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SEPTEMBER 2012 www.privatesectorqatar.com/en
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ﺗﺤﻘﻖ ﺳﻠﺴﻠﺔ ﻓﻨﺎﺩﻕ ﺍﻟﺒﻮﺗﻴﻚ ﻓﻲ ﺳﻮﻕ ﻭﺍﻗﻒ ،ﻣﻦ ﺧﻼﻝ ﻓﻨﺎﺩﻕ ﺍﻟﺒﻮﺗﻴﻚ ﺍﻟﺴﺘﺔ ﻭ ﺍﻟﺸﻘﻖ ﺍﻟﻔﻨﺪﻗﻴــﺔ ﺍﻟﺠﺪﻳﺪﺓ ،ﻧﻘﻠﺔ ﻓﺎﺭﻗﺔ ﻓﻲ ﺍﻟﺼﻨﺎﻋﺔ ﺍﻟﻔﻨﺪﻗﻴﺔ ﺍﻟﻔﺨﻤﺔ ﻓﻲ ﺍﻟﻤﻨﻄﻘﺔ ﺍﻟﺘﺎﺭﻳﺨﻴﺔ ﻭ ﺍﻷﺛﺮﻳﺔ ﻣﻦ ﺍﻟﺪﻭﺣﺔ ﺍﻟﺘﻲ ﺗﻤﺜﻞ ٔﺍﺣﺪ ٔﺍﺑﺮﺯ ﻣﻌﺎﻟﻢ ﺍﻟﻌﺎﺻﻤﺔ ﺍﻟﺴﻴﺎﺣﻴﺔ .ﺍﺫ ﻳﺤﺘﻀﻦ ﺳﻮﻕ ﻭﺍﻗﻒ ﺍﻟﺬﻱ ﺷﻜﻞ ﻣﻨﺬ ﺯﻣﻦ ﺑﻌﻴﺪ ﻣﺤﻮﺭ ﻭ ﻣﺮﺗﻜﺰ ﺍﻟﺤﺮﻛﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ ﻓﻲ ﺍﻟﻌﺎﺻﻤﺔ ﺍﻟﻘﻄﺮﻳﺔ ،ﻭﻳﺘﺮﺍﻭﺡ ﻋﺪﺩ ﻏﺮﻑ ﺍﻟﻔﻨﺎﺩﻕ ﺍﻟﺴﺘﺔ ﺍﻟﺠﺪﻳﺪﺓ ﺑﻴﻦ ١٤ﻭ ٣٧ﻏﺮﻓﺔ ﻓﻨﺪﻗﻴﺔ ،ﺗﺘﻤﻴﺰ ﺑﻬﻨﺪﺳﺘﻬﺎ ﺍﻟﻤﻌﻤﺎﺭﻳﺔ ﺍﻟﻔﺮﻳﺪﺓ ﺃﺟﻮﺍﺋﻬﺎ ﺍﻟﺮﺣﺒﺔ ،ﺑﻴﻨﻤﺎ ﺗﺘﻤﺎﻳﺰ ﻋﻦ ﺑﻌﻀﻬﺎ ﺍﻟﺒﻌﺾ ﺑﺘﺼﻤﻴﻤﺎﺗﻬﺎ ﺍﻟﻤﺴﺘﻠﻬﻤﺔ ﻣﻦ ﺍﻷﺻﺎﻟﺔ ﺍﻟﻘﻄﺮﻳﺔ ٔﺍﻭ ﺍﻟﺤﺪﺍﺛﺔ ﺍﻟﻔﺨﻤﺔ ،ﻭﻫﻲ ﻣﺼﻤﻤﺔ ﻟﺘﻮﻓﺭ ﻟﻠﻨﺰﻻﺀ ،ﺳﻮﺍﺀ ﻣﻦ ﺭﺟﺎﻝ ﺍﻷﻋﻤﺎﻝ ٔﺍﻭ ﺍﻟﺴﺎﺋﺤﻴﻦ ٔﺍﻭ ﺍﻟﻤﻘﻴﻤﻴﻦ ﻓﻲ ﻗﻄﺮ ،ﺿﻴﺎﻓﺔ ﻭﺭﺣﺎﺑﺔ ﺗﺨﻠﺪ ﻓﻲ ﺫﺍﻛﺮﺗﻬﻢ.
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CONTENTS September 2012
16
Finance 26 GAIN AN INSIGHT R Seetharaman, Group Chief Executive Officer, Doha Bank, got talking to Tamara Pupic about ways in which entrepreneurs and startups could increase their chances of receiving loans.
28 TRADE AT A LOWER RISK
Captain of your own ship
Qatar Financial Markets Authority (QFMA) issued new regulations on financial services which favour SMEs interested to engage in export activities. Niranjan Mendonca, Head of Retail Banking, Mashreq bank Qatar, clarifies how it will allow local exporters to support their sales.
News
Success story
Technology
10 UPDATES
16 CAPTAIN OF YOUR OWN SHIP
30 ES’HAILSAT: A QATARI STAR IN THE MAKING
Get to know about the latest events and happenings in Qatar that will have an impact on SMEs and large enterprises.
Jassim Al-Mansoori, Chairman, iHorizons, explains to Tamara Pupic why his successful career path is a proof that entrepreneurial dreams can become a reality.
About town
SMEs
14 NOW WE HAVE IT ALL
20 MAINTAIN YOUR SUCCESS
Focused on the rise of women in business, the 2nd Sunday Networking Event was organised by the Bedaya Center for Entrepreneurship and SME Development. Private Sector Qatar was there and gives you the highlights of the event.
Qatar German Gasket Factory (Q-GER) is a name you can TRUST. Tamara Pupic visited them and brings to you their story.
30
22 STEP BY STEP Tamara Pupic collected advice from the Qatarian Vehicles Structure Factory (QVSF), a pioneer of Qatar’s manufacturing industry, on solutions which could facilitate business expansion of all Qatar’s companies within the industry.
Business growth 24 LUCKY BY CHOICE Carolin Zeitler, CEO, Tataowar Coaching & Consulting, advises us how to seize a business opportunity.
While the sighting of the Es’hail star in Arabic tradition signifies a change from summer to winter, Ali Ahmed Al Kuwari, CEO, Es’hailSat, exclusively talks about bigger change in Qatar’s history - Es’hail 1, Qatar’s first independent satellite.
32 ANIMATE YOUR BUSINESS Ali Mussayab, CEO, Purple Cedar Animation Studio, presents multimedia and animation services which are an effective tool for promotion of your business.
34 ANTICIPATE 2022: CONNECTING QATAR’S STADIA The stadia outlined in Qatar’s official bid to host the 2022 FIFA World Cup demonstrate the sheer scale of ambition and technical ingenuity. Vick Mamlouk, Vice President, Wireless Sales, Middle East and Africa, CommScope, considers how voice and data services will be integrated into the stadia design.
Legal
52
Report 44 LET’S BE PARTNERS
36 KNOW THE LAW
Private Sector Qatar brings you details of the report prepared by George Atalla, Partner, and Karim Aly, Senior Associate, Booz & Company, which highlights the vital need for adoption of a partnership approach between public and private sectors as an effective mean of promoting national development goals in the GCC states.
Roy Georgiades, Associate, Al Tamimi & Company’s Doha office, presents the judgement of the Qatari courts in a case which has re-defined the concept of commercial agency in Qatar.
Management 38 LEAD BY EXAMPLE Whether you are a born leader or your leadership skills have developed over time, Osama K. Jbarah, Senior Engineer, Qatar Petroleum, makes it clear that people need to trust you in order to follow you.
38
TASDEER 48 SMEs – TIME TO START TASDEER provides you with an overview of Qatar’s current export trends in Qatar.
40 STEP BACK AND THINK! Strategic planning is a very important business activity, especially for SMEs. Zeina Moukarim, Manager, Strategy and Project Management Office, QDB, gives details on how it ensures that an SME has a vision and initiatives to reach its aspirations.
50 WHAT’S THE PLAN?
54
TASDEER has developed the export strategy targeting SMEs within the manufacturing sector. We bring you details on their specific services and support initiatives within the export development and promotion services.
52 CROSSING THE BORDER Hassan Khalifa Al Mansoori, Executive Director, TASDEER, gives details on TASDEER’s efforts to raise the public profile of exports.
54 TARGET MOROCCO It is important for the exporters to critically evaluate foreign markets from an export perspective. TASDEER analysis Morocco as a highly attractive market for Qatari exporters.
EDITORIAL Publisher Dominic De Sousa Group COO Nadeem Hood Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126 EDITORIAL Senior Editor Aparna Shivpuri Arya aparna@cpidubai.com +971 440 9133 Assistant Editor - English Tamara Pupic tamara@cpidubai.com +971 440 9130 Contributing Editors Mike Byrne mikeb@cpidubai.com +971 440 9105 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 CIRCULATION Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 OPERATIONS AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9148 Photographer Cris Mejorada cris@cpidubai.com +971 4 440 9108 DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya Louie Alma online@cpidubai.com +971 4 440 9100 Published by
1013 Centre Road, New Castle County, Wilmington, Delaware, USA
Looking towards the future As I write this editorial, I feel very proud that the Arabic version of the magazine (Al Kitaa Al Khass) has completed one year with this issue! It has been an interesting journey, to say the least, and we have seen the good times and the bad. But it has only made us stronger and more determined to bring forth the best that Qatar’s private sector has to offer. And of course, we have you – our readers to thank, for always supporting us and helping us find those untold stories. So this issue is special and covers a lot of interesting aspects of being an entrepreneur or SME in Qatar. To start with, we bring you the stories of iHorizon, Qatarian Vehicles Structure Factory and Qatar-German Gasket Factory. These companies have been born out of the hard work and vision of three Qataris who dared to dream. Moving on, we have articles on how to increase your chances of securing a loan, importance of strategic planning and what defines a commercial agency in Qatar. With this issue, we have also introduced a section on TASDEER, to bring you all the latest information and news on export opportunities. So all are readers who are into exporting- you are in the right place at the right time! And talking about right time and the right place- we thought this would be a good time to bring all the experts, businesses, and entrepreneurs under one roof to discuss the one issue that haunts all businesses – finance. Please keep yourself free on the 25th of September to head to St. Regis Hotel, Doha, to be part of our event titled “Private Sector Forum on Business and Finance”. All the details are available on our Website and if you have any difficulties, drop us a line. We sincerely hope, you will continue to support us and walk with us as we take a step forward on this journey of ours.
Aparna Shivpuri Arya, Senior Editor, Private Sector Qatar Talk to us: E-mail: aparna@cpidubai.com Twitter: @PrivateSectorQA Facebook: www.facebook.com/PrivateSectorQatar LinkedIn group: Private Sector Qatar
Branch Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409
Printed by
Al Warq Printing Press, Qatar
Distributed by
Dar Al Sharq Distribution © Copyright 2012 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
qatar.smetoolkit.org/qatar/en qatar.smetoolkit.org/qatar/en
QDB BriDgeD the gap to starting my own Business through aL Dhameen.
Do you have a promising business or new business idea? But do you also have trouble finding the funding that you need? Ask us about Al Dhameen Indirect Lending Program from QDB. We will guarantee up to 85% of your business loan *, leaving you free to focus on developing your business. Click on www.qdb.qa or visit one of our partners listed below.
* Guarantees of up to 85% are for new businesses. Exiting businesses can get guarantees of up to 75%. Terms and Conditions apply.
Ms. Amal Al-Mannai
advisory Board Gail Gosse Gail Gosse, is the Dean of the School of Business at College of North Atlantic-Qatar.
Ms. Al-Mannai is the Executive Director of the Social Development Center (SDC).
Hamad Mohammed Al-Kuwari Hamad AL-Kuwari is the Managing Director of Qatar Science & Technology Park.
Professor Nitham M. Hindi
George M. White, Ph.D.
Professor Nitham M. Hindi, is the Dean of College of Business and Economics at the Qatar University.
Dr. White is Associate Teaching Professor of Entrepreneurship at Carnegie Mellon University-Qatar.
Abdulaziz N. Al-Khalifa
Hamad Al Abdan Al-Marri
Mr. Al-Khalifa is the Executive Director, Strategic Planning and Control at Qatar Development Bank (QDB).
Eng. Hamad Mohamed Al Abdan is the Chief Business Operation Officer at Enterprise Qatar.
Raed Al-Emadi
Rashid Nasser Sraiya Al Kaabi
Mr. Al-Emadi is the Deputy CEO, Silatech.
Mr. Al Kaabi is the Chairman of the Board of Energy City Qatar Holding (ECQH).
For more information, please visit www.privatesectorqatar.com/en
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News
New law on tourism His Highness the Emir Sheikh Hamad bin Khalifa alThani signed Law No 6 of 2012 on Tourism which covers the hospitality industry, including resorts and tourism facilities and activities and tourist guides. The new law consisting of 36 articles, issued on 7th August 2012, regulates various aspects of tourism in Qatar.
attached with all the required documents should be submitted to the administrative cell at the Tourism Authority’s office. The licensee should abide by the rules and regulations as set out in the by-laws. It is not permissible for him to alter the approved name of the facility or transfer it to any third party. No alterations or innovations should be made in the premises without permission from the authority.
Establishing any hotel or tourist facility or using an existing facility or administering it will require a formal licence from the Tourism Authority. The prescribed application form duly filled and
Permission is required prior to holding any event in a hotel or a tourist facility. Package offers to tourists should have clearance from the the Tourism Authority’s administrative cell.
The bills issued to clients when they check out from a hotel should specify the type of services offered and the amount charged for each of them. Persons acting as tourist guides will now require a formal licence. The licensee should maintain proper records. They should be made available for inspection at any time. Violation of any of the provisions of the law could entail a penalty of QR 50,000.
IMF revises MENA growth sharply
10
SEPTEMBER 2012
The stronger regional outlook in its July 2012 update is particularly striking given further deterioration in Syria since April 2012, which is also having a negative economic impact on its neighbours. The IMF sees a much improved outlook in North Africa and the Gulf offsetting the problems in the Levant. According to QNB Group,
8.0
July - 12 revision April - 12 forecast
6.1 5.5 1.3
3.5 2.5 2.4
2.0
0.4
1.0
0.2
0.4 -0.6
US
Germany
-0.1
UK
-0.6
Brazil
-0.1
Japan
-0.7
World
-0.2
India
The IMF does not provide separate forecasts for most countries individually in quarterly updates to its World Economic Outlook. This makes it hard to see precisely which parts of the MENA region have driven the upwards revision. The IMF did, however, note that the boost was due in part to a rebound in economic activity in Libya and to generally higher oil production and domestic demand across the region.
Real GDP growth forecasts for 2012 (%)
MENA
The IMF now expects the MENA region to grow at a rate of 5.5% in 2012, en-par with the average for emerging economies. This is up 1.3% on its April 2012 forecast of just 4.3%, and by far the largest positive revision for any region or country.
In its April 2012 outlook, the IMF had forecast that Libya and Iraq would lead the region in 2012, achieving growth of 76% and 11% respectively. This is as a result of Libyan oil production returning to pre-war levels and Iraqi production rising as a result of investments by foreign oil companies. The IMF also forecasts strong growth of around 6% for most GCC countries. The regional average was dragged down by oil-importing countries, with growth rates forecast at around 2-3% for most countries, but with contraction in Yemen and Syria.
China
The IMF has updated its economic forecasts with a gloomier global outlook than the one it presented in April 2012. Despite this, QNB Group notes that its outlook for the MENA region has improved sharply.
Source: IMF and QNB Group analysis
expansionary spending plans in some countries’ budgets, including Qatar’s, have probably contributed to the IMF’s forecast of higher domestic demand.
News
Ahli Bank recognised as the “Best Commercial Bank in Qatar” Ahli Bank was announced as the “Best Commercial Bank in Qatar” by international finance magazine World Finance at the World Finance Banking Awards 2012. Moataz Al Rafie, CEO, Ahli Bank, said, “This recognition, which is based on our customers’ votes, motivates us to further enhance our banking services to our clientele, and we are committed
to excel in our offerings to maintain our customers’ valuable trust.” The World Finance Banking Awards are known throughout the financial press as the pinnacle of recognition for major banks. Ahli Bank’s is rated A- by both Fitch Agency and Capital Intelligence. Its financial strength
rating has been upgraded from BBB to BBB+ by Capital Intelligence and the bank has received the International Organisation for Standardisation (ISO) 9001:2008 quality certification for its central operations, ensuring operational control, standardisation of policies, practices and procedure and a better use of pooled expertise.
Spinneys Qatar signs contract with GWC Gulf Warehousing Company (GWC), Qatar’s logistics company, has been awarded a contract by Spinneys Qatar, one of the retail hypermarket chains spreading throughout the Gulf. Under this contract, GWC will be responsible for all warehousing and distribution of temperature-controlled, chilled and frozen storage of Spinneys products to various outlets in Qatar. GWC will also handle the reverse logistics from outlets in addition to services such as pick, pack, and inventory management.
consumer and retail sector and demonstrates the logistics provider’s ability to offer integrated solutions to its customers. Ranjeev Menon, Group CEO, GWC, stated,”We are delighted with the signing of this new contract. The confidence that Spinneys has placed in GWC is proof of excellence in the solutions we provide for this sector and we always strive to deliver impeccable service.”
Elias Tabet, Country Manager, Spinneys Qatar, said, “We have chosen GWC as our logistics partner as it has an award winning, modern logistics infrastructure coupled with a personalised and highly flexible service. Spinneys has aggressive expansion plans into more outlets for which we will require a dependable and scalable logistics backbone. With GWC, we are assured of an efficient and reliable solution.”
The processes will be managed using GWC’s state-of-the-art technology platform, specifically the Warehouse Management System (WMS), which controls all warehouse activities. The system will enable GWC to manage the entire supply chain and seamlessly connect all inbound and outbound logistics while enabling efficient monitoring of inventory and order fulfillment. GWC will allocate an area dedicated to Spinneys operations in one of its multi-user cold chain distribution centers. This contract further heightens GWC’s presence within the
Maher El Sayegh, Logistics Manager, Elias Tabet, Country Manager, Ranjeev Menon, Group CEO and Nader Hakim, Director Contract Logistics
SEPTEMBER 2012
11
News
Save the date!
12
September – November 2012
Date
Event
September
Women Investing in the Stock Market Workshop
Bedaya Centre
5 - 8 September
Made in USA 2012
Doha
9 September
2nd Sunday Networking Event
Bedaya Centre
15 - 19 September
"HYA" Abaya Exhibition September 2012
Doha Exhibition Center
16 - 19 September
Construction Leaders Forum Qatar
Hilton Doha
17 September - 19 October
Gulf-European Partnership Forum Under The Patronage of H.E. Prime Minister
Qatar Chamber
18 - 19 September
Capital Markets Conference
Qatar Central bank
18 - 19 September
MEED Qatar Banking Summit 2012
Doha
21 - 26 September
World Philatelic Exhibition
Doha Exhibition Center
22 September - 6 October
Build Your Business Plan Workshop
Bedaya Centre
23 – 26 September
HR Congress Qatar
Oryx Rotana Hotel
24 - 25 September
Building Information Modeling Summit
Doha
25 September
Doha Furniture and Decoration Exhibition - INFDEX 2012
Doha Exhibitions Center
25 September
Business Forum on Promoting the Private Sector
St. Regis Hotel
26 - 29 September
World LP Gas Forum
Sheraton Doha Resort & Convention Center
30 September - 04 October
Investment Management Forum
Doha
October - December
Job Shadowing Programme
Bedaya Centre
1 - 3 October
3rd Annual Global Petrochemicals Technology Conference
Doha
5 October
Made in Italy 2012
Qatar Chamber
8 - 10 October
HSE Forum in Energy
Doha
13 - 27 October
Build Your Business Plan Workshop
Bedaya Centre
15 - 16 October
CFO Congress Qatar
Doha
16 - 18 October
Diyafa Exhibition
Doha Exhibitions Center
17 - 18 October
2nd Annual LNG Technology Global Summit
Doha
21 - 24 October
Ground Support MENA Congress
Doha
22 - 24 October
Career Development Qatar
Doha
6 November
Exporta's Middle East Capital Markets Conference
Doha
11 - 13 November
5th Annual Bridges Middle East
The Ritz-Carlton Hotel
11 - 17 November
Global Entrepreneurship Week
Doha
12 - 15 November
ICONIP2012
Doha
13 - 15 November
World Innovation Summit For Education (WISE)
Qatar Chamber
25 November - 8 December
United Nations Framework Convention on Climate Change
Doha
SEPTEMBER 2012
Private Sector Forum on Business and Finance 25th September 2012 St. Regis Hotel, Doha
QATAR SUCCESS SERIES With Qatar focusing on diversifying its economy, the private sector has become a very important component of economic growth and development. Within the private sector, it is the SMEs and the entrepreneurs that fuel the innovation and growth. And they don't have it easy. The Qatar Success Series - Private Sector Forum on Business and Finance, is aimed at highlighting the important issues for SMEs and entrepreneurs by providing an interactive platform for discussions and solutions. Make sure that you are there to be a part of this event and learn more about this fast-growing and important sector of the Qatar economy.
Register today at:
www.privatesectorqatar.com/QSS12
For more information on previous and upcoming events visit www.privatesectorqatar.com For registration enquiries please contact Aparna@cpidubai.com or tamara@cpidubai.com For sponsorship enquiries please contact Richard@cpidubai.com
About town
Now we have it all The 2nd Sunday Networking Event of the Bedaya Center for Entrepreneurship and Career Development was organised on 12th August 2012. The theme of the event was “Women Investing
in the Stock Market”. Private Sector Qatar was there and shares with you thoughts and plans of the future female business leaders of Qatar.
A
joint initiative of Silatech and Qatar Development Bank, the Bedaya Center for Entrepreneurship and Career Development provides a “one-stop shop” for young people in Qatar to find career guidance, mentoring programmes, and a variety of workshops focusing on entrepreneurship- and employmentrelated skills development. Starting in January 2012, Bedaya Centre launched the 2nd Sunday Networking Event, as a regular monthly networking group for entrepreneurs and all those interested in entrepreneurship. To date, over 250 people have attended these monthly events, which feature local entrepreneurs, visiting speakers, and discussions on practical issues related to establishing a business in Qatar. Bedaya Centre aims at raising awareness of entrepreneurship in Qatar and energising the entrepreneurship ecosystem through networking.
14
SEPTEMBER 2012
The event, held at the Katara Cultural Village on 12th August 2012, drew a number of female attendees who are students of the Qatar University. They were interested in developing their skills necessary for investing in the stock market. It was moderated by international industry experts, Matthew Hallam and Marzena Hallam, Founder and CEO of Mibx, who will be teaching a four week interactive and practical programme, “Women Investing in the Stock Market”, targeting Qatari women who want to become financially empowered and knowledgeable. Sponsored by Bedaya Centre and Thomson Reuters, the four week programme will begin in Doha in September 2012. The whole idea is supported by emerging Qatari female leaders, Hessa Mohamed Al-Thani and Munera Abdulla Al-Dosari, students of Qatar University, who shared with Private Sector Qatar their motivation to join the programme.
“We accepted to be involved in the programme since we already have the experience of creating and developing a business. In 2007, together with 24 girls from our high school, we participated in the Junior Achievement Competition of Injaz Al Arab. Firstly, we formed the team and searched for a business idea that would be new and unique and, at the same time, present our personalities. We came up with the idea to buy, redesign and sell shoes. We created a small company “Très Jolie” with a capital of QR 1,900 while the revenue was near to QR 10,000. The whole project lasted for five months. We won at the national level and participated in the competition for the whole GCC. That’s why we decided to study finance,” explained Munera Abdulla Al-Dosari. Adding to it, Hessa Mohamed Al-Thani said, “In Qatar we need more projects of this kind since many young girls and boys want to start their own business. It’s good to start a business
About town
with no dependence on a loan. So, to generate money you have to invest and in order to do that you have to gain some knowledge about investing and what possible consequences it may bring. Even if they don’t want to open a company, at least they will generate some money. That will definitely benefit our society.”
for Qatari youth is not to rely on the security of public jobs, but to be passionate and start an adventure with their business ideas. It will be good not only for the economy, but for them as well. For the success of all that endeavours, I hope for continuing support from the parents and the government, especially the parents.”
Elaborating further on their engagement in the programme, Munera explained, “Our contribution to the programme is to act as ambassadors and to reach as many women as we can and invite them to join us. We hope to be a link between the programme and the society. We decided to study finance since we wanted to know what’s happening in the business world in which everything is related to trade and finance. Globalisation is created because of business and business is all about numbers and trade and we cannot deny it. That’s why we think this topic is very important”
Following up on this topic, Matthew stated that now is also a perfect time to start investing. The financial crisis has been going on for five or six years already and, in terms of business cycles, it has been quite a long time for people to learn their lessons. Among many markets in the world, Qatar is currently very attractive market for starting investing endeavours due to many development plans and projects.
Presentation given by Matthew Hallam also highlighted some of these concerns. During the presentation, he pointed out that the biggest thing about investing is people’s fear that they cannot do it. What is needed to become an investor is just common sense, discipline and a strategy that works. Various studies have shown that women have more common sense, do more research and are less prone to taking risks. To the opposite, men often get few wins and then start taking more and more risks. For that reason, around the world women are starting to invest since they have more time, access to markets through technology more easily and, the opportunity to balance their working and home life.
Speaking on investment techniques, Matthew pointed out that people involved in investing always want to know two things – whether there is something they can quantify and how long it will take. One of the successful investment techniques consists of tracking all the price movements that have happened for a particular stock and finding an average of all that. It’s intended to show whether the stock is moving up or down and to give a clue when the stock can be in investor’s favour. One of the main challenges lies in people’s behaviour - most of the people sell profits too quickly and hold on to losses too long. They don’t want to take the pain of a loss and when everything is good they want to take the profit immediately. If you take too little profits and have huge losses, the chances of losing money are great. This is when the horror stories happen since people do not know when to get
out. Prices tend to move, but once they start in a certain direction they keep on it. So, you need to stick with it and discipline yourself. In relation to that, one of the attendees asked how she can overcome the fear of dealing with the stock market, which she has, after she saw her relative suffer losses. Matthew confirmed that investing has a huge emotional part that needs to be overcome through techniques which allow you to define and measure market movements. Since the market is an abstract and a constantly-moving environment, an investor needs to adopt techniques which will allow him or her to realise where are the entry and exit points. The worst case scenario happened to many people in 2008 exactly because they did not have a proper strategy. For that reason, Matthew advised that every investor needs to have a strategy which will give an entry point, an exit point and some ways to compound the investments. Answering the question on how much money is needed to start with, Matthew assured that some people can even start with only QR 2,000 and that is indeed better than not starting at all. The benefit of starting is that it actually provides for a savings plan and a chance to plan forward. Matthew ended the presentation by giving us the details of the workshop. The workshops start on 10th September 2012 and will be organised on Saturdays (afternoon sessions) and Sundays (evening sessions) for four hours during the following four weeks.
In relation to rise of Qatari women in business, Munera highlighted, “Qatari women today have a lot of chances to prove themselves and the good thing is that the society is pushing them forward. Few years back, that kind support was not present, but now we have it all. If you have an idea and you need some help there are people to assist you. So, now you get a lot of chances of succeeding.” Hessa is quick to add that participation of youth in business is also increasing, “My advice
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success story
PTAIN A C
OF Y
OUR OWN SHIP
A lot of young Qataris opt for the security of public sector jobs instead of putting their career dreams into reality. Jassim Al-Mansoori, Chairman, iHorizons, did just that! Now he speaks to Tamara Pupic about his career path and advises Qatari youth to stick to their entrepreneurial dreams. Please tell us about yourself and how did it all begin in 1996. I was born, raised and schooled in Doha, and continued my post-graduate studies in the United States obtaining a B.S. in computer science from the Eastern Michigan University. I worked in government and semi-government sectors, but my own career vision was always to start and run my own firm one day. I did not want to be just an employee. I was rather thinking of what I would really like to do and then to build an organisation around that.
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What was your inspiration for the foundation of iHorizons? How did you plan it? When the Internet began to spread globally, my friends Mohamad Takriti and Yasser Hamad shared my vision, so I realised that Internet-related businesses could one day have a wide reach. As our thoughts and ideas were taking shape gradually, we decided to become business partners, since we felt that our ideas would make a good entry point to the market.
While I was working in government and semi-government sectors I realised how much Internet is needed in these organisations. At the very beginning, we successfully signed a few contracts with government organisations, such as the Ministry of Foreign Affairs of Qatar. I believe that was the first ministry to have a Website. Also, we signed contracts with one newspaper that was later the first Arabic newspaper to appear on the Internet.
success story
From my experience, being a captain of my own ship was a huge learning curve that had a lot of challenges. Even though, I may have a lot of experience in the corporate world, I did face overwhelming situations at times, but that did not discourage me. Are there any steps you would advise an entrepreneur to follow? My advice to entrepreneurs is to first think of their business plan as a living project, not a one-time document. In addition, consult with the right people to get the right advice. And last, but not least, always work on selecting the right people to work with you and for you because they will be your assets and share your success with them. What challenges did you face and how did you solve them? From my experience, being a captain of my own ship was a huge learning curve that had a lot of challenges. Even though, I may have a lot of experience in the corporate world, I did face overwhelming situations at times, but that did not discourage me. However, the most important challenge was the lack of financial resources to grow my business. I had to work hard to make money and then to invest it in developing my business further. I believe that in this way I learnt a lot about how to be a successful business person.
will allow them to benefit from the current level of computer technology development. In addition to that, we aim to tailor proper applications or to integrate a number of applications together and create a turnkey solution. The fact that we can customise solutions to the need of this region makes us unique and that is why “Arabisation” has become one of our specialities. What we provide is more of what we call “business systems solutions” where we look at what type of business our client does and then help automate the processes. So, it is an “e-business solution”, that is basically a software system and a database system which is most likely Internet-enabled and which helps the client to do his or hers business in a better way. What is your advice for SMEs on dos and don’ts in order to properly develop their businesses and remain successful in Qatar? In a small country like Qatar, there are a lot of available tools for them and I wish they would all work cohesively. Since we believe in realisation of the Qatar National Vision 2030,
which also encourages the development of entrepreneurship and innovation capabilities, I find that we are in need of more good entrepreneurs to build up a flourishing SME sector. I advise SMEs to be open to invent notyet-invented platforms. We have to cater for these newer emerging technologies. In addition, I would give them two-fold advice. Firstly, always try to work on something you are good at and you are passionate about. That is where you will produce more and be better off. You also need to maintain strong commitment towards yourself, your employees and your clients. Secondly, always respect ethics – try to provide the best quality you can and give the best service that you are capable of giving to your clients, since that’s what will last and what will help you maintain a good reputation. How has technology influenced the Middle East in general and Qatar in particular? The Middle East enjoys an extensive and highlydeveloped technology infrastructure which enables businesses to take advantage of state of the art information and telecommunication technologies. Qatar is giving priority to empowering and enabling the IT sector, particularly on the e-readiness and knowledge-driven economy
Second important challenge was to convince others that a Qatari company can develop high-end technology solutions. It is a bigger risk to invest in developing your own technology than representing an international vendor and re-selling their well-known technology. I find it unfortunate that many IT companies in the Middle East are only agents, dealers or resellers of overseas IT products or services. For that reason, we are one of the very few companies, even in the whole of the Middle East, that innovate and develop technologies and do not import it. We act as an agent for our clients and aim to develop a strategy which
Jassim Al-Mansoori
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success story
Many organisations locally and globally are realising that they cannot do everything. They need to focus on their core business and then outsource the non-core functions to specialised companies. This creates a lot of potential opportunities for the IT sector.
fronts. The entities like ictQATAR, the Ministry of Business and Trade and Qtel are playing an important role in this enablement through various programmes, support structures and service offerings. Also, since 2008 HE the Prime Minister has signaled a new direction in the government’s support to Qatar’s IT sector, because of which a lot of tools have been created for SME development. For example, establishment of Enterprise Qatar under the Ministry of Business and Trade, enablement of commercial banks to lend to SMEs, restructuring of QDB to
I would advise all entrepreneurs not to let their dreams get wasted and to just go for them! Be aware of what Richard Branson said, “Business opportunities are like buses, there is always another one coming,” but do not waste your dreams and grab the opportunity. What is your management style? I would say perseverance and time management were essential for me as an entrepreneur. There will always be times when the entrepreneur will face obstacles, but he
We now have three companies and presence in five countries. Our vision is to become a leading service provider in the MENA region. We look for diversification, more geographical expansion and strong innovation base. provide loans, and many more initiatives from educational institutions. What would be your advice for an SME or an entrepreneur starting a business within the IT sector? Many organisations locally and globally are realising that they cannot do everything. They need to focus on their core business and then outsource the non-core functions to specialised companies. This creates a lot of potential opportunities for the IT sector. There are excellent companies which provide hardware and infrastructure solutions.
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needs to hold on and persevere. He has to believe in himself and his products or services in order to succeed. What are your business growth plans in Qatar? We established our Doha office in 1996. Later on we opened our office in Qatar Science and Technology Park (QSTP) which is looking after all our R&D activities. Our R&D department focuses mainly on developing some innovative products. For example, one of the products we are currently working on is an “Arabic Search Engine” and, hopefully, once it’s tested we can
put it to commercial use. We are also working on some other ideas that will be announced in due course. We believe that organisations cannot ignore any single medium in today’s world. They have to cater for the computers, Internet experience, and we are catering for the small mobile devices, bigger iPad devices and home TV devices. They cannot come up with a narrowminded view of what tools are available today. What are your ambitions regarding the expansion of your business outside Qatar? We now have three companies and presence in five countries. Our vision is to become a leading service provider in the MENA region. We look for diversification, more geographical expansion and strong innovation base. Our business outside Qatar started with just presentation offices. Then we decided to open our development house in Amman, Jordan. So, we plan to expand abroad. Sometimes, we get clients from a foreign country which motivates us to go, explore and open that new market for our business. For example, in the case of our activities in Algeria, we were actually approached by a client and previously we haven’t even thought of doing business there. Thus, now we are considering whether to go there and explore that new market. On the other side, in case of KSA we independently decided to open our office there since it’s our neighbourhood with a lot of similarities in terms of culture. Also, we consider that KSA has a huge market potential. For the next two to three years we have developed an expansion strategy and now we are researching and preparing for places like Lybia and Egypt.
Excellence. At Carnegie Mellon.
For more than a century, Carnegie Mellon University has been inspiring innovations that change the world. Consistently top ranked, Carnegie Mellon has more than 11,000 students, 90,000 alumni and 5,000 faculty and staff globally. In 2004, Qatar Foundation invited Carnegie Mellon to join Education City, a groundbreaking center for scholarship and research. Students from 39 different countries enroll at our world-class facilities in Education City. Carnegie Mellon Qatar offers undergraduate programs in biological sciences, business administration, computational biology, computer science and information systems. Carnegie Mellon is firmly committed to Qatar’s National Vision 2030 by developing people, society, the economy and the environment. Learn more at www.qatar.cmu.edu
SMEs
Maintain your success Qatar German Gasket Factory (Q-GER) is a name you can TRUST. It is a Qatari company which manufactures industrial gaskets based on the highest quality standards available in the world and is committed to provide reliable service at all times. Tamara Pupic visited them and brings to you their story.
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atar-German Gasket Factory (Q-GER) was established in Qatar in June 2007 as an affiliate and under technical supervision of the Al-Iman Gasket Factory, Saudi Arabia. The Al-Iman Gasket Factory has been in operation since 1988 and has established a renowned name in delivering only top-notch gasket products that are proven by international standards and witnessed by satisfied customers all over the GCC region. The manufacturing in Qatar started in September 2008.
That it was the right decision was confirmed by the Ministry of Business and Trade of Qatar which, upon submission by Capt. Ghassan Al-Salem, Chairman of Q-GER, evaluated their proposal as the best proposal and feasibility study for starting a business in Qatar. In the beginning, they had only a small set up in Qatar and were providing technical support to the clients. After that, they started providing a complete package which included high quality material, proper services and technical support and also a possibility of site visits in order to recommend what material or type of gasket should be used.
The beginnings The decision to open a factory in Qatar was based on two reasons. Firstly, the procurement of industrial gaskets in Qatar had increased since the country is the world’s largest supplier of liquid natural gas (LNG). In line with that, representatives of RasGas Company Limited (RasGas) suggested opening of a Qatar-based company which would produce and provide immediate delivery of industrial gaskets needed for operations of companies within the industry. Secondly, the particularities of the product itself and its time-of-use require the fastest possible delivery and usage by the client. Industrial gaskets are “shut down” and maintenance products which require immediate catering to the clients. For example, if there is any shut down or maintenance activity in the plant, it will demand delivery of gaskets as early as possible. For that reason, it was necessary to set up a facility in Qatar in order to be close to the clients.
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Usually, for a startup, access to finance can be quite difficult in the first years, but they had support from the Al-Iman Gasket Factory and QDB. QDB offered two possibilities of support – to finance either 60% of the total project or 80% for the machinery. Q-GER chose the second option and for the remaining 20% received support from their Saudi Arabia affiliate. Q-GER was quick to point out that QDB has responded promptly and also visited their factory on several occasions in order to track their progress and offer any kind of businessrelated advisory support they needed.
Importance of adequate equipment and proper materials Upon establishment, all experience gained from operations in Saudi Arabia was used in Qatar, with an aim to develop a successful new facility. This included all the technical support, raw materials and advice on machinery. Bases on that, the choice of the right machinery to be procured
did not pose a problem for them, but they do mention that purchasing the right equipment can be a big challenge. Right machinery specification is important and they advise new companies to take care of the quality of material and the equipment used, as it is extremely important in the industrial gaskets industry. On one side, if you look at the price of a gasket it’s cheap, but the same gasket can make a massive damage in your plant. So, if you don’t use the right material and don’t have proper equipment, it might cause injuries or death in the plant. Thus, because of just one gasket a company might lose millions. Q-GER is equipped with latest technologies to produce high quality of metallic and non-metallic industrial gaskets. Overall, the machinery is fully or semi-computerised. Elaborating further on the importance of quality, they always check and verify certificates for production while their in-house machinery checks the quality of the material. They use only raw materials from high quality suppliers in Europe and USA since the raw materials are vital in producing high quality industrial gaskets. Although they have always been good at material selection, their strict quality control makes sure that the right material and the right sizes are used. In addition, their strict quality assurance guarantees that all gaskets are manufactured according to the required quality standards while a fully computerised administration system enables an excellent service and control of documents. Because of that, Q-GER facilitated the production of all types of industrial gaskets to
SMEs
Another challenge faced within Qatar is that legally envisaged margin of up to 10% in favour of local companies is not respected in practice. For example, their up to 10% higher offer is not accepted in many cases as companies purchase cheaper products from abroad.
meet the requirements of oil, gas, chemical, petrochemical, water and power sectors with least delivery time and very competitive price.
are many parts in it, not all of them will be tested and, thus, certified upon importation.
Challenges Is competition a threat? When we first asked them about competition in Qatari market, they first point out lack of quality among products of certain market participants. Many inferior materials from Chinese or Indian markets are available in Qatar. If a company procures from some cheaper supplier, it won’t be branded and will be without specification. For example, graphite is a special material used for industrial gaskets which is always black in colour, but purity is different. So, if the producer does not provide specification of the materials used, the client will not realise that the gasket is actually made of an inferior material. Q-GER offers 99% purity of graphite while other companies can supply graphite of 60%-70% purity. Because of the unhealthy competition from foreign markets, another challenge they face is that imported goods can obtain the same certificates as Q-GER even though that certificate will not examine and present all the content of the gasket. For example, since there
Operating costs (land costs) in Qatar are much higher than in neighbouring countries. Even though Q-GER took 99 years lease on the factory’s area, the rent is much higher than in the neighbouring countries. For that reason, it is very hard to compete with regional companies in export activities and to gain global market share, since their prices are much lower due to cheaper operating costs. In line with that, Q-GER considers that export activities of beginners within the industry would be quite difficult. For example, export from Qatar to Saudi Arabia, UAE, Oman or Kuwait is not feasible since prices there are much lower and, thus, there are no advantages. Within the whole region, Qatar will be on the top with operating costs and, thus, final prices. On the other side, export to European markets is quite difficult since they require a lot of certification and previous experience due to their high quality standards which you cannot have in the beginning. Another challenge faced within Qatar is that legally envisaged margin of up to 10% in favour of local companies is not respected in practice. For example, their up to 10% higher offer is not accepted in many cases as companies purchase cheaper products from abroad. They stress that these legal provisions should be applied and respected by all companies in Qatar.
Market share measures their success
Heinz Hurter
Even before starting their operations in Qatar, Q-GER already had some market share in Qatar, since clients were familiar with the quality level established by their Saudi Arabia affiliate. Later on, Q-GER proved to their Qatari clients what level of quality is possible
Capt. Ghassan Al-Salem
and how professional service can be. Now, clients understand their point of view and their market share is around 80%. The initial plan was to meet the demand in Qatar and start exporting only as a second step. Nevertheless, they already export to Yemen, Dubai and Iraq, and are also planning new projects in Algeria. Part of their success is in the constant market research, especially regarding customers’ requirements. For example, they check what kind of special gaskets customers need, modify their product on the basis of their requests. They also do engineering and re-engineering free of cost in order to produce special kind of gaskets and meet customers’ needs. Lastly, Q-GER charges very reasonable prices because Heinz Hurter, General Manager, is very strict about honest and reasonable pricing of their products. For that reason, many clients are still with them – reasonable price, good quality, right material and fast delivery. The growth plan for the following one year is to expand the facilities and enhance the production in order to export more in the European markets and also in some other Middle East markets. In addition, they also plan to procure more machines in order to improve the quality and relieve current production.
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SMEs
Step by step
Qatarian Vehicles Structure Factory (QVSF) is one of the pioneers of Qatar’s manufacturing industry since it is the only factory in Qatar that manufactures large vehicles. QVSF’s management talked to Tamara Pupic about the business challenges they faced and proposed solutions which could facilitate business expansion of all Qatari companies within the manufacturing industry.
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atarian Vehicles Structure Factory (QVSF) was established in 2007 by Mr. Saeed Al Qoz Al Marri who previously owned a transport company. For his business operations at that time he needed to procure large vehicles from KSA, Kuwait or Dubai, since they were not manufactured in Qatar. In order to avoid buying them in foreign markets, he came up with the idea to establish the Qatarian Vehicles Structure Factory (QVSF) and, step by step, most of the vehicles, which he was previously importing, are now being manufactured in Qatar. As for many startups, accessibility of finance was difficult in the first years of QVSF’s business operations. Nevertheless, QDB’s support in terms of financing 60% of the total project was helpful and they used it for building and construction of the factory. But, the remaining challenge was to secure finance for raw materials which again had to be procured from abroad. As the raw material was imported, there was constant exposure to currency fluctuations resulting in losses. This challenge is not resolved to this date. Because of perpetual insufficient financial resources for raw materials, their production is still
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below the desired level. In an attempt to describe the difficulties this causes to their business, they explain that in order to produce only one unit they actually need to produce the whole stock. And the production of that size requires around QR 20 million of investments which they cannot afford at the moment. So, the market as small as Qatar’s does not allow them to explore the economies of scale.
plans. If cheaper raw materials would be accessible in local market they would be able to produce even around 1000 units in less than one year. For that reason, they have also decided to accelerate export plans in order to gain profits which will be further invested in production and, consequently, allow them to gain larger local market share.
One of the obstacles is that the Qatar’s Labour Department determines nationalities of employees for which visas could be issued. As a consequence, QVSF often has to employ a worker of a certain nationality even though he or she is not skilled enough.
How to increase the production? QVSF’s current annual production is 500 units while their plan is to increase it to 1500 by 2014. Current production is not enough to cover demand of the Qatari market which is their primary target. Consequent plans include expansion of export. Speaking about their future activities, they again highlight that finance for raw materials remains a problem and limits their production expansion
For the time being they procure cheaper raw materials from foreign markets and conduce usual market research which includes visits to exhibitions and fairs in countries like China or Turkey. Upon calculation, which includes adding the transport, customs and all other necessary costs, the decision on purchase is based on comparison between the final price of a material if imported from abroad and the Qatari market prices. Thus, they procure foreign raw materials solely because of the cheaper price.
SMEs
Within foreign markets they do not engage in any special marketing strategy since they consider that the vehicle itself is the best possible advert while moving within the Gulf area. In line with that, QVSF’s marketing activities rely on the word of mouth, their Website and a few advertisements.
since production costs (price of steel, rent of land, construction costs, and similar) are much cheaper in KSA when compared to Qatar. But, more importantly, the quality of these vehicles is not assured. Nevertheless, individuals and small projects’ managers in Qatar prefer to buy cheaper imported vehicles regardless of their quality.
Currently, QVSF employs 75 people which is not enough for their needs. They plan to increase the number of employees to 150 in order to introduce two shifts. One of the obstacles is that the Qatar’s Labour Department determines nationalities of employees for which visas could be issued. As a consequence, QVSF often has to employ a worker of a certain nationality even though he or she is not skilled enough. It often happens that after two to three years of working with them and undertaking various trainings, the employees return to their countries and start their own business, leaving the factory without skilled workers again.
For that reason, they highlight the importance of educating consumers within the industry since it’s dangerous to buy a vehicle which is not functioning properly.
Try to compete on the basis of quality When we asked them about competition in the Qatari market, they point out that the competition with good quality products is healthy and drives them to improve their own quality. In their opinion, if the same quality as theirs can be produced at a lower price that would indicate that they either need to stop manufacturing or upgrade their production. However, that’s not a problem that they are facing right now. Currently, there are some manufacturing activities at a workshop level while QVSF remains the only factory that manufactures large vehicles in Qatar. Small workshops in Qatar are not their biggest concern in terms of competition, since majority of the Qatari clients are looking for good quality vehicles and, thus, buy from them. For that reason, QVSF competes with these products solely on the basis of the vehicle’s quality, which is supported by the required certificates and guarantees. Elaborating further on competition issues, they state that the biggest challenge is the competition which comes from imported products, especially from the ones manufactured in workshops within KSA. Their price is lower
In any case, unhealthy competition cannot be stopped, but it can and should be controlled through proper testing of products that are being imported. The first thing to do in this regard is to properly and thoroughly test all large vehicles by the customs. At the moment, technical inspection within the customs administration only checks traffic and safety signals, but not the quality of the vehicles’ construction. For that reason, QVSF
Saeed Al Qoz Al Marri of a new type of machinery in order to increase the production. In addition, their plans in Qatar include production of equipment for drilling the fuel (RIG construction parts). QVSF’s management
At the moment, technical inspection within the customs administration only checks traffic and safety signals, but not the quality of the vehicles’ construction. For that reason, QVSF suggests that the control system of imported products by the customs administration needs to be improved.
suggests that the control system of imported products by the customs administration needs to be improved. They propose establishment of an entity which should carefully test quality of all imported products. All QVSF’s products have one year guarantee while the imported products neither have the guarantee nor their manufacturers hold any consequent responsibility for it. Some customers, who are looking only for lower price order and import these kinds of products, but all the big companies present in Qatar buy QVSF’s products (Mercedes, Volvo, Nisan, Mitsubishi, car agencies, and so on). The road ahead Ambitions and growth plans include installation
posses experience in that area from their previous operations in KSA where only four or five companies manufacture that kind of equipment, but not in the same manner as is planned for Qatar. Furthermore, in Qatar nobody can do this type of job. In addition, they plan to open a new factory outside Qatar, especially in the Middle Africa and Sudan. In the post-war period of these countries, a lot of construction and similar projects are planned. Since the market suffers from a lack of production companies and, thus, imports a lot, QVSF considers it as a good market opportunity to expand their business. It will happen in the following years since the construction of a factory, all the necessary approvals and start of production will take few years.
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Business growth
Lucky by choice Being lucky is something that can be learned! Carolin Zeitler, CEO, Tataowar Coaching & Consulting, advises us how to seize a business opportunity and, thus, step out of the circle of those who would not even recognise it as an opportunity.
A
n old man sat studying just outside the gates of an ancient city. A traveller approached him and said, “Old man, tell me what are the people like in this city?” The old man looked up from his reading and said, “First tell me what the people were like in your home city?”
Which of the two travellers do you think will have more chance encounters? It’s impossible to say.
Lucky people consistently encounter such opportunities whereas unlucky people do not. I carried out a very simple experiment to discover whether this was due to differences in their ability to spot such opportunities.
Which of them do you think will make more of a chance encounter? That’s easy – the second one. With his mindset and enthusiasm he will see the opportunity in a chance encounter while the first traveller might well miss it, being so focused on all things negative.
I gave both lucky and unlucky people a newspaper, and asked them to look through it and tell me how many photographs were inside. On average, the unlucky people took about two minutes to count the photographs whereas the lucky people took just a few seconds.
A few minutes later another traveller approached and bowing to the old man asked, “Venerable one, may I ask you to tell me about the people in this beautiful place?” Again the old man asked, “First tell me what the people were like in your home city?”
Lucky and unlucky people When we look at the Bill Gates, Richard Bransons and Anita Roddicks of this world, we tend to think that they got a lucky break and that they just happened to be in the right place at the right time. To a certain extent that is true, of course. They were in the right place at the right time, but, and that is often overlooked, so were many other people. What distinguishes the “lucky” person from the “unlucky” person is that the former will seize the opportunity while the latter might not even recognise it as an opportunity.
Why? Because the second page of the newspaper contained the message “Stop counting – There are 43 photographs in this newspaper.” This message took up half of the page and was written in type that was over two inches high. It was staring everyone straight in the face, but the unlucky people tended to miss it and the lucky people tended to spot it.
The young man smiled and said, “It is a place much blessed, the people are kind and generous, I look forward to the time when my travels carry me back home so I can tell them of all the wonders I have seen.”
In an interesting experiment as part of his research on what makes people lucky or unlucky, Richard Wiseman, the author of “The Luck Factor”, Miramax, 2003, made a discovery about chance opportunities.
The old man smiled and said, “Sir, I am happy to tell you will find the people in this city
In his own words published in The Telegraph, 2003, “Take the case of chance opportunities.
“The people in my home city were a miserable lot, greedy and mean spirited. They are the reason why I left to wander the cruel world. I have vowed never to return to that horrible place.” The old man sadly looked up and said, “Sir, I am afraid you will find the people in this city to be much the same.” The traveller shook his head in disgust and passed through the city gates.
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to be much the same. Welcome.” The story is attributed to writer Kahlil Gibran.
SEPTEMBER 2012
Just for fun, I placed a second large message half way through the newspaper. This one announced, “Stop counting, tell the experimenter you have seen this and win USD 250.” Again, the unlucky people missed the opportunity because they were still too busy looking for photographs.” This example illustrates very clearly that being lucky is something that can be learned. Jim Collins calls it “Return On Luck” (ROL), and in his book “Great By Choice”, HarperCollins, 2011, he explains that the great companies they researched over nine years made much more of
Business growth
What set the great companies apart was their ability to not only seize “good luck”, but even turn around what seems like a “bad luck event”. the “lucky breaks” they had than the comparison companies did. Both groups averaged the same amount of “good luck events” and “bad luck events” during the research period. What set the great companies apart was their ability to not only seize “good luck”, but even turn around what seems like a “bad luck event”. Lessons learnt An example Jim Collins gives illustrates that very well, “On 8th November 1988, Peter Lewis, CEO, Progressive, received news that shocked the insurance industry. California voters had passed Proposition 103, a punitive attack on car insurance companies. The Proposition required 20% price reductions and refunds to customers, plunging a huge auto insurance market into chaos. Progressive had significant exposure, with nearly a quarter of its entire business from that one state — bang! — Severely damaged by a 51% vote on a single day. Lewis zoomed out to ask, “What the heck is going on?” He placed a call to Ralph Nader, a former Princeton classmate. Nader had long been a consumer rights activist, at one point leading a sort of special forces unit nicknamed “Nader’s Raiders”, and he had championed the Proposition 103. The message that Lewis heard, “People hate you. Or, in other words, people simply hated dealing with insurance companies, so they revolted with their votes.” Chastened by what he had heard, he called his staff together and told everyone, “Our customers actually hate us.”
He challenged his team to create a better company. Lewis came to see the Proposition 103 as a gift, and he used it to deepen the company’s core purpose and to reduce the economic cost and trauma caused by auto accidents. The company would create its “immediate response” claims service – no matter when you had an accident, Progressive would be available for 24 hours a day, 365 days a year. Claims adjusters would work from a fleet of vans and S.U.V.’s dispatched to policy holders’ homes or even directly to an accident scene. By 1995, Progressive could note this achievement – in 80% of cases, its adjusters would have visited the customer and were ready to issue a check within 24 hours of an accident. In 1987, the year before Proposition 103, Progressive ranked No. 13 in the American private-passenger auto insurance market. By 2002, it had reached the forth position. Years later, Lewis called Proposition 103 the best thing that ever happened to this company.” What made it possible for Lewis to turn this “bad luck event” into an amazing opportunity providing one of the foundations for Progressive’s extraordinary success, was his ability to change his perspective, to focus on the opportunity rather than the threat. It is not that he ignored the gravity of the situation, he was very much aware of it, but he didn’t let fear of failure paralyse him. He stepped back, looked at the bigger picture and calmly decided on the best way forward under the circumstances.
George Bernard Shaw famously said, “You see things and you say, “Why?” But, I dream things that never were and I say, “Why not?” I dare say that George was perceived as being lucky by his peers, as with this kind of mindset he would have been able to see and seize opportunities around him. A few tips Here are a few tips that can make you a “luckier” entrepreneur or, in Jim Collins’s words, can increase your “Return On Luck’’: • Regularly take time to step back and see the bigger picture. Try to see your company as others would see it. Brainstorm opportunities which will lead to other more realistic insights and ideas. If you find that hard to do, get a friend or a coach to work on it with you. • When you feel that stress, worry or fear is making you tense or your vision is closing in and becoming tunnel vision, step back and open up your perspective. Focus on achievements and opportunities and approach from an angle of gratitude. Remember the essentials – your core values, vision and mission. Then, and only then, decide on actions to take. • Every morning as you drive to the office, think of an opportunity you can create for your company today – post a poll on social media, send an e-mail to a potential “ideal client”, get an appointment with a potential partner, book a ticket to a valuable networking event or offer to be the keynote speaker at said event. As Albert Bandura, Stanford professor, widely referred to as one of the most influential psychologists of all time, put it, “Chance favours the inquisitive and venturesome, who go places, do things, and explore new activities.” On that note - good luck for your success!
Carolin Zeitler
Of course, he and his employees then had to do a lot of hard work to capitalise on this opportunity. Many other skills like discipline, foresight and wise management, to name but a few, certainly played a great role in their success. However, it would have never been possible if Peter Lewis hadn’t been able to step back and look at the bigger picture, to see the opportunity – the ability to do that made him “lucky”.
About Carolin Zeitler is the CEO, Tataowar Coaching & Consulting. She inspires, encourages and empowers people to make a difference, to realise their full potential. Tataowar empowers individual and organisational development through appreciative and strengths-based intervention. Carolin can be contacted at carolin.zeitler@tataowar.com.
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finance
GAIN AN INSIGHT
Banks are often hesitant to give loans to entrepreneurs and startups since they have fewer track records and, thus, there is less data to analyse and judge the risk appetite of startups. R Seetharaman, Group CEO, Doha Bank, tells Tamara Pupic how they can increase their chances of receiving facilities. Please tell us more about Doha Bank’s operations in the Middle East and, particularly, in Qatar. Doha Bank is one of the largest banks in the State of Qatar having a dominant position in GCC banking landscape with 32 state-of-art branches, 13 pay offices, nine e-branches, three mobile units and more than 110 ATMs.
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What is your opinion on changes within the banking sector in the past few years? On the global front the economic crisis has resulted in more regulation coming up in the banking sector which has also impacted the regional banking as well. In Qatar and UAE we have seen impact of regulations on the retail segment.
The international operations of Doha Bank are spread across the globe with two full-fledged branches in Dubai and Kuwait and eight representative offices in China, Japan, Germany, Singapore, South Korea, Turkey, United Kingdom and Abu Dhabi (UAE). This network is augmented by a cluster of correspondent links with over 300 banks the world over.
Basel 3 will impact the regional and global banks and, accordingly, they need to plan themselves to address the new regulatory requirements. We have also seen foreign currency lending and funding increasing in recent years in Qatar market. In addition, the credit bureau came up in Qatar last year which is going to strengthen the systemic risk in Qatar. The regional competition has become more intense with more banks registered in the Qatar Financial Centre.
Doha Bank has been consistently registering a strong growth during the last eight years with participative leadership philosophy. The bank has maintained a strong growth trajectory, including total asset growth, loan growth, deposit growth and shareholder equity growth year-on-year. Doha Bank has also achieved one of the best returns on average equity and return on average assets among the banks in the Middle East region over the last eight years.
According to you, what are the opportunities and challenges in the regional banking sector? The GCC economies, including Qatar, are planning to diversify in the next few years. We can see many opportunities coming out of this in education, health care and housing segment. The large scale infrastructure development can contribute to contract financing. Also, the increase in bilateral trade with other countries can provide more opportunities
SEPTEMBER 2012
in trade finance. In the UAE the trade and hospitality sector continues to witness activity and opportunities will remain in these sectors. The recent Saudi mortgage law will improve housing supply and stability as well as provide diversification for the banking sector. The economic growth of Qatar in medium will be moderate. Lastly, the SMEs also represent another interesting area. Regarding challenges I would also state a few. The diversification execution risks which impact the economy could impact the banking sector as well. The global crisis could remain a challenge to regional economies as the financial markets are lot more integrated. Please provide us with more details on loan options available for SMEs. We have funded and non-funded products for various industries and even companies interested in exporting will be considered if they fit in the required parameters. We are willing to provide financial products including short and medium term for such companies to finance their manufacturing either under our Tatweer product offering or through QDB’s Al Dhameen programme.
finance
However, financing the exports will involve understanding counter party risk, country risk, and so on. Please provide more details on the Tatweer programme. The Tatweer package includes overdraft, short term loans, local purchases facility, vehicle loans, medium term loans for meeting capex requirement, letter of guarantees, LCs on sight and credit basis, credit cards and project based loans. The associated offerings from Tatweer include internet banking, insurance, cash management service, payroll cards, salary transfer and personal banking for High Net Worth Individuals (HNWIs) through Al Riyadh services. The requirements include at least one year of business and six months of Doha Bank’s current account. The turnover should be within QR 50 million while the funding can go up to QR 25 million. We have a standard application form which captures the basic information required to do credit assessment.
Since startups have fewer track records there is less data to analyse and to judge the risk appetite of startups. However, a well-conceived idea, appropriate and well-calculated risks and sound business models would encourage banks to look in that. In case of contract financing, information sought includes project details, cash flow projections, related experience, and similar. We have built up a large customer base which stands as a testimony to our strong relationship management and service capabilities. The industry range includes trading, hospitality, contract financing, shopping mall, manpower agencies, manufacturing and many more. Generally, banks are hesitant to give loans to entrepreneurs and startups. What is your opinion on that? Since startups have fewer track records there is less data to analyse and judge the risk appetite of startups. However, a well-conceived idea, appropriate and well-calculated risks and sound business models would encourage banks to look in that. Doha bank evaluates the entrepreneurs and startup based on the prescribed norms and accordingly provides the necessary products for the best interest of its customers. How can entrepreneurs and startups increase their chances of getting loans? Critical elements in getting financing for startups and new companies include strong business plan and model, management team to implement it, financial support from owners and marketing arrangements. From the banking perspective, feasibility study will cover all these aspects. The future cash flow projections should justify the level of borrowing.
R Seetharaman
A startup should have a sufficient infrastructure and people to launch it. In addition, it should have adequate financial, legal and marketing advice as well as the support from either internal or external resource. If it’s a foreign
company venturing into Qatar, they would need due diligence on the economy, culture and business practices. The startups and entrepreneurs should have a well-conceived strategy to execute their business plans and ability to handle adverse situations. Any businesses is based on sound fundamentals and as long as the entrepreneurs and startups can demonstrate this clearly to bankers the chances of receiving facilities are better. What are the financial dos and don’ts of starting a business? Before starting a business the entrepreneurs should have a good knowledge of the industry and economic conditions and a well-balanced model. They should also assess the risk appetite of owners and the funding they can bring themselves. A sound business is well rewarded and equally risky as well. Hence, don’t start any venture as an adventure! I encourage young entrepreneurs to improve both their business acumen and risk appetite through periodic knowledge sharing.
About Dr. R. Seetharaman is the Group CEO of Doha Bank Group, Chairman of Doha Brokerage and Financial Services Limited, and CEO of Doha Bank Assurance Company. He is a Chartered Accountant and holds certificates in IT Systems and Corporate Management. His specialisation includes managerial economics and he has been a gold medalist in his graduation Bachelor of Commerce from the University of Madras. Prior to joining Doha Bank in 2002, Dr. Seetharaman held senior management positions in three banks in Oman, handling all domains in banking. He started his professional career at one of the global consultancy firms, Price Waterhouse, before moving to the banking sector.
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Finance
trade at a lower risk In an effort to strengthen the country’s legislative infrastructure, Qatar Financial Markets Authority (QFMA) issued new regulations on financial services, the scope of which also covers liquidity providers and lending and borrowing of securities, among others. Niranjan Mendonca, Head of Retail Banking, Mashreq bank Qatar, explains how this favours SMEs interested to engage in export activities.
Q
FMA’s regulations, which will have a direct positive impact on the future of SMEs, have been derived following detailed analyses and study of the Qatari market. The aim is to help improve efficiency and increase the level of liquidity, in addition to expanding on current investment prospects. One of the direct beneficiaries of these measures would be Al Dhameen, Qatar Development Bank’s (QDB) indirect lending programme targeted at Qatar’s SME market that comprises of approximately 18,000 companies (90% of total 20,000 registered companies as of 2011), developed in partnership with 14 financial institutions, including Mashreq-Qatar. The programme encourages viable startup business ideas including sectors where one would normally have no access to funding from commercial banks. EWC financing The increased liquidity arising from such a regulatory environment will swell the reserves of local SMEs, with at least some of them looking to expand beyond their natural borders. In a dynamic market such as Qatar, with a growing export potential over the coming years, banking institutions, such as Mashreq-Qatar, are working towards facilitating export working capital (EWC) financing.
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In the future, the export working capital (EWC) financing will allow local exporters, SMEs in particular, to purchase the goods and services they need to support their export sales. Such lending would provide SMEs access to sufficient internal liquidity to process and acquire goods and services to fulfil export orders and to extend open account terms to their foreign buyers. In the business cycle of an SME, there might be an unexpected volume requirement for export and these incremental export orders can place challenging demands on working capital. The EWC financing, which is generally secured by personal guarantees, assets, or high-value accounts receivable, helps to ease and stabilise cash-flow problems of exporters while fulfilling export sales, growing competitively in the global market. Another scenario would be a series of small export orders which can be catered to by revolving lines of credit as they are designed to cover temporary funding needs that cannot always be anticipated. Revolving lines of credit have a very flexible structure so that exporters can draw funds against current account at any time and up to a specified limit.
Foreign exchange as a risk factor While the SME sector continues to grow in scope and size in Qatar, foreign exchange (FX) is a risk factor that is often overlooked by those seeking growth in the global marketplace. This risk is the exposure to potential financial losses due to devaluation of the foreign currency against the USD, GBP or Euro. SME exporters who choose to trade in foreign currencies can minimise FX exposure by tightly designed risk management techniques. The new regulations set in place by the QFMA will provide SME owners the peace of mind and confidence to trade at a lower risk. A recent study by a median forecast of 11 economists by Bloomberg indicated that Qatar’s economy grew 18.8% last year, almost three times faster than Saudi Arabia’s. This rate stands to expand to another 6.1% in 2012, the GCC’s fastest. The QFMA regulations will ensure optimal trading transactions not only in the SME sector but across all businesses, offering them access to global standardisation. This will guarantee better stability and balance and drive foreign investments into the country.
Niranjan Mendonca
About Niranjan Mendonca is the Head of Retail Banking, Mashreq Qatar. He has been part of the banking industry for many years with stints at ICICI Bank and HDFC bank in India. Mendonca has a Graduate Degree in Economics and an MBA in Marketing, both from the University of Mumbai, India.
http://www.PrivateSectorQatar.com/en
Valuable business advice that will help develop your business. Be part of a community spanning magazine, events, Website and social media.
TECHNOLOGY
Es’hailSat:
A Qatari star in the making
As Qatar joins the space fray with Es’hail 1, a joint mission with Eutelsat, commercial and national strategic interests will be revisited across the region. SatellitePro ME, our sister publication, spoke exclusively to Ali Ahmed Al Kuwari, CEO, Es’hailSat, on Qatar’s momentous journey towards the launch of Es’hail 1 in the second quarter of 2013.
I
t is difficult to gauge how excited average Qataris are about their space programme, but the apparent dearth of patriotic hoopla is more than compensated by a pragmatic, well-reasoned approach to acquiring a foothold in space. “When the thinking began in 2009, the government formed a committee representing all the major stakeholders in the country. The stakeholders defined their requirements. What is important is that we started from the end user. ictQATAR is the executor of this mission,” said Ali Ahmed Al Kuwari, CEO, Es’hailSat. Armed with the requirements of the stakeholders, Al Kuwari’s team had the task to define the best way forward, “We had to either take the Greenfield route or explore well established orbital slots. We opted for the latter and chose Eutelsat, because the company is a major operator in the MENA region. They have a presence in 7 West and in 25.5 East. At 7 West, they have partnered with Nilesat and we decided to partner with them at 25.5 East. It is our first satellite so we decided to have it in one of the most lucrative locations over the MENA region.“ Collaboration with Eutelsat With Eurobird 2 coming up for replacement, Eutelsat welcomed the opportunity to partner with Es’hailSat, according to Al Kuwari. On the nature of the collaboration between Es’hailSat and Eutelsat on Es’hail1, slated to enter into service in the second quarter of 2013, Al Kuwari explained,
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“The Qatar Satellite Company was established in 2010 and now we are operating under the name of Es’hailSat. Our first satellite is a joint venture with Eutelsat at one of the region’s hotspots – the orbital slot 25.5. Deg East. As part of this agreement, we own 54.5% of the satellite and the satellite will be operated by Eutelsat owing to their expertise in the field. In addition to securing Ku-band continuity for Eutelsat and additional Ku-band resources for Es’HailSat, it will initiate a Ka-band capability to open business opportunities for both parties. Marketing of the capacity will be done separately. We, on our part, are starting from scratch.” The marketing juggernaut has started rolling with a much-publicised signing of the launch partner at Satellite 2012, in Washington, and the announcement that the company would take 60 sqm of space at the region’s premier satellite event – CABSAT 2013.
Cup or by the need to have backup in the event of another undersea cable breakdown as it occurred off the coast of Fujairah (UAE) some years ago? These and more reasons have been cited. In response to the dispute over the orbital slot 26 degrees East, a spokesman for Es’hailSat stated, “The interested parties at 26 degrees East are conducting frequency coordination discussions at the International Telecommunication Union (ITU). All parties are motivated to ensure that operations at 26 degrees East are not subject to interference and the premier DTH neighbourhood continues to develop from strength to strength.” Poised to serve national stakeholders With a lucrative hot spot and iconic stakeholders such as Al Jazeera, Al Kuwari’s team would have some readymade takers for the capacity. From the installed base of more than 13 million satellite homes equipped for DTH reception across the
“The signing of Arianespace as our launch partners was intentionally planned at a high-profile event such as Satellite 2012. Our sales efforts should get under way by the third quarter of 2012. In the meantime, we are moving to a standalone building and we are in the final stages of finalising a vendor for the Network Operations Centre (NOC),” said Al Kuwari, giving us a glimpse of the behind-the-scenes efforts at establishing Qatar’s satellite programme on the world map. There is also an underlying sense of urgency. Was the urgency driven by the 2022 FIFA World
Ali Ahmed Al Kuwari
TECHNOLOGY
region to the growing demand for HDTV, Es’hail 1 has a captive market going forward. “Es’hail 1 is just the start of our mission to provide high quality, independent satellite services to meet our national stakeholders’ interests and serve customers throughout the Middle East and North Africa. HDTV takes up three times the capacity of SDTV and one of our primary customers, Al Jazeera, is expanding and requires capacity, as do the growing number of radio and TV channels in the region,” affirmed Al Kuwari. Advanced technology, better coverage Es’hail 1 is being built by Space Systems/Loral (SSL) with a 15-year design life based on the SSL 1300 satellite bus that is a proven, modular platform with high power capability and flexibility for a broad range of applications including improved government and radio communications. “We are not competitors to the other regional operators,” reiterated Al Kuwari, and added, “Along with Yahsat, Arabsat, Nilesat, Eutelsat and others, we are increasing capacity over the region. In addition, we have seven transponders for Kaband that will be used for telecommunication and news gathering, among other uses. Our strategic objective remains that of securing capacity for our Qatari stakeholders. There is no question of special rates and other such privileges. Ultimately, we will be operating in a commercial environment and end-users are completely free to shop around for the best options available.” Es’hail 2 on the anvil Going forward, Al Kuwari revealed that there were plans for Es’hail 2, “We will soon announce a partner for Eshail 2. The business model will be different. We will be operating Es’hail 2 from Qatar and we will need to construct a teleport for that purpose.” In the meantime, the Qatari team, with no legacy in the satellite sector, is keeping the learning curve manageable, “We are going ahead gradually and that is why the first satellite is being operated by Eutelsat,” said Al Kuwari. Al Kuwari’s own initiation into the world of transponders, payloads and bandwidths is reflective of Qatar’s step-by-step approach to the world of satellites. A finance person, and erstwhile finance
Owing to its capabilities and hot spot location, Es’hail 1 will support a range of telecommunication services for businesses and government users such as VSAT, broadband, GSM backhaul and restoration services. director of ictQATAR, he had a ringside view of the brainstorming sessions between the government and stakeholders, at the outset, and was keenly involved in the design phase as well. He stated, “Personally it continues to be a thoroughly engaging journey. More importantly, the project is also about empowering local Qataris. We currently have four engineers training at SSL’s Palo Alto facilities.” The USD 250 million Es’hail 1 story is another MENA satellite milestone in the making and while the sighting of the Es’hail star in Arabic tradition signifies a change from summer to winter, the Qatar Satellite Company is poised for more enduring change.
SatellitePro ME also spoke to Es’hailSat engineers at Palo Alto on their engagement within the Es’hail 1 project which they defined as “a once-in-a-lifetime experience.” On reasons to join Es’hailSat, Mohammed Al Delaimi, Engineer, expressed his appreciation at being a part of the project, “I was honoured and excited when Es’hailSat offered me the chance to join the company and be one of the Es’hail 1 project members representing the company in Palo Alto at the Space Systems/ Loral Facilities. This company has the potential to become a leader in the satellite industry in the Gulf region, and to be a major service provider in the field of satellite communications in the MENA region over the long term. In addition, this company will meet Qatar’s strategic needs. I’m glad to be part of it.” Elaborating on their experience at Palo Alto, Thani Ali Al Malki, Engineer, pointed out, “I think that this experience is a once-in-a-lifetime opportunity that has influenced me both personally and professionally. Even though I have a communications degree that covered satellite and communications fundamentals, there is still a gap between what you can learn in theory and in practice. In addition, the bigger challenge is to stay up-to-date with the new technologies that come
into the satellite industry each year.” Regarding superiority of Es’hail 1 when compared to the previous satellite it is replacing – Eurobird 2, Al Delaimi, explained, “Eurobird 2 or Eutelsat 25A as it’s called now is a shared mission with the Es’hail 1 satellite at orbital slot 25.5° East. Es’hail 1 satellite has the necessary capacity to enable its customers to substantially increase their communications capability such as broadcasting in HD and 3D. Also it has a resilient configuration to overcome natural component failures through built in redundancy.” Continuing on that, Al Malki added, “The Es’hail 1 satellite has a lot of upgraded hardware and software that is designed to support superior and advanced services such as the latest on-board processor and advance pointing accuracy systems to provide optimised coverage.” Qatar’s ICT2015 strategy Qatar has invested QR 6 billion in information technology and services as part of its ICT2015 strategy. The country is planning to build digital networks, smart cities and other technology-rich features to ensure that FIFA 2022 in Qatar will be the “most amazing World Cup ever”, in the words of ictQATAR Secretary General Dr Hessa al-Jaber. The country rolled out a National FTTH network through a recently-established broadband company. This network, called Q.NBN, will serve as Qatar’s link to the Internet world with Synchronous Transport Module level-1 (STM1) levels reaching more than 1,400 by the year 2022. It will be augmented by the launch of Es’hail 1, Qatar’s first independent satellite, in 2013. Taken together, this network will deliver an ultra highspeed, open, affordable and reliable network, reaching 95% of the nation by 2015. Qatar’s mobile penetration has reportedly reached more than 150%, the highest rate in the world, while the Internet penetration reached 84% in 2010.
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Technology
Animate your business
As Qatar moves towards the realisation of the National Vision 2030 and the FIFA World Cup 2022,
it offers opportunities for multimedia and animation services as many businesses will require visual representation. Ali Mussayab, CEO, Purple Cedar Animation Studio, presents these innovative methods for the promotion of your business.
P
urple Cedar Animation Studio is a Qatari startup supported by the Bedaya Center and with plans to grow into a professional production house in the coming years. Although a new company in the market, we already have a list of potential clients and assigned projects for the rest of the year. This engagement includes various digital media like advertisements, business presentations, visualisations, promotions and even games on the Internet and mobile platforms. Most of the clients who have approached us are looking for innovative methods to promote their businesses. Animation seems as a logical next step since most of them believe that the use of animation has made it easier for them to give a clear idea of their business. This is a proof that people like to display their products using new methods rather than creating a typical powerpoint presentations or a slide shows. According to a survey we conducted among more than 300 business owners, students and other participants of the “Youth to Entrepreneur Forum” organised in the Qatar Foundation Student Center, 45% were interested in using animation for educational purposes, 30% for entertainment purposes, 25% for businesses promotion purposes, while only 10% preferred to stick to the traditional methods. Beyond the boundaries of time, place and object Animation does not impose any limit to what can be created and presented creatively. For example,
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using animation we can create scenes from 1900’s to present the culture of pearl diving or we can present a futuristic scenario in which people would be riding on flying land cruisers.
Cons: • Can be costly • Production can be time consuming
Sectors that are the biggest users of animation are: »» Education New educational methods include visualisation since students learn their lessons quicker when they interact with what is being taught to them. This makes them feel more involved and motivated rather than reading lectures from a book. »» Entertainment After the success of the TV Show “Freej” within the Arab world, the audience is interested in watching content on Gulf culture in the form of a TV Show, movie or a video game. In addition, the range of the audience has increased from just children to people of all ages. »» Public service announcements In recent years, airlines, traffic authorities, environmentalists, medical authorities and many more have used animation to prevail their message and to make the world a safer place. »» Business Use of animation to promote your businesses is very attractive since it’s ideal to compile the most informative content in just a few seconds and, thus, effectively score major points, especially in front of CEOs who are usually eager to get to the point in the shortest amount of time.
As appealing as it sounds, there are a few challenges to establish an animation studio or a production house in Qatar. First of all, finding the right team is a big challenge since the sector is still not developed in the Qatari market and relevant companies usually outsource this kind of work. Secondly, finding 3D professional based in Qatar is additional problem since the only education in animation that can be obtained in the country is either by self-teaching, online universities or institutes like Aptech in Qatar which has Arena Multimedia Programme with a degree in multimedia.
Pros and cons of using animation in Qatar and the whole Gulf region Pros: • It’s straight to the point • Brings imagination to reality • Appealing to the eye
Ali Mussayab
About Ali Mussayab studied at the SAE Institute in Dubai and obtained his Bachelor degree in Interactive Animation from Middlesex University. Before establishing Purple Cedar Animation Studio, he worked as a professional graphic designer and creative director for printing and advertising companies in Qatar for over five years. For more information, please visit www.purple-cedar.com.
Technology
Anticipate 2022:
Connecting Qatar’s stadia Reflecting on Qatar’s successful bid to host the FIFA 2022 World Cup, Vick Mamlouk, Vice President, Wireless Sales, Middle East and Africa, CommScope, considers how voice and data services will be integrated into the stadia design.
W
ith a summer packed full of international sporting events, including London’s hosting of the Olympics and Euro 2012 in Poland and Ukraine, all eyes are on the sporting venues of the future. With Qatar recently winning the bid to host the 2022 FIFA World Cup, the region is brimming with excitement at staging one of the greatest sporting competitions in the world. The stadia outlined in the official bid demonstrate the sheer scale of ambition and technical ingenuity the Qatar Football Association has in mind. Not only is the organisation tasked with building several truly stunning venues, such as the Doha Port Stadium, which is almost completely surrounded by water, and the futuristic Umm Slal
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Stadium, but they also have to overcome various well-publicised issues including air conditioning inside the venues and several other technical hurdles.
wireless infrastructure at the last two FIFA World Cups, in South Africa and Germany respectively, we know that fans want to share the excitement with friends and family not present at the event.
The months following December’s announcement was a time to celebrate securing one of the most significant infrastructure projects that Qatar has ever seen. But six months on, the honeymoon is over and the process of transferring that exceptional proposal from paper to the pavement is getting underway.
Whether it’s capturing the winning goal on their mobile phone camera or calling friends to find out a rival team’s result, fans from all nations will require a flawless wireless service at every game. We also know that the top stadiums of the future will increasingly demand an integrated network that cannot only manage wireless communications, but all other digital technology in the venue.
Flawless wireless service Our industry has an important role to play in supporting Qatar’s efforts to deliver a first class World Cup in 2022, with wireless and IP technology already forming an essential part of the stadium experience. Having provided the
Perhaps the most important consideration for the venue planners, from a communications perspective, is anticipating the technological requirements of fans and staff a decade from
Technology
Perhaps the most important consideration for the venue planners, from a communications perspective, is anticipating the technological requirements of fans and staff a decade from now. The mobile industry is already experiencing well documented phenomenal growth in data consumption.
now. The mobile industry is already experiencing well documented phenomenal growth in data consumption. For example, Cisco estimates that worldwide mobile data traffic will increase 26fold in the period 2010 to 2015.
common and puts additional strain on the network. Sports stadia may also have numerous HD video displays distributed throughout the venue, not to mention show-piece scoreboards all running on the network.
Therefore, it is imperative that any communications system for future World Cup venues must be designed with next-generation technologies in mind. At the very least we must prepare for significant numbers of High-Definition (HD) videos being recorded and distributed within each stadium, particularly during the opening ceremony, but new innovations, applications and services will always increase the demand for higher bandwidth throughout the World Cup and events beyond 2022.
A single integrated network To ensure cohesion and reduce potential downtime, it is logical for all digital media to rely on a single integrated network. In addition, installing a network infrastructure that can provide complete control over all systems including digital audio and video, voice over internet protocol (VoIP) phones, HVAC (heating, ventilation and air conditioning), access control and most building management applications - would give the stadium management team increased vision, knowledge and control to heighten the stadium experience. The mobile network should also be integrated into the infrastructure so that capacity peaks can be managed more effectively, as well as controlling independent wireless systems for security and emergency services.
The same is true for any large enterprise network, which are increasingly needed to support operations inside modern stadia. These venues are no longer simply places where sporting contests occur; they are also full time offices and venues for all kinds of business and commercial events. As in any large enterprise environment the use of IP devices, such as telephones, security cameras and PC terminals, is increasingly
Vick Khalil Mamlouk
However, stadiums do present unique challenges in providing wireless connectivity, as match days require a network capable of supporting the equivalent of a small city located within a single structure. In addition, the layout of the stadium inherently makes signal penetration very difficult, requiring a team of highly experienced engineers and designers to ensure that reception is able to flood all parts of the stadium effectively, as well as guaranteeing seamless signal handovers from section to section. These are precisely the same issues we successfully overcame in all ten venues used in the most recent World Cup in South Africa. In these venues we deployed distributed antenna systems (DAS), which work by taking a donor feed from a macro cell via a repeater or
a dedicated Base Transceiver Station, and then distributing it over fibre and/or coaxial cables throughout the building. A dedicated radio base station connected to a DAS ensures both dedicated coverage and capacity, confines the signals, prevents signal spillage and interference and thus enhances the quality for both voice and data services. DAS systems can also be installed to support multiple operators, after all, it will be of no use to the event organisers if subscribers of only one mobile network operator have access to voice and data services. This intrinsic ability to provide a shared infrastructure that can be efficiently used by multiple wireless operators and services, makes DAS extremely attractive from both an economical and a technical point of view. While the cost-sharing factor is obvious, it is also worth noting that the technical advantages of a shared solution with reliably consistent radio performance contribute to reduce interferences and maximise capacity and efficiency. I have no doubt that Qatar can host a fantastic World Cup in 2022, but there is a lot of work to be done along the way. With stadia being such a visible and integral part of the tournament, it’s vital that we get it right from both an aesthetic and a technology point of view. People’s experiences inside these stadia will have an enormous impact on their overall perception of the quality of the tournament, and in turn of Qatar as the host. By using the right technology and planning for future data consumption habits now, the event organisers can ensure that fans, media, businesses and diplomatic representatives, will all leave with a positive impression of a technologically astute and progressive country that, ultimately, hosted a fantastic World Cup.
About Vick Khalil Mamlouk is Vice President, Wireless Sales, Middle East and Africa, CommScope. Mamlouk leads a team of Andrew sales professionals and engineers focused on bringing innovative RF infrastructure solutions to the Middle East and Africa. In his 23 years with Andrew, Mamlouk has built an extensive resume in sales management, product line management, and system design. He has successfully managed and executed large worldwide projects and was instrumental in building organisations in the US, Hong Kong and Dubai.
SEPTEMBER 2012
35
Legal
KNOW THE LAW
If you are active within the distribution industry in Qatar, you need to be aware of the application of the new Law No. 8 of 2002 (The Commercial Agency Law) by the Qatari courts. Roy Georgiades, Associate, Al Tamimi & Company’s Doha office, explains on what grounds the Litigation Department of Al Tamimi & Company’s Doha office, in association with Advocate Mohammed Al Marri, obtained a successful verdict in a case which changed the legal concept of the commercial agency in Qatar.
T
he old Qatari Commercial Agency Law, promulgated in 1986, was repealed and replaced by Law No. 8 of 2002 (The Commercial Agency Law), which now regulates and governs the appointment of commercial agents in Qatar.
The practical effect of the old regime holds true, but is supplemented by the new definition of what constitutes a commercial agent, as set out in Article 2 of the new law, being “Every person exclusively licensed to distribute the goods or products or to put them on sale or in circulation, or to perform certain services within the scope of the agency on behalf of his principal in exchange for remuneration.” The application of the new law by the Qatari courts may best be illustrated by an examination of a judgment which re-defined the concept of commercial agency in Qatar and which affects the practice of registering such agreements with the Ministry of Business and Trade.
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The case Following the termination of a contractual distribution agreement between a foreign company (the first defendant) and its local distributor (the claimant) in respect of the distribution of high-end prestige automobiles in Qatar, the claimant petitioned the Minister of Business and Trade in Qatar (the second
2. Filing a lawsuit or resolving to arbitration or the like shall not prevent entry of the goods, commodities and/or services included in the agency agreement; however, the Minister may forbid entry of those goods, commodities and/ or services included in the agency agreement if the principal terminates an open-ended agency agreement in violation of Section A of Article
The old Qatari Commercial Agency Law, promulgated in 1986, was repealed and replaced by Law No. 8 of 2002 (“The Commercial Agency Law”), which now regulates and governs the appointment of commercial agents in Qatar.
defendant) to place a ban on the importation of the automobiles into Qatar, pursuant to Article 17 of Law No. 8 of 2002 (the Commercial Agency Law), which provides as follows – 1. “Where the principal terminates the agency agreement or refuses to renew it without legal justification, the competent authority may prohibit the importation of the goods or products the subject of the agency;
9 hereof, or if such prevention is considered to be in the public interest.” The minister refused to grant the claimant’s request. The right of appeal The claimant then commenced proceedings before the Administrative Court against the first
Legal
“Any agreement that does meet the aforementioned conditions will not be considered a commercial agency agreement. However, in this case the claimant, in his capacity as agent, was exclusively licensed to distribute the goods the subject of the agency within Qatar, and received remuneration in return for the provision of such services, “stated in the Court of Cassation’s judgment. and second defendants, seeking a reversal of the minister’s decision.
Court of Cassation against the judgment of the appellate court.
In support of his request, the claimant alleged that the distribution agreement which he had entered into with the first defendant was a commercial agency agreement and that the said agreement had been terminated in contravention of the provisions of the Commercial Agency Law. The claimant also sought compensation based on Article 8 of the said law, which may be stated as follows – 1. “Unless the two parties agreed on agency renewal, the agency agreement shall expire at the end of its defined term; 2. The agent may claim compensation from the principal if the latter terminates a fixed term agency; 3. Notwithstanding any other agreement to the contrary, on the expiry of a fixed term agency agreement, the agent has the right to claim compensation from the principal if his performance under the agreement has brought about substantial success in the promotion of the principal’s products or in increasing his customer base and the principal’s refusal to renew the Agency has deprived the agent from the benefit of that success.”
The decision of the Court of Cassation The Court of Cassation allowed the appeal of the defendants and in the course of its judgment elucidated the following points –
The Court of First Instance rejected the claim and the claimant appealed this finding to the Court of Appeal. The latter court overturned the judgment of the Court of First Instance, ruling in favour of the claimant by reversing the Minister’s impugned decision. The Court of Appeal considered that the signed contract between the two parties constituted a commercial agency agreement. Both defendants lodged an appeal with the
1. “The court opined that in order for an agreement to be considered a commercial agency (and to therefore be eligible for registration as such at the Ministry of Business and Trade), a number of conditions must be satisfied, including: i. Exclusivity - meaning that a commercial agent must be granted an exclusive right to distribute the goods or products in Qatar; and ii. Consideration - a commercial agent must receive remuneration in exchange for distributing products on behalf of a principal. Any agreement that does meet the aforementioned conditions will not be considered a commercial agency agreement. However, in this case the claimant, in his capacity as agent, was exclusively licensed to distribute the goods the subject of the agency within Qatar, and received remuneration in return for the provision of such services. 2. In considering the facts of the case at hand, the court had particular reference to clause 2.5 of the distribution agreement entered into between the claimant and the first defendant, which clause stated that “the distributor shall stand in the relation of an independent contractor with the [principal] and shall not be empowered to bind the
[principal] or to contract in the name of, or create any obligation to be performed by the [principal].” In light of the foregoing, the court held that the distribution agreement in question did not establish a commercial agency because the claimant’s contractual role was that of an independent distributor, and he was not acting on behalf of, or empowered to legally bind the first defendant. The claimant, therefore, did not fit the definition of a commercial agent set out at Article 2 of the Commercial Agency Law and, consequently, the provisions of the said law (including Article 17 thereof, in relation to prohibition by the Minister of Business and Trade of importation of the relevant goods following termination of an agency agreement) were held not to apply in these circumstances. The aforementioned judgment changed the legal concept of the commercial agency in Qatar, and significantly altered the practice of registration of commercial agency agreements with the Ministry of Business and Trade.
Roy Georgiades
About Roy Georgiades is Associate within the Dispute Resolution department of the Al Tamimi & Company’s Doha office. He is capable to advise clients and conduct all types of litigation in the region including commercial, employment and banking. Roy holds a Masters in International and Internal Business Law from the Paris II University and a Bachelor of Law degree from the Damascus Univer-sity. He can be contacted at r.georgiades@tamimi.com.
SEPTEMBER 2012
37
Management
Lead by example
Trust is the key to leadership, regardless of whether
it is in business, culture, politics, sports, arts or anything else. Osama K. Jbarah, Senior Engineer, Qatar Petroleum, explains how to develop your leadership potential and make people trust you.
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hile doing my research for this article, I came across an interesting video clip of General Colin Powel on the Internet. In it, the General is addressing a university graduating class about leadership. One of the attendees asked the General about the single most important trait that makes one a leader. Not only the answer was interesting, but the way it was composed was interesting as well. The General answered very quickly, in one word – “Trust.” He said it in a way as if he had been asked that question a thousand times before. More importantly it portrayed not just any leader, but an exceptional and experienced one.
In the days after I watched the video, I did a lot of thinking and reflecting about people I have come across throughout my personal life and career spanning nearly a quarter of a century. I became fixated on the concept of trust as the cornerstone of a true leadership style that I have seen in several people. When I speak of one of my former managers, I usually say, “I would have taken a bullet for him.” In other words, I trusted the man, and I would have done everything he would have asked of me, and for very good reasons.
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A true leader will find a way to make you trust him or her, and with relative ease. How that can be accomplished is something that cannot be taught at leadership seminars or an Ivy school graduate course, it must be learned at a fairly young age. This man knew how to talk with people and had a style all his own that really distinguished him from others, and more importantly he did take care of his employees as he would of his own family. In other words, he was genuine. It’s all about behaviour One other former manager of mine used to put on a shop coat and come out and help the employees pack products into boxes so as to make the shipments on time. He could have simply ordered everyone to do it, and once in a while come out from his office to encourage them to work harder and faster, but he chose the easiest way to truly make a difference by helping with the work itself. This is leading by example which is the most genuine way of exhibiting leadership skills. What those people and many others do, shows their leadership skills by taking the most direct line to the hearts and minds of everyone around them. Once your heart and mind realise that you are in the presence of a leader that you trust, you will be delighted to follow.
Going back to the General Powel’s video in which he says that leadership is all about behaviour. He adds that, “as a leader you can feel scared as long as you do not let others see that you are scared.” Remember, you are leading people into some unknown territory, so naturally they are worried, scared, and at times doubt your leadership abilities. Behaviour becomes crucial so as to send the right message of assurance and comfort. Think of it this way – what makes soldiers follow a leader into battle knowing that they may not live to see the end of it? What makes senior executives follow the lead of a CEO into a very critical business project that, if not successful, would destroy the company, and alter everyone’s lives? Knowing how to lead The research and books written on the subject of leadership are plenty. As a matter of fact leadership training has been identified as one of the fastest growing consulting and training areas around the world, and for good reasons. The business world is changing and changing fast, so to respond fast enough businesses are constantly looking for some clear edge to gain over the competition. Businesses are in search of the newest in technology, newest in systems, newest in methods all of which require people to manage. With that in mind it is easy to understand that to manage you need to know how to lead people.
Management
Businesses are in search of the newest in technology, newest in systems, newest in methods all of which require people to manage. With that in mind it is easy to understand that to manage you need to know how to lead people.
Today people are smarter and more educated than ever, which makes the job of managing them more difficult, and more demanding, so the leadership requirements become very crucial when choosing a manager. As Jack Welsh once said, “I hire people who are smarter than me.” It goes without saying that if you have intelligent people working for you; you need to work harder to gain their acceptance so that as a leader they would take directions from you. Simply accepting the average person to lead people is asking for a leadership disaster, which in turn can reduce morale, and cause unspeakable damage to your organisation. We all hear the term “leadership vacuum” being used every now and then. What it really means is that an organisation is lacking the people to make decisions or the people in charge are not capable of making the right decision and the ship is drifting aimlessly. A gained skill or talent One of the questions that have occupied minds of many researches and psychologists for many years is whether leadership skills are developed or naturally born. The answer to this age-old
question is very complex and depends of one’s opinion based on studies and experience. In my opinion, leadership skills are skills we are born with. And what makes the difference is whether we recognise it at a young age and are able to develop it, or they become extinct for many reasons. Developing or not developing leadership skills is a personal experience that is the result of social, cultural, and financial environments. Two people who grew up in the same environment may rank differently on the leadership scale, and may never be equally ranked ever. The reason for that, in my opinion, is that we all interpret the world around us differently, and thus respond to it differently ultimately leading us to be different. For those who feel they have leadership skills, there is a help and the success is dependent on how you approach it. To be a leader, you must first and foremost look inside you for those skills. Remember, leadership is behaviour and not a simple collection of thoughts and intuitions. The result of my research leads me to believe that by the time you are in your adolescent years, if you are a leader, you would have discovered that. So, the following points are for those who have already discovered their leadership potential and would like to develop it to be become leaders. Trust is the key to leadership of others, regardless of whether it is in business, culture, politics, sports, arts or anything else. How do you make people trust you as a leader?
Osama K. Jbarah
• Develop a reputation that defines you as a leader – Whether you are a decision maker or someone who takes pride in being an achiever who gets things done, you need to decide your identity, develop it and make sure everyone around you knows that about you.
• Knowledge of a subject matter – No one has the ability to be an expert on everything, so choose an area and be the best at it. No one will accept being lead by a person they perceive as jack of all trades or a master of none. • Learn how to speak as a leader – Leaders are exceptional speakers who are able to convey a message across that is clear, concise, and can stick to the minds and hearts of people. • Learn how to make decisions – This is easier said than done as it is a skill that is usually developed at young age and sharpened through experience and mistakes. Making the wrong decisions sometimes is better than not making any decisions at all. Think of how you make the simplest of decisions and apply the same methodology to bigger decisions. In short, it takes courage to be a leader, and the ability to deflect criticism and use it to learn and develop. Courage will allow you to withstand the negatives of a wrong decision and propel you to take on bigger decisions. Leaders are always surrounded by doubters and those who use someone’s failures to claim success for themselves. Be prepared to deal with the doubters with as much courage as possible. The most common misconception about leadership is that it is an exclusive club reserved for those who are in decision making positions, or those within the upper levels of a hierarchy. It is not so, and anyone can be a leader providing they have what it takes. Leaders come in all shapes, sizes, colours, and size office. What determines whether you are a leader or not is you and you only.
About Osama K. Jbarah is an ASQ certified quality engineer and a six sigma black belt with over 23 years of experience in manufacturing and oil and gas in Canada, the US and the Middle East. Osama currently holds the position of Senior Engineer with Qatar Petroleum where he is responsible for the continuous improvement system. Osama holds degrees in metallurgical engineering, business management and currently pursuing a masters of science in quality strategic management.
SEPTEMBER 2012
39
Management
Step back and think!
Strategic planning takes your organisation from a strategy to actual achievement of your business aspirations. Zeina Moukarim, Manager, Strategy and Project Management Office, QDB, explains that your strategy must not be just a document which will be forgotten on a dusty shelf, but should be converted into a strategic plan which will be communicated to all levels within the SME and monitored until the goals are achieved.
S
trategic planning is a very important business activity, especially for SMEs. It is critical for them, firstly, to understand the key questions they should start with in making their plans: • “Why do we exist?” • “What we do?” • “Who are our customers?” • “What is our value proposition that makes them come back to us?” • “Where do we want to be?” • “What are the key channels we are going to use to get there?” Secondly, strategic planning facilitates the execution and delivery of SME’s objectives and aspirations by ensuring that all components of the business, down to the last resource, are fully aligned with what it’s trying to achieve. It also ensures that the SME has a direction or vision and planned initiatives to reach these objectives and aspirations.
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Strategic planning is also critical for portfolio management of programmes, projects and initiatives and, consequently, for resource planning and budgeting. All these components should be monitored through an enterprise performance management framework.
preparation of a strategy which will be clearly communicated across the organisation, setting realistic and clear targets, and adequate planning, budgeting and enterprise performance management.
What do we do wrong? Ultimately, if there is no strategic planning it will be difficult for the SME to gauge its success which is again evaluated through questions a management team should answer: • “Did we achieve what we set out to achieve?” • “If not, where did we fail?” • “If yes, what could have been done better?” Regardless of its importance, practice shows that even if a strategic plan is created, the chances are that it will, in most cases, be forgotten on a shelf. For that reason, successful strategic planning should be considered as a process. In order to be successful, this process must include
For smaller startups and SMEs, the greatest pitfall still is the absence of a strategic planning process and monitoring system all together. It’s not that complicated to react to external stimulants and quickly fill market niches whenever and wherever they popup. However, instinct reactions and situational decision-making will quickly catch up with their business performance and will not get them too far ahead of the competition. For that reason – Stop! Do some good research, take your team off-site, and create a fun strategy retreat to get all of the creative thoughts flowing. For larger or more established organisations, a pitfall would be the lack of communication
Management
and transparency of the strategy. This can create organisational problems leading to different agendas being followed, lack of accountability and involvement among team members, and demotivation among most of the employees. Second challenge is resistance to change which is quite common. All key stakeholders need to be included in the planning process, be aware of all of the plan’s details and be given sufficient reassurance that the plan is acheivable. At the end of the day, if leadership and key positions holders have not bought in, it will be hard to drive the team’s enthusiasm to achieve planned aspirations. For that reason, “change agents” must be put in place. A change agent is one of your employees whom you believe that posses the right personality and skills to drive the change.
How do we do this? Not to be forgotten on a dusty shelf, the strategy needs to be communicated and cascaded from the board level to the divisions, departments, and all the way down to each and every employee who will evaluate it with a question – “What’s in it for me?” To facilitate this, the management team should use many
Not to be forgotten on a dusty shelf, the strategy needs to be communicated and cascaded from the board level to the divisions, departments, and all the way down to each and every employee who will evaluate it with a question – “What’s in it for me?”
alignment all the time. Some organisations prefer big, town hall meetings which are great for passing on information, but they tend to be one-directional. Then there are some teams who are more responsive in small think-tank groups while others prefer larger workshops. In any case, you need to find a formula that works for your particular SME culture at that particular time. Finally, track your progress and ensure accountability – make the organisation performance driven by measuring and linking success to rewards, incentives and bonuses.
One step further – project management Executing your portfolio of programmes, projects and initiatives, is actually executing your strategy. Each initiative needs to be
A project management office (PMO) is nowadays considered as a necessity. Most organisations are now in “project mode” unlike the slow, bureaucratic way of doing business, as previously was the case.
of the available communication tools such as planning templates, simple business plans and similar. At QDB, we are using small group presentations and videos for the whole staff, planning workshops to create corporate and departmental strategy maps, scorecards, and programmes portfolio. There is no one-size-fits-all approach which would ensure successful communication and
In order to successfully carry out these programmes and projects, a defined framework should be in place to ensure good governance and management of their execution. One approach is to create a centralised or decentralised management office such as an Enterprise Programme Management Office (EPMO) for larger and more complicated programmes and projects. For and organisation with programmes of a smaller scale a simple Project Management Office (PMO) would be effective enough. Again, there is no one-size-fits-all solution. Nevertheless, in both cases, it must be simple, workable, scalable and adoptable.
validated to ensure that it aligns with strategic objectives and aspirations providing benefits and return on investment (ROI). Once the portfolio consisting of a viable set of programmes, projects and initiatives, is compiled, it needs to be managed by prioritising and considering impact of benefits, dependencies, allocation of resources which are always limited, and other dimensions.
For that reason, a project management office (PMO) is nowadays considered as a necessity. Most organisations are now in “project mode” unlike the slow, bureaucratic way of doing business, as previously was the case. Regardless of which methodology you are using, be it standards of the Project Management Institute (PMI) or PRojects IN Controlled Environments (PRINCE2), it is important to understand the following points: • Background – what are you doing? • Business cause – why are you doing it? • Specific, Measurable, Achievable, Realistic and Time scaled (SMART) objectives - what are you trying to achieve? • Who are the stakeholders? • What are the dependencies to other projects and activities? This needs to be considered within the baseline project document such as a project
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Management
Most common failures of project management are in the lack of communication, planning, resource allocation and accountability. A lot of external factors are not always monitored and control and not properly mitigated, because, when the project starts, management team forgets about many dependencies of the project.
charter or project brief. It should also include assumptions and constraints; scope of work and activities that are not within it, but are required; challenges defined up front and the manner in which issues or anticipated risks might be addressed and mitigated; and quality expectations.
project’s goals are defined. For example, one of the goals of the Dubai Metro project was to open it on 9th September 2009. The project went far beyond its initially planned budget, but it actually achieved its objective to open a given date. Would you consider it as a successful project?
Most importantly, how the project will be governed should be articulated in the terms of project’s management structure. It should include quality gates or controls, communication plans, and on-going viability and pulse checks (“Are we still moving towards our defined goals?”, “Have we gone off at a tangent?”, “Has an external environment change impacted the project viability?”, “Are we throwing good money after bad?”).
Why projects fail?
Most common failures of project management are in the lack of communication, planning, resource allocation and accountability. A lot of external factors are not always monitored and control and not properly mitigated, because, when the project starts, management team forgets about many dependencies of the project. This is not a feature only of entrepreneurs and SMEs at their initial stages, but it can also be noticed in project execution within some large enterprises. In line with that, success or failure of a project is classified on the basis of how a
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• Absence of top management buy-in and support, since if it doesn’t align with your strategy, it will not get the backing or interest it needs • Lack or absence of stakeholder engagement and management • Inefficient planning, since budget and resources are always limited • No consideration of dependencies with other projects and external factors • No management framework to manage teams, risks, issues, changes, reporting and communication
Strategic planning and project management in Qatar Mature planning processes are in place in entities in Qatar that are more established. It is not only a Qatari SMEs phenomenon, since planning does require a certain level of maturity at both, the organisational and the leadership level. For that reason, it takes some time, which is usually three to four years, to develop an efficient process. With many support functions for the
private sector development recently established in Qatar, such as Bedaya Center for Entrepreneurship and Career Development, Qatar Business Incubator, Enterprise Qatar and other initiatives, the level of awareness of the importance of strategic planning is increasing. Awareness of on-going measuring, monitoring and calibration are equally important and are often overlooked.
Zeina Moukarim
About Zeina Moukarim is Manager within the Strategy and Project Management Office of QDB. Zeina has been in the Gulf region for over 16 years implementing computerised maintenance management systems in 16 key oil and gas firms and other project sites in the UAE, Oman and Qatar. In 2006, Zeina joined Qatar Financial Centre Authority (QFCA) as Operations Support Manager. Zeina is a qualified Prince 2 practitioner, qualified internal ISO Auditor for Quality Management Systems and Information Security Management Systems (ISO 9001:2000 & ISO 27001) with key skills in business process analysis, project management and change management. She can be contacted at zmoukarim@qdb.qa.
Report
LET’S BE PARTNERS In a report, Booz & Company assesses the vital need for the GCC to adopt a partnership approach between public and private sectors as an effective means of promoting national development goals.
Private Sector Qatar brings you details of the report prepared by George Atalla, Partner, and Karim Aly, Senior Associate, Booz & Company.
I
n the coming years, the GCC nations are set to spend over half a trillion dollars on national development plans which aim to promote the growth of the private sector as well as significantly decrease the countries’ dependence on natural resources. In fact, much of this development expenditure will center on infrastructure and key public services such as health and education. Building upon this premise, the Booz & Company’s report has found that one method of investing this money effectively, from both fiscal and development perspectives is through the establishment of public-private partnerships (PPPs).
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As collaborative mechanisms between the public and private sectors, PPPs have been successfully applied in myriad countries at all levels of development for over two decades. Indeed, by drawing in private-sector expertise and capital while adjusting the risk to the public purse, wellimplemented PPPs can undoubtedly further advance the GCC’s national development agenda. The rationale for PPPs in the GCC When used in a rigorous and targeted manner, PPPs can ensure efficiency, speed, transparency, and economic impact in the delivery of services or vital infrastructure. The GCC countries’ particular economic profiles make PPPs an attractive
transformation mechanism to help governments better achieve their national development plans and introduce foreign capital into priority areas. An additional benefit is that, through this process, the state retains ultimate control over projects, thereby avoiding certain privatisation pitfalls. “PPPs can also improve national competitiveness by bringing in topnotch foreign companies with transferable skills and superior practices. By encouraging legislative and governance changes, this mechanism will create an investmentfriendly climate as well as enhance the delivery of services such as education and health,” explained George.
Report
When used in a rigorous and targeted manner, PPPs can ensure efficiency, speed, transparency, and economic impact in the delivery of services or vital infrastructure. Furthermore, GCC countries’ natural resource endowment makes PPPs a development option rather than a fiscal necessity. “Thanks to trade surpluses and manageable public debt profiles, these nations have the relative luxury of selecting PPPs that will actively promote long-term economic development. Today, the use of PPPs in the GCC is set to considerably increase with states such as Saudi Arabia, Kuwait, Qatar, and the UAE currently engaged in massive development programs which aim to change their economic structures,” pointed out Karim. Benefits of PPPs PPPs combine the public and private sectors in projects that the state needs, but that private companies can best deliver. In fact, experience stemming from countries who have employed this mechanism shows that the public sector reaps the following benefits from PPPs: • Fiscal benefits – PPPs free public funds for other uses. • Risk allocation – When properly vetted
and structured, PPPs allocate risk to the party best suited to handle it. • Economic benefits – PPP projects increase efficiency by accelerating the speed of delivery of services and improving service coverage and quality. • Technological benefits – PPPs facilitate the transfer of technology and know-how from the private to the public sector. • Social benefits – PPPs improve service coverage, quality, and timeliness. The frameworks to examine include: »» The legal framework While the success of PPPs as a tool is not directly linked to having or lacking a dedicated legal framework, countries forming such partnerships should, nonetheless, still recognise that PPPs involve legally complex aspects that may not be covered by existing laws. Currently, in the GCC, only Kuwait has a well-established PPP framework of legislation, governance, and execution structures. And while the UAE and Saudi Arabia have managed without such laws, Dubai and Qatar are in the process of developing their own PPP legislation. »» The governance framework Another important consideration is the governance framework, which monitors the overall performance of PPP projects. Implemented through independent regulatory agencies, governance provides checks and balances for the government and the private providers.
George Atalla
»» The supervisory framework The supervisory framework’s role is to carry out PPP projects on a daily basis, as these long-term agreements require regular liaison between the government and private sector. The framework’s main feature is a unit dedicated to overseeing
Karim Aly
PPPs and ensuring that procedures and execution principles continue from one project to the next. Appropriate procedures must also be established for each phase of the project cycle. Those phases come into play only after the government has developed a road map that identifies what projects are needed and when and include project assessment, detailed preparation, procurement, and project implementation. Developing a multisector road map Indeed, for GCC countries, the most important step in creating PPPs is the development of a multi-sector road map which connects this mechanism to national developments goals. The road map is a top-down analysis that breaks down the economy into sectors, points to projects suitable for PPPs within these sectors, and then filters them according to priorities, before finally plotting them on a schedule. Its development entails five phases: • Sector selection Governments have to decide which economic sectors would benefit from PPPs by answering two questions - How willing is the public sector to reduce its control over a particular activity? What is the role of each sector in the national development plan? •Sector analysis Finding opportunities inside a sector requires analysing its value chain and
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Report
The GCC countries’ particular economic profiles make PPPs an attractive transformation mechanism to help governments better achieve their national development plans and introduce foreign capital into priority areas.
identifying priority PPP projects using five key criteria of value chain readiness, which include scale and long-term nature, clearly defined service needs, clear risk allocation, well-defined costs and stable requirements. Next, an external assessment evaluates the “readiness” for PPPs of each part of the value chain based on lessons learned from international benchmarks. The value chain steps identified by the external assessment then undergo an internal assessment using three country-specific criteria to winnow the results of the external assessment. These are measured by observing demand and supply, government capabilities and legal structure and finally, private-sector capacity. • Project compilation This rigorous sector analysis allows the government to compile a national registry of potential projects – the long list – and subsequently, decide whether or not a project should be considered for the final road map. The government should also ensure comprehensive coverage of the economy and alignment with national development plan objectives. • National project prioritisation The long list of projects is ranked according to private and public-sector priorities using five private-sector and three government criteria. Officials can, of course, assign weights to each of these criterions as is necessary for their country’s particular circumstances. The private-sector criteria evaluate the attractiveness of projects to
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private partners and comprise private-sector availability, size of demand, urgency, ease of implementation and revenue source. In parallel, government-sector criteria estimate the project’s socioeconomic benefits and consider impacts on private-sector employment, GDP and competitiveness. • Timeline development Once projects have successfully passed through the national project prioritisation filters, the government then lay out the PPP road map timeline. During this process, decision makers can select top priority projects and schedule their implementation using realistic timeframes that accommodate the government’s implementation capabilities. Adopting the correct approach GCC governments certainly need to proceed with caution when implementing the road map. In particular, they need to carefully manage the fiscal consequences of PPPs in order to avoid long-term budgetary liabilities as well as build their capabilities to execute and monitor projects. The government should use the following three criteria to assess whether a PPP is the correct approach for a given project: • Affordability This relates to the capacity of the end-users or the public sector to pay for the building, operation, and maintenance of the project. The government must take into account the effect on the budget if the PPP will rely either on government subsidies or purchase agreements.
• Bankability This determines whether lenders are willing to finance the PPP and obliges the government to thoroughly assess financial risks. • Value for money This requires a cost-benefit analysis as to whether the project costs less than the best realistic public-sector alternative. In general, PPPs are likely to provide value for money if they are implemented by capable private-sector partners, if the risk is clearly allocated between the public and private sectors and if the public sector defines its service needs as outputs in the contract. Fiscal impact A final concern for governments is how to record the long-term fiscal liabilities from PPPs. While the two main fiscal accounting approaches are cash and accrual, most governments in the Middle East use cash accounting. “However, the particular danger for governments with such systems is that they lack formal mechanisms to capitalise and record the long-term liabilities from PPPs. They can also make the mistake of treating PPPs as off-balancesheet debt, which shows misleading and illusory improvements in budget deficit and debt figures,” warned Karim.
About George Atalla is a partner with Booz & Company and a member of the firm’s public sector practice. He has advised Middle East government clients on economic policy setting, investment prioritization, and subsidies realignment. George holds an M.S. from the Georgia Institute of Technology, an M.S. from Northwestern University, and an M.B.A. from the George Washington University. Karim Aly is a senior associate with Booz & Company/Cairo and is involved in strategic projects and recommendations that have had an impact on national agendas of regional countries. For more information, please visit www.booz.com.
Qatar’s export development agency
TASDEER
TASDEER, Qatar’s export development agency, was launched by Qatar Development Bank (QDB) in 2011 with the objective to develop, support, and globally promote exports from Qatar through export financing and export development and promotion support to Qatar-based SME exporters. It provides access to finance, credit insurance and advisory services for exporters and supports businesses to develop their export capabilities through export development and promotion.
QDB realigned its strategy to that of Qatar National Vision 2030 to promote and facilitate the development and growth of SMEs in core economic sectors that will result in long-term socio-economic benefits to the people of Qatar. The launch of TASDEER last year was an integral part of this strategy. As part of its offering, TASDEER offers two different sets of services: • Export financial services – financial solutions, credit insurances and advisory services.
It offers to the Qatari companies the opportunity to allow foreign buyers flexible payment terms in a secured manner by guaranteeing their trade receivables. It also protects Qatari exporters against the nonpayment risk imposed by foreign buyers due to either political or commercial defaults.
TASDEER conducts country market surveys in GAFTA and other North African countries which provide attractive export opportunities to the Qatari exporters across various product categories.
• Export development and promotion services – products and services offered to the exporters in the area of capability and capacity building, market and business-related intelligence and market advisory services.
In addition, TASDEER’s export development and promotion services focus on facilitating the participation of exporters in identified exhibitions in the targeted markets. Moreover, TASDEER will be organising the Exporter Awards Programme at the end of 2012 to award the best performing exporters in various categories. It is planned to establish it on an annual basis.
These include capacity building initiatives such as conducting workshops which educate the exporters on key policy initiatives like GSP, UCPDC, trade agreements, and similar. It is also encouraging and trying to enable the exporting community to gain market and business intelligence through public domain sources like “Trade Map” and “Market Access Map” through ITC.
All Qatari exporters are eligible for TASDEER support and services. This is regardless of the size of their export contracts, the sector they represent and their turnover. Going forward, TASDEER not only intends to increase the current exports of the exporters through various initiatives, but to also enable smaller players, who are focused on the domestic market, to export in the future.
Export scenario
SMEs – Time to start Region wise share of Non-oil Non QP exports (2006-2010, QR Mn)
356 over the last476 599 smaller percentage 1031 Rapid growth 297 of oil and gas exports five years influenced of non-oil exports others 19% 23% non-oil exports, 27% within Qatar’s25% total exports. Nevertheless, a base 18% of private sector led most of which are 2% 4% 4%
9%
4% 10%
4%
6%
14%
19%
Bahrain
from SMEs, is growing slowly. TASDEER provides you with an overview of Qatar’s current export trends. Kuwait
T
53%
49% of Qatar have grown 38%with a CAGR of 21%, he total exports from QR 123 billion in 2006 to QR 260 billion 2010. This excludes re-exports which account 21% for a 3% share (QR 7 18% 18% billion) of the total exports in 2010 and include products such as 2007 2008 2006 motor vehicles, machinery for oil-wells and articles of iron and steel.
32% 27% UAE Non-oil exports accounted for only 7.8% of the total exports. Though the total quantum of non-oil exports has increased from QR 12 billion in 2006 to QR 2028% billion in 2010, the share28% of non-oilSaudi exportsArabia has seen a decline from 10% in 2006 to 7.8% in 2010 given the rapid growth of oil 2009 2010 and gas exports over the last five years.
Growth in exports of Qatar - Oil vs. Non-oil, (2006-2010) QR Bn 260.1 20.2
203.8
179.2
19.3
151.5 123.2
14.7
14.6 239.9
12.0
Non-oil share of totalexports (%)
48
Non-oil
184.5
164.5
111.2
136.9
2006
2007
2008
2009
2010
10%
9.6%
9.5%
8.2%
7.8%
Oil & Gas
Qatar non-oil QP exports as a percentage of total exports (2006-2010), in QR Mn SEPTEMBER 2012 12009
14606
19293
14725
20252
14.6
260.1 239.9 20.2
12.0 184.5
164.5
19.3
179.2
203.8 111.2
Non-oil share of totalexports (%)
136.9 151.5
Export scenario
14.7
123.2
14.6
12.0
2006
2007
2008
2009
239.9 2010
10%
9.6%
9.5%
8.2%
7.8%
164.5
184.5
Oil & Gas Non-oil
Oil & Gas
111.2 The non-oil exports of QR 20 billion are dominated136.9 by exports from Qatar Petroleum (QP) companies which account for 95% share of these exports. These include products like urea, HDPE, LDPE, methanol, ammonia, hexene, sulphur and other iron and steel related products.
2007
2008
2009
2010
8.2% 20252
7.8%
Qatar2006 non-oil QP exports as a percentage of total exports (2006-2010), in QR Mn
Non-oil share of totalexports (%)
10%
12009 2%
9.6%
14606 2%
9.5%
19293 2%
14725 4%
5.10%
Qatar non-oil QP exports as a percentage of total exports (2006-2010), in Non-oil QR Mn Non-QP exports are small 12009 98% 2%
14606 98%
19293 98%
14725 96%
20252 95%
2%
2%
4%
5.10%
but have increased their share since 2006 despite rising QP exports
Non-QP, Non-oil exports Non-QP Non-oil exports are small Non-oil exports butQP have increased their share since 2006 despite rising QP exports
98%
98% 2007
2006
98%
96% 2009
2008
95% 2010
Non-QP, Non-oil exports
Though the non-oil exports by non–QP companies account for a small 5%, they have grown significantly with a CAGR of 36% in the last five years QP Non-oil exports from QR 230 million to reach QR 1031 in 2010. A significant percentage of these exports are accounted some key product categories like Growth ofmillion Non-oil exports by non-QP companies (2006-2010) QRbymillion processed plastics, metal based products, industrial and consumer products, medical products and similar. Processed plastics include tubes, pipes, plates, 2009 2010 2007 2008 2006 cups, sheets, rolls and other packaging materials and so on. Other product categories include products like wires and cables, valves, medical solutions, 1031 syringes, flour and similar. CAGR 36%
Growth of Non-oil exports by non-QP companies (2006-2010) QR million 599
297
476
356
1031 CAGR 36% 599
2006 297
2006
2007 356
476 2008
2009
2010
2007
2008
2009
2010
A substantial share of these exports currently is regional. Within the GCC, Saudi Arabia accounts for a large 28%, followed by UAE with 27% share in 2010.
Region wise share of Non-oil Non QP exports (2006-2010, QR Mn) 297
356
25%
27%
476 18% 2% 9%
4% 4%
4% 10%
49%
38%
18%
21%
18%
2006
2007
2008
53%
599
1031
23%
19%
others
4%
6%
Bahrain
14%
19%
Kuwait
32%
27%
UAE
28%
28%
Saudi Arabia
2009
2010
Thus, Qatar is starting from a small, but growing base of private sector led non-oil exports, most of which are from SMEs.
Growth in exports of Qatar - Oil vs. Non-oil, (2006-2010) QR Bn
260.1 20.2
203.8 151.5
19.3
179.2 14.7
Non-oil
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49
Export strategy
What’s the plan?
In accordance with the Qatar’s National Development Strategy (NDS) 2011-2016, QDB has cultivated a new portfolio of financial and business support services for the development of export performance of SMEs while TASDEER has developed the export strategy targeting SMEs within the manufacturing sector.
T
he National Development Strategy (NDS) 2011-2016 highlights export development as a key initiative for achieving the overall objective of economic diversification and private sector growth for Qatar. In line with that, QDB has cultivated a new portfolio of financial and business support services with an aim to increase private sector space and market share in exports. In accordance with these key principles, the focus of TASDEER’s export strategy is on Qatari manufacturers (non-QP companies) of products that are amenable to exports. A two-pronged approach based on the identification of the relevant products and the manufacturers has been adopted to lend focus to the export strategy. First, 17 key product categories which contribute to a significant share of the non-oil (non-QP) exports have been identified on the
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basis of a detailed analysis of past trends in non-oil exports. These product categories show wide diversity and include processed plastics, metal based products, industrial and consumer products, medical products and similar. Some of the key products include electric wires and cables, flour, medical solutions, valves, plastic packaging products, powdered soap, plastic processed products like plates, cups, sheets, rolls and so on. Moreover, several other product categories with a strong local manufacturing base and with a good export potential in the future have been identified. These include products like luxury interiors, paints, bulbs, gaskets, GRP products, fibre glass products, and similar. Second, a group of more than 100 current and potential exporters has been identified with an aim to, through intensive discussions, understand their needs and challenges in increasing future exports. On the basis of detailed interaction with these exporters, a comprehensive understanding of their macro
and sector-specific issues has been developed. It now forms basis of the overall export strategy and specific services and support which will be provided by TASDEER. These initiatives form the core of TASDEER’s export strategy. TASDEER offers specific services and support initiatives which are a part of the export development and promotion services. TASDEER’s export development services focus on products and services offered to the exporters in the area of capability and capacity building, market and business related intelligence and market advisory services. On the other hand, export promotion services focus on facilitating the participation of exporters in identified exhibitions and events in the target markets. In addition, it aims to raise the public profile of exports through various initiatives like conducting the Exporter Award Programme on an annual basis in order to award the best performing exporters in various categories.
Export strategy
Export Development Services Product Offering
Key Objective
Product Description
Training Workshops
Capacity building through workshops which educate exporters on key policy initiatives
Workshops on aspects like Single Window System, GSP, free trade agreements, and similar
Trade Map and Market Access
Enabling the exporting community to gain market and business intelligence through public domain sources
Training workshops on the use of Trade Map and Market Access Map through ITC
Trade Secrets
Capability building among small and new exporters through a primer on exports and international trade
Preparing a Trade Secrets Document through interactions with the exporting community; Publishing and holding one-to-one workshops to educate and train small and new exporters
Country Market Surveys
Helping the exporting community penetrate identified new markets which offer opportunities
Conduct market studies on the identified set of products, target new markets and share the insights with the relevant exporters
Newsletter Programme
Enabling market and business intelligence and relationship building with the exporting community
Initiating a quarterly newsletter with information on appropriate topics and showcasing a key country and exporters
Importer Database
Enabling market and business intelligence in specific target markets and building relationships with exporting community
Provide information on importers in key target markets to the relevant exporting community through a database
Product Certification Programme
Capacity building among domestic focused companies to enable them to compete internationally
Programmes to facilitate SMEs to obtain relevant product certifications, like ISO and other industry-specific certificates, which will enable their access to international markets
Market Certification Programme
Capacity building among exporting community to enable penetration of specific targeted markets which require certain local standards to be met and help diversify exports
Programmes to facilitate exporters to gain knowledge about the specific market certifications and help in the approval process through training and invitations to the approving authorities
Export Promotion Services Product Offering
Key Objective
Product Description
Exhibition Programme
Export promotion through facilitating the participation of exporters in identified international exhibitions in targeted markets
Programmes to facilitate exporters to participate as a group under the TASDEER umbrella in specific, targeted exhibitions aligned with the strategy
Matchmaking Programme
Export promotion through matchmaking events in targeted countries and in Qatar to showcase capabilities
Programme inviting trade facilitators and importers from specific countries either in Qatar or in that particular country and exposing them to the capability of Qatari exporters
Exporter Awards Programme
Raising the public profile of exports by showcasing the exporting community and facilitate data gathering on exports for TASDEER
Programme to award the best performing exporters in various categories through appropriately designed criteria by an independent organisation
Exporters Directory and Export Brochure
Export promotion by showcasing Qatar exporters in appropriate international forums
Publishing the profile and capabilities of the exporters in Qatar as a directory for marketing purposes
Exporter Publicity Programme
Export promotion by facilitating creation of appropriate publicity material for specific exporters
Programme to enable the design and production of suitable publicity material for exporters targeting specific markets
Importer Database
Enabling market and business intelligence in specific target markets and building relationships with exporting community
Provide information on importers in key target markets to the relevant exporting community through a database
Product Certification Programme
Capacity building among domestic focused companies to enable them to compete internationally
Programmes to facilitate SMEs to obtain relevant product certifications, like ISO and other industry-specific certificates, which will enable their access to international markets
Market Certification Programme
Capacity building among exporting community to enable penetration of specific targeted markets which require certain local standards to be met and help diversify exports
Programmes to facilitate exporters to gain knowledge about the specific market certifications and help in the approval process through training and invitations to the approving authorities
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51
Interview
Crossing the border Traditionally there has been a very low focus on exports among Qatari companies. Hassan Khalifa Al Mansoori, Executive Director, TASDEER, explains what efforts are being initiated within TASDEER’s export strategy implementation to increase exports.
Could you give us a brief overview of the results of TASDEER’s export strategy? TASDEER’s export strategy has been a path breaking assignment from many perspectives. The focus of the export strategy has been on Qatari manufacturers (non-QP companies) of products amenable to exports, but may not necessarily be exporting now. For the very first time, nearly 110 current and potential exporters, who are manufacturing products across various sectors, have been identified. While we had started the financial services through credit insurance last year, the export strategy has crystallised several new products and services which are being offered through the new export development and promotion initiatives. These are already being rolled out and will
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contribute to increase of private sector space and their market share in non-oil exports through increased activity of SMEs. What export development services and support initiatives are planned? One of the key initiatives, as part of the export development services, include capability and capacity building of exporters by conducting workshops and seminars to train the exporters on various policy initiatives. TASDEER, in collaboration with International Trade Centre (ITC), organised a workshop on export market analysis tools in December 2011. The workshop focused on enabling participants reach reliable information on export related aspects such as assessment of country markets and product portfolios, existing competition, trade potential of target countries, and so on.
In April 2012, also in collaboration with ITC, we organised a panel discussion on free trade agreements in the Arab region. Moreover, along with UNCTAD, we held another workshop on the Generalised System of Preferences (GSP). At an overall level, the above two events saw a total of 100 participants from more than 50 export-oriented companies across diverse product categories. What steps have been taken as part of the export promotion initiatives? TASDEER is trying to promote exports through facilitating the participation of exporters in the identified international exhibitions in the targeted markets. We have already supported more than 15 relevant exporters to participate in global exhibitions like the Arab Health Exhibition 2012 in Dubai and the National Plastic Exhibition (NPE) 2012 in Florida.
Interview
While we had started the financial services through credit insurance last year, the export strategy has crystallised several new products and services which are being offered through the new export development and promotion initiatives.
The idea is to facilitate participation of Qatari companies in these events by providing them with a comprehensive support in terms of financial support, assistance for booking the stand, organisation of logistics, and similar. It also includes marketing and business-related support to organise the required collateral, initiate and fix up some relevant meetings with the importers, and so on.
performing exporters in various categories through appropriately designed criteria by an independent organisation.
What is extremely encouraging is that nearly all of the participating companies received significant number of enquiries for their products at those conferences, many of which have converted to actual orders.
The ground work required to hold this event is already underway and it will be organised, for the first time in Qatar, at the end of 2012.
It is observed that the general awareness about the importance of exports and its potential for the Qatari exporters is quite low. Is TASDEER doing anything in this regard? As you pointed out correctly, traditionally there has been a very low focus on exports. Apart from the exporting community, the importance and focus which this segment deserves from the relevant stakeholders, concerned organisations and general public is quite low. As a measure to address this scenario, a critical aspect of the export promotion initiatives is focused to raise the public profile of exports by showcasing the exporting community and conducting the Exporter Awards Programme every year. This programme will award the best
Hassan Khalifa Al Mansoori
As part of the export strategy, we intend to encourage the exporters to look beyond the GCC region and, thus, diversify their export markets.
For many years now, apart from the low quantum of exports, Qatari exports have been limited to a few countries within the GCC region. Are you looking at new markets to diversify the export destinations? As part of the export strategy, we intend to encourage the exporters to look beyond the GCC region and, thus, diversify their export markets. GAFTA countries outside the GCC group like Libya, Egypt, Tunisia, Morocco and others emerge as important regional markets for several of the key product categories where Qatari manufacturers are competitive. A few European countries also emerge as good markets to explore for some of these product categories. As part of the export strategy, TASDEER will focus on helping exporters develop
these new markets through detailed country-level market studies for their products and targeted match-making events between Qatari exporters and potential importers and customers from these markets. In fact, for 2012 Morocco has been shortlisted for the above mentioned exercise and the study is expected to be completed by the end of this year.
About Hassan Khalifa Al-Mansoori began his career with QDB from its inception in 1997. Since March 2011 Mr. Al-Mansoori has held the position of Executive Director of the Qatar Export Development Agency “TASDEER�. In 2009 he was appointed as Chief Executive of Investment & Treasury of QDB. He also held the position of Department Manager of the Banking Operation & Correspondence Department of QDB in 2007.Mr.Al-Mansoori has travelled widely and has delivered speeches at several conferences including the recently held UNCTAD conference in Doha in 2012.
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53
Country focus
Target: Morocco! With an aim to address and tap export markets beyond the GCC region which are attractive for Qatari manufacturers, in this issue TASDEER focuses on Morocco as an important market for the key products of Qatari origin.
Q
atar’s non-oil exports by non-QP companies have grown with a CAGR of 30% over the last five years to reach QR 1030 million in 2010. However, a dominant share of these exports is regional and is limited to the GCC region. The GCC countries account for 85% of the total exports with Saudi Arabia and UAE being the biggest export destinations with each accounting for 27% of the total exports.
54
Morocco, Lebanon, Tunisia, Egypt, as well as looking at other attractive destinations in North African and European region. Facts about Morocco Morocco is a diverse, open, market-oriented economy located in northern part of Africa. It has capitalised on its proximity to Europe and relatively lower labor costs to achieve steady growth, low inflation and generally declining government debt.
Domestic manufacturers across various product categories in GCC countries, such as Saudi Arabia or UAE, provide stiff competition to the Qatari exporters given certain advantages such as better economy of scale, higher government incentives, and so on.
With a GDP of QR 575 billion in 2010, Morocco imported products worth QR 120 billion in the same year including key commodities like crude petroleum, textile fabric, wheat, gas, electricity, plastics and similar. France and Spain have been the key trading partners which together account for 38% of exports and 31% of imports in 2010.
In the future, while strengthening Qatari exports within the GCC region, it will be important to address and tap other export markets beyond the GCC region which are attractive in terms of market size, lower import duty rates, the nature of products being exported and the nearness to Qatar which allows for relatively simple shipment of products. This would include targeting various GAFTA countries like
The total trade between Qatar and Morocco in 2010 was QR 222 million. The balance of trade is highly skewed in favor of Qatar with Qatar’s exports accounting for QR 204 million of the total trade. The key commodities exported currently include plastics, inorganic chemicals, aluminum, and some other miscellaneous chemical products. However, most of these products currently are being exported by the QP companies.
SEPTEMBER 2012
Morocco is an attractive market in terms of its size for many of the key non-oil (non-QP) product categories which have been identified as part of the Qatar’s export etrategy. These include electric wires and cables, medical solutions, plastic packaging products, plastic tubes and pipes, powdered soap, plastic sheets and rolls, valves and woven sacks. Morocco’s total imports across these product categories in 2010 were QR 1820 million with medical solutions being the biggest category and accounting for QR 875 million. This is followed by valves, plastic tubes and pipes, and plastic sheets and rolls with them accounting for imports worth QR 342 million, QR 175 million and QR 128 million respectively. Moreover, given that Morocco has the Greater Arab Free Trade Agreement (GAFTA) with Qatar, the import duty rates for all these products are 0% which otherwise are in the range of 20-35%. Thus, taking into account parameters like import market size, presence of trade agreements and proximity of the market to Qatar, Morocco is a highly attractive market for many of the key product categories where Qatari exporters are competitive. Thus, it is important for the exporters to critically evaluate this market from an export perspective. As part of its export development services, TASDEER will also be undertaking a country market survey in Morocco this year to clearly identify and highlight export opportunities from Qatar across various product categories.
START YOUR BUSINESS
Introducing the SME Toolkit Qatar: An Online Platform to Support the Private Sector
RUN YOUR BUSINESS
GROW YOUR BUSINESS
The SME Toolkit is a joint project between Qatar Development Bank and International Finance Corporation (IFC), a member of World Bank Group. By bringing together the global expertise of IFC and the local knowledge of QDB, the SME Toolkit Qatar provides small businesses in Qatar with the tools and resources that allow them to function to international standards. • Step by step guidelines for business start up and management • Downloadable software tools like Business Plan Maker, Website Builder etc. • Online library with information on topics like Finance Marketing, Technology and International Business • Business Directory Listing and Legal Updates
qatar.smetoolkit.org