Private Sector Qatar English | June 2014

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JUNE 2014

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Tomorrow’s world What’s the private sector future? p24

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AT YOUR SERVICE Ron Kaufman’s customer agenda

THE EYES OF THE WORLD Attracting global business

ALL THE BEST

Corporate Governance in Qatar

WE DON'T JUST WORK WITH THE BEST SUPPLIERS. WE ALSO WORK WITH THE BEST LOCAL SUPPLIERS. At Shell, we seek out ways to support Qatar's National Vision 2030 - in social, human, environmental and economic development. This includes helping Qatari entrepreneurs and encouraging growth by sourcing materials and services from local suppliers. At our state-of-the-art Pearl GTL plant, the need for large amounts of hydrochloric acid within the production process is met by Qatar Vinyl Company (QVC), a world–class chemicals and materials manufacturer. It’s just one example of Shell’s commitment to ‘local content’ in everything we do. To register your interest in becoming a supplier to Qatar Shell, please contact Qatar.Shell.Vendors@shell.com

@Shell_Qatar

Pearl GTL at Ras Laffan is the largest Gas-To-Liquids plant in the world.

ADVISORY BOARD Private Sector Qatar is pleased to introduce you to top industry champions who will be bringing added value to the publication. These key Ć‚IWTGU YKNN PQV QPN[ UJCTG VJGKT YQTNF ENCUU GZRGTVKUG DWV YKNN CNUQ QHHGT KPUKIJVU QP NGCFGTUJKR OCPCIGOGPV CPF ITQYVJ UMKNNU VJTQWIJ VJGKT EQPVKPWCN EQPVTKDWVKQP VQ VJG OCIC\KPG +V KU YKVJ ITGCV FGNKIJV VJCV YG YGNEQOG VJG HQNNQYKPI NGCFKPI RGTUQPCNKVKGU

Amal Al-Mannai 'ZGEWVKXG &KTGEVQT 5QEKCN &GXGNQROGPV %GPVGT

Abdulaziz Bin Nasser Al Khalifa %JKGH 'ZGEWVKXG 1HHKEGT 3CVCT &GXGNQROGPV $CPM

Professor Nitham M. Hindi &GCP %QNNGIG QH $WUKPGUU CPF 'EQPQOKEU Qatar University.

Dr. Ivan Misner (QWPFGT %JCKTOCP $0+

Vikram Shroff &KTGEVQT 4GICN )TQWR &WDCK

Raed Al-Emadi %JKGH 1RGTCVKPI 1HĆ‚EGT Silatech.

George M. White, Ph.D. #UUQEKCVG 6GCEJKPI 2TQHGUUQT QH 'PVTGRTGPGWTUJKR %CTPGIKG /GNNQP 7PKXGTUKV[ 3CVCT

Hamad Mohammed Al-Kuwari /CPCIKPI &KTGEVQT 3CVCT 5EKGPEG Technology Park.

Wael Sawan /CPCIKPI &KTGEVQT CPF %JCKTOCP Qatar Shell.

Gail Gosse &GCP 5EJQQN QH $WUKPGUU %QNNGIG QH 0QTVJ #VNCPVKE 3CVCT

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Rashid Nasser Sraiya Al Kaabi %JCKTOCP QH VJG $QCTF 'PGTI[ %KV[ 3CVCT *QNFKPI

MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara Group COO EDITORIAL Group Director of Editorial Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Group Managing Editor Melanie Mingas melanie.mingas@cpimediagroup.com +971 4 440 9152 Associate Editor Victoria Connolly victoria.connolly@cpimediagroup.com ADVERTISING Group Director of Sales Carol Owen carol.owen@cpimediagroup.com +971 4 440 9110 Commercial Director - Business Division Chris Stevenson chris.stevenson@cpimediagroup.com +971 4 440 9138 Sales Manager Jason Bowman jason.bowman@cpimediagroup.com +971 4 440 9154 Media Sales Executive Emma Hughes emma.hughes@ cpimediagroup.com +971 4 440 9120 Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120

FROM THE EDITOR

A case of mistaken identity?

6JGTG KU CP KPETGCUKPI COQWPV QH EQOOGPV CDQWV VJG FKHĆ‚EWNVKGU QH IGVVKPI HWPFKPI KH you’re running a start-up SME - which appears to be completely in contrast with the burgeoning number of courses specializing in entrepreneurship and leadership skills. There is also the fact that in the nations of the GCC, the small business truly has a natural home. Take a stroll around any town or city in the region and you’ll see hundreds of small Ć‚TOU OCP[ QH VJGO FGECFGU QNF 5Q YJ[ VJG FKUEQPPGEV YJGP KV EQOGU VQ HWPFKPI! It occurs to me that perhaps the problem here is the fact that increasingly, we’re expecting small businesses to grow rapidly: merely ‘ticking over’ is not enough. Whereas previously a business could grow (or not) in its own time, today, the mantra is nITQY CV CNN EQUVUo 9GoTG PQY CEVWCNN[ FGĆ‚PKPI C UOCNN DWUKPGUU D[ KVU CDKNKV[ VQ FGNKXGT volatile growth - but only a few years ago, that wasn’t the case. With a modest family business, there wasn’t the need to look for large amounts of funding in Year One. Yet now, being able to deliver that growth is the be all and end all; and that can’t be done by natural customer accrual - it needs a rapid input of funds. So perhaps we’re actually mixing two very contrary prerogatives and comparing apples with oranges. Nonetheless, there is a good and logical reason for the obsession with growth. 60 years ago, the great economist, John Maynard Keynes, showed that the index of UWTXKXCN HQT CP[ DWUKPGUU YCU VJG HQTOWNC nRGTHQTOCPEG UECNG QH RTQĆ‚V Ă“ D[ KPĆƒCVKQP x the dominant trend in cost of living’. Since the cost of living typically rises by 45 per cent every decade, any business has a clear choice: grow or go bust. There is also the fact that while a small business may be able to be more agile and nimble VJCP KVU NCTIGT EQWUKPU VJG UJGGT GEQPQOKGU QH UECNG CPF ECUJĆƒQY FKEVCVG VJCV VQQ small can be perilously close to extinction. There is the added challenge that many of the business owners who might otherwise run reasonably solid SMEs simply don’t have the training to handle (or for that matter, to apply for) large amounts of funding - and still less experience when it comes to the successful allocation of those funds. We can’t expect the corner shop to afford - or provide a happy home for - an ambitious and astute CFO. The reality is that it’s time for a more realistic assessment of the SME agenda. One where we don’t see allout entrepreneurism as the sole style of SME, and where we don’t aim to impose a stereotypical view in businesses who are already proven entities doing a viable job. Enjoy this issue of Private Sector Qatar!

MARKETING Head of Marketing and Events Julia Jagiello julia.jagiello@cpimediagroup.com +971 04 440 9131 DESIGN Head of Design Glenn Roxas Production Manager James Tharian Distribution Manager Rochelle Almeida Data Manager Rajeesh Melath

i>` "vwVi PO Box 13700, Dubai, UAE Tel: +971 (0) 4 440 9100 Fax: +971 (0) 4 447 2409

Paul Godfrey Senior Editor

Talk to us: E-mail: paul.godfrey@cpimediagroup.com Twitter: @PrivateSectorQA Facebook: /PrivateSectorQatar LinkedIn group: Private Sector Qatar qatar.smetoolkit.org/qatar/en

WWW.PRIVATESECTORQATAR.COM/EN PRESENTING PARTNER

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CONTENTS

02 ADVISORY BOARD A high-powered panel of industry leaders who bring world-class expertise to the publication. 03 EDITOR’S NOTE Paul Godfrey on why we confuse SMEs and growth culture at our peril. Entrepreneurship Profile 08 NOW THAT’S WHAT I CALL SERVICE! Ron Kaufman - the world’s premier service thought-leader talks about uplifting customer service and building service cultures. Empowering Growth 14 REALISING THE VISION In an exclusive interview, Amro Ahmed, Qatar Local Content & SME Manager, Qatar Shell, tells us more about the powerful ongoing commitment to develop the private sector.

To build culture-uplifting service throughout an organisation, leaders must promote a Common Service Language everyone can apply p8

Enterprise 20 THE FIRST PRIORITY This month’s roundtable feature highlights the importance of employee health & safety. We bring you insights from some of Qatar’s NH\ LQŶXHQFHUV 24 DRIVING TOMORROW’S SMES We put a focus on the work being done by the Qatar Business Incubation Centre in supporting and nurturing entrepreneurs.

CONTENTS

As well as developing local SMEs, Qatar Shell recognises that cultivating entrepreneurship begins with another kind of investment – in young minds. p14

“Qatar will not spare any efforts to provide safety, health and good living conditions to the people who have all along been involved LQ IXOŵOOLQJ WKH QXPHURXV projects in the country.” p32

With the digital economy developing rapidly worldwide, new technological trends, such as mobile and social solutions, cloud computing and data analytics are beginning to offer a new range of opportunities for business services in the knowledge economy. p44

Analysis 28 A HYDROCARBON RENAISSANCE FOR IRAN? Associate Editor, Victoria Connolly assesses the latest developments in Iran’s trade and energy sector. 32 HEALTH AND SAFETY IN CONSTRUCTION - EXEMPLIFYING BEST PRACTICE We explore the challenges and opportunities in the Qatari Health & Safety sector. 36 BUILDING BRIDGES - ATTRACTING THE GLOBAL PRIVATE SECTOR A look at how the World Cup 2022 can transform Qatar and bring substantial EHQHŵWV WR WKH SULYDWH VHFWRU Corporate Governance 40 UNDERSTANDING CORPORATE GOVERNANCE IN QATAR Victoria Connolly evaluates the role that corporate governance play in the private sector.

Trade and Finance 52 RISING TO THE TOP – FROM CFO TO CEO Assessing the changing role of VHQLRU ŵQDQFH SURIHVVLRQDOV ,V being a CFO an ideal training ground for the potential CEO? Business Toolkit 56 STARTING ON THE RIGHT FOOT Social media success from Day One. We present a practical and hands-on guide to help you grow your business. 60 DON’T JUST DO IT - PLAN! Paul Godfrey looks at the basics of putting an effective business plan together. 64 TEN STEPS TO SUCCESS Using database marketing to supercharge business performance.

Business Opportunities 44 THE VIRTUAL REALITY How Qatar-based dotcoms are a force to be reckoned with…

68 DIGITALLY SPEAKING Professor Gianvito Lanzolla, Cass Business School, talks to us about how a sound digital strategy can transform your business.

48 BUILDING BRAND QATAR We evaluate the remarkable opportunities in the Qatari hospitality sector.

Downtown 72 APPS FOR BIZ Trendy mobile apps to help make your business more productive.

Now that’s what I call service... - Ron Kaufman p.8

ENTREPRENEURSHIP PROFILE

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NOW THAT’S WHAT I CALL SERVICE... RON KAUFMAN

SERVICE IS SIMPLY THE MOST IMPORTANT DIFFERENTIATOR YOUR SME HAS. IT’S THE DNA THAT PERMEATES EVERYTHING YOU DO – AND IT CAN EITHER MAKE YOUR BUSINESS THE UNMISSABLE PROVIDER OF CHOICE, OR A COMPANY THAT’S PERPETUALLY STRUGGLING TO RETAIN CUSTOMERS. IS YOUR BUSINESS A SERVICE CHAMPION, RICH WITH SPARKLE, FLAIR AND THE RESONANCE OF REPEAT ORDERS? OR ONE OF THOUSANDS THAT SIMPLY DOES THE BASICS AND HOPES TO GET BY? IF IT’S THE LATTER, WE CAN HELP – PRIVATE SECTOR QATAR HAD AN EXCLUSIVE MEETING WITH RON KAUFMAN, THE WORLD’S PREMIER THOUGHT-LEADER, EDUCATOR AND MOTIVATOR FOR UPLIFTING CUSTOMER SERVICE AND BUILDING SERVICE CULTURES. HERE ARE SOME OF HIS THOUGHTS AND RECOMMENDATIONS FOR BUILDING AN UNFORGETTABLE SERVICE CULTURE.

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DECLARING SERVICE A TOP PRIORITY MEANS SENIOR LEADERS UNDERSTAND THAT FOCUSING ON SERVICE IMPROVEMENT LEADS TO COMMERCIAL RESULTS.

outstanding service and seeing it as a strategy you can use to grow the business. As our ability to understand what good service actually consists of has grown, we’ve seen our service aspirations become more and more important. So, for example, we’ve seen the following transition – Customer satisfaction – Customer delight – Customer loyalty – Customer service partnership “Note that again here we see the ‘partnership’ angle as fundamental to XQORFNLQJ WKH EHQH¿WV RI ZKDW OLHV DW the core of good customer service. The really great service-driven organisations direct all their efforts towards seeing the business itself as a partnership – and that fact underlies all their advertising and branding. This is the case with Singapore Airlines: everyone knows that you will KDYH WHUUL¿F VHUYLFH LI \RX WUDYHO ZLWK them – it’s known globally that service is their ‘thing’. This in itself has great knockon value for the organisation in terms of how it works internally, too: while the same airline doesn’t pay more than its competitors, it’s seen regionally as the place to work – because if you spend time there, you’ll learn exactly how to provide great service, and you’ll take that skill with you for a lifetime. So the service values of the business actually mean that you can boost staff loyalty without spending more on the bottom line.”

leaders – of organisations of any size or shape – go about making that change in practical terms? What is the actual sequence of steps that they need to follow? Ron Kaufman again provides a working, generic paradigm for this process: it’s something he calls ‘The Seven Rules of Service Leadership’. They work as follows: Rule One: Declare service a top priority Declaring service a top priority means senior leaders understand that focusing on service improvement leads to FRPPHUFLDO UHVXOWV 3UR¿W LV WKH DSSODXVH you receive for serving your customers well. When middle managers declare

Identifying what you need to do Ron Kaufman’s approach is fundamentally about perceiving service as a science – a science that can be learnt and applied by every organisation that aspires to create value for someone else. When it comes to an organisation wanting to improve its service culture, the role of the business’ leaders is paramount. True leaders in any areas of life don’t just tell people what to do – they live the example. This is never truer than in the domain of customer service where CEOs, MDs and CFOs (to name just a few examples) have to exemplify the change paradigm and empower their workforce to want to do the same – embedding the quality remit until it’s an organic and fundamental part of how the organisation functions. The question is, how can

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ENTREPRENEURSHIP PROFILE

service a top priority, the message to everyone is clear: procedures and budgets surely count, but creating value for others counts the most. When frontline employees declare service their top priority and delighting others becomes their goal, they uplift customer satisfaction – and job satisfaction too.

a service culture – and then truly walk the talk – this is the best way to ensure that the rest of the organisation will also make service the absolute top priority. They will do so because they see service as being part of the DNA of what committed employees manifest across every aspect of their career with the business.

Rule Two: Be a great role model Leaders are the people who others choose to follow, not those who simply tell other people what to do. By their own example, leaders inspire others to want to do what they do, too. If you and the C-level team are fully committed to creating and implementing

Rule Three: Promote a common service language It’s no good trying to spread your message if everyone has a different out-take on what that message is, or a different set of WHUPV IRU GH¿QLQJ ZKDW VHUYLFH LV Everyone talks about better service from a perspective that makes perfect sense to him or her. What’s missing is a common language to enable listening and understanding, clear distinctions to understand what other people want and value. To build a culture of uplifting service throughout an organisation, leaders must promote a Common Service Language everyone can apply.

TO BUILD A CULTURE OF UPLIFTING SERVICE THROUGHOUT AN ORGANISATION, LEADERS MUST PROMOTE A COMMON SERVICE LANGUAGE EVERYONE CAN APPLY.

Rule Four: Measure what really matters Many people get confused when it comes to measuring service – understandable, because there are so many different aspects that it’s possible to measure. Elements like complaints, compliments, expectations, levels of engagement, relative importance, recent improvements, performance to standards and customer satisfaction are just a few of the factors that come to mind. It’s one of the roles of the service leader to cut through this confusion to measure what really matters. Remember WKH GH¿QLWLRQ 6HUYLFH LV WDNLQJ DFWLRQ to create value for someone else. Then, it follows that the two most important questions to ask are – $UH \RXU DFWLRQV FUHDWLQJ YDOXH" $UH \RX WDNLQJ HQRXJK QHZ DFWLRQV" The second point is so important because compliments happen when someone has an idea to serve someone else better and then takes action to make it real. But this will only happen when there is a continual emphasis on new thinking and new learning about customers, service and value. This new

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ENTREPRENEURSHIP PROFILE

learning about service leads to new ideas for giving better service to others, which in turn leads to new actions. If you measure according to the true benchmarks of creating value and applying new actions, you will have the security of knowing that you are measuring using the criteria most relevant to the essence of service values. Rule  Five:  Empower  your  team Empowerment is a buzzword in business, and many leaders and employees seem to fear it. What they really fear is someone who is empowered masking a bad GHFLVLRQ ,I D OHDGHU LV QRW FRQÂżGHQW LQ her people, she doesn’t want to empower them with greater authority or a larger budget. And if an employee is not FRQÂżGHQW LQ KLV DELOLWLHV DQG GHFLVLRQV KH often does not want the responsibility of being empowered. In both cases what’s missing is not empowerment, but the coaching, mentoring and encouraging that must go with it. If you knew your people would make good decisions you would be glad to give them the authority to do so. And ZKHQ \RXU SHRSOH IHHO FRQÂżGHQW WKH\ FDQ make good decisions, they will be eager to have this freedom. Empowering others cannot and should not be decoupled from the responsibility to properly enable those you empower. Rule  Six:  Remove  the  roadblocks  to  better  service Most frontline staff members are taught to follow policies and procedures. Often they are hesitant to ‘break the rules’. Yet some rules should be broken, changed, or at least seriously bent from time to time. What roadblocks to better service lurk inside your organisation? What gets in your people’s way? What slows them down? What prevents them from taking better care of your customers? What stops them from helping their colleagues? Service leaders ask these questions and remove the roadblocks they uncover. Rule  Seven:  Sustain  focus  and  enthusiasm ,WÂśV QRW GLIÂżFXOW WR GHFODUH VHUYLFH D WRS priority. What’s challenging is keeping

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service top of mind when other issues clamour for attention. It’s not hard to use a new language for better service; what’s hard is using that language day after day until it becomes a habit. It may not be hard to track new service ideas and actions, but it can EH GLI¿FXOW WR NHHS WKHP WRS RI PLQG in the thinking of your team. Sustaining focus and enthusiasm is critical – in business, in life and in service. This is not something leaders should view as a soft and therefore less important rule. Nor should it be entirely delegated to others. In fact, overlooking Rule Seven could be the mistake that derails all your plans and programmes. How many companies suffer after starting down a great path, but ultimately view the endeavour as a failure, simply because they couldn’t sustain it?

Ron Kaufman is the world’s leading educator for upgrading customer service and uplifting service culture. Ron is author of the New York Times bestselling book Uplifting Service. For more information and a sample newsletter, visit www. UpYourService.com.

The  local  dimension:  a  need  for  speed? One of the key factors in Ron Kaufman’s approach to service culture is that literally any business can set about building its own model of service excellence, using the generic, modular building blocks and understanding the key essentials of what needs to be done in a way that’s relevant to the business and the customer alike (i.e., keeping an awareness of the ‘partnership’ angle). Typically in the GCC, it’s the larger businesses – hotels belonging to international chains are a classic example – who have wholeheartedly pursued the belief in customer service. For instance, the greater availability of staffing in the hospitality sector in the GCC means that most hotels can work to a staff/guest ratio about 30 per cent higher than in Europe or the USA. But what about SMEs? Surely, then, it’s time for the region’s SMEs to take a long, hard ORRN DW 5RQ .DXIPDQÂśV GHÂżQLWLRQ of what service is actually about. Namely, it is – Taking action to create value for someone else.

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Realising the vision p.14

EMPOWERING GROWTH

EMPOWERING GROWTH

THE QATAR NATIONAL VISION 2030 CALLS FOR A MORE DIVERSIFIED ECONOMY WITH A VIEW TO REDUCE THE DEPENDENCE ON HYDROCARBON INDUSTRIES. IN 2013 QATAR DEVELOPMENT BANK (QDB) AND QATAR SHELL SIGNED AN AGREEMENT SUPPORTING THIS VISION AND PUSHED FOR INITIATIVES TO EMPOWER LOCAL SMES. AMRO AHMED, QATAR LOCAL CONTENT & SME MANAGER, QATAR SHELL, TELLS US MORE ABOUT THEIR ONGOING COMMITMENT TO DEVELOP THE PRIVATE SECTOR.

Amro Ahmed, Qatar Local Content & SME Manager, Qatar Shell

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Can you tell us the reason behind Qatar Shell’s initiative to support local SMEs? As part of a nationwide strategy, Qatar Shell in partnership with Qatar Development Bank (QDB) aims to support the Qatar National Vision 2030 by providing local companies with access to business opportunities. We will also assist them in raising their operating standard in order to fulfill global requirements. We believe Small to Medium Enterprises (SMEs) are the cornerstone of Qatar’s economy and the key to fostering a thriving private sector in Qatar thereby diversifying the economy.

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EMPOWERING GROWTH

to raise the technical expertise, manufacturing and safety standards of local businesses to a global level. What  is  the  role  that  QDB  plays  in  supporting  the  SMEs  who  are  now  bidding  for  these  new  business  opportunities? QDB will provide funding and business advisory services, access to potential strategic partners, and will facilitate links to local regulatory and support institutions. Through this partnership, QDB accelerates development of Qatar’s private sector by broadening the horizons of local enterprise. These new business opportunities demonstrate the high regard in which QDB upholds the high capabilities and operating standards of local enterprises to handle contracts for the world’s largest Gas to Liquids plant. Additionally, QDB’s partnership with 4DWDU 6KHOO HQDEOHV LW WR IXOÂżO LWV PLVVLRQ to accelerate the inclusion of the private VHFWRU VSHFLÂżFDOO\ 60(V RSHUDWLQJ within the manufacturing industry, to help them play an effective role in Qatar’s economy.

Therefore, we remain confident in the quality and capabilities of local suppliers, and believe that providing them with opportunities makes good business sense while adding value to our operations. As well as developing local SMEs, Qatar Shell recognises that cultivating entrepreneurship begins with another kind of investment – in young minds. Therefore, Qatar Shell has also partnered with Bedaya, founded by QDB and Silatech, to offer The Enterprise Challenge Qatar, a business competition that promotes the spirit of entrepreneurship and business knowledge among young people.

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Can  you  tell  us  about  the  recent  workshop  hosted  by  QDB  and  Qatar  Shell? At the recent SME Business Opportunity Workshop seven new specific business opportunities were revealed to over 110 local SMEs and entrepreneurs. The aim is to add new local suppliers to the Pearl GTL supply chain; the World’s Largest Gas to Liquid Plant, delivered by Qatar Petroleum (QP) and Shell. The partnership between QDB and Qatar Shell, now in its second year, forms part of our drive to increase the number of SMEs acting as contracted suppliers for Shell’s operations in Qatar. Together, with our partner QDB, we hope

Is  this  initiative  only  open  to  SMEs  established  and  operating  in  Qatar? SMEs eligible to bid must be at least 51 per cent Qatari owned with their headquarters in Qatar. They must also have an annual turnover not exceeding QAR 100 million. What  are  the  opportunities  that  were  presented  at  this  year’s  SME  workshop?

1. Large  open  head  steel  drums  â€“         Manufacturing  Qatar Shell requires large open head drums at the Pearl GTL plant. Manufactured in steel, these versatile chemical and oil containers should be robust with a minimum total capacity of 210L-220L. The manufacturing requirements include: ‡ 0DQXIDFWXUHG WR ,62 OHYHO ‡ 6HDP ZHOGHG ERG\ ZLWK D EDVH DQG MAUSER triple seam 15

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‡ 8 1 DSSURYHG ‡ 3ODLQ VWHHO RU ODFTXHUHG LQVLGH ‡ 2SWLRQDO VSUD\ SDLQWHG ¿QLVK RIIVHW and screen-printing

2.  ATEX  two-­way  radios  â€“         Maintenance,  Repair,  Re-­ FHUWLÂżFDWLRQ 7KH 3HDUO *7/ SODQW HQJLQHHUV UHO\ heavily on ATEX two-way radios to VDIHO\ DQG HIÂżFLHQWO\ FRPPXQLFDWH LQ hazardous operating environments. 7KH UHTXLUHG FRQWUDFWRU PXVW EH DEOH WR repair, complete physical maintenance, DQG UHFHUWLI\ WKH HTXLSPHQW DV SHU ATEX directives and the manufacturer PDQXDO 7KLV HTXLSPHQW LQFOXGHV radio, battery, antenna and software. &HUWLÂżFDWLRQ VKRXOG EH PDGH IRU WKH WHFKQLFDO UHTXLUHPHQWV DSSOLFDEOH WR JDV ]RQHV DQG SURGXFWV DUH UHTXLUHG WR EH FHUWLÂżHG E\ DFFUHGLWHG ODEV 3. 2̆VKRUH 'LHVHO JHQHUDWRU VHWV Âą        Maintenance   Our offshore diesel generator sets are built to world-class standards. $PRQJ WKH EHQHÂżWV WKH\ RIIHU DUH KLJK HIÂżFLHQF\ ORZ IXHO FRQVXPSWLRQ DQG global emissions compliance. To keep the performance of our generators high, it is essential Qatar Shell invest in regular maintenance and VHUYLFLQJ WR WKH RIIVKRUH 'LHVHO *HQHUDWRUV RI WKH 3HDUO *7/ SODQW 7KLV LQFOXGHV ‡ (QJLQH DQG SDFNDJH FKHFNV ‡ (QJLQH UHSODFHPHQW DQG DOWHUQDWRU overhaul ‡ 6XSSRUW ZLWK SDFNDJH V\VWHPV VXFK as load sharing, auxiliaries and logic control

Pearl Gas to Liquid Plant in Ras Laffan Industrial City, Qatar

and delivery of low voltage power cables with a guaranteed delivery time. $V WKHVH DUH YLWDO WR RXU 3HDUO *7/ plant’s operations, the manufactured cables must be suitable to Qatar’s FOLPDWH DQG PHHW 4DWDU 6KHOO *7/ WHFKQLFDO VSHFL¿FDWLRQV

6. :HOGLQJ ,QVSHFWRUV ¹ RQ VLWH WHFKQLFDO VXSSRUW 7R HQVXUH TXDOLW\ FRQWURO 4DWDU 6KHOO is seeking welding inspection and H[SHUWLVH LQ WKH IROORZLQJ DUHDV ‡ :HOGLQJ SURFHVV ‡ .QRZOHGJH RI PHWDOOXUJ\ ‡ ([SHULHQFH LQ FRPSOLFDWHG UHSDLUV ‡ :HOGHU TXDOL¿FDWLRQ 7. (OHFWULFDO FDEOH WUD\V ¹

4. &XVWRG\ ÀRZ PHWHU ¹ 6HUYLFHV In order to ensure accuracy, Qatar Shell LV RIIHULQJ D ¿YH \HDU FRQWUDFW RQ WKH maintenance of our water, ultrasonic gas DQG XOWUDVRQLF OLTXLG PHWHUV DW WKH 3HDUO *7/ SODQW 7KLV MRE ZRXOG LQFOXGH ‡ &OHDQLQJ RI OLTXLG ÀRZ PHWHUV DIWHU calibration ‡ 3UH FDOLEUDWLRQ FKHFNV DW IDFLOLW\ ‡ 9LVXDO LQVSHFWLRQ

0DQXIDFWXULQJ 4DWDU 6KHOO UHTXLUHV PDQXIDFWXULQJ and supply of electrical cable trays to VXSSRUW SURMHFW XSJUDGLQJ ZRUN IRU WKH 3HDUO *7/ 3ODQW 7KH PDWHULDOV XVHG must be suitable for Qatar’s climate and meet high safety standards and SROLFLHV &RPSOLDQFH ZLWK %6 (1 10088-2 Code for Stainless Steel AISI 304 procedures and BS 4678 Cable Trunking is also essential.

5. /RZ YROWDJH FDEOHV 0DQXIDFWXULQJ 4DWDU 6KHOO UHTXLUHV WKH PDQXIDFWXULQJ

Having  run  the  workshop  for  the  VHFRQG \HDU KRZ GLG \RX ¿QG

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the  response  from  local  business  owners?  Did  you  see  more  participants  interested  in  starting  a  business? Three contracts were awarded to local suppliers, last year following the inaugural SME Business Opportunity Workshop.This resulted in us proudly welcoming new local companies into the Qatar Shell family. Over 110 local SMEs attended our 2014 SME Business Opportunity Workshop, where we revealed seven new businesses opportunities. This GHPRQVWUDWHV VLJQLÂżFDQW SURJUHVV with regards to QDB and Qatar Shell’s support of local enterprise. Why  do  you  think  the  business  opportunities  are  appealing  to  local  SMEs? The QDB partnership with Qatar Shell supports Qatar’s domestic enterprises, by offering entrepreneurs an opportunity to grow both locally and internationally and will enable to them to develop world class standards and FRPSHWH RQ D OHYHO SOD\LQJ ÂżHOG JOREDOO\ Tell  us  more  about  the  tender  process? In the second edition of the SME Business Opportunity Workshop,

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110 Qatari SMEs registered their interest in the business opportunities presented. All local companies meeting the SME criteria, then went WKURXJK WKH 6KHOO SUH TXDOLÂżFDWLRQ SURFHVV 7KRVH ZKR ZHUH SUH TXDOLÂżHG were invited to tender; they will then have an opportunity to get any FODULÂżFDWLRQ WKH\ PLJKW QHHG RQ WKH tender during July before the bids submission deadline in August. The bids evaluation process will occur throughout August, during which Shell

assesses the bids from a technical and commercial perspective. Shell will ¿QDOO\ LVVXH WKH FRQWUDFWV DZDUG OHWWHU to the winning bidder in November. What  additional  support  will  Qatar  Shell  provide  to  SMEs  who  wish  to  be  involved? In addition to the support given by QDB, Qatar Shell provides the awarded local companies with a period of up to 18 months, if needed, to build their capacity to handle the contract awarded

MORE ON QATAR SHELL

STORK ORYX JV WINS QATAR SHELL CONTRACT Qatar Shell recently awarded Stork Oryx Turbo Machinery Services a seven year contract for the overhaul of rotating equipment installed at the Pearl GTL plant, as part of its mission to develop and support local content and SMEs and ultimately contribute to the Economic Development pillar of Qatar National Vision 2030. Awarded as part of a Qatar Shell initiative to transfer knowledge and skills to the local market, the contract includes overhauls of steam turbines, compressors, pumps, blowers, expanders and fans from various manufacturers. Commenting on the agreement Rob Sherwin, Deputy Country Chair for Qatar Shell, said: “We are extremely proud to include Stork Oryx Turbo Machinery Services as a local supplier to the Pearl GTL Plant in Qatar. In addition, I am delighted to see Stork bring their global experience and expertise to Qatar in a joint venture with Oryx. Such a

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Stork Oryx - Qatar Shell contract signing

transfer of knowledge and technology is in line with Qatar Shell’s ambition, shared by our partner Qatar Petroleum (QP), to increase the local content of our contracting and directly support the Economic Development pillar of the Qatar National Vision 2030.� Stork Oryx Turbo Machinery Services, a global provider of knowledge-based asset integrity services for the energy sector, offers comprehensive experience in the overhaul of rotating equipment and is situated in Ras Laffan, Qatar.

to them. Qatar Shell also provides ongoing support and assessment to ensure the company will provide the required quality services. In addition, a large part of winning Shell’s business is the ability to adhere to our technical and Health Safety Security and Environment (HSSE) standards. It is therefore of the utmost importance that every one of our suppliers and contractors is as committed to safety as we are at Shell – ensuring that absolutely nobody comes to harm as a result of our business.

Richard Janmaat, Vice President of Turbo Machinery Services at 6WRUN DGGHG Âł, DP FRQÂżGHQW WKDW WKLV FRQWUDFW DZDUG UHĂ€HFWV 6WRUNÂśV commitment to developing our relationship with QP and Qatar Shell at the Pearl GTL plant. Given Stork’s H[WHQVLYH H[SHUWLVH ZH DUH FRQÂżGHQW that we can successfully deliver an elite service at the highest levels of productivity, fastest response times, with maximum attention to Health Safety Security and Environment and quality standards.â€? Abdulla Mannai, Founder and Managing Director at Oryx, added: “We are delighted that we have been entrusted and awarded this contract by Qatar Shell. By supporting local companies, Qatar Shell is creating a sustainable environment for local industry to further develop by ensuring that world class standards and skills are transferred to the local industry.â€? Shell is the largest foreign investor investing up to US$21 billion in the last six years. Alongside Qatar Petroleum, Shell have delivered two of the largest energy projects in the world in Ras Laffan Industrial City. Additionally, Pearl Gas to Liquids (GTL) is the world’s largest GTL plant and cements Qatar’s position as the GTL capital of the world.

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The first priority Exclusive insights from our round table p.20 Driving tomorrow’s SMEs p.24

ENTERPRISE

ENTERPRISE

The first priority EXCLUSIVE INSIGHTS FROM OUR ROUND TABLE

WAEL SAWAN They say that people are a company’s greatest asset. So Üi >Ã i` wÛi iÞ yÕi ViÀÃ +>Ì>À >L ÕÌ i « Þii i> Ì & Safety. 1. How important is it that the safety and well-being of all workers in Qatar are considered by employers? 2. What improvements to current practice do you think would improve the image of businesses in the region as fair and caring employers?

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Managing Director and Chairman of Qatar Shell Companies “Qatar Shell and our partner Qatar Petroleum share a common belief that safety is the fundamental principle that underpins everything we do. It is our most important value and RXU FOHDU ¿UVW SULRULW\ WR HQVXUH QR harm to people, and no leaks to the environment – a commitment we call ‘Goal Zero’. The health and welfare of all those who work with us is critical to achieving this. Simply put, we cannot ask our people to take care of our facilities, and of each other, unless we are demonstrably taking

care of them. So in our partnerships with Qatar Petroleum, our approach to the welfare of our workers is premised on the belief that people are an opportunity for investment, not a cost to minimise. Our objective has always been to foster a culture of care and concern for the well-being of all workers in order to get the best out of people, because a happy workforce is both more productive, and secure. We very actively share our experience in both our safety journey and our worker welfare programme, with companies and organisations across Qatar, the GCC and around the world.”

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GAIL GOSSE Dean, School of Business, College of North Atlantic – Qatar “In addition to the human element, attention to workplace safety simply makes good business sense. Injuries which cause absences impact on work processes and output. Long-term absences that require recruitment and training of replacements add extra costs. In addition, there are intangible costs such as the impact on other workers’ morale when a colleague is injured, and the very reputation of the business. For these and other reasons, companies in the private sector are wise to keep workplace safety on their radar. “We are witnessing that the shift toward consideration of workplace safety in the private sector is in fact happening. We hear more and more employers recommend that training programmes include courses on issues related to workplace health and safety, and accident prevention. They continue to push for safety to be embedded in the curriculum (for example, that machinery courses include a unit on

the safe use of equipment). Studies of ergonomics are requested so that workers know how to set up their work stations in a way that maximizes safety for all, and minimises repetitive strain and injuries for the operator. “Our stakeholders also recommend courses related to hazardous materials - especially how to recognise and assess hazards. Employers remind us they need staff who know how to identify and record hazardous materials, and how to store them safely. This is, of course, in the spirit of accident prevention. “Finally, we turn to the (global) themes of best practices and legislation. 0DQ\ RI RXU ORFDO SULYDWH VHFWRU ¿UPV are connected to international business community and/or do business on the world stage. They report that they prefer employees who have a working knowledge of Qatar laws, and international programmes such as GHS (a globally known system of classifying and labelling chemicals) for safe and healthy work locally and abroad.”

WE ARE WITNESSING THAT THE SHIFT TOWARD CONSIDERATION OF WORKPLACE SAFETY IN THE PRIVATE SECTOR IS IN FACT HAPPENING.

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ENTERPRISE

MANY COMPANIES IN QATAR CELEBRATE WORK SAFETY. ALMOST EVERY WEEK, WE READ IN THE LOCAL NEWSPAPERS THAT A QATARI COMPANY CELEBRATES THOUSANDS OF WORK HOURS WITHOUT ANY ACCIDENTS.

PROFESSOR NITHAM HINDI Dean,  College  of  Business  and  Economics,  Qatar  University “The State of Qatar pays close attention to work health and safety in all sectors. Qatari laws, culture and tradition are caring by nature about health and safety. Many companies in Qatar celebrate work safety. Almost every week, we read in the local newspapers that a Qatari company celebrates thousands of work hours without any accidents. “Of course, there is always room for improvement. These measures are not costly and have a very positive aspect on employees’ moral and health. )LUVW SHUVRQDO ÂżWQHVV &RPSDQLHV are encouraged to have a room IRU ÂżWQHVV 'XULQJ FRIIHH RU OXQFK breaks, companies should encourage their employees to do some exercise

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(including walking). Employees should EH HQFRXUDJHG WR XWLOLVH D ¿WQHVV room (facility) or just walk around the company in designated areas. Second, companies should encourage their employees to have regular preventive medical exams. If workers are examined at least once a year for common medical issues such as blood pressure, diabetes and so on, diseases are discovered in early stages and thus the solution will be easier, more effective, and less costly than if it is discovered in a later stage. Third, many organisations are encouraging their employees and managers to donate blood. This sends a strong message to employees that their company cares about their health and will develop a special type of loyalty and ownership IRU WKHLU ¿UPV ´

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SAAED OMAR Incubation Consultant (QBIC) “It is the freelancers, entrepreneurs and employees that produce values in the marketplace. We as leaders, whether employing or hiring, should reward and thank them. This relationship between the two, VLJQL¿HV DQ\ RUJDQLVDWLRQ¶V UHDO progress. Organisations should also empower their human resources to think innovatively and freely. To allow them complete liberty to partake in solving problems that occur across the hierarchies. Only then we can progress as a whole and create a culture of inclusion and winning.”

AMAL ABDULATIF AL-MANNAI Executive Director, Social Development Centre “Considerable vigilant precautions are made by the state of Qatar to ensure the safety of all workers and a decent standard of living for all. Qatar humanitarian efforts are well-known and extend beyond its borders. Qatar’s legislations and regulations are in compliance with all the international treaties and conventions. “With its rapid development however, nobody can deny that Qatar has become a hub for migrant workers, the majority of which are unskilled and semi-skilled and are seeking employment in the private sector. We must as a state, ensure that all employers are conscious of al-tijara al-aadila - the justice trade and make sure that it is possible to

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control and monitor the treatment of workers through concerned formal bodies. Of course such guarantees need a solid system with a well-established infrastructure consisting of legislation, implementation and advisory bodies and training and supervisory organs. “Evidence of the government’s commitment to the health and safety of migrant workers can be seen through analysing the government’s DQQXDO EXVLQHVV DQG ¿QDQFLDO SODQV A considerable rate of expenditure has been dedicated to meet these requirements whether in terms of capital resources, operational input or manpower. I think the innovative solutions that are currently being adopted by the government to standardise health and safety provision and training are making a big difference.

In my mind proposals to overcome even small problems would include: 1. Enhancing the role of the civil service in terms of raising consciousness and enlightening those involved in business (particularly small companies) in areas such as labour laws, human rights, work environment, managerial and administrative skills. 2. Develop and work towards embedding the corporate social responsibility in the internal systems of such companies. 3. Eventually all these can be achieved and measured to ensure employee health and safety protection through REWDLQLQJ FHUWL¿FDWLRQ LQ VRFLDO responsibility - ISO - SA 8000:2008”.

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ENTERPRISE

DRIVING TOMORROW’S SMEs THE QATAR BUSINESS INCUBATION CENTRE HAS THE REMIT OF SUPPORTING AND NURTURING THE NEXT 100 MILLION QR COMPANIES IN QATAR - HELPING NASCENT BUSINESSES THROUGH THE CRITICAL CHALLENGES EARLY IN THEIR LIFE CYCLE. VICTORIA CONNOLLY ASSESSES THE PRACTICALITIES AND THE NURTURING STEPS THAT THE CENTRE CAN OFFER.

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ENTERPRISE

When it comes to driving the Qatari economy forward nothing is more SRZHUIXO RU VLJQL¿FDQW WKDQ WKH Qatar National Vision 2030 (QNV). The long-term strategic plan of the Qatar government; QNV is a blueprint IRU HFRQRPLF GLYHUVL¿FDWLRQ DQG entrepreneurial innovation. A road map that if followed will take Qatar to an economic, cultural and social level that will allow it to become the hub of business and economic activity for the region. A key driver of this vision RI D GLYHUVL¿HG DQG NQRZOHGJH EDVHG economy is the support given to SMEs at all stages of the business life cycle. By allowing entrepreneurs to take risks when developing ideas and by providing appropriate vehicles for SMEs to enter their chosen markets, QNV looks set to create an economy that is not only dynamic and forward thinking but also one that is sustainable in the long-term when revenues from oil and gas begin to plateau. Founded and supported by The Qatar Development Bank (QDB) and Social Development Centre (SDC), part of Qatar Foundation, Qatar Business Incubation Centre (QBIC) is destined to take the private sector in Qatar one step closer to becoming a worldwide economic tour de force. With a focus on start-up and early stage companies, the principle aim of business incubation is to support and accelerate the successful development RI ÀHGJOLQJ HQWHUSULVHV SURYLGH entrepreneurs with an array of targeted resources and services and ultimately SURGXFH VXFFHVVIXO ¿UPV WKDW ZLOO OHDYH WKH LQFXEDWLRQ SURJUDPPH ¿QDQFLDOO\ viable and able to stand on their own feet. Energy! Located in the New Industrial Area to WKH 6RXWK RI 'RKD DQ DUHD VSHFL¿FDOO\ developed for small and medium sized manufacturing and innovation based companies, QBIC is already buzzing with the energy that comes with the development of new business ideas. The centre is impressive; occupying P VT RYHU WKUHH ÀRRUV PXFK RI the building is constructed with glass DOORZLQJ QDWXUDO OLJKW WR ÀRRG LQWR HDFK

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ENTERPRISE

individual work area. On the ground ÀRRU WKHUH DUH ZRUNVKRSV GHVLJQHG WR SURYLGH WKH VSDFH UHTXLUHG IRU QHZ PDQXIDFWXULQJ YHQWXUHV (YHU\WKLQJ KDV EHHQ FRQVLGHUHG IURP DGHTXDWH LQGXVWULDO OLJKWLQJ VWUDWHJLFDOO\ SODFHG SRZHU SRLQWV DQG HYHQ D ORDGLQJ ED\ IRU KHDY\ JRRGV YHKLFOHV 1R SUDFWLFDO UHTXLUHPHQW KDV EHHQ OHIW RXW ZKHQ LW FRPHV WR FRQVLGHULQJ WKH QHHGV RI D VWDUW XS PDQXIDFWXUHU 8SVWDLUV OHYHOV WZR DQG WKUHH RIIHU IDFLOLWLHV QRW XQOLNH WKRVH LQ WKH LQQRYDWLRQ µFHQWUH RI WKH XQLYHUVH¶ 6LOLFRQ 9DOOH\ 2Q WKHVH OHYHOV LW LV H[SHFWHG WKDW WHFKQRORJ\ DQG ,&7 UHODWHG LGHDV ZLOO VSULQJ WR OLIH DV HQWUHSUHQHXUV ¿QG WKH VXSSRUW DQG IDFLOLWLHV QHHGHG WR OHW WKHLU LPDJLQDWLRQV UXQ ZLOG ³7KLQN DERXW :KDWV$SS ´ VD\V 6DHHG 2PDU ,QFXEDWLRQ &RQVXOWDQW DW 4%,& ³ZKHQ VRPHWKLQJ WKDW VWDUWHG ZLWK HPSOR\HHV DQG HQJLQHHUV VHOOV IRU 86 ELOOLRQ WKLV WHOOV \RX WKDW DQ\WKLQJ LV SRVVLEOH ´ :LWK FRQVLGHUDEOH H[SHULHQFH RI DOO DVSHFWV RI QHZ EXVLQHVV VWDUW XSV 6DHHG LV D VNLOOHG HQWUHSUHQHXU ZLWK D SURYHQ WUDFN UHFRUG RI VXFFHVV ,Q KLV QHZ UROH DV ,QFXEDWLRQ &RQVXOWDQW DW 4%,& KH LV SDUWLFXODUO\ H[FLWHG DERXW EHLQJ DW WKH IRUHIURQW RI 60( GHYHORSPHQW LQ 4DWDU ³4%,& LV D PL[HG LQFXEDWRU RIIHULQJ GLIIHUHQW IDFLOLWLHV IRU GLIIHUHQW HQWUHSUHQHXUV 7KH LGHD EHKLQG WKH FHQWUH LV WR DOORZ ORFDO HQWUHSUHQHXUV WR WDNH WKHLU LGHDV DQG WHVW WKHP LPPHGLDWHO\ LQ WKHLU FKRVHQ PDUNHWV ,W LV RQO\ WKURXJK UHDO OLIH PDUNHW WHVWLQJ WKDW SURGXFWV DQG LGHDV FDQ EH YDOLGDWHG ´ What  stage  of  the  journey? 'HVLJQHG IRU YHU\ \RXQJ EXVLQHVVHV WKDW DUH SUHFHGLQJ ¿QDQFH DQG VWLOO DW WKH FRQFHSWXDO VWDJH WKH EXVLQHVV LQFXEDWLRQ PRGHO DOORZV LGHDV DQG SURGXFWV WR HQWHU WKH PDUNHW DV SURWRW\SHV WR EH WHVWHG E\ WKHLU WDUJHW FRQVXPHUV 2Q FRPSOHWLQJ WKH ¿UVW VWDJH RI WKH LQFXEDWLRQ SURFHVV 4%,& HQWUHSUHQHXUV PXVW SURYLGH HYLGHQFH RI D YLDEOH SURGXFW RU VHUYLFH VR WKDW WKHLU EXVLQHVV FDQ WKHQ HQWHU WKH VHFRQG VWDJH RI WKH SURJUDPPH )ROORZLQJ D SUHVHQWDWLRQ JLYHQ WR WKH

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Saeed Omar, Incubation Consultant, Qatar Business Incubation Centre, visit www.qbic.qa.

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A hydrocarbon renaissance for Iran? p.28 Health and Safety in Construction Exemplifying Best Practice p.32 Building bridges Attracting the global private sector p.36

ANALYSIS

ANALYSIS

A HYDROCARBON RENAISSANCE FOR IRAN?

WITH SOME OF THE LARGEST FOSSIL FUEL RESOURCES IN THE WORLD, AND THE LIKELIHOOD OF A THAW IN INTERNATIONAL RELATIONS, CAN THE SLEEPING GIANT NOW BEGIN TO EXERT A POWERFUL INFLUENCE ON GLOBAL MARKETS? WHAT WOULD BE THE IMPACT OF THIS NEW ORDER ON LOCAL ECONOMIES AND TRADE? VICKI CONNOLLY ASSESSES THE LATEST DEVELOPMENTS…

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ANALYSIS

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ANALYSIS

WITH EUROPEAN BUSINESSES EAGER TO ESTABLISH A PRESENCE BACK IN IRANIAN MARKETS, COMPANIES IN FRANCE, HOLLAND AND GERMANY HAVE ALREADY STARTED TO DRAW UP PLANS FOR A RETURN TO TEHRAN.

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Of any of the industries that can truly be said to be foundation stones of the global economy, the oil and gas sector is perhaps the one with the largest influence on market values and international trade. With the warming-up of relations and the (albeit currently marginal) lifting of the harsher aspects of the CISADA sanctions, it’s likely that we will soon see Iran return to its former role as a primary shaper of that global sector. This return might be a good deal easier than many imagine: traditionally, the financial and banking institutions of the Gulf have had a long history of trade with Iran, with Gulf-based finance being used to fill the gaps created by the exit of European lenders. Designed to dissuade Iran from continuing with its nuclear programme, it was originally thought that the sanctions imposed would only impact the Iranian administration. Yet what resulted was a rapid depreciation of the Riyal, unsustainable pressure on the banking system and concern DV LQÀDWLRQ VSLUDOOHG RXW RI FRQWURO All have had debilitating effects not only on the administrative bodies they were designed to impact but also on the general standard of living for the Iranian population. In the first quarter of 2014 following the historic agreement between Iran and world powers in Geneva, Iran began to scale back its most sensitive nuclear development work. The agreement, the first of its nature for over a decade, resulted in the modest relief of trade sanctions and gave Iran access to some of its frozen currency accounts overseas. The lifting of the financial restrictions on Iran has been received with varying degrees of warmth by their neighbours in the Gulf. His Highness Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the United Arab Emirates and ruler of Dubai, the Emirate with the strongest trade links to Iran, has welcomed the move and believes that the lifting of the embargo will be beneficial

to all involved. However, several of the other Gulf States have said they would prefer to proceed with caution, as they see the embargo as a powerful way to control the expansion of their potentially powerful neighbour. According to the hydrocarbon powerhouse BP “Iran clearly has huge resources despite the fact that its production has been curtailed in recent years. It clearly has a lot of potential, however it is likely to be a very complicated political process.” With European businesses eager to establish a presence back in Iranian markets, companies in France, Holland and Germany have already started to draw up plans for a return to Tehran. Realistic ambition? Iran’s plans for its oil and gas future are ambitious and potentially contentious. The South Pars/North Dome natural gas field is the largest in the world, capable of producing an estimated 1,800 trillion cubic feet (51 trillion cubic metres) of in-situ natural gas and some 50 billion barrels (7.9 billion cubic metres) of natural gas condensates. Control of the field is shared between Iran and Qatar whose support, as the world’s

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ANALYSIS

THE SOUTH PARS/NORTH DOME NATURAL GAS FIELD IS THE LARGEST IN THE WORLD.

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largest exporter of LPG, is essential if Iran is to realise its dream of world LPG domination. While Iran has the potential to produce more natural gas than Qatar, it has over 78 million domestic users it must supply with heat, power food and fuel. This high level of domestic demand, together with oil and gas facilities that are in desperate need of modernisation, an antiquated business law system and the remaining financial sanctions being off-putting to European investors, without the support of their neighbours in the Gulf, Iran may struggle to realise its hydrocarbon dreams. Such obstacles however daunting do not seem to be influencing the ambitious targets set by the Iranian government. In terms of oil production by 2018 Iran aims to double its daily output per day with a target figure of 5.7 million barrels of crude, current daily production figures hover at around three million bpd. There are also plans to go ahead with the development of the vast natural gas reserves Iran shares with Qatar with government plans to invest almost US$ 14 billion in the development

of the oil and gas fields. In terms of attracting a market for such resources Iran’s foreign minister Mohammad-Javad Zarif is confident that his country can deliver as promised and following the recent unrest in the Ukraine he goes as far as to offer Iran as a replacement for Russia as Europe’s main long term gas supplier. “Gas exports is a priority of the government” states an official from the Ministry of Foreign Affairs. The exporting of natural gas is capital intensive and with long payback periods. Re-entering the market is not to be taken lightly. Major European players such as France’s Total, Anglo Dutch Shell and Italy’s Eni - while showing signs of being keen to get back in business - are for now at least, cautious and adopting a wait and see approach until the remaining sanctions are lifted permanently. Meanwhile, the technical problems and contractual issues that surround the country’s plans to reenter and dominate the oil and gas market means that without the help of its closest Gulf neighbours, Iran’s plans for a hydrocarbon renaissance may remain the stuff of dreams.

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ANALYSIS

HEALTH AND SAFETY IN CONSTRUCTION - EXEMPLIFYING BEST PRACTICE 32

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ANALYSIS

DUE TO THE HIGH NUMBER OF CONSTRUCTION PROJECTS, THE GCC NATIONS FIND THEMSELVES AT THE EPICENTRE OF HEALTH & SAFETY DEBATES. QATAR HAS TAKEN THE LEAD IN A SERIES OF INITIATIVES AIMED AT MAKING ALL EMPLOYERS ACCOUNTABLE AND IMPLEMENTING A ‘ZERO TOLERANCE’ MODEL - CHANGES HERALDED BY THE 2014 NATIONAL HEALTH & SAFETY EXCELLENCE AWARDS.

“QATAR WILL NOT SPARE ANY EFFORTS TO PROVIDE SAFETY, HEALTH AND GOOD LIVING CONDITIONS TO THE PEOPLE WHO HAVE ALL ALONG BEEN INVOLVED IN FULFILLING THE NUMEROUS PROJECTS IN THE COUNTRY.�

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On May 5, the oil and gas industry of Qatar celebrated the 2014 National Health and Safety Executive Excellence Awards. Presided over by His Excellency Dr Mohamed bin Saleh Al-Sada, the Minister of Education and Industry, the aim of the awards was to recognise and honour Qatar companies that are implementing advanced programmes and initiatives to achieve excellence in the management of a range of risks in the ÂżHOG RI RFFXSDWLRQDO KHDOWK DQG VDIHW\ as well as environmental impacts in their daily operations. In a keynote speech at the awards ceremony, Dr. Al Sada hailed the long legacy of achievements by Qatar’s oil and gas industry. Drawing attention to the 75 years since oil was discovered in Qatar, Dr Al Sada said, “Looking at this long and hard journey, we take special pride in our record in health and safety, as well as in protecting the environment, which are valuable attributes and core constituents of our business.â€? In contrast to the celebratory atmosphere at this event, April 8 saw a series of protests taking place as part of International Worker’s Memorial Day, a day of activities and events designed to bring attention to the poor working and living conditions of some of the world’s most vulnerable people. Unfortunately the role of migrant workers in Qatar’s construction industry received a level of negative

attention - with a request to upgrade legislation and offer a better standard of protection to the workers who are building the infrastructure for the world’s richest sporting competition, the 2022 Fifa World Cup. The improvement of health and safety practices in the construction industry has been the topic of many debates in Qatar over the last decade, and there is outspoken support - at the highest levels - for ensuring the implementation and maintenance of international Best Practice benchmarks. “Qatar will not spare any efforts to provide safety, health and good living conditions to the people who have all DORQJ EHHQ LQYROYHG LQ IXOÂżOOLQJ WKH numerous projects in the country.â€? States Dr Sheikh Mohamed Al-Thani the director of the public health arm of the Supreme Council of Health. “The contributions of the expatriate workers are vital for the country’s developmentâ€?. The  role  of  constructors As pressure is placed upon on the authorities to act positively regarding the working conditions of those building the World Cup 2022 infrastructure and venues, construction companies are beginning to consider their own health and safety record and what improvements need to be made. The World Cup journey so far has not been an easy ride for Qatar. Already hit by questions over whether Qatar’s

33

ANALYSIS

MANY COMPANIES IN THE REGION NOW ADOPT A “ZERO INCIDENT� POLICY ACHIEVED THROUGH THE PROMOTION OF PREWORK ACTIVITY PLANNING, MANAGEMENT PARTICIPATION AND CONTINUAL EMPLOYEE TRAINING.

intense summer heat is appropriate for a sports tournament, the country is now under scrutiny on another front: the rights and safety of the workers building the venues and infrastructure needed to host the World Cup. On the IDFH RI LW WKHUH LV QR ÂżQDQFLDO UHDVRQ why Qatar should have anything other than a pristine safety record; it is the richest nation in the world by income per capita. But the nation’s rapid transformation has inevitably led to a level of challenge when it comes to drafting universal benchmarks for the regulation of health and safety procedures. The construction based economy of Qatar is expected to grow by 10 per cent per year between 2012 and 2025, with estimated spending of USD 100 billion (GBP 62 billion) being sourced mainly from oil and gas wealth and increasingly from multinational investment. The  demographics Necessarily, the country relies heavily on migrant labour with workers from some of the world’s poorest countries making up around 1.2 million of its overall 1.7 million-2 million population - and a staggering 94 per cent of the entire workforce. Up to a million further foreign construction workers are expected to be recruited in the decade running up to 2022 - so the rapid expansion and transformation of Qatar is not expected to decelerate any time soon. Keith Clarke, the former Atkins Chief Executive, stresses that the problems migrants encounter are “exacerbated by the magnitude and rapidityâ€? of Qatar’s “enormousâ€? population growth LQ WKH SDVW ÂżYH \HDUV Âł7KH ODERXU issues are very real‌ There are many [construction] sites I’m familiar with in Qatar which are world-class in terms of health and safety but it is imperative that this becomes a universal given.â€? Qatar has made some strong efforts with this situation. Its labour laws, updated in 2007, do offer protection to workers but now, the emphasis will increasingly be on enforcement, and with more emphasis being

34

placed on health and safety training or awareness. In April 2013, Qatar Foundation introduced a detailed set of mandatory standards for migrant workers on its projects, which go beyond the 2007 laws. The standards set out by the foundation (which is also a major construction industry client) cover workers’ welfare, the requirement that workers “receive equal pay for equal workâ€? and a list of best practice principles including outlawing recruitment or placement fees and providing better information for workers on what to expect in Qatar before they leave their home countries. The main legislation in the country is the national labour law, with there being a decree describing precautions and steps that should be taken in the workplace to protect workers and visitors from occupational hazards. 7KHUH DUH DOVR VSHFLÂżF UXOLQJV DERXW the required medical services and examinations for workers, with entries outlining obligations in the case of an accident or a disease. The laws related WR 26+ KRZHYHU ZKLOH VSHFLÂżF LQ regards to hazards, are more general and less detailed when it comes to the obligations of employers and workers’ representation. There has been a recent enlargement of the role of civic inspectors to include raising health and safety awareness amongst workers. Many companies in the region now adopt a “zero incidentâ€? policy achieved through the promotion of pre-work activity planning, management participation and continual employee training. There are now organisations in the construction sector who are leading the way when it comes to protecting the health and safety of their personnel. The challenge is to create government-supported training initiatives and introduce and enforce legislation that allows the champions of best practice to share WKHLU DSSURDFKHV DQG LQĂ€XHQFH RWKHU companies. This would ensure that all workers across all sectors in the country not only get a fair deal, but a deal that H[HPSOLÂżHV LQWHUQDWLRQDO OHDGHUVKLS

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ANALYSIS

BUILDING BRIDGES ATTRACTING

THE GLOBAL PRIVATE SECTOR 36

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ANALYSIS

With another eight years until the World Cup kicks off in Qatar in 2022, the country is rapidly implementing a massive investment programme that is aiming to transform Qatar into a global centre of excellence for sports and business. Associate Editor Victoria Connolly looks at the broad picture and what it means for the region’s private sector‌

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With the FIFA World Cup (World Cup) and the Qatar National Vision 2030 (QNV) dominating activity in the construction sector, successful delivery of the World Cup will require the Qatari government to complete the infrastructure development promised to FIFA well ahead of time. The ambitious programme of urban development will also help focus Qatar on the achievement of the equally challenging targets it has set itself as part of its national development strategy (2011-2016). The development of Qatar’s transport infrastructure, the growth of a modern residential and hospitality environment and the creation of world class sporting venues will unquestionably be the biggest projects in the construction sector for the foreseeable future. While the

impending World Cup is generating lots of attention, the delivery of the 419 PD\ EH PRUH VLJQLÂżFDQW WR WKH long-term development of Qatar as an economic power and hub for cultural and business activity on a global scale. The QNV for example, has four pillars with two relating to human and social GHYHORSPHQW 7KLV IRFXV LV UHĂ€HFWHG LQ WKH VLJQLÂżFDQW PXVHXP DQG OLEUDU\ projects currently underway and the continuing development of Education City and Qatar University. International  partnerships  While the majority of these projects ZLOO EH ÂżQDQFHG ZLWK SXEOLF UHVRXUFHV in line with its goals for QNV, Qatar is keen to attract the active participation of multinational companies. With this move to diversify economic growth away from public investment, the

37

ANALYSIS

WHILE THE MAJORITY OF THESE PROJECTS WILL BE FINANCED WITH PUBLIC RESOURCES, IN LINE WITH ITS GOALS FOR QNV, QATAR IS KEEN TO ATTRACT THE ACTIVE PARTICIPATION OF MULTINATIONAL COMPANIES.

government is aiming to facilitate knowledge exchange between local companies and experienced global powerhouses. The World Cup is undoubtedly bringing with it massive opportunities for international partnerships. For example, in January 2012 the UK design and engineering consultancy Atkins was awarded a three year contract worth over USD 107 million by the ministry of municipality and urban planning to support the delivery of its transport and infrastructure projects. More recently, the heavy civil infrastructure business of Larsen & Toubro (L&T) Construction has won a US$ 740 million order from Qatar Railways Company for the design and construction of the Gold Line of the Doha Metro project in Qatar. Qatar:  the  State  of  transportation Thought to be the world’s largest civil engineering undertaking, the Qatar Rail and Metro Project began construction in the last quarter of 2013. L&T secured the order along with its joint venture partners Aktor Greece, Yapi Merkezi Insaat - Turkey, STFA Group - Turkey and Al Jaber Engineering - Qatar in which the total value for the consortium is US$ 4.4 billion. The project is scheduled to be completed in 54 months and includes the design and construction of twin tunnels for an approximate length of 11 kilometres and nine underground metro stations LQFOXGLQJ DUFKLWHFWXUDO ÂżQLVKHV DQG mechanical, electrical and plumbing works. This contract along with four multi-billion contracts already awarded LQ UHODWH WR WKH ÂżUVW NLORPHWUHV of the railway, of which 99 kilometres will be underground. Places  for  people  to  live,  work  and  play It is not only the transport system in the country that is dominating the transformation of the local landscape. $ VLJQLÂżFDQW GHPDQG IRU DIIRUGDEOH properties, especially in the run-up

38

to the World Cup, is anticipated. Currently, supply of such housing is VFDUFH DQG ZLWK D VLJQLÂżFDQW LQFUHDVH in population forecast in Doha over the coming years, construction of affordable residences will increase at a rapid pace. Recent accommodation projects launched onto the market have performed very well, particularly during the economic recession. Golden Tulip, Hilton Worldwide and the Starwood Group are actively considering investments in this sector and with demand for hotels and commercial developments in the region increasing exponentially, Qatar Tourism Authority has announced plans to invest approximately US$ 20 billion on tourism infrastructure to accommodate the bourgeoning QXPEHUV RI YLVLWRUV D ÂżJXUH H[SHFWHG reach 3.7million by 2022. The transformation of Qatar, designed to allow the country to meet anticipated increases in visitors and residents is well underway and looks to be gaining momentum. Following the long awaited opening on April 30 of the US$ 17 billion Hamad International Airport, the Chief Executive of Qatar Airways Akbar Al %DNHU LV DOUHDG\ FRQÂżGHQW DERXW WKH potential for a second terminal. “We have space at the airport for a second terminal to cope with additional demand. But we will only have a second terminal if we feel demand is moving ahead of the capacity of the airport.â€? Focusing on the future is ensuring that Qatar continues to experience steady economic growth. This is particularly important as investments in oil and gas will begin to plateau over the coming years. The World Cup provides an important focus that pulls together government strategy and sets a deadline for construction, transportation and other infrastructure projects. The creation of partnerships between Qatar and multinational companies will not only share the risk and costs involved with such large scale ventures but will also bring international expertise and experience to projects on the ground.

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Understanding Corporate Governance in Qatar p.40

CORPORATE GOVERNANCE

CORPORATE GOVERNANCE

UNDERSTANDING CORPORATE GOVERNANCE IN QATAR AS THE QATARI PRIVATE SECTOR PUSHES FOR GLOBALISATION, MUCH ATTENTION HAS ALSO BEEN GIVEN TO ISSUES DISCUSSING CORPORATE GOVERNANCE. ASSOCIATE EDITOR, VICTORIA CONNOLLY GIVES US AN IDEA ON WHAT IS BEING DONE IN QATAR IN RELATION TO THIS IMPORTANT SUBJECT.

40

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CORPORATE GOVERNANCE

Corporate Governance refers to the VHW RI UXOHV WKDW GH¿QH UHODWLRQVKLSV EHWZHHQ EXVLQHVV VWDNHKROGHUV PDQDJHPHQW DQG ERDUGV RI GLUHFWRUV RI D FRPSDQ\ DUH UHJXODUO\ PDNLQJ KHDGOLQHV LQ WKH EXVLQHVV ZRUOG )URP D VWULQJ RI EDLORXWV LQ WKH (XURSHDQ EDQNLQJ VHFWRU WR WKH ¿JKW WR FRQWURO LQWHUQDWLRQDO PRQH\ ODXQGHULQJ DQG WD[ KDYHQV WKHUH DUH GDLO\ UHSRUWV RI WKH HWKLFV RI SULYDWH VHFWRU EXVLQHVVHV EHLQJ FDOOHG LQWR TXHVWLRQ %XW ZKDW UROH GRHV FRUSRUDWH JRYHUQDQFH SOD\ LQ WKH SULYDWH VHFWRU LQ 4DWDU DQG KRZ ZLGHO\ GR 4DWDU EDVHG EXVLQHVVHV LPSOHPHQW NH\ SHUIRUPDQFH EHQFKPDUNV" %\ 4DWDU DLPV WR EH DQ DGYDQFHG VRFLHW\ FDSDEOH RI VXVWDLQLQJ LWV HFRQRPLF GHYHORSPHQW DQG SURYLGLQJ D KLJK VWDQGDUG RI OLYLQJ IRU DOO RI LWV SHRSOH 4DWDU¶V 1DWLRQDO 9LVLRQ GH¿QHV WKH ORQJ term outcomes for the country and SURYLGHV D IUDPHZRUN ZLWKLQ ZKLFK QDWLRQDO VWUDWHJLHV DQG SODQV FDQ EH GHYHORSHG DQG DFFRPSOLVKHG 7KH 4DWDU JRYHUQPHQW¶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orporate Governance Code WKH 4)0$ &RGH 7KH GULYLQJ IRUFH EHKLQG WKH 4)0$ &RGH was WKH UHFRJQLWLRQ RI WKH LPSRUWDQFH RI KDYLQJ D ZHOO VWUXFWXUHG DQG regulated corporate governance IUDPHZRUN WR SURYLGH D SODWIRUP IRU PDUNHW LQWHJULW\ HI¿FLHQF\ DQG EHVW SUDFWLFH DV ZHOO DV WR VXSSRUW HFRQRPLF JURZWK $SSOLFDEOH WR DOO OLVWHG FRPSDQLHV RQ WKH 4DWDU 6WRFN ([FKDQJH WKH FRGH LV DLPHG DW HQKDQFLQJ WKH OHJDO IUDPHZRUN RI FRUSRUDWH JRYHUQDQFH VWDQGDUGLVLQJ

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41

CORPORATE GOVERNANCE

BY 2030, QATAR AIMS TO BE AN ADVANCED SOCIETY CAPABLE OF SUSTAINING ITS ECONOMIC DEVELOPMENT AND PROVIDING A HIGH STANDARD OF LIVING FOR ALL OF ITS PEOPLE.

the operation of listed companies and encouraging the healthy development of the securities market. In particular, it provides direction on issues such as the role of the board of directors, control mechanisms, disclosure, shareholders and stakeholders’ rights. The Code also emphasises the importance of separation of power within an organisation, and thus requires a clear division of management responsibilities between the Chairman and the chief executive officer (CEO). Public companies are required to prepare an annual corporate governance report that includes the following: ‡ 3URFHGXUHV IROORZHG E\ WKH FRPSDQ\ in relation to corporate governance; ‡ ,QVWDQFHV RI YLRODWLRQ RI FRUSRUDWH governance procedures, including justified reasoning for deviations and measures adopted to avoid similar instances in the future. ‡ 7KH PHPEHUV DQG VWUXFWXUH RI WKH

42

board of directors; ‡ 7KH SHUIRUPDQFH DQG HYDOXDWLRQ RI the board of directors; ‡ 7KH FRPSRVLWLRQ RI DQG WDVNV undertaken by specialised committees of the board of directors; ‡ ,QWHUQDO FRQWURO SURFHGXUHV including their effectiveness, failures or GHÂżFLHQFLHV UHDVRQV IRU VXFK IDLOXUHV and measures adopted to avoid similar failures in the future; and compliance with market listing, disclosure and other regulatory requirements. The QFMA Code grants flexible authority to the QFMA to enforce various clauses of the Code using the ‘comply or explain why’ approach, an approach similar to the one adopted by the OECD and leading international institutions. This approach involves, identifying the clauses the company has not followed; explaining why the company has not followed them; and explaining how its practices reflect the spirit of the relevant clause.

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The virtual reality p.44 Building Brand Qatar p.48

BUSINESS OPPORTUNITY

BUSINESS OPPORTUNITY

THE VIRTUAL REALITY

HOW QATAR-BASED DOTCOMS ARE A FORCE TO BE RECKONED WITH

44

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BUSINESS OPPORTUNITY

Did you know that on average, a household in Qatar owns three mobile phones, two computers, and one smartphone? Residents of Qatar are more connected to the internet than almost any other country in the world. At 88.1 per cent, Qatar ranks first in the developing world in terms of percentage of individuals using the internet and second only to the Republic of Korea (97 per cent) for percentage of households with access to the World Wide Web. Qatar is also ranked 10 th worldwide in terms of numbers of individuals using the internet, meaning that people in the state are not just connected at home, but also at work, and on their smartphones, laptops and iPads.

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Qatar has created an exceptionally well-developed communications infrastructure under the guidance of the Supreme Council for Communication and Information Technology (ictQATAR). Internet availability continues to grow exponentially, having increased from just 3.6 per cent of the population in 2000, 51.8 per cent in 2010 and up to an impressive 86 per cent in 2011. It would seem that the development of Qatar’s virtual infrastructure is well on its way to supporting the diversified, knowledge based economy that the government is ambitiously working towards as part of its QNV 2030 strategic plan. The state supports the application of knowledge as a key source of long-term economic growth by

RESIDENTS OF QATAR ARE MORE CONNECTED TO THE INTERNET THAN ALMOST ANY OTHER COUNTRY IN THE WORLD.

45

BUSINESS OPPORTUNITY

WITH THE DIGITAL ECONOMY DEVELOPING RAPIDLY WORLDWIDE, NEW TECHNOLOGICAL TRENDS, SUCH AS MOBILE AND SOCIAL SOLUTIONS, CLOUD COMPUTING AND DATA ANALYTICS ARE BEGINNING TO OFFER A NEW RANGE OF OPPORTUNITIES FOR BUSINESS SERVICES IN THE KNOWLEDGE ECONOMY.

dedicating 2.5 per cent of national GDP to Research & Development projects , reflecting the increasingly important contribution of Qatari organisations who acquire, create, disseminate, and use knowledge more effectively for greater economic and social development. “Qatar continues to make great headway toward a truly digital future for all of its people,” said Dr. Hessa Al-Jabar, ictQATAR’s Secretary-General. “Technology has the incredible capacity to inspire and propel change, innovation, and the progress necessary to ensure a competitive knowledge-based economy that will enrich the lives of all members of society.” Compared to other countries,

46

Qatar has very high internet penetration per head of population - a rate that is among the best in the Arab region and easily completes with ICT-advanced countries like South Korea and the UK. With plans already in place to increase fixed broadband penetration by the end of 2015 and the installation of high-speed fibre internet across the country, the population of Qatar are starting to connect en mass to an influential assortment of business and social networks. New opportunities With the digital economy developing rapidly worldwide, new technological trends, such as

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BUSINESS OPPORTUNITY

DIGITAL ENTREPRENEURSHIP EMBRACES ALL NEW VENTURES AND IS ALSO RESPONSIBLE FOR THE TRANSFORMATION OF EXISTING BUSINESSES THROUGH THE CREATION AND EMPLOYMENT OF NEW DIGITAL TECHNOLOGIES.

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mobile and social solutions, cloud computing and data analytics are beginning to offer a new range of opportunities for business services in the knowledge economy. How well and how quickly Qatar-based SMEs adopt digital technologies will be a key determinant of growth in future years. Digital entrepreneurship embraces all new ventures and is also responsible for the transformation of existing businesses through the creation and employment of new digital technologies. Such enterprises are characterised by a high intensity of utilisation of technologies (particularly social, big data, mobile and cloud solutions) to improve business operations, invent new business models, sharpen business intelligence, and engage with customers and stakeholders. They create the jobs and growth opportunities of the future and are a fundamental part of the development of Qatar’s economy beyond oil and gas. One Qatar based entrepreneur who has embraced the digital revolution and become a champion for technology-based entrepreneurship is Khalifa Saleh Al Haroon. A Law graduate turned investment banker turned online specialist, Khalifa is currently working with Vodafone Qatar as Head of Interactive and Innovation with his specialist subject being social media and networking. Wellknown for being the brains behind ILoveQatar.net (ILQ), a guide to everything Qatari for expats, locals, and tourists, Khalifa’s passion and commitment to making Qatar a better place has turned the network into a brand that people trust and regularly interact with. ILQ has evolved into a platform that gives people a voice as well as bridging the gap between the different cultures that coexist in the region. One of the things that makes ILQ unique is the fact that the company spends

the majority of the profit generated by the network to support the community that has helped them to grow as well as other Qatar based charitable causes. Today, the ILQ network has seven different websites, each with its own focus bringing people together with one common goal, the sharing of ideas and information to make Qatar a better place for all sectors of society. Creating brands Khalifa is passionate about supporting business start-ups and promoting the importance of effective partnerships between companies both domestically and internationally. As the founding member of the investment company H.U.G (The Haroon United Group) Khalifa and his partners are committed to creating brands that not only cater to the needs of the local population, but that also promote a positive image of Qatar. With an investment portfolio that includes both international brands such as King Koil and home grown businesses such as MiCasa and HUG properties, the HUG partnership is going from strength to strength with their main objective being the promotion of the positive aspects of life in Qatar. Khalifa Al Haroon’s commitment to supporting digital based SMEs in the region is impressive. As a board member of the Entrepreneurs’ Organization of Qatar, The Internet Society (ISOC) and winner of Entrepreneur of the Year for 2011, Khalifa’s background is dynamic and progressive. His hard work and dedication to the cause have enabled both Khalifa and his partners to make a significant impact in the development of a locally based digital business environment. Removed from the constraints of geographical and cultural differences, Khalifa and young entrepreneurs like him look set to play a major role in the brave new digital world that Qatar is rapidly becoming.

47

BUSINESS OPPORTUNITY

BUILDING BRAND QATAR Identifying an “untapped resource� in tourism, Qatar is laying the foundations to diversify from its carbon controlled economy. Support is strong as the largest operators from Hilton to Starwood, vie for prime positioning across the country but with huge increases in supply and a high concentration of corporate guests. Noted industry commentator Melanie Mingas evaluates the true opportunities.

,Q )HEUXDU\ RI WKLV \HDU 4DWDU 7RXULVP $XWKRULW\ FKDLU ,VVD $O 0RKDQQDGL SXEOLFDOO\ SOHGJHG WKH 1DWLRQDO 7RXULVP 6HFWRU 6WUDWHJ\ ZRXOG UHFHLYH D FDVK LQMHFWLRQ RI 86' ELOOLRQ to support ambitions to increase LQWHUQDWLRQDO LQERXQG YLVLWRU QXPEHUV E\ DOPRVW IRXU IROG FUHDWH DQ DGGLWLRQDO MREV DQG LQFUHDVH *'3 contributions from less than one per cent to eight per cent. :LWK D FRQWH[W RI GLYHUVLÂżFDWLRQ IURP WKH *XOI VWDWHÂśV FDUERQ GHSHQGHQW HFRQRP\ $O 0RKDQQDGL UHIHUUHG WR WRXULVP DV DQ XQWDSSHG UHVRXUFH ,Q WKH PRQWKV VLQFH PDMRU KRWHO DQG UHVRUW GHYHORSPHQWV KDYH EHHQ DQQRXQFHG E\ .HPSLQVNL +LOWRQ :RUOG :LGH 7KH 5H]LGRU +RWHO *URXS DQG

48

5.2%

9,251

projected RevPAR increase, 2014

rooms in Qatar currently

1.9% projected occupancy increase in 2015

7.1m target for international tourist arrivals, by 2030

others, with many of the largest players naming Qatar as a key focus. 7KH FRXQWU\œV WRWDO FRQ¿UPHG SLSHOLQH FXUUHQWO\ VWDQGV DW SURSHUWLHV ZLWK D WRWDO RI URRPV DFFRUGLQJ WR GDWD IURP 675 *OREDO DQG ZLWK D FXUUHQW VWRFN RI SURSHUWLHV WRWDOOLQJ URRPV WKH LPSDFW ZLOO EH VLJQL¿FDQW %HIRUH WKH HQG RI NH\V ZLOO HQWHU WKH PDUNHW RSHUDWHG E\ the likes of Accor’s Pullman, Hilton’s *DUGHQ ,QQ DQG 6WDUZRRGœV :HVWLQ among others. %\ WKH HQG RI WKDW QXPEHU ZLOO KDYH VXUJHG WR NH\V However, where other markets with ODUJH VXSSO\ LQFUHDVHV VWUXJJOH WR ¿QG DQ HTXLOLEULXP ZLWK GHPDQG 4DWDU LV EXR\HG E\ D VWURQJ FRUSRUDWH PDUNHW

$45bn investment pledged by Qatar Tourism Authority

DQG JURZWK LQ WKH GHPDQG IRU H[WHQGHG VWD\ SURGXFWV “The growth in the corporate market LV ODUJHO\ GULYHQ E\ WKH JURZLQJ QXPEHU of large-scale projects in the country, requiring consultants, project workers DQG HQJLQHHUV WR WUDYHO WR 'RKD PRUH UHJXODUO\ ´ H[SODLQV )LOLSSR 6RQD ,QWHUQDWLRQDO 'LUHFWRU DQG +HDG RI Hotels, Colliers MENA, who quotes a SHU FHQW <R< RFFXSDQF\ LQFUHDVH LQ WKH VXLWHV DQG VHUYLFHG DSDUWPHQWV VHFWRU LQ That’s not to say the market is ZLWKRXW FRQFHUQ DV 3Z& GLUHFWRU $OLVRQ &DVKPRUH KLJKOLJKWV Âł)LQGLQJ WKDW KRWHOV UHFRUGHG PLOOLRQ YLVLWRUV LQ ZKLFK LV DQ LQFUHDVH RI SHU FHQW IURP RXU UHVHDUFK KDV

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BUSINESS OPPORTUNITY

Snapshot: The key developments

$274.5m

4,759

Q1 hotel revenue, 2014

33.7% mid-market hotel share

keys to be added to stock by 2015 end

17%

YoY occupancy increase in suites and serviced apartments

found ongoing rate reductions resulting from high levels of competition led to a decline in ADR over the period 2012 to 2013 by almost 20 per cent, which in turn has driven down the RevPAR by 11 per cent.� It’s a similar tale to that of Abu Dhabi, which unlike its neighbouring Dubai, struggled when experiencing a surge in room keys and delays to anchor projects on Saadiyat Island. A May 2014 report by JLL, found ADR and occupancy declines (of 20 per cent and six per cent respectively) resulted in a RevPAR contraction of 25 per cent, only recovering in the last 12 months. Seasoned General Manager Gordon MacKenzie, who has lived in Doha for 22 years, was at the helm of the

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Curio – A Collection by Hilton t HVFTU SPPN IPUFM t TVJUFT t $P MPDBUFE XJUI .BMM PG 2BUBS t 1PTJUJPOFE JO OFX EFWFMPQNFOU "M 3BZZBO (BUF Pullman Doha West Bay t SPPN t BQBSUNFOUT t 0QFOJOH Westin Hotels and Resorts t 5P EFCVU JO 2BUBS t HVFTU SPPNT t FYFDVUJWF TVJUFT t N FWFOU TQBDF

growth in 5-star market since 2009

20%

Hilton Salwa Beach Resort and Villas t ,N PVUTJEF PG %PIB t LFZT t IFDUBSF EFWFMPQNFOU t 4VSSPVOEFE CZ XBUFSQBSL B MVYVSZ NBSJOB BOE ZBDIU DMVC B EJWF DFOUSF DJOFNBT B XFBMUI PG QSFNJFS SFUBJM TIPQQJOH BOE OVNFSPVT SFTUBVSBOUT

35% of hotel stock could be due renovation

city’s largest hotel, currently branded as Radisson Blu, and warns that, regardless of the supply demand dynamic, cutting rates to create the perception of strong performance creates a dangerous precedent. He says, “The market does not dictate that you are going to get another 100 or 100,000 bookings because you have cut the rate, or packaged the deal.� Reporting performance was at its highest in 2009, he attributes this to global recession and limited hotel stock locally. He adds, “Qatar is a completely different market to other GCC cities. F&B revenues in Qatar often match the revenue generated by rooms and with 22 outlets in this hotel alone it is always

JW Marriott, Qatar t 'JSTU +8 .BSSJPUU JO %PIB t 0QFOJOH FBS NBSLFE GPS Hotel Missoni t %FTJHOFE CZ 3PTJUB .JTTPOJ t SPPNT BOE BQBSUNFOUT t 0QFOJOH

possible to supplement performance.â€? However, Sona warns that a 17 per cent growth in the 5-star segment since 2009 has increased competition at the top end of the market and created a compression effect that echoes through all segments. “All new hotels in Doha are mostly competing for the same target market of corporate travellers, which has increased the bargaining power of this segment since they have more hotels to choose from.â€? Staying  ahead Concern appears relative. In Q1 2014, hotels generated USD 274.5 million in revenues, with occupancy up from 68 per cent to 75 per cent, supported by the

49

BUSINESS OPPORTUNITY

closing of almost two per cent of total stock due to renovations. In an ever competitive market, the need to constantly renew offerings is integral to success, especially for the 17 per cent of Doha’s hotel stock aged 10 years or older (see chart). Working on a standard refurbishment cycle of seven years, it can be calculated that 36 per cent of Doha’s stock could be ripe for renovation today and the iconic, 32 year old Sheraton is the latest to close its doors for such work with upper budget cap of USD 192 million. MacKenzie’s tenure at Radisson Blu coincided with a USD 25 million refurbishment of the hotel’s 324 West Wing rooms. The eighth refurbishment and opening assignment of his career, he reports the key to a successful projects is to pick and mix contractor services. He shares, “We recognised years ago that, if you don’t innovate you die.” “We had four contractors and designers create four different mock up rooms and we paid them USD 50,000 each. At the end of that process we selected one supplier but also took the best of each of the rooms and amalgamated it into one,” he recalls. Changing tastes Driven by a rise in the number of midmarket properties, which currently account for a mere 33.7 per cent share of the total market, over the coming decade Sona predicts the mid-market will slowly gain pace against the 46 per cent market share held by luxury, upper-upscale and upscale properties. The evolution will be driven by what Sona refers to as sports tourism, as well as leisure destinations such as Qatar Mall and Doha Zoo. Again the FKDQJLQJ JXHVW SUR¿OH ZLOO GHPDQG the development of a different hotel SURGXFW D GLYHUVL¿FDWLRQ KH QRWHV LV already tangible. But the operators aren’t hedging bets. In June 2014, Hilton Worldwide announced the development of Qatar’s largest beach resort, with investors AlRayyan Hospitality. The 362 key Hilton Salwa Beach Resort and Villas will be set on 104 hectares of land, located

50

Age of hotel stock

10+ years 17%

7 – 9 years 19%

0 – 3 years 51%

4 – 6 years 13% Deloitte GCC Powers of Construction 2013

97Km outside Doha and co-located with a waterpark, marina, dive centre and UHWDLO GHYHORSPHQW ,W¶V D VLJQL¿FDQW contribution to the product type leisure tourism will demand and the arrival of other Hilton products such as Garden Inn, back this. However, Hilton has also chosen Doha for the regional debut of its ultraluxury Curio Collection. This 207 key hotel will be co-located with the underconstruction Mall of Qatar and is being developed with investors Al Jaryan Trading and Contracting. Says Hilton VP of development, Carlos Khneisser, “In Qatar we are not looking to 2022, we are looking for sustainable business. Our management contracts can be up to 25 years’ long, so we look at locations and products which we know will be good for growth. We are GHYHORSLQJ ¿YH RI RXU EUDQGV LQ Qatar and that portfolio will also include Double Tree and Waldorf Astoria. “Qatar is one of our three target markets in this region, alongside UAE and Saudi Arabia,” he adds. Hotels and ‘Brand Qatar’ If leisure is the future, or at least an HVVHQWLDO GLYHUVL¿FDWLRQ IURP WKH corporate heavy focus experienced to date, the main growth drivers for this critical sector will stem from the creation, development and maintenance of Brand Qatar. Akin to the strategy implemented in Dubai, it’s an element Sona predicts

will come from the growth of Qatar’s key stakeholders namely Qatar Airways, Hamad International Airport and Al Jazeera, in addition to the promise and legacy of major events. With an ambition to increase the GDP contribution of tourism from 1.1 per cent to eight per cent by 2030 and the huge ¿QDQFLDO FRPPLWPHQWV PDGH E\ 4DWDU Tourism Authority, the backing of private sector stakeholders is unlikely to wane. “These factors reinforce the hospitality sector’s positioning as an important economic pillar within the country,” he observes. “Development of hotels and hotel apartments is a key element within the National Development Strategy 2011 to 2016, Qatar National Vision 2030 and Qatar National Tourism Sector Strategy 2030 working in parallel with Qatar Airways, and its expansion plans, to position Qatar as a tourism destination,” he adds. The phenomenon of planning and constructing mega urban developments may be second nature in the Middle East, but success isn’t without its peaks and troughs. In such markets, despite undisputed and unprecedented wealth, exposure to market forces is still a sobering reality. Having observed the rise and fall and rise again of Abu Dhabi and Dubai from across the Gulf, 4DWDU ZRXOG EHQH¿W IURP UHPHPEHULQJ WKDW HFRQRPLF GLYHUVL¿FDWLRQ LV PRUH than replacing one source of wealth with another.

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Rising to the top from CFO to CEO p.52

TRADE & FINANCE

TRADE & FINANCE

RISING TO THE TOP FROM CFO TO CEO

,QFUHDVLQJO\ WKH UROH RI WKH VHQLRU žQDQFH professional is changing, with more and more responsibility for company direction - and the job of CFO often seen as an ideal training ground for the potential CEO. What’s more, increasingly challenging legislation UHTXLUHV VWULQJHQW žQDQFLDO PDQDJHPHQW WKDW RQO\ WKH WRS FHUWLžHG SUDFWLWLRQHUV DUH likely to deliver. Yet how to attract, train DQG JURZ WKH EHVW žQDQFLDO WDOHQW" +RZ WR create the assessment matrices that ensure WKH ULJKW SHRSOH JHW WR WKH WRS" $VVRFLDWH Editor Zenifer Khaleel assesses the climate RI FKDQJH LQ WKH žQDQFH GHSDUWPHQW 52

 Alwyn  Crasta,  CFO,  Al  Dahra  Agricutural  Company Â

 Shaveta  Duggal,  Lecturer  for  Business  &  Finance,  Abu  Dhabi  Vocational  Education  and  Training  Institute Â

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TRADE & FINANCE

The primary aim of any organisation, irrespective of its operational capacity, is to say it big with numbers in the profit sheet. Since the economic downturn gripped the world in 2008, finance professionals are under added pressure to create and sustain long-term value for the organisations they work in. But ultimately, this goal is dependent on the way that the organisation taps into the hidden talent of the personnel within their finance department. Any organisation which hopes to capitalise on its financial manpower should create an integrated talent management framework targeted at development opportunities for both the organisation and the employee at a personal level. It should link recruitment and development structures with competency frameworks, performance appraisals and reward systems; thereby creating clear standards and reference points so that a culture of high performance can be developed. Pressure is a comprehensive and versatile element in the functioning of the finance department and there is no escaping it. There is the need to minimise operational costs, to generate maximum value in a period of slow economic growth, to take opportunities that arise as conditions improve, to respond to new regulatory and tax pressures around the world and many more. The talent scenario in finance is being increasingly affected by broader changes across the workforce, changing demographics, the globalisation of business operations and the development of more complex entity structures. In lieu with increasing performance expectations, finance leadership must rethink its talent aggressively; while comprehensively re-examining its models, capabilities and business relationship in order to help the organisation create value and growth. Maximising on people power How does a CFO or finance manager

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constantly adapt to these changing equations of pressure and improve finance effectiveness? ³7KH ¿QDQFH IXQFWLRQ JDLQHG PRUH focus due to various scandals in renowned companies like Enron and WorldCom. Since then the operational strategy has been reformatted to control accounting and correct UHSRUWLQJ &DVK ÀRZ PDQDJHPHQW LV another important element as any PLVPDQDJHPHQW LQ FDVK ÀRZ KDV D direct impact on business,” says Alwyn Crasta, CFO of Al Dahra Agricutural Company based in Abu Dhabi. “People power emphasizes that the workforce is empowered to manage the future of business. Companies should ensure that their workforce believes in its operational values and are motivated to create new ideas and values,” he adds In order to empower the finance personnel, a few factors should be taken onto consideration: $XWKRULW\ 7R DFFRPSOLVK D particular objective or target, the finance manager should be given sufficient authority to plan, delegate, improvise and even change operational strategies. If he has no authority to take necessary steps to complete the job, he will not feel confident enough to lead to the task to success.

ANY ORGANISATION WHICH HOPES TO CAPITALISE ON ITS FINANCIAL MANPOWER SHOULD CREATE AN INTEGRATED TALENT MANAGEMENT FRAMEWORK TARGETED AT DEVELOPMENT OPPORTUNITIES FOR BOTH THE ORGANISATION AND THE EMPLOYEE AT A PERSONAL LEVEL. 53

TRADE & FINANCE

‡ 5LVN DELOLW\ 6LQFH ILQDQFH LV D YHU\ XQVWDEOH HQWLW\ LW LV QRUPDO WKDW VRPH GHFLVLRQV ZLOO JR ULJKW ZKLOH RWKHUV WXUQ ZURQJ )LQDQFH SHUVRQQHO VKRXOG EH MXGJHG DFFRUGLQJ WR WKHLU DSWLWXGH DQG JLYHQ WKH IUHHGRP WR WDNH FDOFXODWLYH ULVN ‡ &RPSHWHQFH )LQDQFH WHDPV QHHG WR UHGXFH FRPSOH[LW\ LQ RUGHU WR PDQDJH SRWHQWLDO ULVNV DQG LPSOLFDWLRQV 7KH\ VKRXOG KDYH GHHSHU EXVLQHVV NQRZOHGJH DQG UHFRJQLVH SRWHQWLDO ZHDNQHVVHV ‡ 3HUIRUPDQFH DQG UHZDUG %RQXV VWUXFWXUHV VKRXOG HQFRXUDJH ¿QDQFH WHDPV WR SODQ DKHDG &RPSHQVDWLRQ SDFNDJHV VKRXOG EH JHDUHG WR SURFHVV LPSURYHPHQW DQG WKH VXVWDLQDEOH GHOLYHU\ RI JRDOV ‡ 'DWD PDQDJHPHQW 5DZ GDWD VKRXOG EH SURFHVVHG LQWR D YDOXDEOH VRXUFH RI LQIRUPDWLRQ DQG LQVLJKW ‡ 7UDLQLQJ DQG FDUHHU GHYHORSPHQW 6WUXFWXUHG WUDLQLQJ DQG FDUHHU GHYHORSPHQW QRW RQO\ KHOS HQVXUH ILQDQFH WHDPV KDYH WKH ULJKW FDSDELOLWLHV EXW DOVR HQKDQFH UHFUXLWPHQW DQG UHWHQWLRQ ‡ 7HFKQRORJLHV 2UJDQLVDWLRQV VKRXOG FRQWLQXDOO\ XSJUDGH WKHLU V\VWHPV ZLWK WKH EHVW WHFKQRORJ\ DQG IHDWXUHV WR GHOLYHU VROXWLRQV WKDW ZLOO WUDQVIRUP WKH EXVLQHVV 7KH XOWLPDWH ¿QDQFLDO µZKL] NLG¶ /LNH DQ\ RWKHU ILHOG ILQDQFH SHUVRQQHO VKRXOG KDYH RFFXSDWLRQDO LQGXVWU\ DQG WHFKQRORJ\ VNLOOV WR EH SUR¿FLHQW LQ WKH ZRUNSODFH 6KDYHWD 'XJJDO D OHFWXUHU IRU %XVLQHVV )LQDQFH DW WKH $EX 'KDEL 9RFDWLRQDO (GXFDWLRQ DQG WUDLQLQJ LQVWLWXWH JLYHV D EULHI GHVFULSWLRQ RI WKH LGHDO FKDUDFWHULVWLFV RI WKH ILQDQFH HPSOR\HH ³$ PHWKRGLFDO DSSURDFK WR \RXU ZRUN LQYROYLQJ ORJLFDO WKLQNLQJ DQG DWWHQWLRQ WR GHWDLO LV H[SHFWHG DOO WKH WLPH ,Q DGGLWLRQ WR WKDW \RX KDYH WR EH D QXPEHU FUXQFKHU 7KH DELOLW\ WR XQGHUVWDQG PDQLSXODWH DQG PDNH XVH RI QXPHULFDO DQG VWDWLVWLFDO GDWD LV YHU\ FUXFLDO $Q LQVLJKW LQWR

54

FINANCE TEAMS NEED TO REDUCE COMPLEXITY IN ORDER TO MANAGE POTENTIAL RISKS AND IMPLICATIONS. EXVLQHVV SURFHGXUHV WKH QDWXUH DQG IXQFWLRQLQJ RI RUJDQLVDWLRQV DQG WKH FRPPHUFLDO ZRUOG DW ODUJH LV YHU\ HVVHQWLDO %HLQJ VXUURXQGHG E\ QXPHULFDO LQIRUPDWLRQ ILQDQFH HPSOR\HHV VKRXOG KDYH VKDUS DQDO\WLFDO DELOLWLHV DQG WKH DFXPHQ WR FULWLFDOO\ H[DPLQH LQIRUPDWLRQ EHIRUH DFFHSWLQJ LW ³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´ 7R DWWDLQ D SHUIHFW ILQDQFH V\VWHP FRPSDQLHV VKRXOG LQFRUSRUDWH D SUHIHUUHG PRGHO ZKLFK KDV WKH IROORZLQJ HOHPHQWV ‡ &HQWUHV RI H[FHOOHQFH EULQJLQJ WRJHWKHU VSHFLDOLVWV LQ GLVFLSOLQHV VXFK DV WD[ RU ULVN ‡ 6KDUHG VHUYLFHV WR LPSURYH HIILFLHQF\ ‡ 2XWVRXUFHG RU RIIVKRUHG VHUYLFHV WR UHGXFH FRVWV ‡ /LNH PLQGHG ILQDQFH EXVLQHVV SDUWQHUV )%3V WR SURYLGH DQDO\VLV DQG VXSSRUW WR WKH RUJDQLVDWLRQ 7KH TXDOLWDWLYH DSSURDFK &RVW FRQWURO LV WKH PRVW LPSHUDWLYH

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¶V LQWHUQDWLRQDO SROLF\ 7KLV SURYLGHV D EHQHILFLDO VLWXDWLRQ IRU ERWK WKH HPSOR\HH DQG WKH FRPSDQ\ 7KH FRPSDQ\ GRHV QRW KDYH WR KLUH SHRSOH RQ DQ LQWHUQDWLRQDO SD\UROO WKXV UHGXFLQJ FRVWV VLJQLILFDQWO\ /RFDO HPSOR\HHV NQRZ WKH FXOWXUH RI WKH FRXQWU\ DQG GR QRW QHHG WR DGDSW PRUHRYHU WKH\ JHW WKH RSSRUWXQLW\ WR ZRUN LQ D PXOWLQDWLRQDO FRPSDQ\ WKHUHE\ ERRVWLQJ WKHLU PRUDOH DQG WHFKQLFDO NQRZ KRZ $V ZH FDWHU WR D YHU\ FRPSOH[ DQG GHPDQGLQJ FRUSRUDWH ZRUOG WKH UHDO FRPSHWHQF\ HGJH DQG SURILW ERRVW IRU DQ\ FRPSDQ\ OLHV LQ KDYLQJ WKH ULJKW VHUYLFH GHOLYHUHG IURP WKH ULJKW ORFDWLRQ E\ WKH ULJKW VNLOO VHW

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Starting on the right foot social media success from Day One p.56 Don’t just do it - plan! p.60 Ten steps to success using database marketing to supercharge business performance p.64 Digitally speaking... p.68

BUSINESS TOOLKIT

BUSINESS TOOLKIT

STARTING ON THE RIGHT FOOT SOCIAL MEDIA SUCCESS FROM DAY ONE

56

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BUSINESS TOOLKIT

For start-ups and small businesses, every extra resource added to the mix can make a huge difference. Social media is one such tool – which is not only cost-effective but also has the power to give small businesses an edge over their larger counterparts. Rushika Bhatia presents a practical, relevant and hands-on guide with useful social media tips that you can apply into your business – and get results – straight away!

With the digital revolution now behind XV EXVLQHVVHV UHDOLVH WKH VLJQL¿FDQFH of building and maintaining a VWURQJ RQOLQH SUHVHQFH 6RFLDO PHGLD SODWIRUPV KDYH EHFRPH D SRZHUIXO PHGLXP IRU EXVLQHVVHV WR LQWHUDFW ZLWK FRQVXPHUV JDLQ H[SRVXUH DQG FUHDWH D EUDQG LPDJH +RZHYHU ZLWK JUHDW SRZHU FRPHV LPPHQVH responsibility – something that is EHFRPLQJ TXLWH DSSDUHQW ZLWKLQ VRFLDO PHGLD %XVLQHVVHV QHHG WR GHGLFDWH D VLJQL¿FDQW SRUWLRQ RI WKHLU WLPH PRQH\ DQG UHVRXUFHV WRZDUGV LPSOHPHQWLQJ D VRXQG VRFLDO PHGLD SODQ Where  do  I  start? 7KH TXHVWLRQ WKDW EXVLQHVVHV ± HVSHFLDOO\ WKRVH LQ WKH HDUO\ VWDJH RI WKH VWDUW XS SURFHVV ± DUH RIWHQ IDFHG ZLWK is – where to begin? With at least 50 SRSXODU DQG DFWLYHO\ XVHG VRFLDO PHGLD SODWIRUPV FXUUHQWO\ DYDLODEOH WRGD\ business owners are left feeling lost DQG IUD]]OHG +RZHYHU WKH UHDOLW\ LV that you have to start somewhere, and WKH RQO\ ZD\ WR DFKLHYLQJ SHUIHFWLRQ LQ WKH ZRUOG RI VRFLDO PHGLD LV EHLQJ FRQVLVWHQW RYHU D ORQJ SHULRG RI WLPH +HUH ZH RIIHU JXLGDQFH LQ WKH IRUP RI key steps to put into ‘PRACTICE’ when RSHQLQJ D VRFLDO PHGLD DFFRXQW ±

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PURPOSE %HIRUH RSHQLQJ D VRFLDO PHGLD DFFRXQW VLW GRZQ ZLWK \RXU WHDP DQG GLVFXVV ZKDW \RX SODQ WR DFKLHYH WKURXJK LW $UH \RX WU\LQJ WR SURPRWH D NH\ event? Do you want to drive sales for D SDUWLFXODU SURGXFW RU VHUYLFH" ,V LW to maintain your brand image in the PDUNHW" ,V LW D FRPELQDWLRQ RI WZR RU PRUH RI VXFK REMHFWLYHV" +DYLQJ D FOHDU XQGHUVWDQGLQJ RI WKH HQG SRLQW will help you build a strategy for GHOLYHULQJ LW

RETURN ON INVESTMENT (ROI) $IWHU \RX¶YH GHFLGHG ZKDW \RX DUH WU\LQJ WR DFKLHYH WKURXJK VRFLDO PHGLD GR D SUHGLFWLYH DQDO\VLV RI WKH NLQG of ROI you would like to see at the HQG RI WKH FDPSDLJQ 7KLV ZRXOG RI FRXUVH QHHG WR EH RYHU D FHUWDLQ SHULRG RI WLPH )RU LQVWDQFH LI \RX ZDQW WR GULYH DWWHQGDQFH WR DQ HYHQW WKURXJK VRFLDO PHGLD \RXU 52, ZRXOG EH registrations by end of Week Two, 500 UHJLVWUDWLRQV E\ HQG RI :HHN )RXU DQG VR RQ 3XW WKLV LQ ZULWLQJ EHIRUH RSHQLQJ WKH VRFLDO PHGLD DFFRXQW VR WKDW \RX FDQ WUDFN SURJUHVV UHJXODUO\

AUDIENCE 7KH SULPDU\ IXQFWLRQ RI DQ\ VRFLDO PHGLD DFFRXQW LV FRQQHFWLQJ \RX ZLWK RWKHUV ,Q WKH FDVH RI D EXVLQHVV FRQQHFWLQJ ZLWK FXVWRPHUV EXVLQHVV SDUWQHUV LQYHVWRUV DQG VR RQ 8QGHUVWDQGLQJ \RXU WDUJHW DXGLHQFH LV a very important – perhaps the most important – step when looking to open D VRFLDO PHGLD DFFRXQW 2QFH \RX NQRZ \RXU WDUJHW DXGLHQFH \RX

FDQ WKHQ HYDOXDWH ZKHUH \RXU WDUJHW DXGLHQFH LV SUHVHQW RQOLQH $ JRRG H[DPSOH ± LI \RXU EXVLQHVV LV % % IRFXVHG D SODWIRUP VXFK DV /LQNHG,Q LV PRUH VXLWDEOH IRU FRQQHFWLQJ with business owners, high-level H[HFXWLYHV SDUWQHUV HWF +RZHYHU LI \RX UXQ D FRQVXPHU EDVHG EXVLQHVV )DFHERRN LV DQ LGHDO RSWLRQ ZLWK RYHU D ELOOLRQ HVWLPDWHG XVHUV

CONTENT -XVW OLNH WKH FXVWRPHU LV NLQJ LQ \RXU EXVLQHVV FRQWHQW LV NLQJ ZKHQ LW FRPHV WR VRFLDO PHGLD 7KH ULJKW FRQWHQW FDQ PDNH RU EUHDN \RXU VRFLDO PHGLD DFFRXQW ,I \RX KDYH WKH EXGJHW KLULQJ D FRQWHQW PDQDJHU LV UHFRPPHQGHG ± WKLV ZRXOG EH VRPHRQH ZKR ZRXOG KHOS \RX VHOHFW the right platform, manage daily FRQWHQW PRQLWRU UHVXOWV DQG NHHS WKH EUDQG PHVVDJLQJ FRQVLVWHQW Alternatively, if you or one of your business partners is looking to manage WKH DFFRXQW FUHDWLQJ D VRFLDO PHGLD SODQQHU RU FDOHQGDU FDQ EH H[WUHPHO\ XVHIXO :ULWH GRZQ WKH GLIIHUHQW themes you want to highlight, the QXPEHU RI SRVWV HYHU\ ZHHN VRXUFHV RI JRRG FRQWHQW VSHFLDO RIIHUV \RX ZDQW WR PHQWLRQ LQGXVWU\ IRFXVHG HYHQWV HWF 7KLV ZLOO KHOS \RX JHW D EHWWHU understanding of the time you need to VHW DVLGH IRU VRFLDO PHGLD DFWLYLW\ HYHU\ GD\ ,W¶V DOVR D JRRG ZD\ WR HQVXUH WKDW WKH FRQWHQW \RX DUH VKDULQJ LV LQWHUHVWLQJ YDULHG DQG FUHGLEOH DQG gives you a fair view of what kind of FRQWHQW ZRUNV DQG ZKDW GRHVQ¶W

TEAM $W WKH WLPH RI RSHQLQJ D VRFLDO PHGLD DFFRXQW HQVXUH WKDW \RXU FRPSOHWH team is on board, and they are fully

57

BUSINESS TOOLKIT

UNDERSTANDING YOUR TARGET AUDIENCE IS A VERY IMPORTANT – PERHAPS THE MOST IMPORTANT – STEP WHEN LOOKING TO OPEN A SOCIAL MEDIA ACCOUNT

aware of its objectives, ROI, timeline, costs and so on. This isn’t just limited to the social media or marketing team, every individual that is a part of the business should have a brief understanding of the company’s social media plan. An effective way of doing so is to create a social media strategy document (doesn’t have to be very long!) which can be distributed amongst all employees; this will guarantee full awareness and cooperation, and reduce the possibility of any bandit messaging! Speaking of which, be sure to appoint a social media ‘brand custodian’, who regularly checks and monitors posts and ensures that the staff aren’t overtly siding with customers in the FDVH RI KLJK SURÂżOH GLVSXWHV 6HH ‘Control’ below)

INVESTMENT After all, as a business owner, your SULPDU\ IRFXV LV HDUQLQJ SUR¿W IRU \RXU company – and this needs to be kept in mind when starting a social media account. Ask yourself these questions: what are the costs associated with using this platform; how much and how often am I ready to invest into social media activities; and what are the different online advertising options available? With a lot of new advertising avenues easily accessible and affordable, understanding the kind of investment you want to make is crucial. Will you like to use a major portion of your marketing budget towards Facebook ads or divide it equally between Facebook and Google ads? Discuss this with your business partners and again – put it into writing.

CONTROL At the end of the day, remember that social media is an open, public domain. Anything that goes on your

58

social media account is permanent. So if there is any bandit messaging, it could have a major – possibly irreversible – impact on the overall image of the business. Putting control measures into place right from Day One can make a huge difference, and can protect you from any PR disasters. In addition to having a social media manager, ensure that all your employees fully understand the ‘do’s and don’ts’, and have agreed to (in writing) the guidelines presented in the social media strategy document. Also consider conducting regular employee training workshops and seminars that demonstrate basic social media rules and regulations.

EVALUATE Once you have an idea of the purpose, your target audience and the approximate investment amount, it’s time to make a decision about which kind of social media platform that is most suitable for your business. Your decision can be based primarily on these three factors in addition to the kind of business you operate. For instance, if you are a bakery or a restaurant, Instagram is a great option as you can post images of your delicacies – a visual representation is more powerful versus a text-based message. On the other hand, if you run D ORJLVWLFV ÂżUP /LQNHG,Q LV RQH JRRG option as you can use it to connect with businesses looking for service providers (like yourself). Practice  makes  perfect As soon as you have implemented these steps, you are ready to start with your new social media account. Even LI \RX ÂżQG \RXUVHOI QRW VXFFHHGLQJ LQ \RXU YHU\ ÂżUVW DWWHPSW GRQÂśW ORVH hope. The secret behind social media success is a focused, consistent and long-term approach. Remember, practice makes perfect!

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BUSINESS TOOLKIT

DON’T JUST DO IT - PLAN!

A business plan isn’t just the document you produce to attract investors and banks. Life for any entrepreneur can be a roller-coaster of changing risks, sudden challenges and unexpected cash shortfalls - and that’s why it’s so vital to have a good, solid business plan as the blueprint of where your business is going, how it’s going to get there, and why. Paul Godfrey looks at the basics of putting an effective business plan together - and says don’t go another day without one’!

“Starting a business is like going on a journey; you better make sure you have a good roadmap to get you to your destination.” - Peter Drucker

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Would you start a journey without knowing the best route to get to your destination? Imagine if that journey involved spending lots of money along the way, making investments and keeping thousands of people happy - of course, you’d want a very good and accurate map indeed. So it is with your business: you need a roadmap that can highlight the dangers and risks, show you where to turn (and where not to!) and highlight the best landmarks along the way. It’s especially important for a business, because in order to be successful, you’ll need to set goals, focus your efforts and often set aside WLPH WR LQÀXHQFH WKH NH\ VWDNHKROGHUV who are going to buy in to your ideas and aspirations. In its simplest form, a business plan is quite literally a roadmap for your business. One that outlines goals and details how you plan to achieve those goals. Your business plan may also describe your team and why they

are the right people to achieve your business goals. Making a start The great entrepreneur Steve Jobs was famous for jotting down business ideas on the back of napkins in cafes. If you’ve done the same, you’re already familiar with the essentials of creating business plan. At its heart, a business plan is just a plan for how your business is going to work, and how you’re going to make it succeed. It can be as long or as short as you feel it needs to be in order to capture the essentials of where you’re taking the business. Typically, a business plan is longer than a list on a napkin - although it is possible (and sometimes ideal) to write the entire business plan on one page. Remember, it is not something that is ‘once and done’ and carved in stone. It’s a working blueprint that can evolve as the scale and complexity of the business evolves. Unfortunately, many people

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think of business plans only for starting a new business or applying for business loans. But business plans are also vital for running a business, whether or not it needs new loans or new investments. Existing businesses should have business plans that they maintain and update as market conditions change and as new opportunities arise. Every business has long-term and short-term goals, sales targets, and expense budgets - a business plan encompasses all of those things, and is as useful to a startup trying to raise funds as it is to a 10-year-old business that’s looking to grow. Who needs a business plan? If you’re starting a business that will be the source of your income, then the answer is ‘you do’. The business plan can tell you when you’ll have the money to pay yourself a salary (and pay your staff too!); when you’ll face your biggest cash shortfalls and when you’ll need to

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ORRN IRU EHWWHU RI¿FH DFFRPPRGDWLRQ As the old saying says, if you’re serious about business, you need to take planning seriously. Starting a business This is the most classic use of a business plan - and that’s because it helps you deal with uncertainty. It also helps your potential investors deal with uncertainty, too, showing them that you’ve thought through the challenges and have real, comprehensive answers. So the business plan will include aspects such as the sales projection, the expense budget, key milestones and the most challenging tasks. Remember, the bottom line with a start-up is that you don’t actually know precisely how much money you’ll need - and the business plan lets you build in a comfort margin. So you’ll need to set out projected sales, costs, expenses, and timing of payments. The business plan will also need to focus on explaining

what the new company is going to do, how it is going to accomplish its goals, and - most importantly - why the founder (you!) is the right person to do the job. A start-up business plan also details the amount of money needed to get the business off the ground, and through the initial growth phases that ZLOO OHDG WR SUR¿WDELOLW\ Mature businesses Existing businesses use business plans to – Manage and steer the business Address changes in their markets Take advantage of new opportunities. Reinforce strategy Establish metrics Manage responsibilities and goals, track results, and manage and plan resources Understand, predict and identify FDVK ÀRZ For existing businesses, a business plan means competitive advantage, with better, faster growth and more opportunity for innovation. It can be a

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SRZHUIXO WRRO WKDW LGHQWL¿HV SUREOHPV DQG DOORZV UH WUDFNLQJ EHIRUH WKH EXVLQHVV JRHV IDWDOO\ RII FRXUVH What’s  the  right  kind  of  plan  for  you? &RQVLGHULQJ WKDW EXVLQHVV SODQV VHUYH PDQ\ GLIIHUHQW SXUSRVHV LW¶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¶W PHULW WRR PXFK LQYHVWPHQW LQ KRZ WKH\ ORRN 3ODQV WKDW QHYHU OHDYH WKH RI¿FH DQG DUH XVHG H[FOXVLYHO\ IRU LQWHUQDO VWUDWHJLF SODQQLQJ DQG PDQDJHPHQW PLJKW XVH PRUH FDVXDO ODQJXDJH DQG PLJKW QRW KDYH PXFK YLVXDO SROLVK $W WKH RWKHU HQG RI WKH VSHFWUXP D SODQ WKDW LV GHVWLQHG IRU WKH GHVN RI D WRS YHQWXUH FDSLWDOLVW ZLOO KDYH D KLJK GHJUHH RI SROLVK DQG ZLOO IRFXV RQ WKH IDVW JURZWK DVSHFWV RI WKH EXVLQHVV DQG WKH H[SHULHQFHG WHDP WKDW LV JRLQJ WR GHOLYHU WKRVH DJUHHDEOH UHVXOWV 7KUHH W\SLFDO W\SHV RI EXVLQHVV SODQ PLJKW LQFOXGH One-­page  business  plan $ RQH SDJH EXVLQHVV SODQ LV H[DFWO\ ZKDW LW VRXQGV OLNH D TXLFN VXPPDU\ RI \RXU EXVLQHVV GHOLYHUHG RQ D VLQJOH SDJH 7KH EXVLQHVV LV GHVFULEHG LQ YHU\ FRQFLVH ODQJXDJH WKDW LV GLUHFW DQG WR WKH SRLQW $ RQH SDJH EXVLQHVV SODQ FDQ VHUYH WZR SXUSRVHV )LUVW LW FDQ EH D JUHDW WRRO WR LQWURGXFH WKH EXVLQHVV WR RXWVLGHUV VXFK DV SRWHQWLDO LQYHVWRUV 6LQFH LQYHVWRUV KDYH YHU\ OLWWOH WLPH WR UHDG GHWDLOHG EXVLQHVV SODQV D VLPSOH RQH SDJH SODQ LV RIWHQ D EHWWHU DSSURDFK WR JHW WKDW ¿UVW PHHWLQJ /DWHU LQ WKH SURFHVV D PRUH GHWDLOHG SODQ ZLOO EH QHHGHG EXW WKH RQH SDJH SODQ LV JUHDW IRU DZDNHQLQJ LQWHUHVW DQG PDNLQJ D VWDUW

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7KLV VLPSOH SODQ IRUPDW LV DOVR JUHDW IRU HDUO\ VWDJH FRPSDQLHV WKDW ZDQW WR VNHWFK RXW WKHLU LGHD LQ EURDG VWURNHV ,Q UHDOLW\ \RX FDQ WKLQN RI WKH RQH SDJH EXVLQHVV SODQ DV DQ H[SDQGHG YHUVLRQ RI MRWWLQJ \RXU LGHD GRZQ RQ D QDSNLQ .HHSLQJ WKH EXVLQHVV LGHD RQ RQH SDJH PDNHV LW HDV\ WR VHH WKH HQWLUH FRQFHSW DW D JODQFH DQG TXLFNO\ UH¿QH FRQFHSWV DV QHZ LGHDV FRPH XS The  core  business  plan 7KH FRUH EXVLQHVV SODQ LV ZKDW¶V JRLQJ WR KDSSHQ ,W GLVSHQVHV ZLWK WKH IRUPDOLWLHV WKDW DUH QHHGHG ZKHQ SUHVHQWLQJ D SODQ H[WHUQDOO\ DQG IRFXVHV DOPRVW H[FOXVLYHO\ RQ EXVLQHVV VWUDWHJ\ PLOHVWRQHV PHWULFV EXGJHWV DQG IRUHFDVWV &RUH EXVLQHVV SODQV RPLW GHWDLOV DERXW FRPSDQ\ KLVWRU\ DQG PDQDJHPHQW WHDPV VLQFH HYHU\RQH LQ WKH FRPSDQ\ DOPRVW FHUWDLQO\ NQRZV WKLV LQIRUPDWLRQ ,QWHUQDO EXVLQHVV SODQV DUH PDQDJHPHQW WRROV XVHG WR JXLGH WKH

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In addition, an external plan details how potential funds are going to be used. Investors and risk partners will want to understand how their funds will be used and what the expected return on their investment is. Finally, external plans put a strong emphasis on the team that is building the company. Investors invest in people rather than ideas, so it’s critical to include biographies of key team members and how their background and experience is going to help grow the company. What  to  include  in  your  business  plan A formal business plan will need to include: Executive  Summary Just like the old adage that you never JHW D VHFRQG FKDQFH WR PDNH D ÂżUVW impression, the executive summary is your business’s calling card. It needs to be succinct and hit the key highlights of the plan. Many potential investors will never make it beyond the executive summary, so it needs to be compelling and intriguing. The executive summary should provide a quick overview of the problem your business solves, your solution to the problem, the business’s WDUJHW PDUNHW NH\ ÂżQDQFLDO KLJKOLJKWV and a summary of who does what on the management team. :KLOH LWÂśV GLIÂżFXOW WR FRQYH\ everything you might want to convey in the executive summary, keeping it short is critical. If you hook your UHDGHU WKH\ÂśOO ÂżQG PRUH GHWDLO LQ WKH body of the plan as they continue reading. You could even consider using your one-page business plan as your executive summary. Company  Overview For external plans, the company overview is a brief summary of the company’s legal structure, ownership, history, and location. It’s common to include a mission statement in the company overview, but that’s certainly not a critical component of all business plans. The company overview is often omitted from internal plans.

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Products  and  Services The products and services chapter of your business plan delves into the core of what you are trying to achieve. In this section, you will detail the problem you are solving, how you are solving it, the competitive landscape, and your business’s competitive edge. Depending on the type of company you are starting, this section may also detail the technologies you are using, intellectual property that you own, and other key factors about the products that you are building now and plan on building in the future. Target  Market As critical as it is that your company is solving a real-world problem that people or other businesses have, it’s equally important to detail who you are selling to. Understanding your target market is key to building marketing campaigns and sales processes that work. And, beyond marketing, your WDUJHW PDUNHW ZLOO GHÂżQH KRZ \RXU company grows. Marketing  and  Sales  Plan The marketing and sales plan details the strategies that you will use to reach your target market. This portion of your business plan provides an overview of how you will position your company in the market, how you will price your products and services, how you will promote your offerings, and any sales processes you need to have in place. Milestones  and  Metrics A business plan is nothing without solid implementation. The milestones and metrics chapter of your business plan lays out concrete tasks that you plan to accomplish, complete with due dates and the names of the people to be held responsible. This chapter should also detail the key metrics that you plan to use to track the growth of your business. This could include the number of sales leads generated, the number of page views to your web site, or any other critical metric that helps determine the health of your business.

WHILE THERE ARE COMMON COMPONENTS THAT ARE FOUND IN ALMOST EVERY BUSINESS PLAN, SUCH AS SALES FORECASTS AND MARKETING STRATEGY, BUSINESS PLAN FORMATS CAN BE VERY DIFFERENT DEPENDING ON THE AUDIENCE AND THE TYPE OF BUSINESS.

Financial  Plan 7KH ÂżQDQFLDO SODQ LV D FULWLFDO component of nearly all business plans. Running a successful business means paying close attention to how much money you are bringing in, and how much money you are spending. A good ÂżQDQFLDO SODQ JRHV D ORQJ ZD\ WR KHOS determine when to hire new employees or buy a new piece of equipment. If you are a start-up and/or are VHHNLQJ IXQGLQJ D VROLG ÂżQDQFLDO SODQ helps you determine how much capital your business needs to get started or to grow, so you know how much money to ask for from the bank or from investors. $ W\SLFDO ÂżQDQFLDO SODQ LQFOXGHV Sales Forecast Personnel Plan 3URÂżW /RVV 6WDWHPHQW Cash Flow Statement Balance Sheet One last point: remember to use your business plan and not to let it go to waste. Review your ‘real-time’ progress against the plan’s goals at least once every week. Any business plan is only as good as the way it is used - use it well and it can be the key springboard to the success and results you want.

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TEN STEPS TO SUCCESS USING DATABASE MARKETING TO SUPERCHARGE BUSINESS PERFORMANCE

When getting started, one of the foremost aspects on your mind is the customer. 0RUH VSHFLĹľFDOO\ KRZ ZLOO \RX identify and reach out to the customer? Database marketing can provide an easy, effective DQG SRZHUIXO ZD\ WR FRQQHFW

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Imagine the following scenario: You’re on a business trip and are visiting a foreign country you’ve never travelled to before. As you check into your hotel, the hostess informs you that she has prearranged a chauffeur service for your next meeting. When you arrive back to your room after your day’s meetings, \RX ¿QG D OLVW RI PHDO RSWLRQV UHDG\ based on your previous preferences in different hotels. Finally, as you get ready WR FKHFN RXW WKH KRVWHVV KDQGV \RX ¿OOHG out immigration forms for your next destination along with your passport! This scenario is a simple, yet effective, illustration of the power of database marketing. Database marketing is the

ability to use customer data to make an impact on the overall customer experience – leading to a better bottom line for your company. The term comes under the umbrella of ‘customer relationship management (CRM)’ and very often largely involves ‘e-mail marketing’ – sending out mass e-mails to your database. It also branches out to include direct mail and cold-calling. While on the surface level database marketing is an easy way to reach out to your customer and drive sales, it is also a great tool to understand your customers’ needs. Here we present a key point guide with top ten tips to keep in mind about database marketing:

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STEP

2

DATABASE MARKETING IS THE ABILITY TO USE CUSTOMER DATA TO MAKE AN IMPACT ON THE OVERALL CUSTOMER EXPERIENCE – LEADING TO A BETTER BOTTOM LINE FOR YOUR COMPANY. www.privatesectorqatar.com/en

CUSTOMER SEGMENTATION STRATEGIES

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3PERSONALISATION

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5 ACCESSIBILITY

STEP

STEP

1

CLEAN YOUR DATABASE

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BUSINESS TOOLKIT

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STEP

9

OPERATIONAL MANUAL

Like any other marketing activity, ensure that you have a FRPSUHKHQVLYH RSHUDWLRQDO PDQXDO LQ SODFH WKDW VHUYHV DV WKH µKRO\ JUDLO¶ IRU \RXU GDWDEDVH PDUNHWLQJ DFWLYLWLHV +LJKOLJKW NH\ DUHDV WR target, the kind of campaigns you DUH ORRNLQJ WR LPSOHPHQW DQG WKH budgets for each of them, which GHSDUWPHQWV ZLOO EH LQYROYHG LQ WKH SURFHVV DQG WKH WLPHOLQHV

10

STEP

Ways to increase effectiveness of your e-mail marketing campaigns

LINK ALL YOUR MESSAGING

If you are running other campaigns YLD VRFLDO PHGLD SULQW UDGLR HWF HQVXUH WKDW DOO \RXU PHVVDJLQJ LV DOLJQHG ZLWK HDFK RWKHU DQG WLHV LQ WR WKH XOWLPDWH EUDQG LPDJH RI WKH FRPSDQ\ 0RUH LPSRUWDQWO\ WU\ IROORZLQJ XS DOO \RXU FRPPXQLFDWLRQ \RX FUHDWH D VWURQJ EUDQG LPDJH )RU WKURXJK VRFLDO PHGLD )RU LQVWDQFH instance, if you are a restaurant, instead UHLWHUDWH WKH RIIHU \RX¶YH VHQW WR RI VHQGLQJ RXW \RXU GDLO\ RIIHUV \RX FRXOG your customers by sending them a VHQG RXW KHDOWK\ HDWLQJ WLSV DQG HQJDJH SHUVRQDOLVHG WZHHW FXVWRPHUV 2I FRXUVH \RX FRXOG VWLOO PHQWLRQ \RXU GDLO\ RIIHUV LQ WKH H PDLO Database  marketing  EXW LW¶V QRW WKH PDLQ VXEMHFW PDWWHU for  your  SME )LQDOO\ XVLQJ PL[HG PHGLD WR LQWHUDFW Remember, database marketing has ZLWK \RXU FXVWRPHUV FDQ SURYH EHQH¿FLDO D SOHWKRUD RI DGYDQWDJHV LW FDQ KHOS WRR ± VHQG RXW DQ 606 UHPLQGLQJ WKHP \RXU 60( LQ OHDG JHQHUDWLRQ FXVWRPHU DERXW WKH H PDLO DFTXLVLWLRQ FXVWRPHU UHIHUUDOV FXVWRPHU OR\DOW\ HWF ,W HTXLSV \RX ZLWK WKH EXVLQHVV LQWHOOLJHQFH \RX QHHG LQ RUGHU WR LPSOHPHQW HIIHFWLYH WDUJHW marketing strategies. One downside of database marketing, KRZHYHU LV WKH FRVW RI EHLQJ DEOH $ FODVVLF H[DPSOH ZRXOG EH RI D to set up the sophisticated software situation wherein a coffee shop sends mechanisms required to run it. RXW PHVVDJHV RI µIUHH FRIIHH¶ GXULQJ +RZHYHU LI ORRNHG DW IURP D ORQJ WHUP D FHUWDLQ WLPH SHULRG EXW LVQ¶W IXOO\ SHUVSHFWLYH LW LV GH¿QLWHO\ VRPHWKLQJ prepared to cater to a huge crowd. As WKDW D EXVLQHVV ZRXOG UHDGLO\ ZDQW WR D UHVXOW WKH FDPSDLJQ KDV QRW RQO\ LQYHVW LW ,Q UHDOLW\ GDWDEDVH PDUNHWLQJ EDFN¿UHG DQG XSVHW FXVWRPHUV EXW DOVR KDV HYROYHG RYHU WLPH WR EHFRPH D KDV D GLUH FKDQFH RI VRPHRQH ¿OLQJ D SRZHUIXO WRRO IRU DQ\ 60( ± ERWK IURP ODZVXLW DJDLQVW FRPSDQ\ .HHS \RXU D VHUYLFH DQG VDOHV VWDQG SRLQW 6R SXW PHVVDJLQJ VLPSOH DQG FOHDU ± VWLFN WR WKHVH WHQ VWUDWHJLHV LQWR SODFH DQG UHDS the basics. WKH UHZDUGV WRGD\

SUBJECT MATTER

STEP

6

MEASURE THE OUTCOMES

This is when you can assess the kind of impact your campaign has managed to create. What do the customer DFTXLVLWLRQ ¿JXUHV ORRN OLNH" 'LG \RX JHW DQ\ IHHGEDFN" +RZ PDQ\ FOLFNV GLG \RX KDYH" 'LG DQ\ RQH SDUWLFXODU VWRU\ DWWUDFW PRUH DWWHQWLRQ WKDQ RWKHUV" You can take this up a notch and use WKLV GDWD IRU GHWDLOHG VWDWLVWLFDO DQDO\VLV DQG GDWD PRGHOOLQJ ± H[WUHPHO\ XVHIXO when making management decisions.

STEP

7

TELL, DON’T SELL!

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8

STEP

Source: B2B Marketing’s Email Benchmarking Report (b2bmarketing.net)

LEGAL IMPLICATIONS

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BUSINESS TOOLKIT

DIGITALLY SPEAKING... The digital revolution presents a renaissance of creative ideas, opportunities and challenges. And, as companies across the globe attempt to exploit the exciting prospects that digital offers, it’s now more important than ever for your SME to fully understand and implement a sound digital strategy. In the following feature, we ask Professor Gianvito Lanzolla, Professor of Strategy at Cass Business School, part of City University London, to propose a digital blueprint for SMEs in the region… Professor Gianvito Lanzolla, Professor of Strategy at Cass Business School, part of City University London Let’s put things into perspective World renowned market Ìi }i Vi wÀ

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With today’s fast-paced digital transformation, companies have quickly realised that digital technology has the power to not only offer more effective ways of doing things, but to do so at a significantly lower cost. Such digital technology combined with the vast amounts of data available and an increasing number of social media platforms creates strong stimulus for growth like never before! So, what does a business need to do in order to exploit the opportunities that the digital world presents? Professor Gianvito Lanzolla, Professor of Strategy at Cass Business School, explains: “Very often, I hear people talking about the digital revolution happening. In my view, the digital revolution has already happened and is behind us. Now, it’s time for the ‘execution phase’ as it were. The first step of execution is to incorporate digital strategy as a core component of your overall business strategy. For instance, previously we would see that digital was the CIO’s responsibility, but today it has shifted to become one amongst many of the CEO’s primary objectives.” Power of a digital strategy How does one define a digital strategy? There are several ways of answering this question. One simple definition, however, is – ‘using digital tools to reach your company’s objectives’. And, what are the benefits of implementing a digital strategy? Professor Lanzolla explains: “Digital enhances efficiency in the dayto-day operational processes of a business – particularly in the B2B and B2C models. More importantly, digital allows a company to identify different ways of doing things i.e. the ‘how’ aspect of the business. It introduces new ways of delivering the company’s value proposition. Digital transformation enables digital disruption.”

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STEP

Digital transformation starts at the top, with corporate leaders providing vision and support. “Document the factors that are disrupting your market,” Solis, Li and Szymanski advise. “Assemble data and proof points that help you make the case to the C-suite or decision-makers.”

STEP

2

ARTICULATE A VISION

6

LOOK FOR DEFICIENCIES IN CURRENT DIGITAL CHANNELS

Look for missing features or links in customer touch points, assess any corporate policies or processes that get in the way of digital progress.

7

KEEP RENEWING YOUR RESEARCH

Revisit your digital offerings at least Prepare a vision statement that spells out every six months, and adapt your “what digital transformation looks like in strategy accordingly. the end, the top-line advantages it carries, how it enables business goals and improves customer experiences in the process.”

STEP

This person should have the ear of management, as well as the attention of employees.

STEP

4

GET TO KNOW YOUR CURRENT DIGITAL CUSTOMERS

In terms of implementation, it’s all about the customer. Learn all you can about your current raft of digital customers, Solis, Li and Szymanski advise. What do they seek from your company? What are challenges in reaching and serving them?

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STEP

3

GET AN EXECUTIVE SPONSOR

BUILD A CROSSFUNCTIONAL TEAM TO OVERSEE THE DIGITAL TRANSITION

The move to digital requires teamwork, from across the enterprise. Project management principles should be applied so the team operates on an ongoing collaboration schedule and reporting process, Solis, Li and Szymanski note. Also, make sure IT is intimately involved with the work group. A reporting process should also be set up to keep all parties informed.

STEP

9

MEASURE RESULTS

The Altimeter analysts advise that data collection be a key function within the digital work group. They even suggest taking the step of “create new roles necessary to collect, analyse, and storify data.”

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STEP

STEP

MAP OUT THE DIGITAL JOURNEY

“Chart a sample journey around what the right experiences for the right customers could be, based on digital behaviour,” the co-authors add. “Organise the journey by channel and screen.”

STEP

1

LOOK AT THE BIG PICTURE

5

STEP

Digital strategy in 10 easy steps Writing a digital strategy for your business shouldn’t be very different from working on your general business strategy. In his article on Forbes.com, Joe McKendrick highlights the following 10 steps he’s learnt from a new report on the evolution of the digital enterprise, outlined by Brian Solis, Charlene Li and Jaimy Szymanski of the Altimeter Group.

ENCOURAGE TRAINING AND EDUCATION

Employees and other stakeholders should have the opportunity to develop their skills, knowledge and experience to help pursue the evolving digital strategy. Reaching the right customers Since understanding your customer base is a key aspect of a digital strategy, KRZ VLJQL¿FDQW LV WKH UROH RI FXVWRPHU segmentation? “Segmentation is incredibly important in a company’s digital strategy. In fact, customer segmentation is important in a company’s overall strategy. Remember a lot of things that are already part of your business strategy don’t necessarily change when implemented into a digital environment. What I’m trying to say here is that keep things simple and don’t forget the basics. The beauty of digital lies within its simplicity,” says Professor Lanzolla. The role of social media Digital marketing, website, and mobile interface are all key components within a digital strategy. A crucial component, which is on an upward trajectory worldwide, is social media. How does D FRKHVLYH VRFLDO PHGLD SODQ ¿W LQWR D company’s digital strategy? Professor Lanzolla says, “Businesses need to look very carefully at the way they project themselves on social media. This is a medium that can either glorify or destroy them overnight. And, this is not limited to any one sector, this is very much applicable in any sector ranging from a cement company to a media house.”

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DIGITAL ENHANCES EFFICIENCY IN THE DAYTO-DAY OPERATIONAL PROCESSES OF A BUSINESS – PARTICULARLY IN THE B2B AND B2C MODELS.

Regional  trends Professor Lanzolla expresses his positive sentiment for the country, and the wider region, in terms of the adoption of digital technologies. He says: “I see CEOs becoming more and more interested. They sense and feel that there is a change happening, and they DUH RQ WRS RI LW , VHH VLJQLÂżFDQW SURJUHVV within the region in the uptake of digital technologies. For instance, I’ve noticed there has been a complete integration of digital strategies within companies’ operational manuals. It’s no longer a case of just appointing an external agency to design your website, it’s a complete department focusing on every element within your business.â€? And, market signals truly point in this direction. For instance, latest research by Gartner reported that Middle East IT spending is projected to total US$ 211 ELOOLRQ LQ UHĂ€HFWLQJ WKH LQFUHDVHG focus of CEOs towards their IT strategies. 'L̆HUHQWLDWLQJ \RXU EXVLQHVV An increased awareness of digital tools and its implementation comes with a downside. It means that there are a larger number of competitors present in the online marketplace. What can a business do to differentiate itself from its peers? Professor Lanzolla says, “Traditional mechanisms such as brand, UHSXWDWLRQ DQG FHUWLÂżFDWLRQ V\VWHPV DUH key to differentiating your business in an online marketplace. I think location also SOD\V D VLJQLÂżFDQW UROH )RU H[DPSOH LI I was looking for an advertising agency online and I had two options come up in front of me; one that is based DIFC, and one that is based in some unknown remote area, I am naturally more inclined to do business with the former. The same is in the case of a secured site ZKLFK ZLOO JLYH PH PRUH FRQÂżGHQFH DV D visitor and potential client. Everything matters in a digital environment. Ask yourself this question – is my digital presence projecting signals of trustworthiness and predictability? “In addition, going back to what I said previously – digital enables businesses to do things in different ways. So what makes a company different in such a

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PDUNHW LV LWV DELOLW\ WR ÂżQG D ZD\ RI GRLQJ WKLQJV WKDW DUH PRUH HIÂżFLHQW WKDQ the others and doing so at a lower cost.â€? :KDW GRHV WKH UHVHDUFK VD\" While in theory all of the above sounds good, what happens when we do some research on the practical aspects? As one of the foremost global experts in digital strategy, Professor Lanzolla shares valuable insights from his personal research on the subject. “We carried out research wherein we interviewed the WRS VWUDWHJ\ RIÂżFHUV RI FRPSDQLHV LQ WKH ÂżQDQFLDO DQG 707 7HFKQRORJ\ Media & Telecom) sectors. Key results of the research showed that within these sectors, there are different capabilities spaces. When we narrow it down, we can say they are the content capability space and the technology capability space. The companies that had switched from one capability space to another were much weaker than their competitors. “What this means for your business is that you need to focus on your core capabilities – think twice before venturing out, and play to your strengths. For example, if you are a media company, you do have access to digital but that doesn’t mean you have the same capabilities as a technology company. To summarise, what we understand from this research is that digital is just a platform, but the real essence is in the way you deliver things using it, which is capability driven.â€? “Another interesting insight that the research revealed was that within the content capability space, a key resource that was quite scarce was trust. People tend to be comfortable working with companies that they trust.â€? 7KH IXWXUH RI GLJLWDO Finally, what does the future hold for the world of digital? “There is a lot yet to come in the digital world. I think SMEs should look at digital sphere as an arena full of exciting opportunities. In fact, digital empowers SMEs to be PRUH HIÂżFLHQW LQQRYDWLYH DQG QLPEOH LQ comparison to their larger counterparts by teaching them new ways of doing things,â€? concludes Professor Lanzolla.

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MULTIPLY YOUR BUSINESS PRODUCTIVITY WITH THESE TRENDY MOBILE APPLICATIONS Rushika Bhatia's view

Mobibus A ‘Do-It-Yourself’ mobile app maker which offers a great solution to businesses looking to create an effective mobile application. The app’s userfriendly platform, with dual English and Arabic interface, allows companies to create a customised mobile app to suit their business or personal needs in just four easy steps – Registration, Design, Manage, and Preview & Publish.

Available for: iOS and Android Cost: Free

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Evernote

Available for: Mobile devices such as iPad, iPhone, iPod Touch, Android, Windows Phone and Blackberry

This is a fantastic app for business owners operating companies in any industry sector. Evernote is a onestop-solution for all your business needs – it allows you to take notes, save images and record audio notes. More importantly, it makes all your data accessible across any device you use creating a seamless experience. It also enables sharing information with other users including partners, managers and employees. Additionally, for frequent travellers, it saves travel plans, maps and other documents. If your business requires you to be constantly on-thego, Evernote is the perfect app to stay connected with your staff – and business – 24/7!

Cost: Free

Wally To begin with, the app lets you record all your expenses in a systematic way – enter the amount spent, location, time and the category of expense (food, clothes, transport, and so on). Another notable feature is that the user can scan and save images of receipts. The app can identify the amount, date, venue and category automatically, saving you valuable time! Wally supports multiple global currencies so that even if you are on a business trip or family vacation, you can keep track of your daily expenses. The application offers a weekly, monthly and yearly breakdown of the expenses – divided categorically – in the form of an easy pictorial representation that’s a lot easier to read and understand than a complicated Excel sheet or an unending pile of bank statements. An added plus is that using the app, you can access your expenses anywhere and at any time.

Available for: iPhone Cost: Free

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Plume for Twitter No matter how busy you are, the reality is that the digital world is constantly ‘active’. This means that you need to continually manage your social media presence from any part of the world. This is especially true for those business owners that manage their company’s social media activities by themselves. Plume for Twitter is a fantastic app that lets you create a completely customisable Twitter experience. One feature that stands out is the app’s ability to support multiple Twitter accounts – this means you can easily switch back and forth between your business and personal account! Plume’s user-friendly and highly interactive interface makes it an absolute must-have!

Available for: Android Cost: Free

SignEasy v Þ Õ >Ài > Ü>ÞÃ Ì i } ÞiÌ Þ Õ vÀiµÕi Ì Þ w ` Þ ÕÀÃi v >Û } Ì `À « LÞ Ì i vwVi ÕÃÌ Ì Ã } ` VÕ i Ìà > ` Û ViÃ Þ Õ½ w ` Ì Ã >«« ÛiÀÞ ÕÃivÕ ° - } >ÃÞ > Üà ÕÃiÀÃ Ì Ã } > ` w ` VÕ i Ìà vÀ your smartphone or tablet. You can import a document right away from Dropbox, Evernote, or from your e-mail account and then sign it in the app, adding a timestamp, date, or any other information needed Ì w > Ãi > ` VÕ i Ì° " Vi ` i] Þ Õ V> i > L>V Ì i à } i` document or save it back to your sharing service.

Available for: Android and iOS Cost: Free

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TripIt For SME owners who frequently travels TripIt is the mobile app for you. The app links to your e-mail account and « V à ի iÛiÀÞ V wÀ >Ì Õ LiÀ that comes into your inbox. Any y } Ì] Ìi ] V>À Ài Ì> à À iÛi ` iÀ ÀiÃiÀÛ>Ì Ì >Ì V Ì> à > V wÀ >Ì Õ LiÀ Ü Li «ÕÌ Ì > À}> Ãi` itinerary. It also syncs all the details in your itinerary to your device’s calendar which will enable you to easily à >Ài Ì Ü Ì Þ ÕÀ vÀ i `Ã] v> Þ > ` V i>}Õið

Available for: Android and iOS Cost: Free

Smart Document Scanner Ƃ Õ Ì «ÕÀ« Ãi vwVi «À `ÕVÌ Û ÌÞ L i >«« Ì >Ì i >L iÃ Þ Õ Ì ` } Ì Ãi > ` > >}i > Þ Ã ÀÌ v ` VÕ i Ì° Ì iÌÃ Þ Õ ÃV> ] i > Vi] > ` V ÛiÀÌ Ì * > ` " , ­ À "«Ì V> >À>VÌiÀ ,iV } Ì ] > Ü } ÃV> i` * à > ` >}iÃ Ì Li V ÛiÀÌi` Ì i` Ì>L i ÌiÝÌ v À >Ìî] ÃÞ V] > ` w i ÌiÃ] ÀiVi «ÌÃ] Û ViÃ] iiÌ } ÕÌiÃ] V ÌÀ>VÌÃ] L> ÃÌ>Ìi i ÌÃ] Ü ÌiL >À`à > ` à °

Available for: Android Cost: Free

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Together we make legal matters as easy as solving this maze What is OQOOD? OQOOD is a 70% subsidised legal services programme offered by Enterprise Qatar to Qatari entrepreneurs and SMEs. The programme entails the provision of intellectual property rights and trademark registration, and the development of contracts, agreements and article of association. The objective of this programme is to give Qataris access to subsidised, professional legal services to ensure a sound legal framework for their business. Who is eligible? OQOOD is offered to Qatari entrepreneurs and SMEs who need assistance in developing contracts and agreements and who are interested in the intellectual property and trademark registration. Follow us on

To apply, please contact Enterprise Qatar Tel: 4012 5000 | Website: www.eq.gov.qa E-�mail: oqood@eq.gov.qa | Fax: 4012 5001 Address: The Gate, Bay Tower 4 – Floor: 16, West Bay, Doha. Terms and Conditions apply

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