher Dominic De Sousa Group COO Nadeem Hood

The best is yet to come…

Managing Director Richard Judd richard.judd@cpimediagroup.com +971 4 440 9126

A few days ago, The World Economic Forum released its Arab Competitiveness Report 2013 and it comes at a time when the Arab countries are going through a critical phase. While some have embarked on a path of rapid economic growth and development, others are going through a political transition.

EDITORIAL Senior Editor Aparna Shivpuri Arya aparna.arya@cpimediagroup.com +971 440 9133 Assistant Editor - English Tamara Pupic tamara.pupic@cpimediagroup.com +971 440 9130 Assistant Editor - Arabic Jenny Kassis jenny.kassis@cpimediagroup.com +971 440 9116 ADVERTISING Commercial Director Chris Stevenson chris.stevenson@cpimediagroup.com +971 4 440 9138 CIRCULATION Database and Circulation Manager Rajeesh M rajeesh.nair@cpimediagroup.com +971 4 440 9147 OPERATIONS AND DESIGN Production Manager James P Tharian james.tharian@cpimediagroup.com +971 4 440 9146 Head of Design Fahed Sabbagh fahed.sabbagh@cpimediagroup.com +971 4 440 9132

And with a sense of pride, I would like to point out that Qatar stands out as the most competitive economy in the region and 11th on the global list, which was topped by Switzerland. Qatar has had a stable macro- economic environment along with a strong institutional framework. The report also points out that the country has improved recently in terms of the ease of doing business, with a new Commercial Companies Law aimed at simplifying the procedures required for the establishment of commercial enterprises. Access to credit has improved over the past few years and trading across borders improved notably. Qatar also reduced the time for exporting and importing by introducing a new website allowing electronic data interchange for customs clearance at the Doha seaport.

All this is good news, and the icing on the cake for us is the signing of the MoU between Qatar Shell and Qatar Development Bank to work together to support SMEs through specific business opportunities. Please turn to page 22 to read all about the event and the business opportunities highlighted.

We are also very excited about our Forum on Innovation for Business: The Importance of ICT. We have a very interesting line up of speakers and look forward to some engaging discussions.

So you can see that this has been a busy month for us, but we still haven’t slacked on bringing some really interesting stories to you, which resonate the spirit of Qatar and it’s vision – so sit back and enjoy reading our features on Halul Boats, Al Balad restaurant, Qatar Divers and Living Spaces Qatar.

See you soon…

Photographer Jay Colina jay.colina@cpimediagroup.com +971 4 440 9137 DIGITAL SERVICES www.privatesectorqatar.com Digital Services Manager Tristan Troy Maagma Web Developers Abey Mascreen Erik Briones Jefferson de Joya Louie Alma online@cpimediagroup.com +971 4 440 9100 Published by

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

Head Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409

Printed by

Al Wraq Printing Press, Qatar

Distributed by

Dar Al Sharq Distribution © Copyright 2013 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

Amal Al-Mannai

ADVISORY BOARD Gail Gosse Gail Gosse is the Dean of the School of Business at College of North Atlantic-Qatar.

Hamad Mohammed Al-Kuwari Hamad Mohammed AlKuwari 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. George M. White is the Associate Teaching Professor of Entrepreneurship at Carnegie Mellon UniversityQatar.

Abdulaziz N. Al-Khalifa

Nasser Al Muhannadi

Abdulaziz N. Al-Khalifa is the Executive Director of Strategy and Business Development at Qatar Development Bank .

Nasser Al Muhannadi is the Chief Operating Officer at Enterprise Qatar.

Raed Al-Emadi

Rashid Nasser Sraiya Al Kaabi

Raed Al-Emadi is the Chief Operating Officer at Silatech.

24

Amal Al-Mannai is the Executive Director of the Social Development Center.

Rashid Nasser Sraiya Al Kaabi is the Chairman of the Board of Energy City Qatar

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

NeWS

Joint efforts for the neighbourhoods’ development The Ministry of Business and Trade (MBT) launched a pioneering project to establish small markets, including groceries, pharmacies, bakeries, and outlets offering other basic services, within different neighbourhoods.

The ministry also signed a contract with Qatar Development Bank (QDB) to undertake the first phase of the project.

H.E. the Minister of Business and Trade Sheikh Jassim bin Abdulaziz bin Jassim bin Hamad al-Thani said that the project would contribute partly towards bringing the rental rates of commercial outlets to the correct track, especially those that directly serve residential areas.

H.E. Sheikh Abdurrahman bin Khalifa bin Abdulaziz al-Thani, the Minister of Municipality and Urban Planning, explained that his ministry had welcomed the project

as a positive initiative and supplied the necessary plots of land for implementation.

The Ministry of Municipality and Urban Planning has assigned 44 plots of land for the different phases of the project in places, including Doha, Rayyan, and Al Daayen municipalities. Four plots are to be distributed at Al-Thumama area, six at Al Rwada, four at Al Mearad, four at Ain Khalid, seven at Qutaifiya, and three at Hazm Al Markhiya among other different locations.

“The project would be conducted in three phases. The first stage would include 12 plots of land in different locations around the country with spaces that amount to 2,500 - 3,000sqm with 122 commercial shops,” said Mansur bin Ibrahim alMahmoud, CEO, QDB.

The second phase involves 18 plots of land with spaces amounting to 700 - 2,000sqm to construct 176 shops. The third and final phase include 14 plots of land with spaces of around 3,000 - 7,000sq m with 290 shops.

“The services and activities of such shops would be varied to serve the residents of each area.

Also, some places are assigned for ATMs and other machines to pay the e-bills of different services,” al-Mahmoud said. He also pointed out that the structure and design of such buildings were inspired by the Qatari environment and heritage, in specific colours and patterns.

The first stage has already been awarded to a national company in a public tender. Tenders for the second and third phase are under preparation and would be put forward soon.

The overall project is expected to be fully implemented by mid-2014.

QDB EDUCATES THE MANUFACTURERS IN QATAR Q a t a r D eve l o p m e n t Ba n k (QDB) organised the second edition of its home-grown training programme, which b ro u g h t to ge t h e r ove r 3 0 Qatari entrepreneurs for an intensive five-day introduction into establishing and managing manufacturing projects in Qatar. The comprehensive training sessions presented attendees with a step-by-step approach to set up a viable, profitable and competitive manufacturing business in the country.

Mansour Bin Ibrahim Al M a h m o u d , C E O, Q a t a r D eve l o p m e n t Ba n k s a i d , “ I t wa s a ve r y s u c c e s s f u l

10

programme on account of the collective positive feedback of participants. At QDB, we believe that our role does not stop at funding and financing only, but also stretches to transform our organisation into the industry ’s mentor whose pool of professionals continuously contributes to f u r t h e r i n g t h e k n ow l e d ge and education of Qatari entrepreneurs.”

Abdulaziz Al Khalifa, Strategy and Business Development, QDB, said, “The continuous launch of such educational and training programmes aims to elevate the entrepreneurs sector in Qatar. It will lead to

enhancing the competitiveness capabilities of the promising sector, and meeting the goals of the National Vision 2030.

This is the second edition of the training programme, which faced a major content upgrade and an increase in the participating parties. The programme is aimed for Qatari locals only. It will provide them with the know-how steps for launching industrial projects.

Also, it is aimed for local entrepreneurs to get familiar with all the requisites and the risks engaged to launch an industrial project.”

I n t h e b e g i n n i n g, Q D B ’s experts profiled the business ideas of every participant and explained them how to develop solid and convincing business profiles. Training facilitators explained to entrepreneurs how to accurately identify and assess potential business opportunities by carrying a thorough scanning of their industrial macroenvironment. The last two days looked closely into the model of the manufacturing process.

QDB experts gave practical tips for developing and managing a manufacturing SME and the requisites for registration.

Bedaya Centre and Qatar Shell jointly promote entrepreneurship Following the success of the Enterprise Challenge 2012, Qatar Shell has signed a Memorandum of Understanding (MoU) with the Bedaya Center for Entrepreneurship and Career Guidance to launch the Enterprise Challenge Qatar 2013, a programme designed to promote the spirit of entrepreneurship and develop business knowledge amongst young people.

The Enterprise Challenge Qatar 2013 will be open to students from all of Qatar’s universities, as well as a separate programme for high schools in Al-Khor and Al Shamal. The programme consists of two parts: • The Ethical Business Challenge, which tests students’ ability

to balance the economic, environmental and social performance of their company.

• The Business Simulation, which is designed to familiarise students with general business concepts from inception to trading, finance, sales, marketing and production.

Qatar Shell is the founding sponsor of the Mosaic in Qatar, an initiative of His Royal Highness the Prince of Wales for Muslim youth around the world, and which developed The Enterprise Challenge.

Building on the programme’s large appeal to students last year, Enterprise Challenge Qatar 2013 is being expanded to reach a larger group of universities

and will also target schools in the northern municipalities of the country. The programme is delivered through workshops and a sequence of computer challenges that aim to equip participants with practical business skills to develop their business acumen, team work skills and strategic thinking.

Competing teams will be assigned

mentors trained by Qatar Shell and the Bedaya Center.

The Enterprise Challenge Qatar 2013 kicks off in September 2013, and concludes with the Business Simulation Finals during the Global Entrepreneurship Week, which will be held from 17th to 21st November 2013.

Bedaya Center and Sasol sign MoU to support SMEs Sasol, the international integrated energy and chemical company and the Bedaya Center for Entrepreneurship and Career Guidance, have signed a Memorandum of Understanding (MoU) to cooperate on providing technical business support for development of SMEs in the chemical, energy and related sectors in Qatar.

“Sasol is pleased to support entrepreneurship in Qatar through this partnership with Bedaya Center. Small firms are the backbone of a flourishing and diverse economy. It is in our company’s heritage to support the communities in which we operate, from our native South Africa to Qatar. Through our joint venture with Qatar

Petroleum, ORYX GTL, and community partnerships, we are proud to be making a positive mark here in Qatar today and in the future,” said Marjo Louw, President, Sasol Qatar.

As per the MoU, the Bedaya Centre will identify and refer entrepreneurs and SMEs, for which it believes will benefit

from Sasol’s technical business support, while Sasol will impart its SME development experience, knowledge, and best practices to them. In turn, Bedaya will provide business support to those entrepreneurs, including know-how relating to business plans, feasibility studies, market analysis, marketing strategy and operational plans.

Saleh Al Khualifi, Manager, Bedaya Centre, said, “The entrepreneurial spirit is making a comeback with the next generation in Qatar and the region. We welcome Sasol’s collaboration with Bedaya Center to support SMEs in Qatar with their technical know-how and experience in the chemical and energy sectors. This is a great example of giving back to the community and supporting the diversification of the local economy.”

JuNe 2013

11

NeWS

DOHA BANK SUPPORTS SMEs IN ABU DHABI AND DUBAI During its seminar “Real Estate, Infrastructure and Urban Visions”, which was held on 21st May 2013 in Dubai and 22 nd May 2013 in Abu Dhabi, Doha Bank announced its intentions to support SMEs and corporate clients in the UAE through the bank’s fully licensed branches i n t h e s e c i t i e s, i n c l u d i n g support for companies in the infrastructure development and construction sectors.

Dr. R. Seetharaman said that Doha Bank is earmarking USD

12 billion (AED 44 billion) for lending to high-potential clients in the GCC between Qatar, the UAE and Kuwait, where the bank operates full branches. Doha Bank aims to commit about USD 1.5 billion (AED 5.5 billion) in the UAE focusing on corporate and SME clients.

Dr. Seetharaman also stated, “ S M E s h ave o n ly re c e n t ly transitioned as a primary focus area for banks in the region and this has been mainly due to government stimulus

THE USA COULD BECOME ENERGY INDEPENDENT BY 2030 The application of new techniques for extracting hydrocarbons, that were previously not economical, is changing the rules of game for global oil and gas, particularly in the US. QNB Group explains that not only will the US soon become a net exporter of gas, it is also likely to eventually become selfsufficient in oil.

As the new techniques have been introduced, production has soared from just 10k b/d in 2006 to 719k b/d in March 2013. In total, the US’s Energy Intelligence Administration (EIA) estimates that its tight oil production reached 2.0m b/d in 2012, up 0.8m b/d on 2011. Its share of US crude production has risen from 11% in 2010 to 32% in 2012.

and incentives for financial institutions to support this highrisk-high-rewards segment in many parts of the GCC. In the UAE, Doha Bank sees significant

organic opportunities, without external stimulus involved in the SME market which plays a pivotal role in the non-oil economy.”

The EIA forecasts that US tight oil production will rise a further 0.8m b/d by 2020, when it will represent nearly 40% of US crude production. The latest medium term forecast from the International Energy Agency (IEA), released on May 14th 2013 is more bullish. It forecasts an additional 1.5m b/d over 2012 production by 2018. This would mean that US tight oil would provide over a quarter of the new crude production globally until 2018, more even than Iraq

is expected to contribute. BP is even more optimistic, forecasting that US tight oil production will increase by 2.8m b/d by 2020.

Earlier IEA forecasts suggested that the US could overtake Russia and Saudi Arabia to become the world’s biggest oil producer (including condensates and natural gas liquids) as soon as 2017. Moreover it expects the US to become energy independent by 2030. By contrast, in 2011, the US depended on oil imports for 45% of its consumption.

SAVE THE DATE! Date

Event

Location

2 - 5 June

World Stadium Congress Series

doha

5 - 8 June

leather exhibition

doha

4 - 6 June

ChrVI Qatar

doha

4 - 9 June

International Conference and exhibition for Industrial Cooling and heating Systems and Insulation

doha exhibition Centre

10 June

PSQ Success Series – Innovation for business: The importance of ICT

renaissance hotel

13 - 14 June

34th Session of the Ministerial Council for OPeC Fund for International development (OFId)

West Bay, doha

16 - 19 June

Made in america

doha

27 June - 6 July

doha Trade Fair

doha exhibition Centre

To know about the events happening in Qatar in the next six months, please visit our Website.

12

JUNE 2013

Mismanagement of print costs businesses between 1-3% of revenue annually If companies printed in duplex, their paper costs could be reduced by 30%

Take control of your spiralling print costs.

Print is often the forgotten business cost, yet solutions are readily available to ensure businesses have maximum visibility and control of their print output. In its latest White Paper, SMB Buying Considerations for Smarter Business Printing, IDC sounds a note of caution that when printer usage is left unchecked there is potential for costs to spiral out of control. Print smart, print OKI. To download the IDC White Paper scan the QR code or visit www.okime.ae/corporate/thought-leadership

aBOuT TOWN

A GAME

changer!

The 20th Arabian Travel Market (ATM) 2013, which is the annual travel and tourism event unlocking business potential within the Middle East for inbound and outbound tourism professionals, was held from 6th to 9th May 2013 in Dubai. Private Sector Qatar brings to you coverage of the event and details of Amadeus’s air traf�ic analysis of the passengers’ trends in Qatar, Saudi Arabia, and the UAE.

T

he 20th Arabian Travel Market (ATM) 2013 was held from 6th to 9th May 2013 at the Dubai International Convention and Exhibition Centre. The event included more than 3,000 exhibitors from 87 countries, with exhibition floor space covering more than 22,000 square metres. It saw in attendance more than 17, 000 visitors.

On 6th May 2013, H.R.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, officially inaugurated the 20th Arabian Travel Market 2013, in the presence of senior government officials, leaders of the regional and international travel industry as well as high-profile participants.

We first attended the press conference of Qatar Airways, during which Akbar Al Baker, CEO, Qatar Airways, revealed that the airline will expand its routes across three continents along with a huge increase in capacity in Pakistan by 60% with 28 flights a week. Routes to Addis Ababa and Clark International Airport in the Phillipines will also open up later this year while in March 2014 Philadelphia will become the airline’s fifth US gateway.

Al Baker also expressed that they are looking forward to moving into Doha’s new Hamad International Airport later this year, and added, “The delay in the airport opening is costing us heavily as we cannot expand.

We are over capacity in terms of our fleet at the current airport. The new airport opening will be a serious game changer as people will soon want to travel to Qatar just to see Hamad International Airport.”

Another successful representative of Qatar at the ATM 2013 was Katara Hospitality, which is the global hotel investor, developer, owner and operator. Katara Hospitality exhibited at the ATM 2013 in order to present their significant milestones in acquisition, investment, development and operations.“Our new brand was launched last year as a platform for growth,” said Hamad Abdulla Al-Mulla, CEO, Katara Hospitality, and added, “Our goal is to own 30 properties by 2016, with another 30 in place by 2030. Over the last twelve months, we have made important steps towards those targets.”

On 7th May 2013, we attended Amadeus’s exclusive press conference during which the company unveiled air traffic trends among passengers from the UAE, Saudi Arabia and Qatar.

14

Antoine Medawar,Vice-President, Middle East and North Africa,Amadeus, revealed the findings of the first of its kind analysis from Amadeus air traffic travel intelligence solution. The analysis reaffirmed the Middle East as a rapidly growing hub with approximately 20% growth in traffic volume between Europe and Asia routed via the Middle East from 2011 - 2012.

According to the analysis, the UAE and Saudi Arabia have emerged as the leading countries in the Middle East in terms of air traffic volume while Qatar demonstrated the strongest growth. The three countries together represented over 53% or 52.8 million of the total 99 million passengers whose point of departure originated from the Middle East in 2012.

Data indicates that Saudi Arabia, the UAE and Qatar enjoyed an average growth rate of 10% in air traffic volume in 2012 when compared to the previous year, thus outpacing, by a large margin, the 2% growth experienced in the Middle East as a whole.

The analysis forms part of a wider insight that identifies the world’s most competitive air travel markets and global air travel trends followed on an annual basis.The findings are based on the calculation of the most accurate air passenger volume for any origin and destination (O&D) worldwide.

The following are the highlights from the findings: ■ Middle East air travel market share – Saudi Arabia leads in absolute terms while Qatar is considered as the fastest expanding Saudi Arabia remains the largest air travel market in the region. The 25 million passengers who started their journey from the country, accounted for 25% of the total passenger traffic in the Middle East in 2012. The UAE followed as a close second, commanding 23% of the regional market share and serving as the point of origin for 23.1 million passengers. Representing 5% of the region`s air traffic market with 4.74 million travellers, Qatar led the way in terms of passenger volume growth.

■

The UAE emerges as the most prominent point of origin for intercontinental journeys, while Saudi Arabia volume is driven by domestic traffic More air passengers began their intercontinental journey in the UAE (15.7 million passengers flown) in 2012 than they did combined in Saudi Arabia (7.8 million passengers flown) and in Qatar (2.8 million passengers

Antoine Medawar, VicePresident, Middle East and North Africa, Amadeus.

flown). The UAE also has the highest ratio of intercontinental travellers (68%) versus passengers travelling within the country and departing from there to other destinations within the region (32%). Qatar has the second highest ratio (59% of intercontinental passengers). For the UAE, the analysis also highlights Dubai-London as the top route.

The intercontinental travellers for Saudi Arabia account only for 31%, as the market topped the list of all Middle Eastern countries in terms of total domestic travellers – 11.1 million passengers flown, representing 44% of passenger volume. Jeddah – Riyadh appeared as the busiest route in Saudi Arabia.

In terms of regional traffic, the UAE was the most used point of origin for the 7.2 million travellers who flew within the region, followed by Saudi Arabia, which served as the point of origin for 6.1 million travellers within the region.

Elaborating on the reasons behind such travel data, Antoine said, “Major factors that feed the demand on certain intercontinental routes, particularly those that connect the GCC to Europe and South Asia, is the growing macroeconomic significance of the region. This includes the large number of expatriates who reside in the GCC, and who need to visit their home countries regularly. The growing domestic routes in Saudi Arabia, on the other hand, are not only supported by the country’s vast geographical size, but also by the thousands of pilgrims who journey within the country.”

■ The UAE leads the way in low cost airline market share As indicated by the data, the overall market share of the Middle East’s low cost carriers inched up from 11.7% in 2011 to 13.5% in 2012, a low figure compared to other regions such as Europe, South Asia or North America regions. The data reveals these airlines are making the largest impact in the UAE market, with low cost carriers commanding 23% of the share of traffic in 2012. Low cost carriers

had a 8% share of traffic in the Qatari air travel market and 9% in the Saudi market.

“Budget airlines in the region are in a strong position to capture a larger share of traffic, as the ticket price is the universal factor that influences a passenger decision to fly a particular airline – the convenience of schedule and quality of service also being passenger priorities. In the GCC, budget airlines will face greater challenges on account of their non-budget counterparts, given the greater spending power an average person enjoys, and the sense of pride and loyalty that the GCC passengers usually attach to favourite, non-budget airlines,” Antoine explained.

■

Connecting air traffic statistics underscores emergence of Doha, Abu Dhabi and Dubai as global travel hubs In terms of connecting air traffic, the Middle East showed strong performance with the three key airports of Dubai, Doha and Abu Dhabi experiencing high connecting traffic volumes around 50% and growing at 10% per annum, while other major airports in the region (Jeddah, Riyadh or Cairo) showed connection rates of around 10%.

Underlining the vast potential the region’s airline industry has on the global aviation stage, Antoine commented, “Over the years, Dubai, Abu Dhabi and Doha have executed strategies that are putting together the world’s finest airports, airplanes and professionals who are re-defining industry standards. The growth figures for these hubs are in line with strategic investments that each country has undertaken in the civil aviation sector.”

When quantified as a group, Dubai, Doha and Abu Dhabi airports already serve around 15% of air traffic volume between Asia - Europe as well as Europe - South Asia. It is particularly interesting to note that overall traffic volume between Europe and Asia is growing by approximately 7% year over year, but traffic volume between these two locations and routed via the Middle East grew by approximately 20% between 2011 and 2012.

JuNe 2013

15

aBOuT TOWN

A DECADE OF SUCCESS! Project Qatar 2013, the 10th International Trade Construction, Building, Environmental Technology and Materials Exhibition, was held from 6th to 9th May 2013 at Doha Exhibition Centre.

More than 45,000 people visited the event, which represents a 19% increase in the number of visitors when compared to 2012. Private Sector Qatar brings to you the main highlights.

P

roject Qatar 2013 was held under the auspices of His Excellency Sheikh Hamad Bin Jassim Bin Jabor Al-Thani, Prime Minister and Minister of Foreign Affairs of the State of Qatar. H.E. the Minister of Business and Trade Sheikh Jassim bin Abdulaziz bin Jassim bin Hamad al-Thani inaugurated the show joined by government officials, ambassadors, trade ministers, companies and project managers from around the globe.

An exceptional opening day, on 6th May 2013 saw the presence of 11,265 visitors, while the whole event was visited by more than 45,000 people.

This year, Project Qatar 2013 hosted 2,100 local and international exhibitors from 50 countries housed in a 62,000 square meters of indoor and outdoor exhibition space.

The exhibition was split into four distinct sectors: ■ Construction technology ■ Building materials ■ Equipment ■ Environmental technology

Project Qatar 2013 delivered several back-by-demand concurrent events, including: ■ Heavy Max 2013, which is the international exhibition for innovative heavy machinery ■ Qatar Stone Tech 2013, which is aimed at presenting a comprehensive range of stone technologies, equipment and products ■ Energy Qatar 2013, which is the most comprehensive energy exhibition showcasing the latest products and technologies in electricity, power generation and distribution, and alternative energy solutions On the second day of the exhibition, on the occasion of its tenth anniversary, the organisers held a special gala dinner to honour its loyal exhibitors who have participated in the show for many years.

Several key local businesses and business leaders were awarded, including Rashid Al-Sraiya Al-Kaabi, Chairman, IFP Qatar, and Qatar’s influential Al Sraiya Group, which was established in 1975 to serve infrastructural development in Qatar.

Three Qatari companies were awarded for a decade of deal-making and participation since Project Qatar’s very first show – Industrial Equipment & Services Co. (IESCO), Qatar Trading Company W.L.L, and Qatari Industrial Equipment WLL. A total of 72 companies received awards.

16

Concurrently with Project Qatar 2013, a conference was held on Wednesday, 8th May 2013 at Doha Intercontinental Hotel, to discuss Qatar’s mega projects in the green and sustainability sector. More than 100 exhibitors, which participated in Project Qatar 2013, were present at the conference. This conference was intended to pave the way to one of the biggest sustainability shows and conferences in the Middle East – the Green Building Expo 2014 (GBE), which will be organised by the Gulf Organisation for Research and Development (GORD) and IFP Qatar.

Representatives of Qatar’s Public Works Authority (Ashghal) and Qatar’s Future City, Lusail, also provided in depth briefings on needs and opportunities surrounding mega projects launched by Ashghal and the Lusail City company.

At the end of the conference, the attendees were reminded that for any construction company to operate in Qatar, it should follow the green and sustainability rules of the country. Thus, the Green Building Expo 2014 becomes a must attend event to anyone who wants to get familiar to the environment of the green and sustainable technology and market in Qatar.

All exhibitors were happy about the visitors’ turnout, the number of inquiries they had, and the deals they negotiated or closed during the exhibition. No exact number was provided, but exhibitors spoke about several hundred millions of USD deals achieved in four days.

Most exhibitors said that they will participate again next year since the construction market in Qatar is growing exponentially. Therefore, we will for sure be there next year as well!

http://www.PrivateSectorQatar.com/en

Valuable business advice that will help develop your business.

Be part of a community spanning magazine, events, Website and social media.

WOMeN IN BuSINeSS

BE THE CHANGE! H.E. Sheikha Mayes Hamad Al Thani, Director of HR and Administration, DFI, and Owner and Managing Director, Living Spaces Qatar, is a thriving businesswoman in her own right. Also, this forward-thinking Qatari woman is committed to investing her efforts and talents in bringing positive changes to her society. However, in a conversation with Tamara Pupic, she proved to be the very change she aims to spread among Qatari women.

“A

fter few years in Silatech, I am happy to take the role of the Director of HR and Administration at the Doha Film Institute (DFI). It’s a whole new industry and, thus, really motivating for me. I got an amazing experience from Silatech, but I reached the point when I wondered whether I was adding value anymore,” said H.E. Sheikha Mayes Hamad Al Thani, as we began our conversation about her professional achievements and a wide range of additional roles she is engaged in.

which resulted in her earning a BA in Fine Arts from Virginia Commonwealth University and an MBA from Leicester University. Recalling her early days upon return to Doha, Mayes explained, “I gained a lot of international experience while growing up which shaped my personality and made me adaptable to different cultures and people. My return to Doha in 2000 was a bit difficult because everything was new to me. At the same time, I wanted to get into business, but I really had no clue how to do anything. So, that was a struggle.”

Her first statement signalled that this story will prove that with dedication, hard work and persistence no challenge is too great.

Since 2006, Mayes has been keeping one eye firmly on her interior design studio, Living Spaces Furniture & Interior Company, about which she said, “I started alone, but the studio has expanded since to six people.

Now I have a bigger office while our new showroom will also be opening soon. We do full design drawing and conceptual designs for all kinds of interiors, both residential and commercial. We also do fit-out works

The beginnings Due to her father’s diplomatic career, Mayes was born and raised outside the country. Furthermore, her talents took her down the path of interior design

18

which means that we do the design and the whole execution for our clients.”

Starting a business is never easy, especially for a woman, but her passion for interior design was stronger, “The beginnings in 2006 were very difficult, especially because I am a woman. But, that obstacle disappeared quite quickly because of H.H. Sheikha Mozah bint Nasser Al Missned. She invested a lot of effort for all women in Qatar to fit into the culture.

Later on, whatever obstacle I had in my business, it wasn’t anymore because I am a woman, but because of all the other usual business-related issues.”

Once the studio started its operations, Mayes faced another challenge, “I’ve done a lot of projects, but it’s never easy to get them. I failed so many times in the process of getting clients. For some reason, people were hesitant because I was young. In addition, even till today people do not have enough trust in our local expertise. That is very sad. So, convincing people has been a challenge. Even though we are in our own country, we see how international companies get the projects instead of, for example, a tiny, local company.

It has been demotivating, but, I am persistent.”

This persistence led to the creation of many successful designs, among which she proudly pointed out her design of the second floor of Qatar Chamber and the one for Maersk Oil, “I really appreciate that such entities trusted me and, thus, added so much to my portfolio. With my partner Cristopher Hogan, who is one of the world’s leading marine abstract artists, I also did two well-received exhibitions.”

“The beginnings in 2006 were very difficult, especially because I am a woman. But, that obstacle disappeared quite quickly because of H.H. Sheikha Mozah bint Nasser Al Missned. She invested a lot of effort for all women in Qatar to fit into the culture,” said Mayes.

When asked about her design style, Mayes also explained the culture of interior design in Doha, “I tend to be more to the modern side. I came back with so many ideas which are not that accepted here.

After studying the market, I must say that people here prefer classic, a bit vintage style. I did have clients who wanted to do unique designs, but most of them focus only on the classical style. At the end of the day, you have to accept what clients want. However, I try to educate them first and support my reasoning with a lot of arguments. But, sometimes they just don’t want to even hear it. That is a bit challenging for a designer.”

Indicative of her talent, Mayes is also devoted to designing unique and limited-edition pieces of furniture, “I did one collection and people were really amazed by the design. I would love to continue doing that since I love designing furniture.”

Give us a chance!

Answering the question about how far is her main goal now, Mayes was clearly ambitious, “It’s still not easy, and I can’t say that I have reached my goal. I probably look for more, and I’m not satisfied with where I am because I believe in our local expertise, much more than the market currently does.”

Speaking on behalf of all young Qatari entrepreneurs, Mayes continued, “We want to be part of all the big projects in the country. There are so many young, well-educated Qataris, who are open-minded, talented and creative, but they don’t even get a chance. The reality is that huge international corporations get the projects, but eventually we get subcontracted. Why don’t we get a chance from the very beginning for at least a small portion of the project? This is a way to encourage our local expertise, not only in contracting and interior design, which are my fields, but also in art, photography and many others.”

This point naturally led our conversation to the issue of competition within the market, “The market is small, but the competition is high since we have a lot of interior design companies in Qatar, both local and international.

The big companies take turnkey projects, but they do only the design. Some of them do that here in Doha, but most of them get things done in their offices abroad.

And, who is incurring the costs? – The client! But, at a local company, everything is being done in-house.

The second point is that when they take these turnkey projects, they finish the design, but they can’t do the fit-out work. This is when they sub-contract our local companies. Thus, they just make our lives difficult.”

While she appreciated the fact that Qatar is an open market, she appealed for official encouragement of

JuNe 2013

19

WOMeN IN BuSINeSS

the local companies, “There are thousands of people, like me, who have just started as entrepreneurs and nobody is really encouraging them. Various programmes do exist, but for me, as an entrepreneur, they actually do not provide any real support. It might be very difficult for us to educate the clients, so I think it should come from the government itself. I know that a lot of people would now confront me and say that the government does support Qatari companies. I would respond to this that the support does exist, but only for local companies which have been operating for 30 years already. Thus, the official statement in favour of the small, local companies would potentially lead to more chances for us.”

Elaborating further on this point, Mayes added, “First of all, problems of young entrepreneurs should be tackled separately from the ones faced by more established businesses. These are fresh starters who would benefit from mentorship programmes to begin with. For example, through Qatar Professional Women’s Network (QPWN), I mentored one amazing young lady who will graduate from the Georgetown University soon. During a period of six months, I tried to convey my experience to her. It was a great experience for me as well, and I want to do it again.”

The women in Qatar Proving that her role as a Board Member within Qatari Business Women’s Association (QBWA) is far from a simple formality, Mayes continued, “For more than five years, we have been trying to influence our society. We support women as much as we can since there are a lot of issues that need to be changed. I think that we play a major role for both local and expat women in Qatar.”

In connection to this, Mayes opined on the position of women in the Arab world, “I have this issue with people who argue against being open-minded because they don’t know what it actually means. It’s all about accepting differences among people. We need to work on all kinds of restrictions that we have like limiting girls from travelling or from working in mixed environments. However, generally speaking, the women in the Gulf are amazing. That’s why we need QBWA forums to learn more about how they did it.”

Therefore, she advised young Qatari women to strive for success, “Follow your dreams because you will never be happy unless you love what you do. And never give up. Our tradition and culture can hold you back, but keep in mind that it’s not our religion. I want to highlight that. It’s more that cultural aspect which holds these girls back from pursuing their entrepreneurial dreams. It’s not fair to mix that with our religion.”

20

H.E. Sheikha Mayes Hamad Al Thani

Mayes was clearly ambitious, “It’s still not easy, and I can’t say that I have reached my goal. I probably look for more, and I’m not satisfied with where I am because I believe in our local expertise much more than the market currently does.”

Speaking about her efforts to organise her many activities, this mother of two confessed, “It’s different every day. I try to be systematic, but it never works. So, it has to be a day-by-day plan and it changes all the time. But, family time for me is a must.”

Looking to the future, she was passionate, “I have so many plans that I don’t know what I want to do first. It’s good and it’s bad at the same time. If you are appreciated you will do much more, but if not then you feel like your talent is being wasted. The world is not perfect and we need to make a change.”

Simple. Adaptable.

Manageable. quick uides for Solution g ! eployment and easy d

Simple:We are committed to making our solutions the easiest to install, configure, and integrate into either existing IT systems or data centers — or new build-outs. We ship our solution as “ready to install” as possible (e.g., tool-less rack PDU installation and standard cable management features). With our easy-to-configure infrastructure, you can focus on more pressing IT concerns such as network threats.

ns Configuratio ace! for any IT sp

Adaptable: Our solutions can be adapted to fit any IT configuration at any time — from small IT to data centers! Vendor-neutral enclosures, for example, come in different depths, heights, and widths so you can deploy your IT in whatever space you have available — from small IT or non-dedicated spaces to even large data centers.

ur d manage yo Monitor an ere! rom anywh IT spaces f Manageable: Local and remote management are simplified with “out-of-the-box” UPS outlet control, integrated monitoring of the local environment, and energy usage reporting. Manageability over the network and robust reporting capabilities help you prevent IT problems and quickly resolve them when they do occur — from anywhere! What’s more, our life cycle services ensure optimal operations.

Easy-to-deploy IT physical infrastructure Solution guides make it easy to determine what you need to solve today’s challenges. The core of our system, vendor-neutral enclosures and rack PDUs, makes deployment incredibly headache-free. Easily adjustable components, integrated baying brackets, pre-installed leveling feet, and cable management accessories with tool-less mounting facilitate simple and fast installation.

Integrated InfraStruxure™ solutions include everything for your IT physical infrastructure deployment: backup power and power distribution, cooling, enclosures, and management software. Adaptable solutions scale from the smallest IT spaces up to multi-megawatt data centers.

Business-wise, Future-driven.™

Download any of our White Papers within the next 30 days for FREE and stand a chance to win an iPhone 5!

Visit: www.apc.com/promo Key Code: 34938p Call +9714-7099690 (Arabic) / +9714-7099691 (English) Fax +97147099-650

©2013 Schneider Electric. All Rights Reserved. Schneider Electric, APC, InfraStruxure, and Business-wise, Future-driven are trademarks owned by Schneider Electric Industries SAS or its affiliated companies.

All other trademarks are the property of their respective owners. www.schneider-electric.com • 998-1155587_ME_C

BuSINeSS OPPOrTuNITIeS

UP TO THE HIGHEST STANDARD! The SME Engagement Opportunity Workshop was organised by Qatar Development Bank (QDB) and Qatar Shell on 8th May 2013 at the Four Seasons Hotel in Doha. It was an important event for all local SMEs who aim to engage in Qatar Shell’s tenders within the country. Private Sector Qatar brings to you detailed coverage of the event.

Q

atar Shell has partnered with Qatar Development Bank to open the doors for local SMEs to supply contracts for its businesses in Qatar. This new partnership will provide local companies and manufacturers not only access to new business opportunities, but also help them raise their operating standards in order to fulfill globally accepted requirements of the oil and gas industry. SMEs listed with QDB and other institutions and incubators will have access to Qatar Shell’s tenders to supply various materials and services required by the company.

The SME Engagement Opportunity Workshop brought together entrepreneurs, representatives of SMEs and large corporations, banks, government institutions and other organisations, to present and exchange their views on the offered business opportunities and how entrepreneurs and SMEs can engage with it.

In his opening speech, Mansour Bin Ibrahim Al-Mahmoud, CEO, Qatar Development Bank, said, “QDB believes in the necessity to establish a solid investment environment and a vibrant private sector which will effectively support Qatar’s economic growth. With this in mind, we support the private sector through several projects, which are derived from a number of our partnerships with some of the leading companies. QRail project is the partnership between QDB and Qrail and offers more than 100 business opportunities to local SMEs covering the infrastructure and services sectors. In addition, today we will review some of the available opportunities within our partnership with Qatar Shell.”

Al-Mahmoud expressed his appreciation to Qatar Shell for its leading in developing the local private sector, saying, “This workshop is

22

considered as one of the support platforms initiated to enable the local SME sector to identify and engage in new business opportunities with Qatar Shell.”

Speaking about the role of QDB in enhancing the local private sector, Al-Mahmoud concluded, “It is important to realise that in every mature economic market, governments come as key factors which affect the nature and pace of the private sector’s development. For that reason, QDB, as a part of the government, provides different financing options with low interest rates and competitive conditions, including long periods of repayment through indirect lending programme, such as our Al Dhameen programme. In addition, we have established TASDEER, Qatar’s export promotion agency, to promote Qatari exports in foreign markets.”

Wael Sawan, Managing Director and Chairman, Qatar Shell, also addressed the audience, saying, “We believe that the combined strengths and abilities of QDB and Qatar Shell will open new horizons for the private sector in Qatar. Our team of technical experts will present to you four current and specific local business opportunities within Qatar Shell. With each of these opportunities, a local small to medium enterprise has the chance to become the supplier of choice for Qatar Shell and our flagship project, Qatar Shell Pearl GTL (Pearl GTL) plant, which we have built together with our longstanding partner Qatar Petroleum.”

Speaking specifically about the Pearl GTL plant, Sawan explained, “The Pearl GTL is the world’s largest gas to liquids plant and we have every confidence in the quality and the capability of local suppliers, such as you, who we believe can add value to its operations as well as

to Qatar’s private sector. Our experience has taught us that supporting local manufacturers and SMEs is core to achieving a sustainable economy, wherever we operate in the world. Our aim is also to empower the local manufacturers to compete internationally by raising their operating standards. We do this because it is part of our commitment as a responsible operator in Qatar, but also because it makes a good business sense to do so – to shorten our supply chain and bring more reliability to it.”

the existing challenges that SME owners face when dealing with the oil and gas industry. “Commitment to SMEs is always viewed as a part of CSR programmes,” said Al-Emadi, “However, many SME owners would like to be treated just like any other business owner, not as though they were part of a company’s CSR plan to provide special services.”

Stressing about the importance of complying with standards set in place

by Qatar Shell, Sawan added, “A large part of winning Shell’s business is the ability to adhere to our technical and HSSE standards and tendering processes, which have been developed over the years of dedicated work on the world’s largest energy projects. It is, for example, simply nonnegotiable that every one of our suppliers and contractors will be as committed to safety as we are at Qatar Shell and Qatar Petroleum. We need to ensure that absolutely nobody comes to harm as a result of our business. However, we can, will and have helped many smaller companies around the world to raise their standards in this space.”

For that reason,Al-Emadi highlighted the importance of communication with SMEs for which Qatar Shell is famous, “The important thing is to explain to them how to become an approved contractor. The growth of local SMEs is an important step for the oil and gas industry. Shell and other similar companies need local SMEs which produce the right materials, provide the world-class service, possess the right technical know-how, and so on. When a company requires a service or a product urgently, it is easier to obtain it locally than to have to import it from abroad. It saves time. In addition, it’s proven globally that when you invest in local SMEs, you are actually the winner, and Shell does that.”

Qatar Shell and QDB also marked this occasion by signing a Memorandum of Understanding with Corporate Publishing International (CPI), by which Qatar Shell officially became the lead strategic partner of Private Sector Qatar magazine. The MoU was signed by Abdulaziz Al Khalifa, Executive Director, Strategy and Business Development, QDB, Nick Van Keulen, Contracts and Procurement Manager, Qatar Shell, and Richard Judd, Managing Director, Corporate Publishing International (CPI).

As a demonstration of Qatar Shell’s commitment to the constructive dialogue with the private sector, Nick Van Keulen, Contracts and Procurement Manager, Qatar Shell, delivered the “What’s the tender process? - Get to know the qualification requirements” presentation, and said, “In Shell, we believe it makes a good business sense to source within the country. It gives you the shortest supply chain and an opportunity to lower the total cost of ownership. Also, in case of an emergency, you can get a rapid response, which is often extremely valuable. At the same time, we are proactively looking to do more business here. We have high standards in products quality and safety internally and we also expect high standards from our partners, since we are in the oil and gas industry.” Van Keulen pointed out that Qatar Shell is willing to help SMEs to reach those standards, which will further enable them to supply the global oil and gas industry.

“I am delighted to mark this occasion with an important step that will provide Qatar’s private sector with access to information and advice on best practices from leading international and local experts,” commented Sawan, “We are very happy to join hands with QDB again in a new partnership by becoming the lead strategic partner to Private Sector Qatar magazine, the sole SME publication in Qatar that is published

by CPI.” Communicating with the private sector The programme of the event continued with a presentation by Raed Al-Emadi, General Manager, Qatar Business Incubator, titled “Ecosystem for SMEs – Challenges and Opportunities”, which pointed out

“The second concern,” he continued, “is how to actually become part of the vendor’s list. It’s a bit of a challenge for existing SMEs and startups.”

Explaining the tender process in more details, he continued, “Before each tender, prequalification exercise is aimed at identifying suitable partners who could supply the scope which we need. Depending on the criticality of the scope, it can be a simple process or a very complex one. Starting the process judicially always includes registration of the existing supplier base, but also the list of our approved suppliers which

Qatar Shell’s tender process includes the following five steps: ■ ■ ■ ■

Tender prequalification Invitation to tender Technical evaluation process Commercial evaluation process ■ Contract award Signing of the MoU between QDB, Qatar Shell and CPI.

JuNe 2013

23

BuSINeSS OPPOrTuNITIeS we get from the technical authorities. At the same time, we look to include new vendors. Here in Qatar, we have mandated ourselves to always look for Qatari companies.

Invitation to tender is a standard process during which we will ask for technical and commercial bid and impose the deadline.”

Van Keulen concluded by explaining the last two stages of the process, “Lastly, we start evaluating whether you will meet our requirements, cover the scope, and comply with the quality standards and HSSE requirements. If you pass technical evaluation, within the commercial evaluation we evaluate initial commercial bid, on which basis we will make the recommendation and award the contract.”

The main supporter During the presentation “The support system - QDB’s various programmes for SMEs”, Abdulaziz Al Khalifa, Executive Director, Strategy and Business Development, QDB, presented the evolution path of QDB, “We started in 1997 as Qatar Industrial Development Bank. At that time, the bank’s capital was QR 200 million and we were focusing only on manufacturing. In 2008, the government decided to increase the capital to QR ten billion in order to enable the bank to play a more proactive role in diversifying the economy. We believe that our mission is to accelerate the development and contribution of the private sector. The event today is an example of this and the reason why we are cooperating with Shell. We believe that Shell can help the private sector to play a more active role within the value chain and, from there, to enhance the overall economic diversification of Qatar.”

Highlighting that QDB’s vision is to provide financial services to entrepreneurs and SMEs, he explained, “We provide guarantees through our Al Dhameen programme. Within this indirect financing scheme we provide subsidised debt to the private sector and longer tenors in order to help them sustain their projects and become more competitive. We aim to encourage them to go into direction of manufacturing, health, tourism, livestock, agriculture and fisheries. Within these seven sectors, we work very closely with the main stakeholders in the government. For example, currently we are working with the Supreme Council of Health to analyse and understand what the gaps within the health system are, transform them into opportunities and ensure that the private sector can capitalise on them. By doing that, we reduce the burden of the government spending and increase the contribution of the private sector. Through our Al Dhameen programme, we offer loans of up to QR 15 million while the equity contribution by the private sector is only 13%. We guarantee the rest and the financing goes through our partner banks.”

Speaking about the export support, Al Khalifa said, “Through TASDEER, we provide the export credit coverage. That means that we ensure each shipment

24

Participants at the workshop

against political and insolvency risks. This gives to Qatari exporters an advantage while the importer, from the other side, doesn’t need to open an LC or use the credit facility. This is a great advantage for the “Made in Qatar” products. We also provide export development and promotion services through which we present Qatari products at the exhibitions abroad and do the business matchmaking for them.”

Within the bank’s business enhancement and growth services, QDB did the FIFA World Cup 2022 Study in order to understand what the gaps within Qatar’s private sector are, about which Al Khalifa pointed out, “We know that the government has devoted a great amount for infrastructural projects and we want to decrease the value leakage outside Qatar. For that reason, we are working with the FIFA World Cup 2022 Committee in order to ensure that the private sector does know the opportunities and is capable to capture them. Within tourism sector, we are just finalising a study with Qatar Tourism Authority (QTA), within which we are also analysing and turning the current gaps into opportunities. Also, we are now developing 44 projects for development of the engineering services, since the government has declared shortage in these services.”

The bank’s portfolio through which they support and help entrepreneurs also includes the Bedaya Center for Entrepreneurship and Career Guidance, SME Toolkit, which is a platform with a lot of information on how to start and develop your business, Qatar Business Incubator (QBI) and Private Sector Qatar magazine. In Al Khalifa’s opinion, Private Sector Qatar magazine is a tool through which the bank can communicate with the private sector and provide valuable information. He concluded by saying, “We like to think of ourselves as a support to entrepreneurs from an idea stage to the export operations.”

BuSINeSS OPPOrTuNITIeS

ENHANCE YOUR POTENTIAL! Heat exchangers are used for cooling or heating process materials. Qatar Shell already possesses around 1800 heat exchangers, which all belong to different categories. However, Qatar Shell seeks to develop and build capability in heat exchanger re-tubing and fabrication services locally.

A

s explained by Marcel Goedhart and Subrata Poddar, Engineering and Maintenance, Qatar Shell, various types of heat exchangers are currently installed at Qatar Shell Pearl GTL (QSGTL) plant, and include air-coolers, plate and frame, spiral, shell and tube, and similar. The opportunity does not include air-coolers and air-cooled condensers, since the local fabricator is GEA-BTT. However, within the scope of this opportunity are shell and tube heat exchangers, since none of the products offered in the market comply with the required standards, although local workshops show the potential to reach these standards.

Renee Chettle and Maryam Rowhani, Contracting and Procurement, Qatar Shell, explained that this particular opportunity entails a long term contract of five years, which will be sourced through a competitive tender. The aim is to award one particular vendor for these services, “As a critical aspect we advise you to declare your interest for this particular opportunity in order to be considered in the initial sourcing prequalification process.”

26

The scope of work includes: ■

Re-tubing of shell and tube heat exchangers

■ Fabrication of new shell and tube heat exchangers ■ Metallurgy – Carbon steel, low alloy steel and high alloy steel (depending on process service) ■ Diameter – 500 mm to 3500 mm ■ Length – 3000 mm to 10000 mm

Speaking about the technical requirements, Marcel and Subrata, stated that they include the following: ■ ■ ■ ■ ■ ■ ■ ■ ■

■ ■ ■ ■ ■

Full compliance to Shell DEPs in addition to TEMA and PD 5500 Fully functional design office and fabrication workshop Quality manual – ISO 9000 certification HSSE manual – HSSE track record Fully covered fabrication area Segregation of carbon steel and alloy steel fabrication areas Experience with fabrication of pressure vessels ASME Code Stamp (stamp is not mandatory, but adds value) Specialised machinery for tube-sheet drilling, tube expansion, and strength welding Suitable overhead crane handling Reputed source of raw materials (tubes, plates, heads, rods, and similar) Trained technical manpower including qualified skilled welders Independent QA/QC department with testing facilities Reliable and on-schedule delivery

■ ■

Renee continued by explaining that a competitive tender does not envision negotiations. Thus, the most technically qualified and capable vendor with the most attractive commercial bids will be awarded this business. However, further clarifications during the tender will be possible.

The commercial aspects can be summarised as the following: ■

Unit rates, which are based on daily or hourly rates (for example, service engineers or machinery use) ■ and job rates, which are specific to a job (for example, transportation) are envisioned for these services ■ Collection and delivery premiums included All heat exchanger components shall be procured from Shell Technically Approved Manufacturers and Products (TAMAP).

Renee provided the outline of the unit rates which includes, amongst others: ■ ■ ■

Renee further stated that the second key aspect is a commitment to delivery, “It is critical that we know how long it will take you to get these services in place. That will be a leading factor – should you be able to deliver to our timelines successfully?”

■

An additional aspect of the sourcing process is the invite to suppliers to register in Shell Supplier Qualification System (SQS), which will enable them to become part of Shell’s supplier database, about which Rene added, “SQS puts your details in our supplier database. This gives us access to your company. That is useful for us to reach out to suppliers at any given time and to consider them in the sourcing process for this or any future opportunity.”

■

Within this business opportunity, Qatar Shell seeks strong attributes in: ■ ■ ■ ■ ■ ■

Company profesionalism, ethics and values Quality of HSSE standards and policies Adherence to state and government regulations Financial health and capability Technical capability and readiness Set up of a facility within six months from the

contract award with skilled manpower, equipment, storage and logistics (where applicable) Quality assurance and controls Commercial attractiveness and creativity

■ ■ ■

■

Job rates – transport, inspection, reassemble and hydotesting per exchanger type Unit rates – treatment undertaken (for example, retubing, machining and welding) Retubing of exchangers per material type (for example, carbon steel, nickel, and similar) Welding of exchanger components (weld build up and/or tube to tube welding) Machining components and services rates Hourly unit rates – manpower and equipment Manpower – supervisors, planners, riggers, welders, fabricators, helpers, and similar Equipment – use of lathe, boring, milling, shaping, grinding machines, and similar Emergency and shutdowns rates

All vendors for this business opportunity were required to confirm their interest by 14th May 2013.

The tender process will then follow the estimated timeline below, which might be subject to change: ■ ■ ■ ■ ■

Prequalification phase – until 5th August 2013 Tender opening date – 5th August 2013 Contract award – 11th November 2013 Contractor contract implementation – 1st January 2014 Contractor ready to begin operations – 1st June 2014

JuNe 2013

27

BuSINeSS OPPOrTuNITIeS

YOUR SUCCESS FACTOR! A niche opportunity exists for all manufacturers of stud bolts, since there is no manufacturing unit for these products within Qatar. Qatar Shell is, therefore, committed to help local SMEs to capitalise on this unique opportunity.

M

arcel Goedhart, Technical Presenter, Qatar Shell, started his presentation by pointing out that Qatar Shell seeks to develop and build capability through establishment of a manufacturing facility for stud bolts in Qatar. At present, there is no manufacturing unit for stud bolts in Qatar. For that reason, Qatar Shell has concluded a supply agreement with the regional supplier.

Various material specifications used plant wide are as follows: ■ A193 B7 / A194-2H ■ A193 B8 / A194-8 ■ A193-B8M2 CL-2B / A194-8M ■ A193 B16 / A194-4 ■ A320 L7 / A194-4 ■ A320 L7M / A194-7M ■ A453-660-C ■ EN10269-20CrMoVTiB4-10

The main goals: ■ To establish manufacturing facility for stud bolts in Qatar by using a local SME ■ To produce estimated 10000 bolts/nuts annually ■ To use a competitive tendering process

Structural bolts are also in this scope, but of limited use.

The scope of work includes: All stud bolts to range from: ■ Diameter – ½” to 3” ■ Length – 70 mm to 950 mm

28

All materials should be supplied as per the Shell MESC (material and equipment standards) .

Gunalan Balasubramanian, Commercial Presenter, Qatar Shell, then presented the anticipated sourcing process by stating, “We are looking for a long term contract of five years and on a call-off basis. We also aim at a competitive tender and to award one particular vendor for these services.”

The critical aspects of the sourcing process include: ■ ■ ■

Interested vendors need to declare interest Prequalification will be mainly assessed on the basis of the project’s delivery plan and timeline All vendors should sign up to stage one of Shell Supplier Qualification System (SQS) as required for prequalification and registration into Shell’s supplier database.

■ ■

Inspection of the new facility by QSGTL Progress review by the QSGTL technical authorities HSSE requirements audited by QSGTL Product samples shall be tested and certified by QSGTL KPI’s monitoring Performance review meetings After proven performance, QSGTL might recommend supplier to other Shell operating units in the GCC countries like Oman, Iraq, the UAE, and similar.

■ ■ ■ ■ ■

In order to provide more details, Gunalan explained the following tender considerations for potential suppliers: ■ ■ ■ ■

■ ■ ■

To have at least one year of the relevant experience To meet HSSE requirements and technical specifications To use Shell approved mills for raw materials To set up a manufacturing facility within 18 months, including skilled manpower, equipments, storage facility and logistics To meet all local government regulations To be financially capable To possess IT infrastructure

Gunalan added that a competitive tender does not envision negotiations.Thus, the most technically qualified and capable vendor with the most attractive commercial bid will be awarded this business.

However, further clarifications during the tender will be possible.

All vendors for this business opportunity were required to confirm their interest by 14th May 2013.

The tender process will then follow the estimated timeline below: ■ ■ ■ ■ ■ ■ ■ ■ ■

Prequalification phase – until 5th August 2013 Tender opening date – 5th August 2013 Bid closing date – 26th August 2013 Close of bid clarifications – 26th September 2013 Evaluation period – till 10th October 2013 Contract award – 11th November 2013 Contract signed – 25th November 2013 Kick-off meeting – 2nd December 2013 Contractor ready to begin operations – 1st June 2015

Key commercial aspects for this business opportunity include: ■ ■ ■ ■ ■ ■ ■

Tendering process Call-off agreement Target is five years or the supply agreement 30 days payment terms Inco term – DAP basis (Delivery at place) Maximum of one to two working days to supply (B7/B16 materials) Maximum four to five working days to supply (EN/L7 materials)

Gunalan went on to explain that once the supplier is contractually awarded, the following post award exercise will be applied:

JuNe 2013

29

BuSINeSS OPPOrTuNITIeS

SAFETY FIRST! Safety is one of the most important elements at any workplace. This is why the use of personal protective equipment is mandatory and aimed at reducing employees’ exposure to hazards. In line with that, Qatar Shell looks to develop capability of local SMEs to manufacture and supply these products.

F

atima Abdul Aziz Al-Shaikh, Contract Engineer, Department of Contracting and Procurement, Qatar Shell, started the session by saying, “Personal protective equipment (PPE) is the tool used to protect an employee while working at a worksite, where risks and hazardous are expected to be high.”

Knowing that most of the PPE are now obtained from local suppliers that import these products from abroad, Shell seeks to acquire the local supply of PPE by going to the Qatari market with a competitive tender. Fatima stated, “We look at prequalification mainly as assets during the project delivery and timeline.” She also invited the interested candidates to sign up for Shell Suplier Qualification System (SQS), which is required for prequalification and registration into Shell’s supplier database.

30

In addition, she mentioned,“The time scale is not accurate and will be subject to change. After the candidates confirm their participation, they will receive an invitation to participate in the tender for this opportunity.”

Tender assessment will include evaluation of capability to meet and comply with the technical requirements. In addition, the commercial aspects will be assessed among those that are technically qualified. In line with that, Qatar Shell seeks strong attributes in: ■ ■ ■ ■ ■ ■ ■

Company profesionalism, ethics and values Quality of HSSE standards and policies Adherence to state and government regulations Financial health and capability Technical capability and readiness Quality assurance and controls Commercial attractiveness and creativity

“Qatar Shell will award the most technically qualified vendor with the most attractive commercial bid. The qualification system is required for the prequalification stage. We are looking for strong attributes in terms of professionalism and quality of the technical capabilities. There will be no negotiation in the process of tender. However, we will provide for a clarification period,” added Fatima.

Qatar Shell requires three years contract on a calloff basis, which will ensure the following:

The scope of work in supplying personal protective equipment includes manufacturing of:

■

■

■ ■

■ ■ ■ ■ ■ ■ ■ ■ ■

Hard hats Ear muffs Ear plugs Safety glasses Goggles Fire retardant coveralls Steel capped safety shoes Gloves for different applications

Jacques de Bruijn, HSE Manager, Qatar Shell, explained, “The aim of Qatar Shell within this opportunity is to ensure the safety and protection of people. We follow a certain range of standards.

All these products are made according to international standards adopted by the oil and gas industry. The scope also includes the recycling of used personal protective equipment. If your products are equivalent to our standards, we would be glad to check if it is acceptable for us to cooperate with you.”

The contractor has to supply the requested PPE within time and in line with the required standards and specifications Enough stock to be maintained at Qatar Shell warehouse as well as at the supplier’s facility Supplier shall notify and act immediately upon emergency requirement Feedback on the issues of PPE shall be considered by the supplier Samples of PPE, which are not covered under the agreement, shall be provided by the supplier when required

All vendors for this business opportunity were required to confirm their interest by 14th May 2013. The tender process then followed the estimated timeline below: ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Participation confirmation - June 2013 Issue invitation to tender - July 2013 Tender clarification – July 2013 Clarification closing - July 2013 Tender closing - August 2013 Bid opening – August 2013 Technical evaluation – August 2013 Commercial evaluation – September 2013 Bid clarification - During the evaluation Contract award – October 2013

These items need to be designed for both men and women and in different sizes. Furthermore, they need to be comfortable for various weights and appropriate for any period, climate and movement.

Jacques added, “We are looking for a supplier and for people who want to develop manufacturing facility for PPE in Qatar. If you can add value to the products or import PPE today, but plan to manufacture them in the future, then we will be interested to work with you. The objective is not only to supply PPE. We would like to see if you could go beyond the supply and what you could do with coveralls.”

JuNe 2013

31

BuSINeSS OPPOrTuNITIeS

NO MORE BOUNDARIES Although Qatar is an Arab country, it has a large proportion of expat population and, thus, has to ensure provision of all information in two different languages in order to reach both national and foreign residents.

Therefore, Qatar Shell is looking to enhance translation services locally.

S

alama Al-Muhaizaa, Contract Engineer, Department of Contracting and Procurement, Qatar Shell, started her presentation by highlighting the challenges present in Qatar when companies seek to find appropriate translators.

She pointed out that Qatar Shell is currently using translators from all over the world, including Qatar, in order to deliver appropriate translation services for various speeches, articles, adverts, press releases and films subtitles. Since the demand varies among different types of their projects and reaches its peak time in the first and fourth quarters of each year, they seek to hire a translation team based in Qatar.

■ ■ ■ ■

Salama pointed out the technical requirements needed for this opportunity: ■

The scope of work includes: ■

■

32

High quality translation – English to Arabic and Arabic to English, including also other languages such as Tagalo, Hindi, and Malayam Services of proofreaders, editors and translators, including transliterations, transcriptions and simultaneous translation

Operations within Shell’s project management system, which is currently Project Central Establishment of a dedicated account manager and a translation team Capability to respond to ad hoc and urgent requests Engagement of different stakeholder groups, including both employees and external business stakeholders

■

■ ■

The use of professional translators with appropriate knowledge of the subject area, who are experienced in the industry The use of professional translators who are able to provide and maintain the highest standards of translation The use of professional translators who are able to build lexicon of regular terminology Legal translation is not included in the scope

■

■

■

■

■ ■ ■

The use of professional translators who are able to operate within Shell’s project management system, which is currently Project Central. A training and workshop on the system would be provided Formation of a translation team with minimum of two translators, and employment of a dedicated account manager The translators should be able to respond to ad hoc and urgent requests, including availability during weekends The translators should be able to pass the test pieces and achieve high quality translation of these tests The translators will be requested to sign confidentiality agreement The translators will be permitted to have three rounds of amends The operations must be done and managed from Qatar

She also listed the number of annual requests that require translation: ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Press releases – 125 Magazines – 2/8 Collaterals – 20 Adverts – 30 Speeches – 30 Film subtitling – 7 Public notices – 10 Emir Decrees – 1 Letters for sponsorship – 20 Government letters – 30 Website

Salama pointed out that the future procurements are estimated to reach 261 in 2013, 275 in 2014, and 290 in 2015.

Elaborating further, Salama assured that finding the right team is a hard mission, since there are various challenges which relate to: ■

■ ■ ■

Lack of understanding of the context and industry knowledge as well as familiarity with business language Time consuming process for receiving the final approved copy Urgent and short notice turnaround Poor quality translation and continuous quality checking

■

Different translation styles and inconsistent tone of voice

Talking about the vendor’s prequalification, Salama said, “Participants who show and confirm their interest for these services during this workshop will be invited to the prequalification exercise. Responses to the prequalification exercise will determine the companies which will be shortlisted for this tender.

Technical bids will be received and assessed first.

As for the commercial bids, they will be assessed among those who are technically qualified. Lastly, the contract will be awarded to the most technically qualified and commercially attractive vendors.”

Shell requires a three years contract on a call-off basis for the translation services, and intends to award one or two vendors.

On the other hand, Salama explained the tender considerations for potential candidates, pointing out that Shell seeks strong attributes in: ■ ■ ■

Company professionalism, ethics and values Professional capability and readiness Ability to provide quality work within short deadlines Commercial attractiveness and creativity

■

She also added that the contract pricing mechanism will be based on the unit rates per page.

All vendors for this business opportunity were required to confirm their interest by 15th May 2013.

The tender process then followed the estimated timeline below: ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Vendor to confirm interest – 15th May 2013 Prequalification process – until 5th August 2013 Tender opening date – 5th August 2013 Bid closing date – 26th August 2013 Close of bid clarifications – 16th September 2013 Evaluation period – 30th September 2013 Contract award – 30th October 2013 Contract signed – 10th November 2013 Kick-off meeting – 17th November 2013 Contractor ready to begin operations – 1st December 2013

JuNe 2013

33

SNaPShOTS

Raed Al-Emadi, General Manager, Qatar Business Incubator

Wael Sawan, Managing Director and Chairman, Qatar Shell

Nick Van Keulen, Contracts and Procurement Manager, Qatar Shell

Participants at the workshop

Abdulaziz Al Khalifa, Executive Director, Strategy and Business Development, QDB

34

Signing of the MoU between CPI, Qatar Shell and QDB

Mansour Bin Ibrahim Al-Mahmoud, CEO, QDB

THE ALL-NEW NISSAN NV350 URVAN THE RIGHT MOVE FOR A WINNING BUSINESS. Take your business to the next level with the Nissan NV350 Urvan, a new generation commercial van featuring smart storage space and cabin comfort at low running cost. Not to mention a distinctive styling that brings professional confidence and pride.

Best-in-class fuel economy

facebook.com/NissanME

/NissanME

Easy access

Cool box

Greater passenger comfort

Nissan-me.com

• Saudi Arabia: Alhamrani United Co., Jeddah, Tel: +966 2 6696690 • Dubai & Northern Emirates: Arabian Automobiles, Tel: +971 4 2952222 • Abu Dhabi & Al Ain: Al Masaood Automobiles, Tel: +971 2 6811118 • Kuwait: Abdulmohsen Abdulaziz Al Babtain Co., Tel: +965 1804888 • Oman: Suhail Bahwan Automobiles, Tel: +968 24560111 • Qatar: Saleh Al Hamad Al Mana Co., Tel: +974 4 4283333 • Bahrain: Y.K. Almoayyed & Sons BSC(C), Tel: +973 1 7732732 • Lebanon: Rasamny – Younis Motor Co. S.A.L. – RYMCO, Beirut, Tel:+9611 273333 • Jordan: Bustami & Saheb Trading Co.L.T.D., Amman, Tel: +962 6 5532456

TeChNOlOgy

The virtual souq The growing popularity of social network websites, such as Facebook and Twitter, has impacted our world driving social, political, and economic changes. Since businesses have also reaped the bene�its from the continued growth of social media, Hayfa Abdulrahman Ahmed, ICT Research Manager, Qatar Science & Technology Park (QSTP), presents her study on the regional utilisation of social commerce.

Hayfa Abdulrahman Ahmed is the ICT Research Manager at Qatar Science & Technology Park (QSTP).

She is a certified Business Analyst and Project Management Professional and holds a Bachelor of Science in Computer Sciences and a Masters of Business Administration (MBA) from Qatar University. Hayfa can be contacted at haahmed@qstp.org.qa.

T

oday, the term “social commerce” is widely used to describe commercial activities mediated by social media. Such activities range from social media advertising, to user recommendation, and up to direct sales through social network websites. As perceived by Paul Marsden in his book “Social Commerce: Monetising Social Media” (2010), social commerce is a way of monetising social media by the application of one of the following two strategies: ■ ■

Connecting people where they usually buy Guiding people to buy where they usually connect

Social commerce solutions are commonly organised into one of the following six distinct dimensions: ■

■

■

■ According to Booz & Co, sales of goods through online social networks are projected to reach USD 30 billion globally by 2015.The uptrend is expected to continue with the widespread use of SmartPhones. The GCC countries are amongst the top countries in the world in SmartPhone penetration. The overall SmartPhone penetration in Qatar was estimated to be 75% in 2011.

Similarly, high penetration exists in other Gulf countries as well. Apparently, SmartPhones have contributed to the increase in time spent on social media as well as boosted online shopping. According to a study by Google, around 40% of users in the UAE use their SmartPhones to make online purchases.

36

■

■

Social shopping is a toolset which allows people to share the act of online shopping including group buying, co-browsing, group gifting, and similar.

Ratings and reviews provide independent thirdparty evaluation of a product or a service, with an opportunity for viewers to contribute and discuss.

Recommendations and referrals are personalised endorsements of products and services often rewarding referrers for their efforts.

Social media optimisation is designed to attract visitors to websites’ content by promoting and publicising it through social media. Typically, it involves seeding marketing collateral to major social media platforms.

Social applications and ads represent a branded content in social media in the form of paid advertisements or social applications.

Forums and community platforms connect people with each other and various businesses in a moderated environment.

Entrepreneurs in the Gulf region have begun to recognise social media as an attractive marketing and

sales channel. Actually, this utilisation started years back when people used discussion forums to introduce and sell their products. In these days, the most popular chocolate or accessories stores in the Gulf exist only virtually using dedicated accounts on Instagram or Twitter.

In fact, the region struggled for a long period to adopt the online business which is mainly due to trust issues. According to a survey study I conducted this year at Qatar University, consumers in the Gulf region preferred shopping through social network websites to regular online shopping, with the exception of popular international websites like Amazon.

How often do people in the GCC region shop through different channels?

Trust is essentially established through the interactions between members of the network. It then expands in a ripple effect manner as the sellers get more “followers” and more “likes”.

I once asked a friend who regularly shops from social media websites, “What makes you trust this way of shopping?” Her answer was that once she saw all the comments of people who had ordered a product and had given a positive feedback about it, she just did what others did or bought what others were buying.

Perceptibly, the influence factor of social media is a key in this kind of business interactions since it is all about learning from the experience and knowledge of people we know and trust.

Besides the community centered experience, trust is built around social media shopping by offering different payment methods. Many people were reluctant to use their debit or credit cards in online transactions. For that reason, online sellers today gain the trust of consumers by offering options for direct bank transfers. Such options are very common in the area of social commerce and are widely accepted by the regional shoppers.

Souq & shopping malls International websites

Social network sites Arabic website Never

Always

Why do consumers in the GCC region avoid online shopping?

Difficult to evaluate products online Lack of trust Security concerns Prefer shopping offline No credit card

0

20

40

60

80

The trust We can conclude that the integration of social media networking with e-commerce obviously contributed to the increased reliability of online shopping and, thus, attracted many customers. The questions is how this change was derived.

In my study, I tried to investigate the factors which influence the Gulf consumers’ attitude towards social commerce. The focus of the study was on utilising existing social media networks for direct sales and service offerings. The results showed that trust was the major factor that encouraged shopping through social media. This sounds natural due to the collective nature of social media.

Another factor, which was found to be influential among the GCC consumers. while shopping through social media, is usefulness. Consumers are always looking for more convenient, but yet economic ways, to purchase products and consume services. The aggregation of sellers created a sort of “virtual shopping malls” which provide a variety of products with easy and quick purchase and delivery options. The availability of customised products is also increasing among social media sellers and is boosted by the enhanced two-way communication between sellers and buyers. Examples include women entrepreneurs who work from home or the sale of custom-designed cakes or accessories customised with the buyers’ names.

The research also found that people, who believe that social network websites are enjoyable, are more likely to buy products through this channel. In addition to the joy of sharing and discussing, the sellers, for example, add some enjoyment factors like holding competitions or sending free gift items with orders above a certain value.

A piece of advice Having understood what motivates customers towards buying through social media networks, we can outline the following advice for people who are already engaged in social commerce or are interested in starting their business through social media: ■

Crave to be different: You have to think carefully about what will make you stand out in the huge crowd of sellers which are present within social media networks. Frequent online shoppers often look for things that are not available offline or lower priced items. You don’t necessarily need to

JuNe 2013

37

TeChNOlOgy

■

■

■

38

come out with differentiated products, but rather an innovative marketing mix. Remember that you will be able to cut the renting cost which will allow you to offer competitive prices compared to regular shops.

Build reputation: Social commerce is communal in nature. Sellers usually attract new customers through referrals. While it is easy to build a customer base by offering quality products and ensuring timely fulfillment of orders, it is also easy to lose as many customers with a single mistake.

You have to be careful because upset consumers can easily share their negative experience with the rest of the group. A few negative comments on your social media network can influence the intentions of current or potential customers.

Make life easy: Social media shoppers look for convenience, so make sure that the order, payment, and delivery methods you adopt are easy for them. Invest a lot of efforts to handle the risks of payment and delivery processes in order to increase the security of the customers’ shopping experiences. For example, allowing bank transfer payments would be an attractive option for those who don’t have credit cards or are afraid to use them for online transactions.

Provide a joyful experience: Social network websites can be potentially addictive. Just like with the classic addiction, the engagement within these websites leads to a favourable change in emotional states. Many people find spending time on social media a pleasant experience.

Those people are more likely to engage in social media shopping. As a seller, you need to make the shopping experience as joyful as possible.

Thus, involve your customers, share their positive feedback with others or offer free stuff or gifts.

Even a small advice regarding your offering could count.

Customers in the GCC were generally found to have a positive attitude towards social media shopping. Therefore, chances are open for talented people to sell their work through social media channels skipping much of the complication of a standard business setup.

In summary, customers in the GCC were generally found to have a positive attitude towards social media shopping.

Therefore, chances are open for talented people to sell their work through social media channels skipping much of the complication of a standard business setup. It can also be a starting point for entrepreneurs who plan to grow bigger to initially test customers demand.

Businesses likewise cannot ignore the trend. Companies need to establish or revisit their social media strategy and work on increasing their social media presence. Social media allows sellers to gain insights into a customer’s preferences, which could be used to promote community sharing offerings. So, thoughts should be made for the increased customer involvement or even for the consideration of direct sales through social network websites.

Social media has definitely changed the rules of the game for e-commerce. Social commerce allows both individual sellers and companies to personalise and enhance the shopping experience and create a new demand by generating various techniques.

Get your FREE* copy of Private Sector every month!

Subscribe to Private Sector for valuable business advice that will help develop your business. Maximise your opportunities and growth through our initiatives spanning magazine, events, Website and social media.

Be part of a community of forward-looking businesses.

Subscribe to Private Sector today!

Full Name: Company: Job Title: Address: Country: City: P.O.Box number: Phone number: Mobile phone number: Fax Number: E-mail: Website: Subscribe to: English

Arabic

* Business decision makers in Qatar are eligible for the complimentary subscription. International and bulk subscriptions will be charged nominally. Please send the details to rajeesh.nair@cpimediagroup.com. Our distribution team will be in touch with you.

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

legal

GOOD LAW

means

GOOD BUSINESS In contrast to the old-fashioned concept of a courtroom, the Qatar International Court and Dispute Resolution Centre (QICDRC) is moving at the same rapid pace as economic development in Qatar. Robert Musgrove, CEO, QICDRC, explains how good law and good business go hand in hand.

C

ourts are often seen as removed from the real world, but the QICDRC is a modern business court and has been designed to best suit the market and the trade priorities of Qatar and more widely the Gulf region.

The development of the QICDRC is based on what are the most effective and efficient dispute resolution vehicles for resolving high-end commercial disputes that international businesses demand.

Robert Musgrove is the CEO of the Qatar International Court and Dispute Resolution Centre. He is responsible for the administration of an international commercial court and a regulatory appeal tribunal – ADR Centre. The centre provides arbitration, mediation, and specialist adjudication schemes, the development of international standard judicial and legal education, and the development of rule of law in the wider region through the Qatar Law Forum. For more information, please visit www.qicdrc.com.qa

40

The origins The QICDRC was established in 2009 by His Highness The Emir Sheikh Hamad bin Khalifa Al Thani as it was recognised that Qatar needed to have international standards in dispute resolution if it were to be able to attract international businesses and financial services into the Qatar Financial Centre. The QICDRC can, therefore, be viewed as part of an investment package – if Qatar wants to do business with large, high-quality international companies then it must provide the ability to promote and protect the rights of these companies.

With a modern specialist commercial court acting as a safeguard, businesses can invest with the confidence that any future disputes will be heard in a court designed to hear cases quickly, economically and in front of internationally renowned, independent judges. Strong law courts are very influential in attracting potential investors and in a way act as international marketing tools,

which London, Paris and Singapore have been doing for years. Often seen as the legal capital of the world, the UK’s legal market has been valued at GBP 23 billion, much of which comes from parties with little or no physical connection to the UK. In terms of jurisdiction, the QICDRC is truly global. Like a conventional court, we have a mandatory jurisdiction for any disputes relating to companies registered with the Qatar Financial Centre, but we also have an opt-in global jurisdiction. For example, any Qatari company dealing with a company in Denmark, or even a Danish company falling into a dispute with a company in the UK over a bridge in Mali could choose to use the QICDRC. We also offer alternative dispute resolution in the form of arbitration, mediation, and adjudication which are open to all parties no matter where they are based.

Quickly, economically, fairly, and privately The QICDRC is much like any other business in that we constantly need to assess the services that we provide to retain and attract new customers. The big difference is that we are not profit-driven, and do not charge fees for the use of our facilities. Thus, the understanding of what our potential clients want is key to establishing strong courts and attracting international business into Qatar.

No business chooses to be involved in a legal dispute and senior executives do not want to spend their

valuable time reviewing volumes of legal documents, or waiting in court corridors for days to be called before a judge. Companies generally want their disputes to be resolved quickly, economically, fairly, and in many cases privately. The QICDRC has designed its Court and Alternative Dispute Resolution Centre to meet these demands of international businesses.

Through the use of technology, we offer a global “virtual court” service where the parties do not have to be physically present in Doha. Documents can be filed with the Court electronically, and multi-channel videoconferencing allows businesses to control and present their dispute from wherever they are located, which saves significant time and travel costs.

The rule of law Winning the FIFA World Cup 2022 bid has rubberstamped His Highness The Emir’s plans to transform Qatar into a recognised power in the world. Part of this vision includes becoming a global leader in terms of diplomacy and the rule of law. Rule of law is particularly important to economic development in this part of the world. Therefore, Qatar is working at every level to reform its legal framework to be more attractive to foreign investment and tackle corruption.

Corruption stifles economic development and the United Nations have shown great faith in Qatar by becoming a partner in the Rule of Law and Anti-Corruption Centre.

This will provide both education to the region and also much needed support to the work of the Attorney General, His Excellency Dr Ali al Marri, to ensure all business in Qatar is clean.

The QICDRC is a major part of Qatar’s commitment to the strong rule of law by ensuring that truly international standards can be applied in dispute resolution. The QICDRC also is the driving force behind the Qatar Law Forum, where leaders in law from around the world discuss the challenge of achieving a global commitment to the rule of law and related issues of international legal and economic significance.

A strong rule of law also extends to lawyers themselves.

It emerged in the Qatar National Vision 2030 that His Highness The Emir made it clear that for Qatar to sustain its growth and to be a world-recognised player, it needed international benchmarks in all its professions.

Our commitment is to set those high international standards for lawyers and judges, with Qatar providing an example not only to its neighbours, but ultimately to the world.

The QICDRC commissioned a report on the development of professional legal and judicial education in Qatar earlier this year, which sets out a number of proposals designed to advance the continuing education and training of lawyers and judges. Educational investment in civil and commercial

lawyers and judges has a strong economic rationale as it supports a stable and diverse economy where businesses may invest and resolve disputes confidently, with a strong and impartial judiciary and with welltrained and educated legal professionals.

Market specialisation As Qatar’s ambitions have grown on the world stage, so the QICDRC has evolved to match. In support of the Qatar National Vision 2030 and the FIFA World Cup 2022 target of delivering huge infrastructure projects, the QICDRC is developing specialist schemes to help keep this commitment on track and help manage the risk.

The 2022 deadline is immovable, yet it is an inevitable fact of life that things go wrong in large, complex construction projects, often involving numerous contractors and subcontractors. The QICDRC has, therefore, developed a specialist fast-track dispute resolution mechanism Q-Construct, which recognises that construction projects, such as those related to the FIFA World Cup 2022, must progress quickly and must not get delayed by prolonged legal battles.

Q-Construct includes all the features of best international practice – specialist adjudicators, a streamlined process and a specialist construction judge to be on hand in the event that judicial authority is required during the dispute resolution process. It will also offer binding interim decisions enforceable through the Court. Q-Construct has been designed in consultation with the world’s leading international law firms and in-house counsel from leading construction bodies in Qatar.

Q-Construct is the first in a series of proposed specialist dispute resolution schemes designed to support Qatar’s growth, making it more attractive for international investment and for Qatari companies to enter into better quality international relationships. The legislation for Q-Construct is currently with the Emiri Diwan and will, hopefully, be passed in few months.

Insurance is heavily interlinked with the FIFA World Cup 2022 as infrastructure projects naturally involve financial risks which have to be insured. We have spoken to insurers based in Qatar, Bahrain, Dubai and London to complete our feasibility study in the end of 2012. It suggested that there is definitely a need and scope for a specialist adjudication scheme in insurance headquartered in Qatar.

We have also been approached by the QICCA (Qatar International Centre for Conciliation and Arbitration) and other arbitration organisations to look into the area of Islamic finance. There is currently no global centre for Islamic finance disputes and yet Shari’ah-compliant funds are one of the fastest growing financial vehicles at the moment.With the increasing popularity of Islamic finance globally and specifically in the GCC region, it would add another string to Qatar’s bow to have a mechanism in place to resolve these disputes right here in Doha.

JuNe 2013

41

eNTrePreNeur

Take a deep dive INTO BUSINESS

Today, while people face a wide range of options to enjoy scuba diving there are only few of them who create a successful business out of this hobby. Abdullatif Al-Naemi, PADI Course Director and Owner of Qatar Divers, told Tamara Pupic how he created the leading PADI Five Star International Development Center in Doha.

Please tell us more about your company and the services it offers in Qatar?

I started scuba diving in 1995 as a hobby. In 1999, I became a dive master and, a year later, an instructor. After 13 years, I reached the level of course director which is the highest level for instructors in scuba diving. This is a luxury sport that gives people a chance to break the everyday routine, relax, have fun and do something they love.

I established Qatar Divers in 2007. I was wondering about the name and decided that it had to relate to my country. I wanted to spread more information about Qatar worldwide.

We started as a dive shop with PADI equipment, which is the world’s leading scuba diving training organisation. Now we are the leading PADI Five Star International Development Center in Qatar. We are proud of the fact that we have reached the highest level within PADI’s structure, which means that we provide the highest quality trainings. In addition, we sell the best equipment for scuba diving. So far, we have five full time employees.

The establishment of a professional scuba diving center in Qatar has helped people in the country a lot. Now they don’t need to travel to other countries to get this kind of certificates or to enjoy scuba diving.

42

We now cooperate with a lot of organisations in Qatar such as the Emiri Guard, Qatar Foundation, and many more. We organise our own Sports Day when we offer people a chance to discover scuba diving for free.

We also organise our Cleaning Days when we try to contribute to the cleaning of our beaches and water.

How was the idea of the company created? What was your vision?

Like in any other business, you need to have the tools or the skills which you will offer to people. For example, if you are not a teacher, you can’t start teaching. So, it starts with self-training and that’s what I did.

I attended a lot of courses and seminars around the world to sharpen my skills and reach the highest level of education from the reputed international organisations for scuba diving.

How did you develop your business plan?

First of all, I would say that passion is not enough for creating a good business. Business is a completely different story. You need to know exactly which risks are involved and what you will be going through once you start your business. Also, you need to have very good knowledge of marketing, finance, and similar.

De Symetria designed by Luca Scacchetti

Executive Desks

|

Conference Room Tables & Chairs

|

Modular Desking Systems

|

Panelling Systems

Toll Free 800 OFFICE, Dubai Pyramid Center 04 358 2272, Doha Salwa Road 04 421 7941, Muscat Muttrah 24 523005, www.officelandme.com

eNTrePreNeur

the market. However, if you have something unique or different, then you can enter the market more easily and make profit even within the first year. It might not be that much of a profit, but it will be better than in any other businesses.

My work had been familiar to people even before I established Qatar Divers, so it wasn’t hard for me to enter the market.

The main problem, that I still face, relates to the high rental prices.

I’m currently searching for a villa with a nice swimming pool since that is important for my business. The plan is to make a new diving center. The center will help the government by ensuring that all standards, rules and ethics, which relate to scuba diving, are respected among the instructors operating in Qatar.

But, with prices ranging from QR 30, 000 – 35, 000, it will be very difficult to achieve this and make some profit at the same time. Thus, it is hard to advance further because our investments are huge.

I started on my own. I did do a quick market study, but since this is a unique sport, it was clear to me that I would not have many competitors in this market. There were only few shops which were selling equipment while I was offering high-quality training. Thus, it just required more marketing.

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

To set up any business, you need money to start. Our products are quite expensive. So, in the beginning, I had to take a personal loan to start this park.

Since I was travelling a lot, I got introduced to and became partner with the biggest names in this industry, which helped me a lot. That’s how I started.

Now I’m planning to open a new branch in order to cover the southern part of the country. I will definitely check this new business expansion plan with Qatar Development Bank and their Al Dhameen programme.

First years are also difficult in terms of market positioning and the quality of services – how did you overcome these obstacles?

If you are a good scuba diving instructor, you will find students by the word-of-mouth only. However, we are now also utilising social media since it makes it easier to reach more people.

There are a lot of instructors in Doha, but a client needs to be sure that they follow all safety standards and procedures. I am very strict about that. This year we will host the first PADI Instructor Examination (IE). That will be the first time that the highest PADI IE instructor will come to Qatar and evaluate my students.

What is your opinion on current opportunities and challenges within your line of business in Qatar?

In any business, you will face at least one or two years of hard time in the beginning. It is harder if your business is common or well-known in

44

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

We are trying to establish an association for scuba diving in Qatar, but it is a long process. I would really like if we could have something, for instance in Egypt, where instructors are not authorised to teach until they go through the evaluation by their national organisation for scuba diving.

Also, I would like if we could have rules to keep our beaches clean. We can see every day how people don’t care about them. It makes me really angry. Although, our government does a lot to clean the beaches, it’s still not enough.

Lastly, I’m also working on the GCC Group for Scuba Diving which would gather dive centers from various regional countries. For example, we could help each other or recommend customers when they travel to our respective countries.

What would be your advice for youth in Qatar aspiring to establish their own business?

If you feel that your idea will work, it will work. However, if you feel that it might or might not work, then it’s not enough to start a business.

For that reason, it’s good that we have QDB to study our ideas with us and evaluate whether our business will succeed.

I know that a lot of Qataris have wonderful ideas. But, they are afraid it might not be a successful business since they don’t know much about how to develop it properly. Thus, I would recommend them to go to QDB, join their seminars and trainings, learn and then decide by themselves.

There is always a risk, but with a good plan you will go through. Also, it’s not bad to have a wrong judgment because you will learn from your failures. But, it’s important to stand up again and carry on. Educate yourself and see what is best for you. Travel the world and see ideas of other people!

MaNageMeNT

ENGINEERING

success

In response to the escalation of construction projects in Qatar, Qatar Development Bank (QDB) established the Engineering Projects Department in April 2010 to support the development of the construction industry, and also to provide technical assistance to its internal departments.

Jenny Kassis met with Engineer Eisa Al Hammadi, Engineering Projects Manager, QDB, to learn more about this department and identify its modus operandi.

Q

DB’s Engineering Project Department seeks to work continuously through new regulatory measures, in coordination with all other departments of the bank, customers and contractors, in order to provide the best engineering services.

Eisa Al Hammadi, Engineer Projects Manager, QDB said that the department is currently composed of 13 employees – six project managers, a programming and a planning engineer, a contracts engineer, an accountant manager, and a secretary.

Engineer Eisa Al Hammadi is the Engineering Projects Manager at QDB. He holds a degree in civil engineering from the University of Qatar.

Eisa worked in Qatar Olympic Committee and held several management positions until 2010, when he joined QDB. Eisa can be contacted at eisaalhammadi@qdb.qa

46

All of them have specific objectives and duties, which are being carried out within three sections: ■

■

The Contracts Section handles the preparation and follow-up of tenders, which are to be announced. It also provides support to the Purchase and Tenders Committee, and drafts the contracts with companies and suppliers.

The Projects Execution Section handles the management and supervision of engineering projects (construction projects, like factories, schools, hospitals, resorts, hotels, and similar),

■

which are resourced financially and technically by the bank and include both private and stateowned engineering projects.

The Maintenance Section manages all maintenance of the bank’s buildings and facilities.

In this regard, Eisa said, “We have two types of projects.

The first is a subsidiary to the bank, such as Qatar Business Incubator, market model project, and the bank’s rehabilitation project. The second is a subsidiary of the bank’s customers, which comes across as Al Dhammeen Programme, and our Project Financing Department. Each year, the Engineering Project Department rehabilitates contractors and consultants through our sites and our regular meetings when we offer them advice. The main objective of our department is to develop all constructionrelated engineering projects, which are financed by the bank whether as projects borrowers or as projects of the state. We serve the industrial, health, education and tourism sectors. We try to find solutions for the customers’ problems in these sectors. This is done by developing plans and strategies to create accurate systems to monitor the engineering projects’ loans. In addition, we help the bank’s clients to complete and develop their projects according to the latest norms and regulations.”

effective quality service within the appropriate time for the implementation of the project.

The main objective of our department is to develop all construction-related engineering projects, which are financed by the bank whether as projects borrowers or as projects of the state.

In more details, Eisa said, “The approval for the projects comes either from the CEO of QDB or the Board of Directors.”

Moreover, customers are classified into three sections: ■ ■ ■

Clients of Al Dhammeen programme Clients of the bank’s Financial Department Clients of contractors and consultants

He assured that Engineering Projects Department is a service-based department which manages the full assessment of projects and studies all its aspects. He added, “The steps that we follow are simple. Previously, the customer had to provide the required documents and appoint the contractor and consultant by himself.

Now, he only has to provide documents related to the land, designs and licensing of the project. Afterwards, our department puts the project in an open tender to choose the appropriate advisor who will supervise it. After obtaining all the guarantees regarding the implementation of the project, our department appoints a contractor to carry out the work.”

Elaborating furthermore, he emphasised, “The grace period allowed by Engineering Projects Department for the implementation of any project is two years. The project is set to be completed within the first year, so that the production can start in the following year.”

He also added, “We welcome all customers to our department, where we technically evaluate their projects in terms of the construction and evaluation of the needed space. On this basis, the Engineering Department decides on the type and value of funding that needs to be offered to the client.” In addition, Eisa stated, “The main reason why customers refer to QDB is to get more guidance and counseling, and not to achieve profits.”

Engineering Projects Department handles engineering matters at all levels through a team of contractors and consultants. It is also keen to provide excellent and cost-

In this context, Eisa said, “In addition to opening tenders for projects and monitoring them, Engineering Projects Department has three main tasks to do, which all relate to the classification of companies whether contractors or consultants.

Currently, the bank is trying to enable the proper implementation of the projects in terms of their high quality through the supervision of a dedicated, experienced and efficient team from our department.

In addition to that, we aim at reducing costs and ensuring timely completion of the required work.”

He also confirmed that the purpose of adopting this method is to ensure full transparency of prices and assist the national companies which will be able to access and implement projects in the public sector.

When talking about the advantage of these procedures, Eisa explained that they contribute to easing the difficulties a customer might face. They ensure that the required services are obtained in a faster manner, which will allow the customer to connect to electricity, water and telecommunications services more quickly.

The customer receives monthly reports about his project along with pictures and labour productivity and a complete engineering report.

When we asked him to provide advice to startups in Qatar, Eisa said, “I advise all startups seeking to implement a project to refer to QDB. The bank will provide guidance and appropriate funding, which will help them to start. Moreover, the duration of repayments of loans for the industrial projects in QDB is very comfortable and is not a burden for our customers. Thus, they can make profit and pay their premiums without any pressure.”

In order to achieve success, he pointed out that companies should take notice of the following criteria: ■ ■ ■ ■ ■ ■

Credibility Studied prices Quality of the work Quality of employment Abundance of the needed materials Speed of executing the work

Nevertheless, Eissa concluded by emphasising that QDB’s Engineering Projects Department is primarily working on achieving the best results, which will serve the bank’s interests in line with Qatar National Vision 2030.

JuNe 2013

47

SuCCeSS STOry

Dine with a

DIFFERENCE!

With an aim to preserve the ultimate quality along with the best service, Al Balad restaurant has made its own way to become one of the “Best Five Projects in Qatar” awardees by Qatar Development Bank (QDB). Jenny Kassis spoke to Roland Haddad, Vice President, Operations and Finance, Al Mannai Hospitality, to learn how they were able to prove themselves within this competitive market.

A

l Balad is a Lebanese chain of restaurants that was established in Beirut in 1999. It attempts to reinvent Lebanese cuisine and provide its customers with exquisite and satisfying meals in a cozy atmosphere.

Roland Haddad is the Vice President of Operations and Finance at Al Mannai Hospitality.

He has more than seven years of experience in the banking and consulting sectors. He joined Al Mannai Hospitality in 2012.

Roland can be contacted at roland@almannaihospitality.com

48

Roland Haddad, Vice President, Operations and Finance, Al Mannai Hospitality, began the conversation by telling us how they started their operations in Qatar, “In 2011, we signed a franchise contract with Al Balad Lebanon to open a branch of Al Balad in Doha.

We started to search for a location and, like any other business, it took us some time and a lot of effort to prepare for the opening. We professionally engaged in the recruitment process and training of our staff since some of them were not familiar with the Lebanese cuisine. The restaurant finally opened its doors in February 2012 in Al Emadi Financial Square on C Ring Road. The event was highly publicised by the local media.”

Talking about the support they got to start their operations in Qatar, Roland said, “The support we got was mainly offered by the equity holders. As in any other project, you need to have a strong base to get access to finance. The excellent reputation and credibility of the owners, coupled with their commitment to the project, provided a lot of support to the successful start of our operations.”

With an aim to promote authentic Lebanese food with legendary service, Al Balad undertook extensive marketing activities, which ranged from newspaper promotions and organisation of various events, to a direct door-to-door promotion.

Challenges When asked about the challenges they faced, Roland cited the limited number of suppliers as a major challenge, “A smaller number of suppliers translates into less competitive prices for our raw ingredients.”

Speaking about the characteristics of the Qatari market, Roland stated, “The market is very segregated in Qatar since there are different groups of people from several cultures who all have different tastes. We have to cater to them in various ways since each one of them has a different expectation and price level. We try to respond to this diversity by doing business in a professional and orderly manner as much as we can.

We try to access a larger pool of clientele through our delivery service that is now available through websites like FoodonClick and Doha Delivery.”

Roland added, “We have to educate our guests about our offer. Some of the people, who come to our restaurant, have not eaten Lebanese food before.

So, we need to inform them about what they are eating and what is the history behind each of our dishes. Customers in Qatar have ample choice to decide about the kind of cuisine they want to eat.

The challenge for us is to prove that Al Balad can not only compete with other Lebanese restaurants, but also with other international cuisines like Italian and American.”

When we talked about the key differentiators of their business in Qatar, Roland was clear to say that the restaurant scene in Qatar has been changing over the last few years, “Restaurants that do not deal well with competition and, thus, avoid adopting new services might lose their position in the market. We are a customer-service oriented restaurant. People in Qatar always complain about the service and quality. There is a general understanding among residents in Doha that many of the restaurants start on a high note but quickly start looking to save money on their operations, thereby impacting quality of food and service. We avoided this scenario by continuously focussing on the quality of our ingredients and training our staff how to improve their service, in addition to actively listening to our guests’ comments.”

Al Balad has a commitment to its customers. In order to pursue this goal, they have recently diversified their services to include: ■ ■ ■ ■

Delivery services Catering services Daily dish services Business lunch boxes

“When a customer feels that you are treating him in a unique way, you can guarantee that he will come again!”

Roland assured us.

When we asked him about the steps that led them to win QDB’s “The Best Five Projects in Qatar” award, he honestly stated, “We did not consider this award as a goal for us, since we were working according to the standards that we have. Al Balad is much formalised in terms of procedures and branding, which need to be followed. But, this would not make any sense if it wasn’t applied in our work and if

Continuing about their marketing strategy, Roland explained, “We are very aggressive in our marketing campaigns. We look for opportunities and plan the exposure through which we want to reflect the real value of our restaurant. Al Balad is a nice Lebanese concept. It is a casual restaurant, which is also suitable for families. When someone visits it, he or she expects to get the best service and food quality in a nice atmosphere. In order to promote our restaurant, we have been working hard to connect with people and groups. Also, we have been organising business networking events.”

JuNe 2013

49

SuCCeSS STOry

He also advised entrepreneurs trying to enter the food and beverages sector to study their product and make something different, “If you are not doing something different then take something that already exists and make it better. Study your competition and learn how to beat them. In the food and beverages sector, you need to focus on finding the right location to open your store. Whatever you do, it is all about having the right team around you.”

He also pointed out, “To start a business in Qatar, one needs to have a business plan. If one doesn’t have enough experience, it is better to partner with someone more experienced or hire someone to help with the planning. An entrepreneur shouldn’t be scared of hiring people since they could help him to go further with his plans in a relaxed way.”

“QDB is offering a lot of help to entrepreneurs and startups through the Al Dhameen programme. They have been very supportive by visiting our restaurant and providing us with feedbacks and advice,” said Roland.

there was no follow up. The more you show the potential of what you can do, the more people will notice you. This has helped us to gain more customers and to be part of the “Best Five Projects in Qatar.” Moreover, he added, “QDB is offering a lot of help to entrepreneurs and startups through the Al Dhameen programme. They have been very supportive by visiting our restaurant and providing us with feedback and advice.”

Since we can see a lot of startups in the Qatari market, we asked Roland for his opinion on the steps they need to take in order to flourish within this market, “A strong leadership at the helm is a key for a startup given the risks that the company has to surf through in its first years of operation. A great focus should be placed on selecting the right people to start your business with, since they will need to wear many hats in the beginning for the company to sustain its operations. Being aggressive is essential and I think there is a lot of room for growth in the Qatari market.”

50

Future plans Al Mannai Hospitality is working to create and launch a new brand, “Once we start it, we plan to franchise it and open various stores in other regional countries.”

Al Balad is currently studying the aspects of expanding its operations in Qatar, but this depends on the availability of locations in the market and expected revenues from the operations.

“Our vision is to always bring something new to the market and differentiate ourselves. The concepts we are working on now have different twists. We will always try to cater to the market needs and come up with new ideas,” concluded Roland.

Excellence. At Carnegie Mellon.

For more than a century, Carnegie Mellon University has been inspiring innovations that change the world. Consistently top ranked, Carnegie Mellon has more than 11,000 students, 90,000 alumni and 5,000 faculty and staff globally.

In 2004, Qatar Foundation invited Carnegie Mellon to join Education City, a groundbreaking center for scholarship and research. Students from 39 different countries enroll at our world-class facilities in Education City.

Carnegie Mellon Qatar offers undergraduate programs in biological sciences, business administration, computational biology, computer science and information systems. Carnegie Mellon is firmly committed to Qatar’s National Vision 2030 by developing people, society, the economy and the environment.

Learn more at www.qatar.cmu.edu

SMes

Have a

SMOOTH SAIL

While maritime activities are prospering in the region, the boating industry is also �lourishing to meet the enhanced sailing standards and make it a pleasant experience. Jenny Kassis visited the factory of Halul Boats and spoke to Salah Mohamed Al-Khazraiji, Manager, Halul Boats, to learn more about their operations in this unique industry, which is sparkling among the other industries in Qatar.

H

alul Boats was founded by Ahmed Al Hitmi, under the guidance and support of His Highness Sheikh Tamim Bin Hamad Bin Khalifa Al Thani, Crown Prince of Qatar, after they had discussed this idea during a boat trip to the Halul Island.

The factory started its production activities in 2007 by producing 33 and 36 foot boats. In 2010, it produced a smaller- size boat of 28 foot. As it developed, it began producing 40 foot boats.

Salah Mohamed Al-Khazraiji is the manager at Halul boats.

He holds a Bachelor Degree in Business Administration in the Maritime Sector from the University of the Kingdom of Bahrain. Salah can be contacted at salahkdas@gmail.com

52

Salah Mohamed Al-Khazraiji, Manager, Halul Boats, talked about the development of their productive capacity, and said, “We started our business in a small place with the support of Qatar Development Bank.

The bank helped us through the provision of funding after we turned to them and presented a feasibility study for our factory. Up to 2011, the production capacity was very modest. We used to produce around 40 boats per year only. But, this year, after adding some changes and adjustments in the administration, and

with the provision of basic raw materials, we seek to produce 100 boats per year.”

Talking about the difficulties they faced when starting their business, he told us that, like any other factory, they faced difficulties in finding the right place to establish it as well as to obtain good quality of raw materials and accessories at affordable prices.

“We produced the first five boats without achieving any profit as we had spent huge amounts on raw materials.

This is related to the fact that we were not yet familiar with the details of the market. We did not even know the appropriate places where we could purchase quality items at lower prices. Initially, we were buying raw materials from the local market, and then within the Gulf market, but now we are purchasing them directly from the manufacturers. We usually import raw materials from the United States. This year we started importing the accessories, which we use to decorate our boats, from Europe and the United States as well,” said Salah.

SMes Within our conversation, Salah pointed out, “In the Qatari market, there are three different types of customers professional sailors, amateurs, and the third type actually comes somewhere in between a sailor and an amateur.

We face a major problem with sailors since they have specific demands. As a manufacturer, we can’t produce in the same way as they might be asking for, but we seek to meet their demands as much as possible. On the other hand, amateurs are easy to please since their requests are not complicated and are usually linked to accessories and other available materials.”

Since no sector is devoid of competition, we wanted to check what kind of competition they face in Qatar, about which Salah said, “Halul Boats is the only Qatari factory in this sector, but there are numerous agents and many regional and international companies. We do not consider them competition since our prices are much cheaper than theirs.”

He further elaborated, “In the Gulf region, we do not compare ourselves to large companies such as Al Dhaen Boats and Gulf Club since they have been in the market for decades and have an excellent metier. We are still relatively new in the market. We can’t say we are better than them, but what differentiates us from our competitors is the stability of our boats in the sea. Our boats move in a convenient way, which differs them from the rest of the boats offered in the market. We always seek to implement these kinds of features when we design our boats. We also offer up to five years guarantee on the products that we manufacture, including the specific “patch” related to the machines. There is no factory in the region that gives this kind of guarantee. These are the key factors that give us a jump in the Qatari market and put us in a convenient position”.

When our conversation tackled the conditions within the manufacturing sector in Qatar, Salah opined that this sector is not suffering from any significant difficulties in Qatar since it has achieved a great leap in the recent years. In his opinion, that was evident during the “Made in Qatar” Exhibition, which was held in Doha in January 2013. He also said, “There is a promising future awaiting the manufacturing sector in Qatar. We can see this through the assistance provided by the government to investors and the budget which has been allocated to support this sector. In addition, facilities and privileges are being provided to all companies, whether SMEs or not. We are benefiting from this support. It will allow us to achieve our goals, develop the industry and raise the name of Qatar globally.”

Export Although the priority of Halul Boats is to manufacture and supply boats to the Qatari market, they also seek to achieve outstanding success in their export activities and expand it abroad. Commenting on this subject, Salah said, “We can’t only rely on one market. Therefore, we are currently exporting to the Gulf countries, specifically to Saudi Arabia,

54

the United Arab Emirates, Bahrain and Kuwait. But, we also strive to export more regionally and internationally through our participation in events and exhibitions that provide us with many opportunities. The “Made in Qatar” Exhibition introduced us to new customers, and we started to export to Kuwait. Moreover, with our participation in the Dubai International Boat Show we generated many inquiries from different countries. We were also able to identify our competitors in the foreign markets and learn about what differentiate us from them.”

Salah also talked about the way they modify their business in order to comply with the requirements of the targeted markets, “The biggest share of our exports is directed to Kuwait and the UAE. When we first sent our representatives to Kuwait, we knew that there are internal problems regarding the boats’ sizes. They prefer boats ranging in size between 20 and 25 feet. Thus, we decided to manufacture boats of these specific sizes to gain them as clients. However, in the UAE we do not face size related problems since there is a demand for both small-size and large-size boats. Our export activity is based on the flexibility and capability of our agents in these countries.

Therefore, our export to the rest of the Gulf countries, like Bahrain and Saudi Arabia, is still weak, but we look forward to more opportunities in the future.”

He continued by mentioning the difficulties they face while exporting, “We recently started to export, and the percentage of our exports is still modest. We don’t face major difficulties while exporting, but challenges relate to the high freight charges and customs procedures in some countries, which sometimes lead to delay of the shipping process. In general, export requires promotion, and we can’t blame anyone if our export share is not large. For that reason, we should introduce the Qatari manufacturing industry to the desired entities and promote it.”

On the basis of his experience in the local market, Salah believes that SMEs and entrepreneurs in Qatar, who are trying to enter the industrial sector, should have a certain credibility in managing and executing a business. In Salah’s opinion, credibility is the root for success, “In the period until 2022, Qatar is witnessing a resilient era. On the industrial scale, the country requires many necessities.

SMEs and entrepreneurs have to take advantage of this period. If they do not take the initiative and start during this period, they will never be able to do it.”

At the end of our conversation, Salah shared with us their future plans, “We have vast plans, but we are taking them step by step. We intend to expand Halul Factory in the Gulf and outside the Middle East region. We also seek to create a global nautical center that provides boats and accessories to the neighbouring countries. 2013 will be a major year for us. The reason is that we are preparing to produce a new boat, which is a half yacht and includes a room and a bathroom. In addition, we will open a large factory in 2014 in al Wakrah, which will allow us to manufacture yachts.”