qatar today september 2015

inside this issueSeptember 2015 / Vol. 41 / Issue 9

COVER STORY

36 “WE ARE BUILDING” That is the message that Qatar seems to be sending,

with its horizon lined with building equipment – from forklifts and towering cranes to grid rollers to, the most complicated of the lot, the tunnel boring machines beneath the earth. In times of an oil price dip, the crunch doesn’t seem to exist in the construction industry.

26 THE NEW VALUE- BASED CARE

In response to the pressures of rising costs in the healthcare sector, a few pioneering organisations are developing a new operating model that we call the value-based hospital.

30 “I DREAM A LOT” Hussain Al Fardan was honoured with the Lifetime

Achievement Award at the Qatar Today Business Excellence Awards. While his achievements in business are familiar and are too massive to be enumerated here, it is how he lives life that makes him such an interesting personality. Qatar Today spent a Ramadan afternoon with this self-starter and came back inspired.

50 WHITHER SUBSIDIES? With cheap prices likely to rule global oil markets till

the end of 2016, the time is ripe for the GCC countries to do away with subsidies as they are straining public finances, experts tell Qatar Today.

56 REVOLUTION IN THE OFFING

Professor Thomas Stocker is one of the five contenders for the Chair of the Intergovernmental Panel on Climate Change (IPCC). The elections are scheduled for October, and if he should win, he will be leading the Nobel Prize winning-organisation during the all-important COP21 in Paris and the tough years beyond that. He talks exclusively to Qatar Today during his recent visit to Doha.

62 REVIVING A NEIGHBOURHOOD

The winner of the Qatar Today Business Excellence Award for Best CEO, Eng. Abdulla Al Mehshadi of Msheireb Properties, talks to us about his personal and professional milestones in heading this multi-billion dollar project to bring one of Doha’s oldest quarters into the new age.

66 ARAB MINDS SOLVING ARAB PROBLEMS

After several years of working as a journalist, columnist and a fellow at various prominent think tanks, Raghida Dergham decided that the Arab region needed its own indigenous brain trust. Thus Beirut Institute was founded.

September 2015 / Vol. 41 / Issue 9

SPOTLIGHT

70 A TIME TO LEARN The education sector is the foundation, pillar and cornerstone

of any country’s nation-building efforts. In our annual Education Spotlight, Qatar Today focuses on the activities of some of Qatar’s premier education institutions in the past year.

24 IRAN FROM AN INVESTOR’S LENS

In this opinion piece, Mark Mobius, Executive Chairman of Franklin Templeton’s Emerging Markets Group, writes that political processes and economic reforms aside, the potential of Iran’s newly-reopening economy can’t be ignored.

46 TAPPING LOCAL TALENT With national talent still primarily attracted to jobs in the public

sector, policymakers and private companies will need to devise new strategies to attract and retain the new labour market entrants.

60 ARID AGRICULTURE Zulal Oasis, a subsidiary of Hassad Food focused on agriculture

technology, talks about the suite of services it provides in helping farmers and agro-businesses in Qatar incorporate its patented method for vegetable production.

inside this issue

and regulars12 NEWS BITES

16 BANK NOTES

17 REALTY CHECK

18 O&G OVERVIEW

84 TECH TALK

81 AUTO NEWS

86 MARKET WATCH

90 DOHA DIARY

from the deskThere is no denying it; the country has already amassed huge reserves from its oil and gas revenue. But the fear that is ingrained in each and every expat’s face reflects the instability and uncertainty of living in a country that does not acknowledge the need for this labour force. While Qatar is a tax haven for expats and there are many who come to take avaricious advantage of the country’s booming economy (only to exit when the going gets tough), the majority of business people and professionals want to build a sustainable work environment.

This is especially true in the construction sector which has recently seen many successful local firms engaging in projects within the country and contributing to the GDP. Many of these firms are even regional contractors making a Qatari collaboration and working within the local rules and norms of the country. In Qatar Today’s September cover story on the construction sector, international firms have cited a lack of professionalism and payment delays after project completion as challenges within the sector. Reports of increasing construction disputes in the region are also rife, with one striking statistic that almost half of the joint ventures ended up in dispute during the year, the highest of any region for the second year running. But these challenges do not seem to hinder the sector, with most of the projects now in execution phase.

Qatar Today brings to you voices from around the world, contemplating on issues that are regional and local: Professor Thomas Stocker, one of the five contenders for the Chair of the Intergovernmental Panel on Climate Change, shares with Qatar Today his insights on global efforts to avoid potential catastrophe, and Raghida Dergham, founder of Beirut Institute, highlights the need for more intelligent, engaged and local voices to shape public policy in the region.

Keeping its local flavour, Qatar Today shares the life and success story of one of the country’s most respected and oldest businessmun – Hussain Al Fardan, who dreams his achievements and then sets out to make them all come true. As ambitious as he is, Al Fardan teaches all of us a lesson in humility and to subscribe to the simple pleasures of life.

SINDHU NAIRManaging Editor

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I must disagree with the fact that Qatar has a good image abroad. Just because investments are flowing in doesn’t mean the country can take its reputation for granted. That it doesn’t matter how it treats its blue-collar workers and women because those who want to sink money into the country’s booming economy will continue to do so. There is a dangerous trend of associating Qatar with human rights abuses and this will have a sizeble impact in the future, no matter how many World Cups the country hosts and how much gas it continues to pump.

RAJNEESH SINGH

I think we have all been desensitised to the threat of climate change. I remember Jon Oliver talking about it during one of his shows – about how the image of a polar bear stuck on a bit of melting ice doesn’t move us anymore. We need a more aggressive message that’ll draw a visceral reaction. Because as long as the public is apathetic about climate change, the government, propped up by Big Business, is not going correct course. In the hands of bureaucrats and fat cats, humanity will rush headlong into doom.

YARA F

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@QatarToday: What was so crazy about Crazy Signal? The roundabout it replaced. Picture courtesy of “Skeptic in Qatar”@Al_Anood: Should’ve been called Death Roundabout @MK_Maestro: Just imagine that old roundabout in today’s driving environment. That’s what I’d call crazy.

@QatarToday: Qatar Airways to lose position on FC Barcelona kit?@qatarninetales: Swap the question mark for a full stop / period please Qatar Today

@QatarToday: Zulal Oasis demonstrates the success of its pilot project of its New Growing System that promises record yieldsFlamenquita, @basbusa10: @QatarToday is this hydroponic cultivation or what?@QatarToday: @basbusa10 Yes, hydroponics and dry air cooling system specifically developed for Qatar’s climate....Flamenquita, @basbusa10: @QatarToday it’s the trend in all Gulf, the only way to get produce growing here. If I see in the supermarket will buy

16 > QATAR TODAY >SEPTEMBER 2015

affairs > localKERRY IN DOHA

US Secretary of State John Kerry talks with HH the Emir Sheikh Tamim bin Hamad Al Thani before their meeting at the Diwan Palace in Doha.

AFP PHOTO / BRENDAN SMIALOWSKI / POOL

JAIL TIME FOR AL JAZEERA JOURNALISTS IN EGYPT

Al Jazeera journalists, Canadian Mohamed Fahmy and Egyptian Baher Mohamed, both accused of supporting the blacklisted Muslim Brotherhood, talk to the press with human rights lawyer Amal Clooney, during their trial in the capital Cairo. The court sentenced Fahmy and Mohamed, along with Australian journalist Peter Greste who was tried in absentia after his deportation earlier this year, to three years in prison in a shock ruling following global demands for their acquittal.

AFP PHOTO / KHALED DESOUKI

The Public Works Authority (Ashghal) has announced the completion and delivery of 22 schools and 11 kindergartens in Doha and the surrounding areas to the Supreme Education Council in preparation for the academic year 2015-2016. The authority handed over 21 schools and kindergartens

to the SEC at the beginning of the 2014-2015 academic year and 20 educational facilities at the beginning of the 2013-2014 academic year, in addition to schools that have been handed over in previous years.

Ready for a new school year

QATAR TODAY > SEPTEMBER 2015 > 17

“I am proud to witness everything that has been achieved in our beloved country’s tourism sector,” commented QTA Chairman HE Issa bin

Mohammed Al Mohannadi in a statement. “This award is a reflection of the relentless efforts exerted by QTA and its partners to build and develop the tourism sector in Qatar and to transform the country into a global hub that is proud of its deep cultural roots.” He continued: “We are honoured to receive this award from the Arab Centre for Tourism Media whose mission is in line with our tourism strategy, as we devote more and more of our efforts towards building on the success of initiatives that promote intra-Arab tourism and shed light on Arabian treasures. These initiatives include the Cruise Arabia Alliance and the Annual GCC Handicrafts Exhibition, the first edition of which Qatar is proud to host this October.”

EASING GULF CONCERNS

US Secretary of State John Kerry met his Gulf Arab counterparts in Doha for talks in an attempt to ease the concerns of key allies over the Iran nuclear deal. He and the Foreign Minister HE Khalid bin Mohammad Al Attiyah spoke during a press conference following a meeting with foreign ministers of the Gulf Cooperation Council where HE Al Attiyah backed the deal on Iran’s nuclear programme as the best available option.

AFP PHOTO / BRENDAN SMIALOWSKI / POOL

QTA best Arab government tourism authorityThe Arab Centre for Tourism Media awarded Qatar Tourism Authority the award for “Best Arab Government Tourism Authority” in 2015 for their “contribution to the development of the Arab tourism landscape” at an awards ceremony in Muscat, in the presence of key government officials, personalities in the tourism, business, and media worlds.

HE Ahmed bin Nasser Al Mahrizi, Omani Minister of Tourism, hands QTA the award, received by Rashed Al Qurese, Executive Director of Marketing and Promotions at QTA.

TRADE SUFFERSTHE LOW OIL PRICES HAVE LEFT A SIZABLE DENT IN QATAR’S TRADE FIGURES AS A REPORT RELEASED BY THE MINISTRY OF DEVELOPMENT PLANNING AND STATISTICS SHOWED.

QATAR’S TRADE BALANCE ACHIEVED A SURPLUS OF

QR14.3 BILLION

IN JULY, DOWN 1.4% COMPARED TO THE PREVIOUS MONTH AND DOWN 55.6% COMPARED TO JULY 2014.

EXPORTS FOR JULY WERE WORTH

QR23.5 BILLION,

DOWN 41.7% COMPARED TO THE SAME MONTH OF LAST YEAR.

IMPORTS WERE UP

13.5% MONTH-ON-MONTH TO QR9.2 MILLION.

PETROL AND HYDROCARBON EXPORTS WERE DOWN BY

40.5% TO QR15.6 BILLION.

JAPAN WAS THE TOP EXPORTER TO QATAR, EXPORTING

QR4.3 BILLION

WORTH OF PRODUCTS. SOUTH KOREA CAME IN SECOND PLACE WITH QR4 BILLION. THE TWO COUNTRIES COMBINED REPRESENT 37.1% OF QATAR’S TOTAL IMPORTS.

CARS, AIR PLANES AND HELICOPTERS WERE QATAR’S BIGGEST IMPORTS.


affairs > local

This announcement came during APF’s Annual Meeting in Ulan Bator, Mongolia, chaired by President of the Forum, Dr Ali bin Smaikh Al Marri, the Chairman of Qatar National Human Rights Committee. He stressed that his efforts to promote

national human rights institutions will continue through the sub-regional office of the Forum in Doha. Qatar handed over the presidency of the APF to the Republic of Mongolia, represented by its National Human Rights Commission .

Doha host regional office of APF

The Asia Pacific Forum (APF) has chosen Qatar to host a regional sub-office, which is currently being set up to begin its duties next year.

FITCH GIVES QATAR A THUMBS UP

Fitch Ratings has affirmed Qatar’s long-term foreign currency sovereign rating at “AA”, the third highest on the rating scale, with a stable outlook. This means that Qatar is among a select group of countries considered to be extremely creditworthy. Earlier this year both Moody’s and Standard & Poor’s affirmed Qatar’s rating and its stable outlook.

HEALTH INSURANCE EXTENSION

The Supreme Council of Health has extended the grace period for private insurance companies to cover basic health services to citizens until April 2016 which pertains only to basic health services provided by the National Health Insurance Company. While all nationals now have full coverage under Seha, its coverage for expat workers has been delayed due to troubles such as overcharging by healthcare providers and long wait times at clinics.

QATAR'S HAND IN KATRINA

REHABILITATION CELEBRATED

Ten years ago after Hurricane Katrina hit the Gulf Coast of the United States, Qatar and its partners on the ground celebrated their joint efforts to provide relief and restore the city of New Orleans. Within two weeks after the storm, the Qatar Katrina Fund was established and with a gift of $100 million, the fund embarked with its American partners on a journey of building and rebuilding. The money was distributed among education, housing and health care sectors. This journey was celebrated recently in a ceremony at the New Orleans Ritz Carlton that was attended by New Orleans mayor Mitch Landrieu, former Senator Mary Landrieu, and Qatari Ambassador HE Mohammed Jaham Al Kuwari. This “celebration of recovery”, co-hosted by Habitat for Humanity and an array of corporate sponsors, commemorated Qatar’s efforts to help the parts of the US that were battered by Hurricane Katrina. HH the Father Emir Sheikh Hamad bin Khalifa Al Thani’s visit to New Orleans three years later was also remembered. Earlier last month HE Ambassador Al Kuwari also launched a book documenting those efforts with over 200 pages of statistics and personal stories from Katrina victims who have benefited from Qatar’s gift.

Athletic feats in BeijingThe Qatari contingent showed amazing resilience and strength at the 2015 IAAF World Championships held in Bird’s Nest National Stadium in Beijing.

Mutaz Essa Barshim reacts during the final of the men’s high jump athletics event

Kenya’s David Lekuta Rudisha and Qatar’s Musaeb Abdulrahman Balla

compete in the semi-final of the men’s 800 metres athletics event

Ashraf Amgad Elseify competes in the qualifying

round of the men’s hammer throw athletics event

AFP PHOTO / ADRIAN DENNIS

Femi Ogunode reacts after a heat of the men's 200 metres athletics event

AFP

PH

OTO

/ J

OH

AN

NES

EIS

ELE

AFP PHOTO / OLIVIER MORIN

AFP PHOTO / WANG ZHAO


business > bank notes“The assets of Arab banks increased by 10% to reach $3.1 trillion

(QR11.28 trillion) while credit facilities to different economic sectors reached $1.6 trillion (QR5.82 trillion), or 60% of the GDP of the Arab

states, in 2014.”WISSAM FATTOUHSecretary-General

Union of Arab Banks

While the UAE leads the GCC with 19 of its banks on the list, it is followed by Saudi Arabia (12), Qatar, Lebanon and Bahrain (nine

each), Kuwait (eight), Egypt and Oman (five each), Morocco (four) and Jordan (two).

The National Commercial Bank of Saudi Arabia, which is the largest bank in the Arab world and a pioneer in Islamic banking and finance, is the highest-ranked Arab bank at No. 106 on the global list. It was followed by the Qatar National Bank which was No. 107, a major step up from its ranking of 141 in 2013.

Forbes has analysed 1,245 listed companies in Arab stock markets. They excluded companies that failed to report their profits from 2014 and companies from countries experiencing political strife or war. The rankings were awarded based on revenues, net earnings, assets, and market valuation, with each metric equally weighted.

Company’s name Market value Total revenues Net profits Total assets

Sabic (KSA) $64 billion $50.4 billion $6.2 billion $90.9 billion

Qatar National Bank $36.7 billion $6.1 billion $2.9 billion $133.6 billion

Etisalat (UAE) $26.6 billion $13.3 billion $2.4 billion $33.1 billion

Saudi Telecom (KSA) $32.8 billion $12.3 billion $2.9 billion $24.2 billion

Saudi Electricity (KSA) $18.8 billion $10.3 billion $963 million $84.7 billion

Al Ahli Bank (KSA) $31.9 billion $5 billion $2.3 billion $115.9 billion

Al Rajhi Bank (KSA) $24.5 billion $3.7 billion $1.8 billion $82 billion

National Bank of Abu Dhabi $17 billion $3.6 billion $1.5 billion $102.4 billion

Emirates NBD (UAE) $13.6 billion $4.7 billion $1.3 billion $98.8 billion

First Gulf Bank (UAE) $18.3 billion $2.9 billion $1.5 billion $57.8 billion

83 Arab banks among top 1,000 world banksAs many as 83 Arab banks, including nine from Qatar, find a place on the list of the Top 1000 World Banks in 2015, which was released by financial magazine The Banker.

BARWA BANK’S TOTAL ASSETS UP IN

H1 2015

GCC BANKS DOMINATE FORBES LISTIn what should come as no surprise, six of the top 10 companies in the Arab World for 2015 are from GCC’s banking and financial services sector. Of them, three are from the UAE, two from Saudi Arabia and one from Qatar.

Qatar to deposit $1 billion in Sudan’s Central BankSaudi Arabia has deposited QR3.64 billion ($1 billion) in the central bank of sanctions-hit Sudan over the past two months, according to its Finance Minister Abdul Rahman Dirar. The money was deposited in two equal installments in July and August this year, he said. Qatar too would deposit a similar amount in Sudan’s central bank to boost its foreign exchange reserves, the finance ministry said.

NET PROFIT

QR4I2 MILLION

FINANCING ASSETS

QR24.4 BILLION

CUSTOMER DEPOSITS

QR23.2 BILLION

EARNINGS PER SHARE

QR1.39

TOTAL ASSETS

QR4I.3 BILLION


business > realty check

However, there was a significant drop in the number of transactions during 2011-2015. A comparative analysis of the market performance for the first six months of the past five years shows a significant increase in the combined value of transactions, but a

sharp fall in the numbers.The first half of 2015 witnessed a 48% rise in the combined

value of transactions year-on-year; however, the total number of transactions declined to 3,050, from 4,503 struck during the same period a year ago. The total number of deals is down by 7% in the first half of 2015, compared to the deals struck during the first half of 2011.

House rents are expected to maintain the upward curve, thanks to growing demand for residential space. Rents were up 14% last year due to the population growing at the rate of 9% annually.

According to Arabic daily Al Watan, real estate has registered a growth of 6%. However, as for commercial space, there has been no shortage as supplies will outstrip demand, which has been increasing 7% annually.Meanwhile, real estate transactions worth QR410.54 million took place between August 2 and 6, the Real Estate Registry at the Ministry of Justice said.

Doha rents shoot up by 14%

Malaysian Prime Minister Najib Razak says Qatar and China have expressed an interest in the assets of debt-laden state fund 1Malaysia Development Berhad (1MDB), which is seeking to offload assets parked under its power unit Edra Global Energy Bhd, and sell developmental rights in its

high-profile property projects.According to Najib, HH the Emir Sheikh Tamim bin Hamad Al

Thani had indicated that the Qatar Investment Authority was keen to view 1MDB assets and purchase land in its Bandar Malaysia project.

Each building has rooms that can together accommodate 780 workers. In all, the labour accommodations are meant for 50,000 workers. The project was built by Barwa Real Estate Company.

It has a cinema, entertainment centres, a huge auditorium for community events, commercial complexes, restaurants and even sports facilities like stadiums for volleyball, football and cricket, among other sports.

Real estate sales boom in H1 2015The total value of Qatar’s real estate transactions for the first six months of 2015 was QR36 billion ($9.8 billion), up 18% from corresponding figures for 2014, which were QR24.4 billion ($6.6 billion).

Workers city ready for occupationBarwa Al Baraha, the GCC’s largest and most modern complex of labour camps which is located in the Industrial Area in Doha, is ready for occupation. Spread over an area of over a million square metres, it consists of 64 buildings, each with four floors.

QATAR MAY INVEST IN MALAYSIA

“Qatar’s real estate market has grown manifold over the past five years in terms of value. But the total number of deals has remained

flat for the past three years. If you compare the total number of deals struck in the first half of 2015 with 2011, you could see the number has

fallen to 3,050 from 3,279.”AHMAD M AL AROUQI

General ManagerRoots Real Estate

Qatar


Chairman of Iran Chamber of Commerce, Industries, Mines and Agriculture Mohsen Jalalpour said that Iran can take Qatar’s gas and transit it to Turkey to be pumped

to Europe. “In case Iran is able to reach a deal with Qatar and Turkey over this, there will be a significant profit for Iran and Turkey [for transiting the gas].”

Iran’s huge natural gas reserves had for years made it a prime source for supplying future exports to Europe. Acordingly, separate discussions were started with the country by a consortium named Nabucco as well as the Swiss electricity company EGL.

However, the complications that later emerged – specifically the US-engineered

sanctions – made both sideline Iran from their plans to pipe gas to Europe over the past few years.

business > oil&gas“The arrival of our fully loaded Q-Flex vessel at Bahia in Brazil extends our larger ships’ reach to 56 terminals in 18 countries across the globe,

allowing for greater cost-efficiency for our customers.”KHALID SULTAN AL KUWARI

Chief Marketing and Shipping OfficerRasgas

Seeking to cut a better deal with Qatar, India has delayed the delivery of at least 20 shiploads of LNG in 2015, as the importer. The deferral gives India time to ask Qatar’s RasGas to bring its LNG prices, which are currently pegged to a moving average of crude oil, more in line with those currently attainable on international spot markets. India pays Qatar around $13 per million British thermal unit, whereas current spot rates float between $6 and $7.

The move marks the exercising of India’s right under a 25-year long-term contract with Qatar to defer the purchase of up to 30% of annual supplies until a later date. The delayed cargoes amount to around 1.25 million tonnes of LNG, or about 17% of the 7.5 million tonnes India buys every year from RasGas.

Iran discovers new shale fieldsIran has discovered a number of new shale fields, according to state news agency IRNA.

“As the result of preliminary explorations, three or four new oil shale horizons with signs of kerogen were discovered near Kerman and southern Semnan provinces,” the report says.

The report, quoting sources, confirmed shale reserves in other regions including Iran’s Zagros Basin and near Aligudarz in the Lorestan province. The Garoo formation in Lorestan province is the biggest discovered shale reserve while the Gachsaran formation holds a significant capacity, the report adds.

QATARGAS LOADS 5000TH LNG CARGO

Qatargas announced that the 5000th LNG cargo from the Common LNG Storage and Loading Asset in Ras Laffan Industrial City was loaded on board the Q-Flex vessel Al Karaana at Ras Laffan port recently.

Iran offers to export Qatar's gas to Europe

INDIA WANTS

QATAR TO REDUCE

LNG PRICE

The LNG storage and loading facilities were built to store and load LNG produced from Qatargas’ seven LNG production trains and RasGas Trains 6 and 7. The LNG

is loaded from berths 1, 3, 4, 5 and 6 at Ras

Laffan port and delivered to customers across the globe.

A ceremony to mark the milestone was held on board the Q-Flex vessel which was attended by senior officials from Qatargas and RasGas and the Ship Master.


affairs > arab snippets

A WAST E F U L C R I S I S

Lebanese security forces use water cannons to disperse protesters during a demonstration, organised by the #You Stink! campaign, against the ongoing

trash crisis in the capital Beirut on August 22. Thousands of protesters, including children, gathered to protest the Lebanese government's inability to find a lasting

solution to the country's worsening waste problem.

AFP PHOTO / ANWAR AMRO


Qatar’s rail network on the fast track

In June, Qatar Rail – the state agency charged with developing the country’s railway network – announced it would be issuing tenders for the initial stage of construction on the long-distance

rail before the end of this year, with con-struction set to begin in 2016.

Measuring progressWhen fully completed in 2030, the planned four phases of the network will cover a distance of 400 km with links to Bahrain and Saudi Arabia, as well as freight and passenger lines to Qatar’s main population and economic centres, including Ras Laffan Industrial City, Dukhan and Al Shamal.

The initial phase of development will connect Doha to the industrial and logistics hub of Mesaieed and the new Hamad Port container terminal, before continuing on to the Saudi Arabian border, with 151 km of track and infrastructure to be built.

Upon completion, the railway will be able to accommodate passenger train speeds of 200 km per hour (kph) and freight speeds of 120 kph.

LRT moving aheadOther crucial transport projects in the country also remain on track. Work on the 38.5 km Lusail light rail transit system (LRT) is steadily progressing. The system is planning to link Doha with the new satellite city of Lusail, north of the capital, in addition to transporting passengers within Lusail.

The final award for the completion of the LRT was granted to a QDVC-Alstom joint venture in June 2014. “Phase 2C3 of the LRT, the southern portion, is expected to be completed and operational in February 2019, while Phase 2C, the northern portion, is set to be completed in February 2020,” Yanick Garillon, CEO of QDVC, the Qatar-

The long-distance passenger and freight rail transportation system in Qatar, part of the wider GCC rail network currently under development, is moving closer to pulling out of the station.

affairs > viewpoint


BY OLIVER CORNOCKThe author is the Regional Editorof Oxford Business Group.

based contracting and construction company leading the consortium for the Doha Metro Red Line-South, told OBG.

Metro on trackMeanwhile, plans for Qatar’s metro system are also moving ahead, with phase 1 of the Doha Metro project to include the three lines currently under construction, as well as 37 stations and supporting infrastructure.

Despite the project’s massive scale, it is running on schedule, Marc Krouse, financial managing director of PORR Bau (Doha Branch), told OBG. PORR Bau, a member of the consortium that also includes Saudi Binladin Group and HBK Contracting, is responsible for constructing Doha Metro’s 33.3 km Green Line Underground, starting in Msheireb in the east of the city, running through Education City and continuing west to Doha West International.

“This is the largest metro project of its

kind ever undertaken in the world,” Krouse told OBG. “There are 21 tunnel-boring machines (TBMs) running at one time in the country, so the logistics of the entire operation are very complicated and require careful planning to ensure everything is completed on time.”

In June Qatar Rail officially announced that all TBMs were on track to complete the tunnelling phase by 2017, and that 30 km or around 25% of the underground tunnels had been completed.

8.3 km of the 32 km of underground tunnels had been tunnelled as of June 30, according to Garillon: “We are actually ahead of schedule and anticipate finishing before our handover date.”

PORR Bau’s Krouse shared this positive outlook for the Green Line. “Of the 33.3 km of tunnels required for the Green Line, we have tunnelled 12.7 km as of June 30. We are on track to meet our handover date,” he told OBG.

Costs to considerThe Doha Metro project has not been without challenges. Flooding has been an obstacle and has caused delays in some areas. Rising water tables caused by leaks from older infrastructure and seawater intrusion have slowed tunnelling and damaged some construction equipment. Though officials have said the flooding will not delay completion, deploying dewatering technology and repairing the TBMs will likely add to project costs.

Greater demand for building materials – most of which have to be imported – and skilled workers, exacerbated by growing infrastructure development and construction activity across the region, could also raise costs.

Materials inflation is expected to reach 3% this year, Nick Smith, a partner at engineering consultancy Arcadis, told the local press in June. This could rise further in the coming years as construction activity on major projects, including the long-distance railway and infrastructure related to the 2022 FIFA World Cup, ramps up.

However, lower oil prices and weaker demand in other major markets – particularly China, where there has been a scaling back in building activity – have led to lower commodity prices for steel and other materials. This could help keep construction inflation in check, at least in the near term


investment > viewpoint

While the deal certainly was controversial, and is still under debate in the United States, strictly from an investment

standpoint we think it represents an exciting development not only for Iran, but for the Middle East and North Africa region. Many investors in the region are excited about the potential for this new market to fully emerge. Development of Iran’s capital market and potential opening to investors around the world should contribute to economic development not only in Iran but also in the region, and could help lower political tensions.

Iran has a large, thriving stock market already, with more than 400 listed companies and a market capitalisation of more than US$100 billion. We have found many good companies in Iran that we believe to be well managed, representing a diverse mix of sectors and industries. Investing in Iran is not only an oil story; agriculture, manufacturing and mining are also key drivers of growth.

We are particularly interested in consumer-oriented stocks as potential investment opportunities, which include retailers, food producers, telecommunication, financials and banking companies. Iran’s banking sector, in particular, could benefit as the need for capital in Iran will be most acute. We believe this area – driven by domestic population growth, demographics and increasing disposable income – should be among the first to benefit from a potential removal of sanctions. We also would anticipate some re-investment of oil wealth back into the domestic and neighbouring economies, mainly in terms of much-needed infrastructure investment and diversification projects that aim at moving economic dependence away from oil.

We think a number of multinational consumer products companies will likely want to expand in Iran, so that could be another area for investors to consider. Sensing change on the horizon, Iran has been working to prepare for a potential flood of new investors to its market. Iran’s stock exchange has been undergoing improvements in infrastructure, and leaders there are working to comply with international standards in areas such as surveillance and investor protections.

This is encouraging but we think more work still needs to be done to attract international investors. Corruption remains a problem – as it does in many countries around the world – and we would like to see more movement toward privatisation, as the majority of listed companies in Iran are affiliated with the state in some fashion.

In our view, the potential lifting of sanctions, and the anticipated new investment, could have a dramatic impact on employment and domestic consumption because new investments will require workers, and those workers in turn will likely have more income to spend. Countries neighbouring Iran could also potentially benefit from the lifting of sanctions, including the UAE, Oman and Pakistan.

In our view, the outlook seems brighter for Iran today than in the past, and we see more potential opportunities ahead. Of course, Iran’s future lies in the political process, which can be uncertain and take a long time to implement. In reality, Iran’s integration with the international community and a full removal of sanctions could likely be a multi-year process, but as long-term, focused investors, we are optimistic about the opportunities this could create for the region over the coming years

In this opinion piece, Mark Mobius writes that political processes and economic reforms aside, the potential of Iran’s new sanction-free economy can’t be ignored.

Iran from an investor’s lens

BY MARK MOBIUSExecutive ChairmanTempleton Emerging Markets GroupFranklin Templeton

ABOUT FRANKLIN

TEMPLETON INVESTMENTS

Franklin Templeton Investments provides global and domestic investment managament to retail, institutional and sovereign wealth clients in over 150 countries. Through specialised teams, the company has expertise across all asset classes – including equity, fixed income, alternative and custom solutions.


healthcare > viewpoint

In response to the pressures of rising costs in the healthcare sector, a few pioneering organisations are developing a new operating model that we call the value-based hospital.

The new value-based care

This fundamentally different approach relies on continuous improvement by monitoring the health outcomes of specif-ic patient groups and under-

standing resource requirements and costs in the context of how those outcomes are achieved along the clinical pathway. Among the leading organisations that have em-braced this approach are Kaiser Permanen-te and Cleveland Clinic in the US, Marti-ni-Klinik and Schön Klinik in Germany, and Terveystalo, the largest private healthcare provider in Finland. The vast majority of hospitals, however, have yet to embark on this journey. Despite years of quality man-agement initiatives, hospitals are decades behind most other industries.

The limits of the traditional hospital operating model Every hospital wants to deliver quality care in a cost-effective fashion. But the way most hospitals are organised today makes that goal very difficult – and, in many cases, nearly impossible – to achieve. Three organisational characteristics stand in the way of sustainable continuous improvement.Functional organisation. Departments are organised by medical specialty: cardiology,

thoracic surgery, rheumatology, radiology, and so on. In many hospitals, resources that could be shared, such as emergency care and intensive care are likewise organised into their own specialty units. Despite the high degree of formal interaction among departments through referrals for diagnostics or treatment, each unit is measured on its own budget and its own organisationally distinct Key Performance Indicators, making it extremely difficult to optimise the full care pathway and manage costs in an integrated fashion.

Narrow performance metrics. The problems of the functional structure are exacerbated by the type of performance metrics that hospitals typically collect. In our experience, most hospitals track financial metrics and process metrics (with an emphasis on waiting times and the productivity of individual units). Some measure “quality,” but when they do, quality is often defined as compliance with treatment guidelines (in effect, process efficiency) or assessed using surveys about the patient experience. But those approaches emphasise efficient throughput or subjective experience, not the actual health outcomes delivered to patients. The fact that costs for a given condition are distributed across many different


departments makes it extremely difficult to get a clear picture of the whole and, therefore, to act on costs, because nobody “owns” or can manage the trade-offs between cost and quality.

The management-clinician divide. A highly fragmented organisation and metrics that do not directly address the key purpose of the organisation – improving the health and well-being of patients – tend to create a disconnect between management and staff. This behaviour in hospitals is a logical consequence of the functional organisation. On the one hand, hospital administrators, focused on maximising the efficiency of their own units through their control over the budget and staff schedules, often feel powerless to influence clinicians, who are on the front line of care. On the other hand, highly committed clinicians often feel not only that the metrics and objectives the system imposes on them have little to do with patient care but also that they lack the information and tools needed to really make a difference in hospital performance.

The advantages of the value-based operating model The starting point of a value-based operating model is a commitment to collect and share data on the actual health outcomes. Systematically tracking outcomes is essential for two primary reasons. First, delivering quality health outcomes is the raison d’être of any provider organisation. Quality health outcomes are what patients want from their providers and what payers ultimately should fund. Second, and perhaps even more important, not until an organisation knows what kind of outcomes it is delivering can it begin to understand its true performance and what kind of value it is providing. Focusing on outcomes also has a third big advantage. It provides both administrators and clinicians with a whole new way to think about costs: whether the costs incurred actually contribute to outcomes.

By definition, health outcomes are specific to a given disease, medical condition, or procedure and vary by patient group. Similarly, the costs that matter in the value-based hospital are the costs per patient to achieve the target outcomes for a given disease or condition. Therefore, the right way to track costs is not so much by each specialised unit but by the activities undertaken and resources used for a given patient group across the entire care-delivery process. Once an organisation has developed a system for tracking the

cost per patient in a particular group of patients suffering from the same disease or condition or with a similar medical profile, it is in a position to identify which particular costs drive quality outcomes and which do not.

The combination of new visibility about outcomes and costs per patient group with across-the-board engagement on the part of clinicians creates the context for a new kind of behavioural dynamics in the hospital. New health-outcomes data and cost data that together provide an integrated perspective across the entire care-delivery value chain. These data also make it possible to align the clinical goal of delivering high-quality care with the managerial goal of delivering that care as cost-effectively as possible. Put simply, clinicians in this context find that it is in their interest to cooperate with one another and with management in a genuine partnership in which each takes joint responsibility for providing quality outcomes in a cost-effective fashion.

In some cases, a provider organisation will focus on becoming an international leader in treating a specific condition that often requires highly specialised care; for instance, prostate cancer. Providers that use this strategy leverage their depth of experience in clinical-practice R&D, excel at systematically driving outcomes improvements that matter for patient groups, and increase volume by attracting new patients who want the highest-quality outcomes. In other cases – for example, chronic diseases such as diabetes or congestive heart failure – providers will strive to become integrated-service institutions that take responsibility for the entirety of patient health in a given population across primary, secondary, and in some cases tertiary care. The integrated providers will manage the population for maximum healthcare value and will, to a large extent, manage their own integrated care chains. But they will also act as brokers, helping their patients navigate to the best independent providers, which align their approaches with the integrated providers’ systems and offer unique capabilities.

Once a hospital has the right patient-focused metrics in place and an engaged clinical staff operating on the basis of effective processes for care redesign, it is also in a position to identify its areas of strength and leverage those strengths to establish its competitive differentiation in the rapidly changing healthcare marketplace

BY JAD BITAR, Partner and Managing Director, and RAMI RAFIH, Project LeaderThe Boston Consulting Group, Dubai

ABOUT THE

BOSTON CONSULTING GROUP

The Boston Consulting Group (BCG) is a global management

consulting firm and the world’s leading advisor on business

strategy. We partner with clients from the private, public, and not-

for-profit sectors in all regions to identify their highest-value

opportunities, address their most critical challenges, and

transform their enterprises. Our customised approach combines

deep insight into the dynamics of companies and markets

with close collaboration at all levels of the client organisation.

This ensures that our clients achieve sustainable competitive

advantage, build more capable organisations, and secure lasting

results. Founded in 1963, BCG is a private company with 82

offices in 46 countries. For more information, please visit bcg.com.


affairs > world view

A P R AY E R F O R P E AC E

A woman holds incense sticks as she offers prayers at the reopened Erawan Shrine – the popular tourist site where 20 people were killed on August 17 in a bomb blast – in central Bangkok. Thai police said they were investigating new security camera footage showing a man dropping a package into a canal as the hunt for those behind the deadly blast on entered its fifth day without arrests.

AFP PHOTO / Christophe ARCHAMBAULT


business > listening post

HUSSAIN AL FARDAN WAS HONOURED WITH THE LIFETIME ACHIEVEMENT AWARD AT THE QATAR TODAY BUSINESS EXCELLENCE AWARDS. WHILE HIS ACHIEVEMENTS IN BUSINESS ARE FAMILIAR AND ARE TOO MASSIVE TO BE ENUMERATED HERE, IT IS HOW HE LIVES LIFE THAT MAKES HIM SUCH AN INTERESTING PERSONALITY. QATAR TODAY SPENT A RAMADAN AFTERNOON WITH THIS SELF-STARTER AND CAME BACK INSPIRED.

BY SINDHU NAIR

I DREAM A LOT


While the younger generation of Al Fardans have their offices in the “Manhattan of Qatar” (as Hussain

Al Fardan himself flippantly refers to Doha’s West Bay) in super luxurious, glass-clad designer towers, the founder and the visionary of the Group is contentedly settled amid the comfort of memories in his old, but no less luxurious, office on Bank Street, his window overlooking the first pearl shop owned by the family in Souq Waqif. Hussain Al Fardan might be a multi-millionaire but he keeps his office filled with memories; with the passageway leading up to his office lined with memorabilia, all saved and stored from his early life in Qatar. His office door and his schedules are manned by his man Friday Abdullah Khatri, an Indian national, who has been with him for 20-plus years. Even through the dusty hot days of June during the Ramadan season, this hard-working businessman comes to the office regularly and looks into day-to-day activities. There is one more routine in his daily schedule that he rarely forsakes: dreaming big. And it is this habit that has sown the seeds of the enterprise

that has, through its many businesses, created a QR16 billion island on the shores of Doha, owns a successful public-listed bank, and retails the most luxurious cars in the country.

“I dream a lot,” reveals Al Fardan, “but when I dream, I dream big. I try to protect my dream by creating ideas. I give my dream or my ideas my full attention. I keep targets. Once I have put my 100% behind my ideas, I will try to make the dream a reality.”

Adding one more feather to his cap, Hussain Al Fardan was recently honoured with the Lifetime Achievement Award by Qatar Today Business Excellence Awards.

“I didn’t expect this though there have been many such occasions when I have been felicitated,” he says. “This makes me proud of myself, that I have done something to make others value my achievements. It makes me think about what more I can do. You have to be a creator and a dreamer.”

What’s next for Hussain Al Fardan? Now that he has seen the creation and fulfilment of almost all his dreams, what is he dreaming about next?

He says, “I have done all I can for my business. I am satisfied with all the directions my life and my business have taken and my sons are doing their best in

“The country should and could have the biggest museum for pearls. If Qatar does it, no other country will be able to replicate this.”



continuing what I had envisioned.” But that doesn’t mean Al Fardan has stopped dreaming. He prays for good health as he starts dreaming about the one business that only he has a stronghold on.

“I am giving myself time to go back to my hobby, and my hobby is doing a business that no one knows more than me. I have already started work on it and have proceeded well with it.”

This business he refers to is a pearl collection that Al Fardan has slowly built and that now takes up a whole floor of his tower. With his passion and love for the art of pearl harvesting, this businessman has built a collection that will one day bring laurels not just to him but also to the country.

“Not me, but Qatar has to, one day, become the biggest collector of pearls. The country should have the biggest museum for pearls. If Qatar does it, no other country will be able to replicate this,” he says. And if

rumours are to be believed, the Chairperson of Qatar Museums, HE Sheikha Mayassa Al Thani is indeed planning in this direction and has visited Al Fardan in this regard.

All what he dreamed did not come true for Al Fardan by a mere wave of the wand, but through hard work and from taking the grassroots approach.

“I was a small employee in the first bank in Doha, the Eastern Bank Limited (now the Standard Chartered Bank) in the 50s. I learnt a lot from that bank. I learnt how to do business, accounting and marketing from there. It is around this time that I also started dreaming of owning my own bank,” he reveals.

While he had a trading business of his own, he was not satisfied with that alone. Al Fardan soon started the first exchange house in Doha but even that was not enough for the dreamer in him. “I wanted to have my own bank and I started to work on that plan.”

PEARLS FROM THE MUSEUMGlimpses from Al Fardan's famed pearl museum, a private haven of the most exquisite pearls and other precious objects.


How cumbersome was the funding process in those years, we wonder and Al Fardan answers, “Money is not everything, what is most important is to have the will.”

“In those days we did not have money. But I managed to find funding support, people who put in 20% of the capital. These friends who believed in me and my dreams are the founders of Commercial Bank of Qatar. I then placed it for public listing. We made sure that the bank was well managed by inviting Chase Manhattan to manage us. We were the biggest bank after QNB, which is the national bank of the country.”

The planning process for Commercial Bank of Qatar started in 1971, and in '73 it was ready to go live. “It took us two years to come up with the license. In '75 we opened for business,” he reveals.

“I worked hard day and night, there were lot of challenges but we dealt with each diligently and now am proud when I l ook back.”

His next project, or his next dream, was the “craziest” in Al Fardan’s own words. “That area where The Pearl-Qatar is now located was the best place for producing oysters. I had this idea of creating a paradise in this area.”

When asked about the perceived impossibility of the project at that time, he counters, “There is no word called impossible once I have made up my mind and started dreaming.”

Being in Qatar had its challenges and advantages. “Being in a small country, you can see success on the screens in front of you. Keeping in mind the population and by contemplating on the future population you have to make decisions instantly for your business.”

But the unprecedented growth of

the population and the corresponding infrastructure and construction in the country must surely have been an eye-opener. “I always believed in the potential of the country,” he says. “When you see that the leaders are doing their best, the businesses are filled with confidence. HH the Father Emir Sheikh Hamad bin Khalifa Al Thani had a vision, he opened the future like a screen in front of us, asking us, the private sector, to move forward and be a part of the country’s future. This vision is being continued by HH the Emir Sheikh Tamim bin Hamad Al Thani.”

There is a lot to be done, according to Al Fardan, to build on the country’s already burgeoning economy. “A lot can be done on the tourism sector,” he says. “We have the sun all year round and so much can be done to harvest this opportunity at times when the European countries experience their long winters.”

This gets him to dream in another direction, and he hints on this new dream of his. “Wellness tourism can be explored, we could become one of the best wellness destinations.”

Al Fardan muses on the new generation and their values. “The new generation should be ready to work hard and create things with their own hands. They have to be directed and should contribute to the country’s vision in the best way. But the most important thing for them to do right now is to build up their knowledge, work in companies to gain global expertise in their fields of specialty, and then assist in their family businesses. Start from the ground level and then go up the ladder after understanding each facet of the business.”

Al Fardan loves the changes he sees and yet is not dismissive of the past. He loves the new buildings just as he yearns for some old houses. But there are some memories that remain fresh. “I love the Souq Waqif. I feel the smell of the past there. I remember the pleasant times of that era. I was here and I am still a part of Souq Waqif.”

The way the Souq Waqif has been developed as a tourist attraction is one of the best developments in the country, he opines. “It takes someone who has a vision to come up with this beautiful idea. It was HH the Father Emir’s vision and he has done it.”

“And then when I travel from the old part of Doha to the Manhattan of Doha, I feel equally proud of the change that is taking over the country.”


THE PEARL DOHA

Everything I ever dreamed of, my house, my business, all of it is here in The Pearl; and it is done. I feel proud of this paradise. I have friends who tell me that they used to visit Nice and Cannes but now they have a house in The Pearl and they do not have to travel to these places anymore.

THE VICES OF THE NEW WORLD

Smart phones make life easier, you can carry your office in your pocket, but it is also a headache. You are always working and there is no disconnect any time.

TRAVEL BUG

I have travelled all over the world, and now I want to be here in Qatar and see the changes in the country and be proud of each change that I see. I want to be here and be part of the future and build it together with all the people and the leaders.

MEMORY COLLECTORAmong the artefacts and paintings, is nestled this ledger from SCB when Al Fardan used to work for the bank.

“WE ARE BUILDING”

That is the message that Qatar seems to be sending,

with its horizon lined with building equipment - from

forklifts and towering cranes to grid rollers and, the most

complicated of the lot, the tunnel boring machines

beneath the earth. In times of an oil price dip, the crunch doesn’t seem to have hit the

construction industry.

By Sindhu Nair

COVER STORY “WE ARE BUILDING”


Google Qatar’s construction sector and the figure that jumps out is the staggering $200 billion – the total value of the country’s infrastructure projects in the next seven years. While there is not an expanse of land without a tower crane visible in the Doha vista, the biggest apprehension is the oil price decline and resulting vein of restraint and realignment

across the industries in Qatar. Is the $200 billion a realistic figure? Will the current oil prices affect project allocation and spend? These are but some of the questions that come to mind when we think of the construction sector – the second biggest contributor to the country’s GDP.

The construction sector seems to be the only industry immune to the change in oil economics. But there are some worrying challenges. From manpower shortages to cash flow chokes in large projects, the sector is not immune to trials. Qatar Today speaks to contractors and experts to understand the future of the building industry.

According to the Deloitte GCC Powers of Construction 2015, the construction sector is an economic barometer

for the GCC. According to MEED Projects, the forecast for projects planned and underway in the GCC in 2015 is close to $172 billion, the highest on record to date. This is all against a backdrop of lower oil prices, continuing political unrest and reduced International Monetary Fund (IMF) growth forecasts across the GCC. It is also impacted by the deepening recession in Russia and, as reflected in the IMF World Economic Outlook update in February 2015, the projection for global growth in 2015 has been lowered to 3.5%, only a small increase from 2014. Per the IMF, the GCC's export oil earnings are expected to decline by $300 billion from the original estimate in October 2014.

However, as we know, the GCC countries have the benefit of reserves, which they have built up as a buffer and which they can continue to spend to achieve their outlined strategies; this has also been acknowledged by the IMF. Therefore, they are expected to continue to spend on infrastructure and capital projects in order to achieve their strategies for diversification.

Alpen Capital Investment Bank (Qatar) LLC Managing Director, Sanjay Bhatia says that the sector looks quite bullish in the medium to long-term perspective. Echoing the recent Alpen Capital Construction Industry Report, he says that the GCC countries have built wealth reserves, largely through oil exports. This has enabled them to make substantial budgetary allocations towards their construction sector, with an emphasis on social and physical infrastructure.

“The external atmosphere might not be very conducive from a short-term outlook,” says Bhatia. “But the region has already amassed great reserves in good times which will serve to finish the planned projects.” Even the low oil price, according to Alpen predictions, is a medium-term phenomena, with recovery seen soon. The medium-to-long term perspective on this region is generally optimistic, asserts Bhatia. ”If you look at economies, historically, there have been such shocks. But they have all bounced back.”

Even if the construction sector is not affected, the sentiments in the country seem to be at an all-time low. With the recent retrenchment across industries especially in the oil and gas companies, there is a fear factor that seems to be seeping through to all citizens.

“When the oil price is fragile, the overall sentiment in the market is always weak. People are not so bullish about splurging on high-profile projects,” says Bhatia. “But having said that, these economic shocks are used as a means to make sure organisations become leaner and fitter. It is always beneficial for economics to go through such phases, to keep them healthy and more efficient. It is not a complete meltdown and collapse, assures Bhatia, unlike the 2008 economic crisis. “We are not that impacted,” he says. “Though we have seen a meltdown in China, the US markets have recovered. These are short-term impacts which will get absorbed, particularly within the GCC economies.”

“If you look at the economies, historically, there have been such shocks (low oil prices). But they have all bounced back.”

Sanjay BhatiaManaging DirectorAlpen Capital Investment Bank (Qatar) LLC


Chemical 64,916

Construction

Gas

Industrial

Oil

Power

Transport

Water

475,218

25,402

28,717

23,409

332,305

217,569

36,035

KSA$1,203,571

Chemical 24,809

Construction

Gas

Industrial

Oil

Power

Transport

Water

539,793

21,083

8,996

50,899

35,055

99,226

6,253

UAE$786,114

Chemical 565

Construction

Gas

Industrial

Oil

Power

Transport

Water

80,080

11,848

250

55,188

29,019

46,876

8,732

Kuwait$232,558

Chemical

Construction

Gas

Industrial

Oil

Power

Transport

Water

30,967

5,000

1,258

4,656

5,025

6,148

11,050

1,778

Bahrain$65,882

Chemical

Construction

Gas

Industrial

Oil

Power

Transport

Water

139,843

12,889

970

16,559

8,785

103,083

16,098

Qatar$299,711

Chemical

Construction

Gas

Industrial

Oil

Power

Transport

Water

43,160

15,450

25,712

12,179

14,659

9,039

36,506

6,860

Oman$163,565

Source: MEED Projects

1,484

Sum of net project value planned and underway for the GCC (in million)

On a highMeanwhile it is boom time for the construction sector. According to Bhatia, “After a lull in the market in the summer months of July and August we have seen a sudden urgency in activities in this sector. All the projects seem to be in full swing.”

“Most of the construction companies are doing really well, fueled by population growth. There was a phase in the last two years when all the projects were in the planning stages and the sector was almost in limbo. Not so now, when all the projects have moved forward to an execution stage and work seems to be commencing without much

operational delay,” he says.Ibrahim Mohamed Jaidah, Group CEO and Chief

Architect of local contracting company, Arab Engineering Bureau, and the country’s most respected and well-known architect, states that there is no lull in the sector. “We are experiencing a slightly larger demand from both the private and public sectors. It has been noticed that everyone is in a hurry,” says Jaidah. AEB is currently involved in a number of large-sale projects of different typologies. “Most notable are of course corporate and mixed-use developments at Lusail. We enjoy working at Lusail due to the existence of pre-set infrastructure and traffic studies,” adds Jaidah.



“Government encourages JVs between local and international companies as some have proven very successful, as was the case with HMC, Ashgal, Al Bayt Stadium and some other major projects. It is worthy to mention that a high percentage of Mshiereb was built by JVs.”

Ibrahim JaidahGroup CEO and Chief Architect Arab Engineering Bureau

the Dubai “safety” factor is still in play for consultants, contractors and sub-contractors alike.”Some key skillsets and products are in demand, but for general works, the market is overstepping itself a bit as inflation in the industry is broadly in line with the CPI data,” he says.

Bringing in lineIn Qatar, the two largest projects in pre-execution phase and expected to be awarded in 2015 are from QRail, namely the QIRP: passenger and freight rail, budgeted at $15 billion, and Phase 2 of the same budgeted at $3 billion. A total of 400 km of mainline rail connecting Qatar to neighboring countries and 260 km of metro and light rail are planned; most of this is to be completed before the World Cup begins. This is followed by two projects, one for the new Qatar Economic Zone budgeted at $3 billion, which is one of the three new planned economic zones mainly focusing on logistics and air freight companies (expected to be the biggest of the three), and Occidental Petroleum Corporation (Oxy) – Idd e Shargi North Dome Expansion Phase 5, again budgeted for $3 billion. So in Qatar a clear focus on infrastructure continues as expected. This is as mentioned by the Deloitte report.

Recently one of the developers, Lusail Real Estate Development Company, hosted a seminar to brief contracting and engineering companies on upcoming tenders for the development of Lusail City. The seminar featured presentations about upcoming tenders for the development of the Qatari Diar headquarters, the Commercial Boulevard, Qutaifan Island’s financial district as well as residential and commercial towers in Seef Lusail.

In the residential segment, a significant undersupply is pushing up rents, according to Euromonitor though office and retail spaces show a balance of supply and demand.

Faithful+Gould, an integrated project and programme management consultancy, also vouches for the construction sector in Qatar. “Projects include the ongoing Doha Metro development; the infrastructure expressway project; Doha Festival City; the Shaza Kempinski Hotel, Doha Oasis mixed-use development, which includes a high-end mixed-use scheme comprising, residential, a retail complex, an exclusive 7-star high-rise hotel tower and a one-of-a kind indoor theme park,” explains Campbell Gray, Managing Director, Middle East, Faithful+Gould about their clients and design briefs.

Faithful+Gould is also working on an interesting role within the Ministry of Municipality and Urban Planning delivering a PPP major programme of new labour accommodation to new standards developed by the MMUP. “We continue working with our parent company Atkins to support Ashghal on the Central Planning Office (CPO), to co-ordinate major multi-billion dollar transport and infrastructure projects in Qatar, providing the programme assurance team and we’re developing a suite of Standard Forms of Contract for Ashghal, the Public Works Authority of Qatar, for its entire procurement programme in Qatar that will be used for many, many years to come,” says Gray.

According to Gray there is hunger in the market and

Total contract awards in the GCC, 2008-14 (in million)

$127,107

$149,536

$139,182

$133,210

$118,408

$161,328

$170,550

2008

2010

2011

2012

2013

2014

2009



With rising population, there is scope for more construction activities in the residential, retail and office spaces.Bhatia mentions one major project that is completed and will aid in helping the construction sector. “One of the key issues for large projects in Qatar was the limited capacity of the port. The market is small in Qatar; hence the port is one of the most important elements to help the industrial sector diversify and export surplus. With the huge Mesaieed Doha Port coming online, it will ease a lot of bottlenecks,” he says.

Caution is the wordMany Dubai-based construction companies and other international companies are of the opinion that Doha is not a safe market to recover money pumped into projects due to huge delays in payments. Gray agrees that most organisations engaged in Qatar are struggling with effective payment. “As a contractor, this is a compounded issue that has huge repercussions on regional business – primarily due to the scale of projects undertaken and the cash flow lock up that is experienced,” he says.

“With the continued rise of Dubai-based projects and contractors much more risk averse than in 2007/8 and less likely to expand to those levels of personnel and supply chain, the question remains – do I stay in home base and secure work to fill my business, or risk all to jump into a new high-risk market with constrained supply chain, high pay rates and uncertainty around when I’ll get my money,” says Gray talking about the challenges that the Dubai-based contractors are up against.

In the new world since the financial crisis, the answer to some is easy.

Jaidah feels that this issue goes far deeper than we envision. “The biggest obstacle in my opinion is a new process being implemented by international project management firms that are still new to Qatar. All this has added so many new layers to the process, sometimes unnecessary, that cause delays in project delivery and payments. We have seen some serious steps taken by governmental entities to prevent these mistakes from being repeated.”

Bhatia agrees about contractual delays. He says, “Yes, there have been delays in payment. It is a cycle, where the

“We are actually now starting to see some maturity in the market today in regard to this matter, with various clients and governments entities now investigating alternate forms of contract, other than the historically used traditional client-design and contractor-construct route.”

Campbell GrayManaging Director, Middle EastFaithful+Gould

developer delays and then the contractor delays payments to sub-contractors and this goes on. But this is not due to a lack of resources to pay for the work done. In fact it shows a lack of ability to process the huge volumes of administration work to handle the volumes involved in the payment procedures.”

These delays are prevalent in all economies, asserts Bhatia. Payments delays are part of private as well as public

THE THREE MOST COMMON METHODS OF ALTERNATIVE DISPUTE RESOLUTION THAT WERE USED DURING 2014 IN THE MIDDLE EAST WERE:

ARBITRATION MEDIATIONPARTY TO

PARTY NEGOTIATION



sector projects. “It has become a practice, unfortunately,” says Bhatia. “Delays have become a norm and this signifies more of a cultural thinking than a resource shortage.”

As Jaidah points out, international firms should also be flexible enough to accommodate the cultural differences and understand that the moving workforces from different nationalities are challenges that need to be handled carefully.

The new market entrants need to be mindful of these realistic working conditions, adapt to local norms and be committed to the country’s vision.

“A lot of streamlining is being done in the process. A lot of efficiencies are being noticed in terms of project awarding, monitoring etc, since the new government has taken over. The construction sector and the ancillary segments, like the construction equipment, have all benefited from the restructuring. All these small-and-medium industries are booming from the activity in the construction sector. This will benefit the economy as well,” says Bhatia.

Material and labour gridlockDue to growth in projects in construction and their reaching peak loads over the coming one to two years (e.g. Riyadh Metro and Doha Metro) there are upward pressures within the supply chain on prices.

Gray explains this in detail. He says, “We’re forecasting an overall GCC construction inflation of 5% in 2015 and potentially more in 2016 / 2017 as already launched projects ramp up to peak, and challenges include expectation management from client side especially around cost and potential delays due to supply chain stretch. This is driven

"Usually when there is a one point responsibility, there will be a lot of risk on him and hence the high cost on contracts. The risk should be distributed across the parties involved in the construction, from the stakeholder to the government."

Ahmad Jassim Al JoloChairman Qatar Society of Engineers

The Highs The Lows

The region’s population is expected to grow at a CAGR of 2.5% from 2014 to 2018 to

reach 56.9 million. An expanding population base is likely to

translate into higher demand for residential, commercial, retail, hospitality, healthcare, leisure

and infrastructure sectors across the GCC.

Most projects are now in the operational

stage after the planning process.

This is the most exciting time for the construction sector.

On a medium-to-long-term prediction,

the economy will regain its bullishness.

Mesaieed Doha Port’s Phase 1 will be operation in 2016, making sur that there are no bottlenecks

in the material acquisition stage.

All local companies have increased

capacities, especially the cement companies.

Due to high dependency on expatriate staff, the operations of the construction companies

may be affected by the challenge of hiring the right

talent and retaining them. There is also the challenge of difficult

existing living conditions for unskilled expatriates.

The dip in oil prices may push the GCC nations to restrict state spending, hampering the growth

of the construction industry, which is

materially dependent on government funding.

There is still a lack of maturity in the market;

contractual litigations and delays arising due to this is

going up. International firms also need to understand

the cultural setbacks in the country due to the large

expatriate labour force and act accordingly.

Simultaneous rapid expansion of the GCC construction

markets could result in a shortage of raw

materials used in the construction sector, particularly cement.

Qatar Construction sector in a nutshell


by a combination of increase in labour (white & blue collar) costs – which typically account for 22-25% of development cost and hardening of aggregate prices, mostly due to supply chain logistics, not just because of any global demand.”

These challenges can be mitigated through: Procurement strategy, getting early supply chain involvement to help all to plan for demand curve, observes Gray.

Pinch in materials is one of the challenges that are already being faced by the contractors here. “There is a lot of anticipation of shortage, but the market will be able to manage the shortage when the ports become operational and by the availability of expanding the manufacturing sector to keep up with the demand,” says Bhatia.

There is an anticipation of shortage and all the ancillary services are beefing up operations to meet these shortages. Doha's two local cement companies are going through an expansion drive to be able to meet the shortfalls.

Another factor that, according to Bhatia, is to be monitored is inflation. “If that is kept in check, through monitoring rentals, the bigger contributor to inflation, the inflation rise can be kept in check.”

Other operational hitchesAhmad Jassim Al Jolo, Chairman of Qatar Society of Engineers stated that he believed the greatest challenge to Qatar’s massive infrastructure programme was coordination amongst the various stakeholders despite the efforts of the Central Planning Office (CPO). The CPO which is part of the Ministry of Municipality and Urban Planning (MMUP) was given the mammoth task of coordinating Qatar’s infrastructure programme for road, rail, metro and other infrastructure projects. One of the toughest challenges has been identifying and relocating existing underground services to enable work to proceed. This challenge has arisen because some of the records for works completed many decades ago are no longer available, and/or the available records do not appear to be accurate.

According to Gray, “Contracting in Qatar and the region generally is quite outdated by comparisons to a lot more mature markets and is quite adversarial. We need to move more towards a ‘best value’ culture in the region, but this is hampered at most government levels by procurement law that stipulates that the cheapest technically compliant bid

�e Middle East region saw its dispute values increase to their highest value since 2011, growing from $40.9 million in 2013. Overall, the amount of time taken to resolve disputes in the region is creeping up with the average creeping up by just over a month in 2014.

0

15

30

45

60

75

90

105

120

135

150

Length of dispute

Disputed values

20142013201220112010


2014 Rank Cause 2013

1 A failure to properly administer the contract 1

2 Poorly drafted or incomplete and unsubstantiated claims new

3 A biased PM or Engineer new

4- Failure to make interim awards on extensions of time and compensation

new

4- An unrealistic contract completion date being defined at tender stage

5

Top five causes of disputes in Middle East construction projects in 2014



MEED Projects forecast of project awards 2015

Q1 2015

Oman

13,7201,077

Qatar

28,8515,365

Saudi Arabia

11,962

42,540

UAE6,690

Kuwait

27,3905,660

Bahrain

1,490173

2015 forecast

58,952


must be selected. Even if it is thought that the price isn’t achievable over the course of the project.”

Low cost stifles innovation or value addition as there is no incentive to consultants, contractors or sub-contractors alike. “In the ME we do cost cutting mostly, not value enhancement of the projects. This is why you can see so many splendid buildings that have numerous faults,” he says.

Jolo emphasised that teamwork amongst all the country’s stakeholders was imperative, and that the involvement of the public would be to the success of these mega projects.

Jolo highlights another perception that the Middle East construction market is a difficult market to participate in. But echoing Bhatia’s optimism he says that technical issues are almost minimal as all infrastructure and construction programmes always face some problems during the project’s lifecycle. “There has been a concerted effort by some government departments to reduce problems faced by contractors and consultants with some of the standard government forms of contract; these are now being reviewed and revised to improve the contracting environment in the country and ultimately help reduce contractor claims,” says Jolo, continuing Jaidah’s earlier observation.

Another concern that Jolo highlights is that a lot of traditionally procured construction projects are being released for tender without a clear and robust technical specification.

The result observed in Qatar has been that contractors/ consultants now price the risk, which results in the very expensive construction pricing in Qatar, as it is currently believed to have the highest construction prices in the GCC, according to Jolo.

According to the Arcadis report on Construction disputes, the Middle East region saw its dispute values increase to their highest value since 2011, growing from $40.9 million in 2013. Overall, the amount of time taken to resolve disputes in the region is creeping up with the average creeping up by just over a month in 2014.

Contractual disputes tend to be caused by two key perennial triggers that aren’t jurisdiction-specific: disputes around payments (either the amount or terms) or when work hasn’t been conducted in accordance with a contract or to the standard expected.

However, Allon Hill, Head of Contract Solutions, Middle East, Arcadis, believes that sanctions also have an impact on contract disputes. Disputes arising out of sanctions being imposed are usually centered around the affected contracts being suspended or terminated as a result of the sanctions. This gives rise to disputes concerning the costs incurred by a party as a consequence of the suspension or termination or if the contract has not been drafted properly, disputes concerning wrongful termination. A failure to properly administer the contract remained the most common cause of dispute in the region, followed by poorly drafted or incomplete and unsubstantiated claims which demonstrates the need to get the basics right. One striking statistic from disputes in the Middle East was that almost half of joint ventures ended up in dispute during the year, for the second year running the highest of any region covered in the report

“The value of disputes in the Middle East increased in value by 88% to $76.7 million in 2014.”

Allon Hill Head of Contract SolutionsArcadis Middle East


business > bottomline

Tapping Local Talent

With national talent still primarily attracted to jobs in the public sector, policymakers and private companies will need to devise new strategies to attract and retain the

new labour market entrants.

Unemployment is one of the biggest challenges in the Gulf Cooperation Council (GCC). Despite efforts undertaken by GCC governments to increase employment among nationals,

analysis reveals that unemployment among local talent remains high. According to the Bayt.com ‘Nationalization in the GCC’ poll, April 2015, 42.3% of GCC residents believe that local talent remains unemployed; another 24.6% think that finding and hiring local talent is difficult when compared to hiring expatriate talent. GCC policymakers need to shift more of their national talent away from welfare and government jobs and into fast-growing new industries outside of oil. With a young, educated population entering the labour

force in large numbers each year, creating a sufficient number of well-paying jobs is a critical challenge to support sustained and inclusive growth in the GCC. But as national talent are still primarily attracted to jobs in the public sector – mainly due to higher wages and other benefits – policymakers and private companies will need to devise new strategies to attract and retain the new labour market entrants.

The hiring process The governments of many countries in the GCC have introduced localisation policies for the private sector. According to a poll conducted by Bayt.com on ‘How Successful Are Nationalization Efforts in the GCC?’, May 2013, 52% of respondents say that their company has a firm policy for

hiring nationals; half of them believe these policies are effective.

Here are some things you might want to keep in mind during the hiring process of local talent in the GCC:

1. Understand the Labour Law and track it. It is important that you have your ear close to the ground when it comes to governmental labour policies. Keep track of them through government websites as often as possible.

2. Define your company and set a clear talent development plan. Before hiring, there are several things that are essential to ensuring that your hires are strategic. Start by defining your company mission, vision and goals, set


ABOUT BAYT.COM

Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 21,000,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com today and access the leading resource for job seekers and employers in the region.

business development strategy, and put in place a talent development plan. These will help potential candidates understand the company background and assess whether they will be the right person for the job. There cannot be enough stressing on the importance of drafting clear job descriptions and requirements for candidates. This will help your recruiters get started on finding you the right candidates.

3. Use the right resource to find local talent. Online recruitment has revolutionised the recruitment landscape, used to recruit talent from entry-level to C-suite positions. According to the Bayt.com ‘Recruitment Practices in Middle East and North Africa’ poll, May 2015, 89.3% of employers believe that their company’s recruitment would benefit from having a career site on their corporate website; 20.3% think that it is posting vacancies on a website accessible to millions of people; and 12.5% say that engaging with specialists on professional networks is the preferred method. Only 4.8% say that using traditional recruitment companies is the easiest way to hire top talent in the region.

4. Retention of top talent. Finally, once you have screened and hired the best

local talent you need to retain it. In order to emphasise on retention,

company leaders need to work hard on communicating

that their company is a good one to work

with. Regular t r a i n i n g

programmes, o p p o r t u n i t i e s

for employee recognition, and

company activities can help keep morale high. GCC employers should also be aware of the salary scales in their industry, as well as the salaries offered in the public sector, to ensure that their compensation programmes remain competitive.

Where is local talent anyway?GCC professionals and job seekers these days are web-savvy and active internet users, and as an employer, you must realise that if you want to win in the recruitment arena and hire the best talents, you will have to move where those talents are and embrace online recruitment. Leading job sites such as Bayt.com, which has over 21 million job seekers registered on its website, serve as a highly effective online medium for posting jobs and finding the best recruits. The benefits of moving online include -

High opportunity cost. In mid-2014, there were more than 135 million individuals using the internet in the Arab world (The Arab World Online report, May 2014). Similarly, 51% of employers who took part in the ‘Hiring Management in the MENA’ poll by Bayt.com, August 2012, say they hire senior executive talent online. The sheer size of, for example, the Bayt.com database means that the opportunity cost of not being online is huge, specifically given the volume and momentum of recruitment activity that takes place on the website every day.

Senior talents believe in the power of the web. 55% of professionals in the region feel they’re more likely to be hired if they are active online, as revealed in the Bayt.com ‘Social Recruiting in the Middle East and North Africa’ poll, October 2014. Being online means the recruiter has a better idea of a candidate’s personality, achievements, knowledge and hands-on experience. In many cases, highly established executives have their own blogs and many of them are on social media. These online activities can assist companies in gauging potential candidates while simultaneously avoiding the costs of hiring the wrong person. Evaluating their actual work will also prove to be an accurate assessment approach. Sourcing becomes easier as almost everyone becomes "findable" on the internet. Bayt.com Public Profiles, for example, are a great way for employers to know more about a candidate, well beyond the limits of a traditional CV.

HR departments are budget-driven by nature. Time is money, and today’s budget conscious HR departments are anxious to save both. The Bayt.com ‘Skills and Hiring Trends in the MENA’ poll, January 2015, reveals that 48% of companies in the Middle East and North Africa (MENA) region take quite a long time to fill an open vacancy in their company – between one and three

months. The Internet has emerged not only as a faster, easier and more effective way to source and screen top talent, but also as an efficient tool to manage the entire hiring process. With amazing technologies available in the market today, companies can search through and filter millions of CVs and promptly narrow them down to the exact candidates required.

Top executives engage in daily online conversations. Professional networking forums are the new frontier in online recruitment and a top choice for identifying leaders in their area of expertise, especially at the senior end of the spectrum. This could be attributed to the fact that 81% of professionals feel that online platforms, such as Bayt.com Specialties, are a good way for employers and candidates to engage together through industry-related comments, discussions and questions, according to the Bayt.com ‘Social Recruiting in the Middle East and North Africa’ poll. Bayt.com Specialties invites specialists from all over the world to come together and engage in industry-related discussions. Specialists with the best content are endorsed by their peers and get badges and ranks on their CV. The platform has proven to be a great tool for companies to pick the best among top executives in their industry. This indirect approach to hiring, which relies on networking and relationship building, is necessary to get to know a candidate before hiring them


business > bottomline

One of the biggest challenges facing HR is driving engagement by working through, and with, managers. Dealing with this challenge gets to the heart of what it really means for HR to be a strategic business partner. The ability of HR to

engage managers, build engagement capabilities and develop an overall engaging organisational culture should overcome the inevitable challenges of managerial interest and commitment.

There are four key imperatives on the agenda of the HR professionals who are effectively building engagement in their organisations.

Focus on the business outcomes of engagementWhen tackling engagement issues, effective HR Managers start with the end result in mind. They understand that employee engagement scores are just an indicator of organisational well-being and that the value of engagement lies in its impact on organisational performance. Instead of commis-sioning an engagement survey and communicating the results, proactive HR professionals define their organisation’s engagement agenda. Rather than resigning themselves to the fluctuating interest of management in engagement matters, they work hard to demonstrate the business value of engage-ment and develop engagement objectives (and as-sociated business outcomes) that managers would relate to. For example:

Develop a detailed insight into the key business processes and performance measures and speak to key managers to understand this.

Set engagement objectives before the survey launch and set up an annual "people strategy" meeting to discuss the business approach with key managers, its likely impact on employees, the risks, key employee segments and what is required from each member of staff.

Compile data to link engagement scores to business outcomes and qualitative data such as stories from employees and managers.

Keep engagement on a steady course even when the organisation is engulfed by unexpected waves - e.g. changes in the economy, loss of key customers, mergers or acquisitions.

Know the workforceThe employee engagement survey is a solid but incomplete starting point for understanding the workforce. The survey results will indicate the employees’ average and/or extreme attitudes, priorities and perceptions, as well as their overall well-being; however, as anyone who has been through an engagement survey process knows, results can be interpreted in various ways and HR professionals need to go beyond the survey data to really understand the workforce. So how can they do this?

Making sure they know who the key employees’ segments are, looking at their engagement levels and challenges and considering both the statistical and qualitative data.

By proactively speaking to different employees, they can identify problems before they arise and even more importantly, identify pockets of

Myth busting“Business leaders are responsible for driving employee engagement”Over the years, managers’ role in engaging employees and nurturing high-performance teams has become solidified; however, with such emphasis on the managers’ role, has HR consequently abandoned its vital role in driving employee engagement?


BY DR MARKUS WIESNERChief Executive OfficerAon Hewitt Middle East and Africa

ABOUT AON HEWITT

Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aon.com/middle-east

good practices and positive engagement that will save HR from being the organisational "doomsayer".

Communicate well with leaders and managersWorryingly, Aon Hewitt’s research amongst managers shows that a high proportion of them strongly believe that they cannot in-fluence the action plan to improve engage-ment in future years as budgets and strate-gic plans are determined by the executive team at a corporate level. HR professionals need to communicate about people and the organisation with imagination and an eye to the future; however, this can sometimes be difficult to achieve. While the engage-ment survey is the "scientific" part of the process, it is best to craft a narrative that speaks to business priorities while bringing the employee voice to the forefront and en-gaging managers in the way forward. This can be achieved through:

Continuous monitoring of the HR communication.

Developing a communication plan to cover all the planned HR programmes and initiatives. Reviewing the HR programmes and initiatives and assessing whether they are trying to peddle too many initiatives.

Avoiding the temptation to go it alone and engage managers in key annual

people-planning milestones – setting up the annual HR programmes, deciding how to measure engagement, action planning for the survey results, etc.

Engaging key managers on their units’ unique challenges while keeping them aware and raising their understanding of the business challenges overall.

Develop management strengthOften people are promoted to management based on competencies other than expertise in people management. Programmes that develop leaders’ and managers’ strength on people management are therefore essential to laying the foundations for high employee engagement. Communication fosters awareness, motivation and desire in managers to engage people, but more is needed to develop the skills for effective people management by:

Assessing managers’ strengths on engagement and helping them to understand the relationship between their own and their teams’ engagement levels.

Reviewing recruitment, selection, development and reward processes for managers.

Ensuring that leadership and management development programmes address employee engagement capability.

Creating manager forums and communities where managers can safely discuss and share their achievements and challenges for raising employee engagement.

Encouraging experienced and capable managers to serve as coaches to less experienced ones.

Celebrating the accomplishments of managers who achieve breakthroughs or important results on people management.

Employee engagement is the cornerstone of the HR strategy and a key indicator of HR programmes’ effectiveness. While managers are a key link to the engagement process, it is the HR function that should have the expertise and capability to drive it forward. It is a responsibility that cannot be reneged on and needs to be integrated into the daily HR practices, not just a one-off survey. It is only by spending valuable time and energy on building solid foundations, planning carefully and executing mindfully that HR can master the art and science that is employee engagement

How are organisations attracting and engaging talent in view of the region’s demographic, legislative and social changes? Participate in Qudurat Wave III, the largest study of its kind dedicated to understanding the regions current and future workforce. The study will provide insights into: How Qatari organisations

are attracting, retaining, developing and engaging nationals

Factors that influence candidates job choices, perceptions of their work environment and attitudes to diversity

Students perceptions of job opportunities and factors influencing career decision making

Participating is free and easy. All participating organisations get a complimentary detailed report. To find out more visit www.aonhewittme/qudurat


WHITHER SUBSIDIES

economy > tag this


WITH CHEAP PRICES LIKELY

TO RULE GLOBAL OIL MARKETS

TILL THE END OF 2016, THE TIME

IS RIPE FOR THE GCC COUNTRIES

TO DO AWAY WITH SUBSIDIES

AS THEY ARE STRAINING

PUBLIC FINANCES, EXPERTS TELL QATAR TODAY.

BY V L SRINIVASAN


The six GCC countries are said to have lost over QR1 trillion of hydrocarbon revenues due to the slump in oil prices since June 2014 and, despite predictions by several

rating agencies, the prices did not pick up in the last eight months.

In its latest report released on August 8, Qatar National Bank (QNB) has forecast oil prices to average around $55 per barrel in 2015-16 before rising to $60 per barrel in 2017 due to a bear market in Chinese equities which has shaken confidence in the global growth outlook.

Also, the oil markets have been surprised by continued increases in global oil output, despite lower oil prices. “The current glut in world oil markets is likely to persist well into 2016. From 2017, as producers and consumers adjust to lower prices, the markets should begin to tighten, leading to gradually steadier prices,” the report says.

The latest report from the Internation Energy Agency (IEA) suggests that world oil markets will be oversupplied by around 1.9 million barrels per day in 2015 and based on the IEA projections, another supply glut of around 1.1 million barrels per day is likely in 2016, QNB adds.

All these projections should worry the GCC nations, except Qatar and Kuwait, as they need around $100 per barrel as a break-even price (BEP) to keep away from budget deficits from next year onwards.

While these nations have surplus reserves of nearly QR3.64 trillion to absorb the shocks, they cannot sustain this for a longer period and their economic growth will be impacted if the oil prices remain static for another year or two.

All six countries have been pumping billions of dollars to execute mega infrastructure projects as part of their economic diversification programmes and are looking at ways and means to cut down on wasteful expenditure by shelving and delaying some non-core projects.

The International Monetary Fund (IMF) has advised the GCC countries to do away with energy subsidies as “they are not considered particularly equitable or efficient ways of supporting low-income households and can skew investment incentives, as well as impose fiscal costs.”

Fuel subsidy is very high in the GCC and so is its consumption, says a report by British think tank Chatham House which says that the GCC consumes more primary

energy than the whole of Africa despite its population being only one-twentieth that of Africa.

Perfect timingThe energy subsidies in the GCC region have declined from 6.5% of GDP in 2013 to 3.4% of GDP in 2015 which will benefit their budgets directly to some extent as they offset the revenue loss due to oil prices, resulting in both fiscal cost savings and more efficient resource allocation and energy consumption.

Currently, the gap between domestic and international petrol prices is at its lowest since 2009, making a strong case to remove subsidies. Countries like Qatar, the top subsidiser in terms of per capita subsidies, along with Saudi Arabia, Kuwait, Bahrain, and the UAE in percent of GDP and in per capita subsidies, stand to gain the most from energy subsidy reforms. The benefits will mostly accrue at the local level, by reducing local pollution and wasteful use of energy and generating much-needed budget savings.

Low international energy prices have opened a “window of opportunity” for countries to move towards more efficient pricing of energy. However, a gradual approach may be desirable, particularly for industries which need to invest to adapt to higher energy prices; eliminating energy subsidies in a phased manner will also generate substantial environmental and health benefits by reducing carbon footprints.

Quoting IMF figures, Founder and President of Nasser Saidi & Associates and former Chief Economist and Head of External Relations at the DIFC Authority Dr Nasser Saidi says that the GCC spent close to QR779 billion ($214 billion) on post-tax subsidies in 2013, with the 2015 estimate closer to QR637 billion ($175 billion) due to lower oil prices.

“In some countries, spending on subsidies is higher than the allocation to education (as % of GDP),” he says, adding that the cost of energy subsidies went beyond the financial cost to governments. It included undercharging for domestic environmental damage, contribution to global warming, air pollution, and broader externalities from vehicle use like traffic congestion and resulting higher accident rates, says Dr Saidi.

Director of Asset Management at Al Rayan Investment, Akber Khan, says that the best time to withdraw subsidies would be when they cost the least and therefore

“The UAE’s move to deregulate fuel prices from August 1 is sensible but the positive and negative impacts, for the government and consumers, will be far more significant if oil prices move back up. For GCC countries, the decision on subsidies is not simply economic, but also has political and social considerations.” AKBER KHANDirector, Asset ManagementAl Rayan Investment

economy > tag this


the impact on consumers will be minimised. With oil prices having halved over the last nine months, the cost of fuel subsidies for GCC states has plunged at present.

“The UAE’s move to deregulate fuel prices from August 1, 2015 is sensible but the positive and negative impacts for the government and consumers will be far more significant if oil prices move back up. For GCC countries, the decision on subsidies is not simply economic, but also has political and social considerations,” he says and adds that changing levels of subsidy will affect the competitive advantage versus other GCC countries.

Fiscal reformsFiscal reforms are nothing new in the GCC region which has been contemplating to phase out subsidies and introduce a tax structure to augment revenues, but fearing domestic discontent, particularly in the wake of mass protests in the region since 2010, these proposals were kept under wraps. However, the crashing oil prices and falling revenues have revived these plans.

In November 2013, the Majlis Al Shura in Oman proposed to collect a 2% tax on all remittances by expats in the country. If approved, it would have brought in an additional $155 million per year to the government.

However, it was rejected by the economic committee of the State Council which felt it was ill-timed, impractical and would affect foreign investments.

The UAE has deregulated fuel prices from August 1 due to which the petrol price has gone up from AED1.72 to AED2.24 per litre (an increase of 24%) and the government says that it would save an estimated QR105.6 billion ($29 billion) per year.

Qatar raised petrol prices by 25% and diesel by 30% in January 2011, and diesel prices were raised again in May 2014 by 50%. Alarmed at mounting state expenses, Kuwait too announced a similar move in January this year but withdrew the proposal after countrywide protests.

Bahrain announced cutting subsidies for goods and services to reduce state spending on its foreign population as low oil prices pressure its budget. Its citizens will receive cash payments from the state to offset price rises when subsidies are removed but expats will not be entitled to such payments.

The fuel prices are lowest in Saudi Arabia but its rulers have issued local bonds worth QR14.56 billion ($4 billion) in July this year, the first one since 2007. The world’s largest oil exporter also plans to raise QR98.3 billion ($27 billion) through bonds by December (QR19.3 billion per month) in tranches of five, seven

Top 10 subsidisers in dollars, percent of GDP and per capita, 2015(energy subsidies, billion dollars)

2,500

2,000

1,500

1,000

500

0

China

United

State

Russia

India

Japan Iran

Saudi Arab

ia

Ukraine Ko

ria

Indon

esia

Pre-tax subsidies

Global warming

Local air pollution

Other vehicle externalities

Foregone consumption tax revenue

(energy subsidies, percent of GDP)

70

60

50

40

30

20

10

0

Pre-tax subsidies

Global warming

Local air pollution



Ukraine

Bosnia a

nd

Herzeg

ovina Serb

ia

Bulgaria

Kyrgyz

Repub

lic

Uzbekista

n Iran

Zimbab

we

Turkm

enista

n

Mongolia

(energy subsidies, per capita, dollars)

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Pre-tax subsidies

Global warming

Local air pollution



Qatar

Luxem

bourg

Kuwait

Mongolia

Saudi Arab

iaUAE

Trinidad

and

Tobag

oBulg

ariaRua

siaBrun

ai

Darussa

iam

Source: OECD Labor Force Survey


and 10 years, clearly indicating that there is pressure on its budget due to low oil prices.

Abu Dhabi too increased power tariffs to curb consumption and asked consumers to pay for water for the first time, while Oman hiked natural gas prices for businesses from January 1, 2015. In neighbouring Iran, the government has raised petrol prices by 75%.

The first and foremost thing the GCC nations have to do is to step up efforts in promoting public awareness and adoption of the price adjustment policy, which will help them in achieving their goal of conserving resources. This will not only take the pressure off their annual budgets but also suit their policies to reduce wastage of utilities like electricity and water.

VATBesides making efforts to increase the share of non-hydrocarbon revenues, the GCC region is also planning other measures like introducing Value Added Tax (VAT), which is likely to come into force from 2016.

Ernst & Young Qatar, Partner Tax Advisory, Finbarr Sexton says that VAT will come into force soon. The standard tax rates are likely to be low initially but can be increased over time, thus contributing positively to government revenue collection.

“Indirect tax will be a tax on consumption

and will inevitably be borne by the end consumers. As a result, it will be passed on by the businesses to the end consumers and this will not affect businesses planning to establish in the region,” Sexton says.

Dr Saidi too supports the proposal as it would be the most stable revenue source as it tends to grow with GDP and consumer spending, while it has the least detrimental effects on investments.

“A broad-based consumption tax such as VAT would raise revenue proceeds at a low efficiency cost. At the same time, its equity implications would be relatively insignificant and tax administration would receive a significant and positive boost. A VAT rate of about 5% with few exemptions could generate revenue of some 3% of GDP,” Dr Saidi says.

In Deloitte Middle East’s recent report "VAT in GCC- Old news or new chapter?", the experts say that while the GCC countries are increasingly facing pressure on their national budgets, each government understands the urgent need for fiscal-sustainability in the longterm. “This can be addressed if GCC governments could commit to the domestic implementation of VAT on goods and services,” the report says.

VAT is considered efficient, cheaper to operate, less open to fraud, and less likely to distort investment decisions by businesses than any other form of direct tax, according

Fuel prices announcement 2015 (Dh/litre)Implemented August 1

* Diesel in Abu Dhabi was 2.35 a litre and 2.90 in Dubai and the Northern Emirates. All diesel will now be priced at 2.05 - a decrease of 12 per cent in Abu Dhabi, and almost 30 pre cent in Dubai and the Northern Emirates.

Currentprice

Newprice

Per cent change

Petrol

Super 98

Special 95

E Plus 91

Diesel*

1.83 2.2524%

24%

28%

29%2.052.90

1.61 2.07

1.72 2.14

“Fiscal reforms should be on the agenda of GCC countries in view of the large decline in oil and gas revenues. The governments should introduce broad-based taxation, in the form of consumption taxation, to compensate for the loss of oil revenue and for revenue diversification.” DR NASSER SAIDIFounder and PresidentNasser Saidi & Associates

economy > tag this

Sour

ce: M

inis

try

of E

nerg

y, g

loba

lpet

rolp

rices

.com

, xe.

com


to the report. This latter point is significant, as governments do not want to generate new revenue at the expense of investment by the private sector. Also, since the majority of the cost of VAT falls on the consumer rather than on businesses, it is capable of balancing these potentially competing requirements.

“Faced with a need to raise additional government revenues, implementing a VAT would be a rational response by government. That is not to say that the implementation of corporate or personal income tax can be ruled out; rather it is a reflection on the fact that a VAT seems to tick more of the boxes than the others,” says Nauman Ahmed, Partner and Regional Tax Leader at Deloitte Middle East.

“Compared to a VAT, a corporate income tax is more likely to act as a disincentive to businesses considering investment in the region and hence more negatively impact GDP growth as a result. On the other hand, a personal income tax presents an obvious challenge to the “tax-free” branding that has served the region so well in the past,” Ahmed feels.

Corporate tax Besides VAT, the GCC regimes are also looking at corporate tax as another source to raise funds.

Qatar has already imposed a general flat rate of 10% as corporate profits tax and with a 35% rate applying to oil and gas operations. The relatively low profits rate tax does not impact companies which want to kick-start operations in Qatar, notably in view of Qatar’s extensive double taxation treaties.

“Fiscal reforms should be on the agenda of GCC countries in view of the large decline in oil and gas revenues. The governments should introduce broad-based taxation, in the form of consumption taxation, to compensate for the loss of oil revenue and for revenue diversification,” Dr Saidi says.

Akber Khan says that Qatar’s corporate taxes are among the lowest in the region and corporate tax levels, as well as requirements for domestic ownership, influence the attractiveness of the country for international companies.

“Some countries have set up special economic zones which offer partial or complete exemption from these requirements,” he says.

Expat remittancesThe GCC governments have concentrated less on the remittances by their expat

workers. The amounts these expats have been sending back home have doubled – from QR182 billion ($50 billion) in 2010 to QR364 billion ($100 billion) in 2014. The corresponding figures for Qatar were QR20.39 billion ($5.6 billion) and QR36.4 billion ($10 billion), respectively, according to World Bank data.

This is basically due to the low interest rates being offered by the domestic banks and expats never being given permanent citizenship by their respective governments.

Dr Saidi says that interest rates in the GCC banks are tied to US interest rates given the peg of the GCC currencies to the US dollar. Monetary authorities in developed markets (US, UK, EU and Japan) have been maintaining historically low interest rates and injecting liquidity (Quantitative Easing) in order to help their countries recover from the Great Recession.

“Banks in the GCC have limited scope in raising interest rates unless they have profitable lending and investment opportunities. However, to the extent that they can raise rates this would provide a financial incentive for expats to retain their savings in the country,” he argues.

But given that expatriates can stay in the country only so long as their job visa allows them, even higher interest rates might fail to entice them to hold their earnings in the country.

One method to facilitate this might be through a policy of giving permanent residence (i.e. a visa that enables one to stay in the country as long as one wants, with less than full citizen rights); another would be to initiate social security and/or pension schemes whereby both employer and employee contribute a fixed percentage of salary which then goes into a dedicated fund that could be investing locally, regionally or eventually internationally, Dr Saidi adds.

Akber Khan feels that a number of factors impact the level of remittances from a country and they include income and savings levels, the ability and attractiveness of local real estate and the ability or desire of an expat to stay for an extended period, etc. “As long as GCC economies have monetary policies pegged to the USA, they will offer comparable returns on deposits. A few years ago, Qatar took action to become less attractive to so-called ‘hot international money’ which fuelled Qatari inflation when local deposit rates were significantly ahead of those in the US,” Khan says

“Indirect tax will be a tax on consumption and

will inevitably be borne by the end consumers.

As a result, the taxes will be passed on by the

businesses to the end consumer, therefore it is not expected to be a

deterrent to businesses planning to establish

in the region.”FINBARR SEXTON

Partner Tax Advisory Ernst & Young, Qatar


green scene > tag this

Revolution in the offingBy Ayswarya Murthy


It was a rather cozy gathering at the residence of the Ambassador of Switzerland to Qatar. That evening His Excellency Martin Aeschbacher was hosting his countryman Thomas Stocker, who was on a whirlwind tour

of the region, meeting government officials and delegates to put forth his candidacy for the upcoming elections for IPCC chair. The morning was spent on meetings in the Ministry of Environment and with senior officials in the Ministry of Foreign Affairs. “I wanted to visit these countries to present myself and my experience; building trust that I would do a good, responsible job in the IPCC for the next seven years. More importantly, I want to listen to their concerns and expectations from the IPCC,” he says. “Doha is an important country in the Arabian Peninsula which has shown leadership in this field with the hosting of COP18 in 2012, which produced critical results regarding ocean damage. So this was a good opportunity to listen to the concerns of a country that is exposed to the dangers of climate change in multiple ways – expanding drought, increased sea levels, acidification of the ocean and exposure to extreme events like summer heat.”

The meetings in the evening were probably a lot less formal in comparison; a friendly gathering of academics, journalists, think-tank analysts and representatives from Qatar’s clean energy sector. The ensuing discussion was enlightening but unfortunately off-the-record; but we did manage to get Professor Stocker to sit down with us for an interview at the end of the evening during which he pointed out the Middle East governments’ “declared awareness” about the problem of climate change. “The challenges are on the table and governments and policymakers are joining the table to seek solutions from a global

point of view. Certainly many countries in this region are developing and require further development. And currently, often this development is linked to the consumption of fossil fuels. The challenge would be to leapfrog their development and decouple it from the classical way of obtaining energy.” He said that despite the region’s heavy reliance on fossil fuels, they are “in every way just as dependent as other non-hydrocarbon producing countries”.

Paris and 2C“In Europe we have started decarbonising, but are still far away from where we and an increased level of ambition are needed if we are serious about the 2C target,” he notes. We spoke a lot about the 2C target in our last issue (August, 2013), about 2C in relation to the carbon bubble. Many analysts believe that this target is arbitrary, too high and, worse still, not realistic. Stocker clarifies this point. “It’s not arbitrary in the complete sense. Sure, it’s not a scientifically obtained limit of warning; it’s also not a limit where we say everything is good below and only total global catastrophe above. However, it’s sufficiently ambitious, politically acceptable and science indicates that below this level, some of the serious risks associated with climate change – disastrous and extreme events, their increase in intensity and frequency, change in water cycle, change in ecosystem and their services – are still manageable to the extent that you can adapt to it in most regions. Beyond 2C, the number of regions where you will have reached the limitation of your adaptation capacity will increase rapidly. So while there is some sense in the 2C target, it’s not a magic barrier,” he says. “And we are more than halfway towards crossing 2C. The global mean temperature increase is in the order of 0.85 C. There is

Professor Thomas Stocker is one of the five contenders for the Chair of the Intergovernmental Panel on Climate

Change (IPCC). The elections are scheduled for October, and if he should win, he will be leading the Nobel Prize winning-organisation during the all-important COP21 in

Paris and the tough years beyond that. He talks exclusively to Qatar Today during his recent visit to Doha.

“This was a good opportunity to listen to the concerns of a country that is exposed to the dangers of climate change in multiple ways – expanding drought, increased sea levels, acidification of the ocean and exposure to extreme events like summer heat.”


another 0.6 C that is committed warming i.e., warming that will arrive even if we keep the concentration of greenhouse gases in the atmosphere constant because the system is slowly approaching equilibrium. So we are basically at a committed 1.4-1.5 C and that is another indicator of the urgency to act.”

On the face of it, Professor Stocker's optimism is difficult to understand. Here he is, willingly contesting to be at helm of the world’s premier authority on climate change, during a watershed moment in history that could potentially decide the fate of humanity. Dramatic as it sounds, it does feel like we are gaining momentum as we head towards the precipice, and no one seems willing to apply the brakes. But Stocker probably has a different view of things from where he is standing. “I am personally optimistic about the Paris conference,” he says. For three reasons: “First, never before have the policymakers had so much scientific knowledge about the problem, the impact and solutions. Second, for the first time I am hearing global businesses engage in a serious discussion about the threat of climate change to their business models and the willingness to discuss measures such as a global carbon pricing. That was not the case even six years ago when many people believed that carbon pricing will collapse economies. Thirdly, the establishment of a new process in the framework convention called Intended Nationally Determined Contributions (INDC) to greenhouse gas emissions, which has completely changed the dynamics

of how countries confront the problem. Rather than a top-down approach like the Kyoto Protocol, we now additionally have a bottom-up process that has already resulted in good progress. So there is a new dynamic in these negotiations that has neither been seen before nor was expected,” he says.

But despite the enormous pressure on COP21 to produce results, Professor Stocker says no one is under the illusion that Paris will once and forever solve the problem. “It’s but the first step towards the solution. Many conferences will have to follow that talk about a potential schedule of reductions, methods to increase ambition of contributions, and even talk about contingency plans if specific targets can no longer be reached, which is a possible reality.”

Sights on the long termOur consumer culture has made “sacrifice” and “moderation” lesser ideals. We’d loathe roadblocks in our quest to live as large as possible today and short-term gratification is hard-wired in all of us. This explains the hesitation to throw one’s weight behind what will undoubtedly be a brutal decarbonisation process. There simply doesn’t seem to be a painless roadmap for the same. But Stocker shakes his head. “Pain is a very relative notion. Is it painful to reduce the size of your car or take public transport? Some people might regard that as a pain, others might not. It has to do with our personal perceptions and lifestyle. I would argue that in the future we’ll all have to readjust our value system.” So more


“What we are seeing here is a huge challenge, but also a huge opportunity. Probably the biggest ever for humankind. Decarbonisation in the long term will be revolutionary.”

HE the Minister of Environment Ahmed bin Amer Al Humaidi met with Dr Thomas Stocker and HE Ambassador Martin Aeschbacher to discuss dealing with climate change issues and the State of Qatar’s efforts in this direction, as well as its cooperation with relevant regional and international bodies. The meeting was also attended by the director of the climate change department within the Ministry of Environment, Abdulhadi Nasser Al Marri.


important than getting from A to B in the fastest, most comfortable fashion, will be getting from A to B in the smartest and most intelligent way that is fully compatible with decarbonisation.

Under the present price regime, decarbonisation is likely more difficult for developing and less-developed economies, Stocker concedes. “But we have to think of ways to accelerate development and not make the mistake of locking ourselves into an infrastructure, particularly in developing countries, that commits us to use that old energy in 20 years' time when it perhaps will have become too expensive. When I talk to colleagues in Africa, in some of the poorest nations in the world, they are very much aware of the risks of these lock-in investments; investing heavily in old technology, that may be good for today, but ultimately incompatible with decarbonisation.”

One sector that obviously is downplaying decarbonisation is the energy sector, made up of carbon companies “largely motivated by short-termism and a view of the business model for the next 5-10 years”. In their view, the status quo is unlikely to change (too fast) and they are simply businesses addressing the growth in demand that is clearly seen in the charts. But this “is certainly incompatible with a view of the next 20, 50 or 100 years”, according to Stocker, “which is the view we have to take when talking about the well-being of the society, continuing delivery of ecosystem services to feed up to 11 billion people in the coming years. So when we start talking about resources, we will open up our time horizon of planning. And here I am convinced that a sensible person would also look at the option where an old business model doesn’t provide any income anymore,” he says pointedly.

IPCC in the coming yearsProfessor Stocker has served in one capacity or another on the IPCC for 17 years and has been a climate scientist for longer than that. We ask him whether it is frustrating that, after these long years in studying and reporting on climate science, he is still having to deal with climate skeptics. “There is some frustration in that, yes, but I am surprised how few of them are left. With the last report (IPCC’s Fifth Assessment Report), we have reached a level of clarity in our message that even the most stubborn voices have gone quite. While I appreciate a healthy skepticism, which is the blood and life of science, skepticism of established

fact is ignorance,” he says.This is all the more reason why, he

believes, that climate scientists have to be “extremely careful in our communication to separate established facts, which are many and increasing in number, from the areas where there are still uncertainties. Uncertainties that reflect the effect of unknown processes and assumptions that are the normal business of the scientific activities. Since the beginning of IPCC, all the reports are always accompanied by declarations of uncertainty and confidence.”

What will the role of IPCC be when this diminishing voice of climate skeptics is finally extinguished? “It’s going to be more important than ever,” he says. “The questions will shift to the specifics and regional and will revolve around the statistics of extreme events that hurt resources and cost money. So instead of asking general global questions like 'how warm will the planet be', we’ll ask, 'how many dry days will this specific country face' or 'What are the maximum temperatures over three weeks in this country'. So physical science and that part of IPCC will attempt to answer these sorts of questions in the future. Of course with IPCC’s comprehensive view of things, we will also look at risks and the impact of socio-economic processes. That part of the report will see increasing attention among the public and policymakers,” he says. Professor Stocker hopes that he will see the involvement of scientists from every country, in one function or another, working together to bring out consistently superior assessment reports.

For those that are currently part of the process, specifically those attending COP21, he has a special message. “What we are seeing here is a huge challenge, but also a huge opportunity,” he says. “Probably the biggest ever for humankind. Decarbonisation in the long term will be revolutionary. Each of the three industrial revolutions so far – mechanisation, electrification and digitalization – have affected the entire human population, brought new jobs, new wealth, created prosperity and a better life. So there is no reason for me not to believe that this will be the case for the fourth industrial revolution. We will no longer be dependent on finite resources that is polluting our environment and increasing risks for humans and ecosystems. Yes, it is ambitious because the scale of the task is such. It’s not a little change here and there but a revolution!”

“COP21 is but the first step towards the solution. Many conferences will have to follow that talk; about potential schedule of reductions, methods to increase ambition of contributions, and even talk about contingency plans if specific targets can no longer be reached, which is a possible reality.”

DR THOMAS STOCKERProfessor of Climate and Environment Physics, Physics InstituteUniversity of BernCo-Chair of Working Group 1, IPCC


At the conclusion of the pilot project to test and demonstrate the effectiveness (in cost and otherwise) of the locally-adapted New Growing System (NGS™), Zulal Oasis conducted a guided

tour of its facilities, first for the press and then open to all interested parties, from farmers and specialists to investors and the private sector. The Zulal Oasis headquarters in Al Shahaniya is quite unremarkable to look at but it represents a tangible step in helping the country towards becoming food secure. With a MoU signed in 2011 between the government and Hassad Food, the company started exploring new

technologies to address the challenges facing agriculture in Qatar.

Zulal Oasis, a joint venture between Hassad Food and Oasis Agrotechnology (a European greenhouse and production technology company), was established in 2013. While Oasis had had success with their technology for vegetable production in the Almeria regions of Spain which has similar climatic conditions to Qatar, it still had to be refined and tested locally. A research team was formed to identify the main obstacles and objectives in implementing the technology in Qatar, says Hamad Al Hajri, a Zulal Oasis board member who took the members of the

press around the company's test facility. Towards the end of 2013, the pilot project was launched in a specially-constructed 800 sq.m. greenhouse.

The greenhouse consists of different components, explains Al Hajri. Firstly, the NGS, the most advanced hydroponic system in the world being used for the first time in the region. It has several state-of-the-art advantages such as not using soil or substrate materials for agriculture, natural self-purification, maximum development of roots and 100% re-circulating nutrient solution, according to the company. A multi-layered bag, in which the crops grow, is used as soil replacement. “Additionally,

Zulal Oasis, a subsidiary of Hassad Food focused on agriculture technology, talks about the suite of services it provides in helping farmers and agro-businesses in Qatar incorporate its patented method for vegetable production.


Arid Agriculture


the NGS system provides comprehensive standard irrigation which makes it by far the most efficient for farmers in terms of productivity, strength and health of plants, saving water and fertilizers, as well as uniformity and quality of the products.”

The Dry Air Cooling System was developed in Qatar during the pilot phase and is an automated smart climate control system which adjusts the settings according to external conditions, using ventilation when necessary. “The system uses water but doesn’t consume it; since the water is re-circulated for cooling in a close circuit, we can reuse 100% of the water,” explains Al Hajri. “To maximise efficiency, the cooling is also localised to the plant level and can be controlled up to a height of 1.2 metres.” With the end of the pilot phase in 2014, the company released the results it had obtained from the test carried out on varieties of tomatoes. “We were able to obtain 37 kg of the vegetable per square metre and the water productivity was 44

kg per cubic metre". More importantly, the output was constant all year around and allowed for diversification in crops. It was encouraging. With these numbers, Zulal Oasis can guarantee the financial viability of the model and says the high competitive cost of production means prices lower than imported products of the same quality. In fact, the produce is of better quality than that obtained through open-field cultivation, and the price, depending on scale of production and yield, won’t be too much more expensive, Al Hajri pointed out.

“Our objectives of more produce for less water and feasibility were met. While we immediately started promotion activities, the response hasn’t been what we had hoped for, primarily due to the lack of knowledge in such investments and the absence of major agro businesses in the country,” he says. But with the encouragement received from several government ministries and institutions like Qatar Development Bank after they were shown the results, Zulal Oasis has fresh motivation to promote this technology.

There are some problems, however. It’s challenging to rope in Qatari farmers who are too used to government funding. Also, Zulal Oasis doesn’t recommend retrofitting this technology to existing greenhouses in the country. “We prefer not to introduce NGS in generic greenhouses and there are several reasons for this. The company offers a complete service including design, planning & engineering, construction and manufacturing of greenhouse components, project management, technical advice, farmers training, input supply and maintenance, farm operation as well as marketing and distribution of products. For us, it’s one package. We won’t be able to guarantee production quality and yield if any of these parameters differ,” clarifies Al Hajri. “For example, most of

the greenhouses are made of glass whereas we use polycarbonate, which is better at containing the inside temperatures, thus requiring less cooling.”

Al Hajri hesitates to give us an approximate cost per hectare in developing one of these projects, saying it depends on several factors like the size and topography of the land and the objectives of the investor. “Some greenhouses would need to be elevated/submerged, some don’t. And when we design a complex of greenhouses, it’s always a mix of our A, B and C models in order to establish the most feasible project we possibly can. Model A is our high-end version which guarantees production all year round. Model B is of smaller cooling capacity with a nine-month production period while Model C has no cooling systems and can only be used during the agricultural season,” he says. And a complex of greenhouses with shared infrastructure will significantly reduce capital costs.

Al Hajri is, however, optimistic about the private sector, taking into account the fact that the food security and food production industry is maturing across the Gulf. He indicates that they have seen some interest from entities in Saudi Arabia, Oman and UAE in this technology but also clarifies that their priorities currently lie inside the country. “In our strategic plans, we have targeted bringing 1,000 hectares under cultivation using this technology by 2023, which will cater to 50-70% of the local demand for vegetables.” He recognises that reaching this goal is not fully under their control and some government-led initiatives are needed for that initial momentum. The numbers he projects mean a respectable level of food sufficiency for Qatar, which has already begun implementing the Qatar National Food Security Program. Considering the ambitious scale of this programme, it might be premature but not completely inconceivable to say that the government impetus Al Hajri is hoping for is very likely just around the corner

“We were able to obtain 37 kg of the vegetable per square metre and the water productivity was 44 kg per cubic metre.”

HAMAD AL HAJRI Board MemberZulal Oasis


We have seen the scale models, computer renditions and skirted around the tantalisingly high corrugated sheets that keep everything discreetly out of

sight. For years now we have been promised a refurbished, new and improved district at the centre of Doha, modern yet with a Qatari soul. It’s more than just a collection of buildings; it’s meant to be the city’s beating heart. With every new announcement that takes us closer to completion, the expectations and excitement reach fever pitch. The man behind the whole operation, Chief Executive Officer Eng Abdulla Al

Mehshadi, finds himself increasingly under the spotlight.

The question he is invariably asked is: What stage of construction is Msheireb currently in and is it on track? “We are on schedule and we are confident it will be completed on time. The best way to understand the progress we have made is to actually visit the development, and to see for yourself both its scale and the number of buildings that have either been completed or are nearing completion. Alternatively, you can view the various time-lapse videos on our website. Then you can visit the Msheireb Enrichment Centre which contains a detailed scale model of the development, and you will get a feel for how much progress has been made. In fact, we awarded a facilities management contract to a local consortium, SNC-Lavalin, in August. More generally, different stages of each of the buildings have been met, and continue to be met on an almost daily basis,” he says.

For Eng Al Mehshadi, excellence in all he does is a given. It has to be, for him to be able to navigate a project of this scale and complexity. Along with this, there are a few other things he constantly reminds himself. “Do not be daunted by any challenge. Plan carefully before execution. And communicate effectively and regularly with everyone to whom you are entrusting responsibility,” he says. He and his team are under no illusions about the complexity of the project, he says. “Given the scale of what we are trying to achieve and how much it will represent the traditions and values of Qatari culture, while also meeting its significant sustainability aspirations, Msheireb Downtown Doha (MDD) represents a major challenge.” And to meet the challenge it is essential to “ensure total

development > tag this

The winner of Qatar Today Business Excellence Awards for Best CEO, Eng. Abdulla Al Mehshadi of Msheireb Properties, talks to us about his personal and professional milestones in heading this multi-billion dollar project to bring one of Doha’s oldest quarters into the new age.

Reviving a neighbourhood


co-ordination and alignment between ourselves and our partners to ensure a seamless execution of the plan”. An example of this is a CEO Forum hosted by Msheireb Properties in January of this year, attended by the leading contractors and consultants engaged in the project. “The objective of the forum was to encourage the leaders of all the firms to exchange views about the project, to share best practice, and to identify areas where closer collaboration could deliver greater benefits and results. The forum is thought to be the first of type in the real estate sector and was considered by all to be a great success,” he says.

Eng Al Mehshadi’s leadership played no small part in Msheireb being able to announce plenty of milestone events in the previous year including the signing of their first commercial tenant, the International Centre for Sport Security, followed by the Qatar Academy Msheireb recently. "It will be able to accommodate 450 students, with an increased curriculum, and is reflective of our objective to build a community that caters to all the needs of its residents," he says.

In another significant step forward, last month Msheireb Properties awarded the contract for the installation and management of MDD’s car-parking facilities to Traffic Tech (Gulf ), who will handle the integration and future management of "one of the most complex car park systems in the world". In total, it will cover 10,000 parking spaces and over 200 gated entry/exits.

Additionally, Msheireb Downtown Doha continued to enjoy recognition for the development. “We won the Best Retail Project award at Cityscape Doha last year, as well as Arabian Business’s Development of the Year award. In April

“Given the scale of what we are trying to achieve and how much it will represent the traditions and values of Qatari culture, while also meeting its significant sustainability aspirations, Msheireb Downtown Doha represents a major challenge.”

2015 at the Qatar Green Building Council Gala Dinner, the Diwan Annex building achieved LEED Platinum status, a green building certification programme that recognises best-in-class building strategies and practices. In the same week, the Diwan Annex picked up the Government Building award at Kahramaa’s Tarsheed awards ceremony as part of its National Campaign for the Conservation and Efficient Use of Water and Electricity, and MDD’s District Cooling Plant won the Industrial sector award,” he says, listing out many of the project’s recent accolades.

A number of personalities have played a role in guiding and shaping his personality and the person he has become today, says Al Mehshadi “The most important would be our Holy Prophet Muhammad who is not only a religious teacher but someone who led Muslims wonderfully well in all other

areas of life as well. I would also like to add that the strong leadership and influence of HH Sheikha Moza bint Nasser has also played a very significant role and has inspired me throughout my career.”

Ultimately he credits the success of his company not only to his leadership qualities but to the people and the vision of the leaders of the country. “All of these factors are important, and are all inextricably linked to our success. Without any one of these, we will not achieve our goals. At Msheireb Properties, our vision is to be the leading national developer of sustainable and innovative projects inspired by Qatar’s unique heritage and through our strongest values – excellence, leadership, innovation, partnership, and responsibility – we will be able to become one of the most respected real estate companies in the country and the world.”

Above: Msheireb: The vision; below: As the district stands today


sports > tag this

It is Josoor Institute’s quarterly seminar sessions and Dr Sue Bridgewater, one of the speakers, is excited about having such an enthusiastic and diverse group of attendees from countries across the Arab region, who bring in lots of

experience from various kinds of sports, not just football. With backgrounds in finance, marketing, HR and more, they are here to learn to use their experience to help develop sports. It’s a different kind of crowd than what she is used to back at the University of Liverpool and she says, “My students are all passionate about sports, and that doesn’t change no matter where I am.”

A linguist by education, Dr Bridgewater made a transition to business when she joined Unilever’s marketing team in mainland Europe. A few years later, while getting her business degree back in England, she found herself drawn towards teaching and research. “As a faculty of international marketing, I loved working with returning learners and was handling various executive education courses in different sectors like finance and the food industry. Then we were asked if we would run a course for football managers and head coaches, who were usually former players who didn’t necessarily know much about management. This was meant to help them in this next stage of their careers.”

It couldn’t be a full-time MBA course because most wouldn’t leave their jobs in the Premier League or whichever association to go study for that long. So Dr Bridgewater and her team decided to design a part-time programme specific to what managers/coaches might need. “In crafting the programme, we spoke to both experienced and younger managers; what would be helpful in coming into the role

The science of sports

Dr Sue Bridgewater talks to Qatar Today about helping develop a management programme for football coaches and managers back in the UK and how it is being fine-tuned to help develop the business of football in this part of the world.

By Ayswarya Murthy


and what they now, knowing what they know about football management, want someone to train them in. That’s what we designed. With many modules specific to football – finance, sports marketing, sponsorship, etc – the students were given exposure to clubs from around the world through guest speakers, thus opening the doors to enter the football world, if they were not already from it,” she says. It proved to be the beginning of a life-long association with the sport; Dr Bridgewater, now the Head of Sports Research at the University of Liverpool, continually works with football managers across different football associations and sits on the board of the League Managers Association.

Much of the research that she is part of or oversees revolves around applying complex management principles to better understand brands in football – be it a league, club, or a player – or deciding on the pricing strategy for a match. “So we ask, who are the different people who would like to consume football, rather than a Coca-Cola, for example.” Another aspect of research tracks the careers and related statistics of football managers, sports participation and its importance towards good health, the size of the sports market, globally and in different areas of world, and sports analysts and big data, she says.

And so Dr Bridgewater now finds herself on a visit to Doha where she teaches several key modules in Josoor Institute’s Sports Management programme. In Qatar, she says, though there is big interest in football because of the 2022 World Cup, there is also an effort to build a sustainable sports industry. “There are some challenges unique to country or region,” she says. “For example, here you’d have the considerations of air conditioning fan parks or stadia. It’s always a good lesson to understand these challenges, discuss adapting and applying existing concepts and talk about the best way of accomplishing the same goals in different markets. It helps to benchmark excellence and evolve the best ways of doing sport/football business in the region. This, along with the mixed group of students who are constantly learning from each other about other sports in other regions, will help us all understand sports in a global context,” she says. For instance, some of the other instructors are from Georgetown University in the United States and specialise in American football. “In USA, sports marketing is quite advanced and they do things differently than us in Europe. So it’s helpful to have these comparisons

and examples from other sports,” she says. “In English football, for example, a lot of the clubs are tied to geography and many people support the teams from their hometown and those their parents follow. So that tends to be the pattern of support. It’s different in Qatar where some people are just beginning to support teams and the rivalry might not be much between different cities. In the USA, the franchises often move from one city to another. And in Brazil it’s a challenge to host matches and facilitate fan movement across the country with its varied geography. So there are different challenges in each country.” Equally, some challenges sit above geography and are common irrespective of which sport and from which region – good and fair governance, broadcasting issues and what media is used to take the sport to the audience.

In Qatar, there is a lot of dialogue around developing the best strategy for fan engagement and building a good Qatari national team, according to Dr Bridgewater. The latest addition of Xavi Hernandez to Al Sadd is a great move from the marketing point of view, she says. “As a club, you obviously want the best players on your team to attract more who’d like to come see them play. It might also help attract new fans from outside the country. When Manchester United signed on South Korean footballer Park Ji-sung, they started getting media attention from South Korea; journalists who wanted to cover their matches. During their tours in South Korea, the games would be sold out,” she remembers.

“I have worked with the Qatar Stars League and Qatar Football Association, though not with any particular club. I am very impressed with how they are trying to engage with fans and the way sports events are run alongside other entertainment. What also stands out for me is the great coverage of the games with the fantastic broadcasting opportunities. It’s easy for fans to catch the matches on TV. But this might also mean they would rather watch it at home than go to the stadium for a match. This is important not just because economists tend to use attendance of football matches as a measure of the financial success of a club but also because it’s about the live spectacle, the environment in the stadium and the large numbers of passionate football fans. In addition to well run, financially successful clubs, it’s about the game, the spectacle and the contest,” she says


Journalism, think tanks, the government – there is a revolving door between these disciplines, with people shifting to and fro between these roles with relative ease. So Raghida Dergham agrees that, yes,

her work now as the Founder of Beirut Institute could be considered a natural extension of her parallel life as a columnist and Senior Diplomatic Correspondent/ New York Bureau Chief for Al Hayat. “I

will still continue to deal with issues that matter to society, just like a journalist, but instead of reporting and commenting on them, in a think tank I will be in connected-thinking mode, brainstorming with others and hoping to come out with policy options which are then put forward to policy makers,” she explains. “Like any other think tank, I hope Beirut Institute will expand the process of bringing democratic thinking to those in power; give them options so that

they are not confined to advice of those in their immediate circle. Think tanks are a very healthy part of the society and I pray that the institute will contribute to progress in the Arab world.”

Dergham had always felt the need for more intelligent, engaged and local voices to shape public policy in the region; it was like a nagging voice in her head, growing in response to the ubiquitous resignation she witnessed among the youth, both in

After several years of working as a journalist, columnist and fellow at various prominent think tanks, Raghida Dergham

decided that the Arab region needed its own indigenous brain trust. Thus Beirut Institute was founded.

Arab minds solving Arab problems

development > tag this

By Ayswarya Murthy


the Arab world and those of Arab-origin living outside it, in their ability to impact the region’s future. Their submissiveness troubled her. But what came next made the need for what she had in mind even more clear and urgent. “Though it wasn’t a complete surprise, when the Arab Spring erupted, I realised how an organisation that can provide direction and collective analysis was even more necessary now. There was a need for the people, from those in power to those on the ground, to understand their options in shaping their present and future and not let the process be confiscated, which it unfortunately was in many cases.”

From the very beginning, Dergham was sure and proud of the identity of the institute she was putting together. Their voice would be that of the moderates and modernists. This begs the question whether such a declared stance doesn’t automatically counter the institute’s claim to be non-partisan, in this part of the world especially, where moderate voices are regularly muzzled, accused of being aligned with Western interests and, consequently, seem outnumbered. “Well, I don’t think of it that way but if being moderate can be categorized as partisan, so be it,” Dergham says. “For me, it’s very important that we are distinct from those who fight and shout for their point of view to be heard. Of course the Arab society is divided, not just in opposing directions but into divergent factions; there are destructionists and extremists; there are those with hawkish and religious identities; they are welcome to their ideologies. But in a region which is, unfortunately, witnessing a lot of destruction, we want to be constructive. Beirut Institute will be a place of debate and logical thinking. Our fellows and board members might not always be on the same page all the time but the final analysis and recommendations will always be geared towards building up the society.”

Dergham has been working full-time towards starting up Beirut Institute since 2010. “I thought it would be much easier but this proved to be a novel concept in this part of the world. I automatically assumed I would get the support I needed because influential Arabs I met in other gatherings worldwide fully encouraged me, saying that if I built it, they would come. Well, they didn’t.” Nevertheless, the excellent contacts she had developed in the course of her years of experience in the space came through for her, and Beirut Institute is getting ready to host its first international summit in Abu

Dhabi this October. For Dergham, it was important to give

Beirut its rightful place as a bastion of liberal thinking. “Beirut deserves that. Although I had lived in New York, I was born in Beirut. To me, it is beautiful, all the more because of its history of being the receptacle of people from across the region who wanted to think and speak freely. One of our board members told me once that Beirut is the “lungs of the Arab world” and our institute should be the oxygen in those lungs. It is a testament to the faith our members have in us and the work we are doing.” While the think tank is registered in Beirut, it seeks to serve the entire region. “We celebrate the diversity in this region, be it ethnic or religious. Our board members and the advisory board comprise prominent thinkers from Saudi Arabia, Egypt, Yemen, Lebanon, Jordan, Palestine, Kurdistan, Bahrain... It represents a fantastic medley of young people from various backgrounds - finance, government, civil society, business, foreign relations – who are all looking forward to contributing to the future of the Arab world,” she says.

But Beirut Institute’s reach and ambition extend beyond the region. “We have been associated with the United Nations and through a series of off-the-record lunches we hosted, we put members of the Security Council in touch with analysts from the region, whose inputs and points of view have been extremely beneficial in the Council’s deliberations.” Dergham also points to their policy paper on the impact of refugees from Syria on Lebanon which was very well received. “We are the convener of minds who brainstorm together and summarise the results into policy options which are delivered to policy makers.”

And while there are several institutions in the region working on the same, Dergham still believes that since overall as a region, the MENA accounts for only 5% of the global distribution of think tanks, the more the better. She hopes organisations like hers will be in step with the big foreign-based think tanks based in the region, like Carnegie Middle East Center and Brookings Doha Center, in making positive contributions to the society.

The more we listen to Dergham’s story, the more Beirut Institute sounds like a Silicon Valley story – an ambitious startup with plans to change the world for the better. “The institute is being entirely financed by individuals and corporations and never by any government. Even in the case of the summit, the Government of Abu Dhabi is covering part of the costs of the event and not contributing to the institute as such. We have some wonderful partners who are supporting us with pro bono branding, legal and other kinds of work for us. I myself haven’t drawn a salary since I founded the institute,” she says. But for all this, Dergham expects to make a big splash in Abu Dhabi.

To be held between October 10 and 11 in St Regis Abu Dhabi, this global conference will bring together political leaders, senior policy makers, prominent thinkers, major CEOs, and civil society leaders to reflect on “reconfiguring the Arab region and its global space beyond political economy and security threats” through different summit tracks and a series of on- and off-the-record policy meetings. “The calibre of the people who are participating is amazing,” Dergham says. She hopes to take the results arrived at through these conversations and deliver them throughout the world, and “help to open the eyes and minds of people to what collective thinking produces”.

While there is value to off-the-record gatherings, think tanks are also increasingly more open and feel the need to engage the public, through conferences like these and the media. “In the public part of the summit we will discuss a magnificent array of issues beyond geopolitics and the economic impact of reconfiguring the region. Technologists, regional innovators and film directors will be part of the conversations, reflecting on issues related to sexism, religious strife and other issues that deeply affect the region.” For Dergham, the conference is only the beginning. The conversation needs to continue. It is the only viable alternative to the guns and bomb-driven dialogue, which has become the norm today

“When the Arab Spring erupted, I realised how an organisation that can provide direction and collective analysis was even more necessary now.”

RAGHIDA DERGHAMFounderBeirut Institute


A TIME TO LEARN

EDUCATION SPOTLIGHT


It’s the opportune time to bring out our annual education sector feature. We are inundated with press releases about new intakes in various colleges in Qatar, with many boasting record numbers this year. The two universities in the country are expanding their offerings, with Qatar set to get its first home-grown medical school. There have been talks in the Supreme Education

Council about allowing foreign universities to set up in Qatar, if recent media reports are to be believed. All these rapid changes are already being reflected in the workforce with the “Cultural Statistics in Qatar” report released by Ministry of Development, Planning and Statistics, stating that Qatari women held 21% of the jobs in education, the social and natural sciences and the media. International students are flocking to Doha in bigger numbers than ever to take advantage of the country’s world-class higher education system. In a short while, Qatar has managed to rank itself high on the preferred education destinations by students in the Middle East because of factors such as simple visa procedures and the presence of international education institutes of repute. Several new schools are set to open this academic year to ease the stress on the desperately underserved kindergarten, primary and secondary school markets.

Qatar retained its fourth position among 148 countries around the world last year in terms of the quality of its education system, according to the Global Competitiveness Report 2013-2014 and Alpen Capital. And although foreign investment in the

local education sector leaves much to be desired (and one hopes the recently announced changes in the commercial law will affect this for the better), the government continues to allocate a sizable budget towards education - $7.2 billion last year, with a 100% increase for the next five years, much of this geared towards K12 education. The popularity of independent schools in Qatar is a reflection of the success of government initiatives in this area. “Qataris prefer independent schools over the private ones. The Ideation Centre survey shows that independent schools score over private institutions in terms of student preference, translating into higher enrolments,” according to Alpen Capital's GCC Education Industry report.

But there is no time to rest on our laurels. The development of the industry demands nothing short of sustained attention, specifically in the K12, vocational training sectors and schools to cater to students with disabilities (Qatar already is ranked highest in the GCC for its inclusive education system). Despite the country’s demand for skilled and semi-skilled labour, it falls short of a national-level structure to promote and regulate vocational education. Education doesn’t end when you graduate. It’s a continual and lifelong process. That Qatar recognises this is evidenced by the several executive and niche courses for professionals that are available here – namely by HEC Paris, Qatar Leadership Centre, Josoor Institute and more. By all accounts, it has been a good year for the sector and the momentum gained promises many more such years

THE EDUCATION SECTOR IS THE FOUNDATION, PILLAR AND

CORNERSTONE OF ANY COUNTRY’S NATION-BUILDING EFFORTS. IN OUR

ANNUAL EDUCATION SPOTLIGHT, QATAR TODAY FOCUSES ON THE ACTIVITIES OF SOME OF QATAR’S

PREMIER EDUCATION INSTITUTIONS IN THE PAST YEAR.


EDUCATION SPOTLIGHT

Hamad bin Khalifa University has kicked off the 2015-2016 academic year by welcoming a record intake of more than 200

students across a significantly expanded range of programmes. This year, HBKU welcomes its first cohort of students pursuing a Juris Doctor law degree through its newly established graduate law school, as well as the first master’s and PhD students in Biomedical and Biological Sciences, Sustainable Energy, and Sustainable Environment through its College of Science and Engineering. The university also welcomes its first undergraduate students this year, with

the launch of its Bachelor of Science in Computer Engineering programme. HBKU President, Dr Ahmed Hasnah, commenting on the expansion of programmes, said: “This year marks the beginning of an important new chapter for

Hamad bin Khalifa University. The launch of six new master’s and PhD programmes, plus the introduction of a graduate law school that is the first of its kind in the region, is a significant milestone in the university’s short history.”

Texas A&M University at Qatar welcomed new master’s degree students for the upcoming academic year at Graduate Orientation Day at its campus in Education City. The students learned about TAMU-Q’s graduate programme offerings,

degree eligibility requirements and the resources offered including financial aid opportunities and flexible schedules. Applications for the Master of Science and Master of Engineering programmes are being accepted for the Spring 2016 semester and will remain open until October 31 this year.

NEW PROGRAMMES ON OFFER AT HBKU

FRESH BATCH OF GRADUATE STUDENTS ARRIVE AT TAMU-Q

Camp Qatar 2015 recently wrapped up its inaugural year of summer activities with more than 150 Arabic-speaking children between 11 and 14 years old from private

and independent schools across Qatar having taken part. Held under the theme ‘Seifak Ala Keifak’, Camp Qatar 2015 marked the closing of its first successful year with a student work exhibit that provided the children an opportunity to showcase their experience at the fun-filled fortnight to family and friends. Camp Qatar 2015 offered the children of Doha a unique experience comprised of both social and academic components, developed in partnership with INJAZ Qatar, the Sheikh Faisal Bin Qassim Sports Academy, Little Engineer Qatar, Mad Science, Qatar Museums, the Doha Film Institute, Weill Cornell Medical College Qatar and Arts and Crafts.

THE FIRST CAMP QATAR A SUCCESS


EDUCATION SPOTLIGHT

In 2004, Carnegie Mellon University entered into a partnership with Qatar Foundation to offer highly ranked undergraduate programmes in Education City. With just 41 students in its first incoming

class, today CMU-Q is home to over 400 students and offers five undergraduate degree programmes: Biological Sciences, Business Administration, Computational Biology, Computer Science and Information Systems.

The university’s graduates are highly sought-after by regional and international organisations, and the vast majority are in graduate programmes or employed in top organisations like Google, Microsoft, Qatar Petroleum, Shell and Commercial

Bank of Qatar. One hundred and four students graduated from our top-ranked programmes in May 2015, bringing the total number of alumni to nearly 500. Students enjoy a low faculty-to-student ratio of 1:7, which helps to foster each student’s abilities and talents.

Cutting-edge researchCarnegie Mellon University in Qatar fosters an innovative research environment, encouraging a collaborative approach. Faculty researchers often work with Carnegie Mellon in Pittsburgh, as well as institutions within Education City and major centres around the world. Research is an important part of the undergraduate educational experience

CARNEGIE MELLON UNIVERSITY IN QATAR

INSPIRING INNOVATION

CMU-Q OFFERS A UNIQUE APPROACH TO SCHOLARSHIP AND RESEARCH AT ITS CAMPUS IN EDUCATION CITY.


at CMU-Q, with students engaging in independent studies, senior and honours theses, summer internships and funded projects as junior researchers.

Faculty members contribute to the CMU-Q body of work through studies funded by Qatar National Research Fund (QNRF) and internal seed research funds. Funded projects fall within the core disciplines of Biological Sciences, Business Administration, Computational Biology, Computer Science and Information Systems, as well as complementary areas like mathematics, languages, environmental science and social sciences. Current projects relate to cloud computing, education, robotics, bacteriophages, business process design and engineering, innovation-driven entrepreneurship, next-generation wireless networks, cyber security and air quality.

Collaborations with industry CMU-Q has strong ties with government and industry through partnerships that provide internships and job opportunities to students. In return, we provide our partners with executive and professional education training; during the past year, we have worked with nearly 800 professionals from government agencies and corporations in Qatar.

Ideas that shape your world start here. As a global leader in education, Carnegie Mellon University is known for its creativity, collaboration across disciplines, and top programmes in business, technology and the arts. The university has been home to some of the

world’s most influential thinkers, among them 19 Nobel Laureates and 12 Turing Award winners.

Carnegie Mellon University in Qatar – like all Carnegie Mellon campuses globally – is founded on the firm belief that by encouraging scientific inquiry and promoting practical preparedness, the university is educating a generation of thinkers, business leaders, researchers and scientists that will change the world. Core values of innovation, creativity, collaboration and problem solving provide the foundation for everything the university does.

Consistently top ranked, Carnegie Mellon has more than 13,000 students, 100,000 alumni and 5,000 faculty and staff globally. In Qatar, students from more than 40 different countries enroll at our world-class facilities in Education City, affording them a truly unique and multi-cultural experience


EDUCATION SPOTLIGHT

The announcement by the QAPCO Professional Chair in Vocational Studies marks the first time in the Middle East, and only the second time globally, that a full-time Chair position

has been created to study vocational education and its relevance in, and impact on, the workforce.

The importance of technical and vocational education and training (T VET) to Qatar and its industries has been recognised and a strategy put forth in the Qatar National Vision 2030 to increase the effectiveness of T VET within the country. The creation of the Professional Chair in Vocational Studies at CNA-Q is an important element in future State T VET planning.

Described by Dr Mohammed Yousef Al Mulla, CEO and Vice Chairman of

QAPCO, as “one of the most important educational research initiatives to be implemented in Qatar,” the Chair in Vocational Studies will review, design and implement strategies that will improve the overall quality of future graduates, equipping them with the specific competencies required in industry.

In addition to ensuring graduates are ready for the workforce, the Chair will also conduct extensive research in local and regional labour market policies, on-the-job-training, transitioning from the classroom to the workforce and the vocational training needs of Qatar’s oil and gas industry.

The importance of technical education to the State and all its industries was emphasised in 2014 with the introduction of new Joint Oversight Board members. HE Dr Mohammed bin Saleh Al Sada, the Minister of Energy and Industry, was

appointed Chair of the Board, with Dr Al Mulla appointed as Vice–Chair.

Dr Khalid Mohammed Al Horr, Director of the Higher Education Institute, Supreme Education Council, and Dr Abdullatif Al Khal, Director of Medical Education at Hamad Medical Corporation, also joined the Board which includes four members from Newfoundland and Labrador, Canada.

Since 2002, CNA-Q has been leading the region in providing advanced technical education. Hands-on, experiential learning in purpose-built classrooms and laboratories ensures students are job-ready upon graduation. Enriching this experience is the annual Skills Competition, with students from all disciplines participating in real-life scenarios, from designing a website to working on an inter-disciplinary healthcare team. In 2014, the event welcomed Health Sciences competitors from local schools including Qatar University, Weill-Cornell University and the University of Calgary.

With more than 3,000 graduates working or continuing their education both locally and internationally, CNA-Q continues to meet its mandate to provide the best technical education to students from across the country

THE LOCAL CONNECTCNA-Q HAS LONG PARTNERED WITH LOCAL INDUSTRY TO ENSURE RELEVANCY IN THE PROGRAMMES AND TECHNOLOGY OFFERED ACROSS ITS FOUR SCHOOLS: BUSINESS STUDIES, ENGINEERING TECHNOLOGY, HEALTH SCIENCES AND INFORMATION TECHNOLOGY. ONE SUCH PARTNERSHIP, SIGNED IN 2014 WITH QATAR PETROCHEMICAL COMPANY (QAPCO), HAS THE POTENTIAL TO CHANGE THE TECHNICAL AND VOCATIONAL EDUCATION LANDSCAPE IN QATAR.

QAPCO Vice Chairman and CEO Dr Mohammed Yousef Al Mulla and CNA-Q President Dr Ken MacLeod

COLLEGE OF NORTH ATLANTIC - QATAR


EDUCATION SPOTLIGHT

QATAR UNIVERSITY

THE LAB LIFE

Qatar University’s commitment to its students’ success is reflected in its wide range of academic programmes and a wealth of student

support services and resources. They form part of the organisation’s growth strategy which puts each student’s interests at the heart of its plans by actively supporting the improvement of their learning skills and so advancing their competitiveness as students, and later as graduates in the labour market.

The organisation places research at the heart of the learning experience in its graduate programmes as well as in its undergraduate offerings. Improved

student learning at QU resulted from the organisation’s intensive reform exercise in 2003-2007 that realigned its administrative and academic direction. This was further supported by an institution-wide culture of research that took its cue from the National Vision 2030 and the National Health Strategy, placing the organisation in a position of unique responsibility and commitment to support research that is responsive to the national priority needs and major challenges facing the State of Qatar.

Responding to a labour market in need of graduates with specialist knowledge and experience in industry-related disciplines and new and emerging fields, QU has continued to design academic programmes that spur students’

A LOOK AT HOW QATAR UNIVERSITY’S STUDENT RESEARCH EXPERIENCE, AN IMPORTANT ASPECT OF THEIR TEACHING AND LEARNING ENVIRONMENT, HELPS IN ENSURING SUCCESS BEYOND THE GRADUATE YEARS.


EDUCATION SPOTLIGHT

engagement in curiosity-driven learning on issues relevant to the society. Colleges also embrace the “learning by doing” concept by which its students are engaged in internship, externship, training and on-site opportunities in various professional sectors to acquaint them with the world of work in their respective disciplines and ready them for successful careers after graduation.

QU students also participate in the Undergraduate Research Experience Program (UREP) competitions under Qatar National Research Fund (QNRF), QU’s annual research forum, Qatar Foundation Research Forum, research fairs at the college level, and at student research conferences at the local, regional and international level. They have enjoyed many successes in their research efforts which further boost their motivation and preparedness to become the country’s next leaders and change makers and contribute to the country’s development and progress.

It is due to this added value in their learning experience – a combination of theory and application – that QU graduates are preferred by 73% of employers in Qatar, as recorded by a

survey conducted in 2013. As the largest contributor of graduates

to Qatar’s labour market, Qatar University has continued to build on its commitment to provide high-quality undergraduate and graduate programmes that prepare competent graduates and that provide them with optimum opportunities for access to a vibrant research environment that fuels their creativity and innovation.

QU students’ employability has continued to rise due to the organisation’s growing portfolio of graduate programmes fielding issues important to the society and addressing challenges within the local and regional landscape - such as Gulf economy and politics, the environment, educational leadership, Islamic jurisprudence, and urban planning, to name a few. Specialist skills in these areas are in high demand in the labour market, giving QU students the competitive edge among graduates from other higher-education institutions in Qatar, which is further enhanced by the accreditation awarded to a large number of undergraduate and graduate programmes within QU colleges, attesting to their quality and excellence

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affairs > tech talkE-mail has some magical ability to turn off the

politeness gene in a human being.

JEFF BEZOSFounder of Amazon

ONLINE ETIQUETTE

The newly redesigned app called MOFA Qatar, which is bilingual and available on all platforms, gives cit-izens and residents of Qatar access

to a host of information when they are travelling abroad, from travel advice and location to contact details of Qatari mis-sions in various countries. Additionally it also gives limited information on em-bassies in Doha and related visa informa-

tion. Tourists and business travelers can choose to fill in a pre-registration form when they are flying out of the country so that the ministry can contact you in case of emergencies. A “request assistance” function sends the ministry helpline an alert along with the location. Other functions include a currency exchange, weather forecasts, a list of prayer times and ministry news updates.

The Galaxy Note5, with its 5.7” screen, is the latest addition to Samsung’s phab-let range and features advanced S Pen technology that allows you to write on

the screen when the phone is locked, wire-less charging technology and increased 4GB RAM. On the new Note, the large Quad HD Super AMOLED screen is the window to efficient multi-tasking with productiv-ity tools such as ‘SideSync’, faster updates to and from social networks, and graph-

ic-heavy games without lag time. Samsung Galaxy S6 edge+, developed from the same design of Galaxy S6 edge, features the new ‘Apps edge’ for easy access to favourite apps, and enhanced ‘People edge’ for easy communications with preferred contacts by just swiping the edge display.

The Galaxy Note5 and the Galaxy S6 edge+ also feature 4K video filming and Live Broadcast, which let users instantly live-stream Full HD video straight from their

phone to any individual, group of contacts, or even the public through YouTube Live. Both devices were made available at all major retailers in Qatar at the end of August and come in White Pearl, Black Sapphire, Gold Platinum and Silver Titanium. The Galaxy Note5 32GB and the Galaxy S6 edge+ 32GB retail at QR2,799 and QR3,099, respectively, and the Galaxy S6 edge+ 64GB version will retail at QR3,399.

MOFA ON CALLThe Ministry of Foreign Affairs has rolled out a mobile application to help those travelling abroad in case of emergencies.

GALAXY NOTE5 AND S6 EDGE+ HIT THE GCC

Samsung Electronics launched the fifth

generation of the Galaxy Note and the Galaxy S6

edge+ in the GCC, less than a week after it was

unveiled globally.


SHAKE UP AT GOOGLE

Google announced that it will be restuctring itself under a new holding company to be called Alphabet Inc.

The convenient and easily accessible new location for the Apple Autho-rized Reseller has been designed with customer oriented service at

the core of its operations. Apple trained professionals with APP 2015 (Apple Product Professional) certificates will be on hand to deliver "the best service to the customers with a focus on creating more awareness and education on Apple’s

unique product features and benefits". The store will include the complete range of products and accessories from Apple in addition to other brands that lead the global technology space like B&O Play, Beats, Bose, Sony and Yamaha. Students and members of the teaching community in Qatar will receive year round special discounts on the complete range of Mac laptops and desktops.

SECOND iSPACE STORE OPENS IN DOHAFollowing the opening of the first store in Lagoona Mall in 2012, Darwish Technology announced the opening of the second iSpace store at Al Maha Center located on Salwa Road.

Android pay on the horizonWhile Samsung Pay beat it to the launch, Android Pay may yet be worth the wait, according to industry analysts.After the launch of Apply Pay and Samsung Pay this year (which is expected to be released in the US and South Korea in September), Google is gearing up to unveil Android Pay, essentially a revamp of the less-than-stellar Google Wallet. Though the company is tight-lipped about the release, analysts and industry insiders believe that it will likely be coupled with Android 6.0 Marshmellow when the new operating system update launches later this year. Users with Android 4.4 KitKat and above can also expect it soon.

Android Pay is not expected to require fingerprint scanning because most Android phone (expect the higher end Samsung phones) haven’t yet integrated fingerprint scanners into their device and are not expected to for at least another year. Android Pay also lets you collect rewards for purchases. According to Google, some retailers will support loyalty rewards tracking within Android Pay so that paying for something and receiving (or redeeming) rewards for it happen at the same time.

After the reorganisation, Google will become a wholly owned subsidiary of Alphabet, along with other ventures like Google XYZ, Calico, etc. and new acquisitions. Analysts feel the failure of Google Glass most likely drove the company to conclude that stand-alone companies would work better than simple divisions between business units, allowing the new CEO of Google, Sundar Pichai, to focus on the company’s core compentencies like Search and Android without the distraction of projects that Larry Page and Sergey Brin have taken on.

TWEET UP TO START UPThe Twitter community, Doha Tweetups, organised an event to bring together the country’s technology entrepreneurs with those wanting to know more about the startup scene.

Held at ictQatar’s Digital Incubation Centre offices, the three-hour-long event was meant to encourage those with ideas for apps or tech businesses to come forward and meet the people who have already taken that road. The entrepreneurs behind some of Doha’s

most recognisable home-grown startups were able to talk to potential business owners about their ideas, the feasibility, funding, incubation, mentorship and such.


business > auto news

The Q70 is launched with the Excellence and Luxury Grades that feature the Premium body design. As an added alternative, the Sport

Grade is available with the Sport body design which features a specially designed front bumper that gives an even lower and wider stance. The trapezoidal bumper intake and apron shape inspired by race car splitters give an athletic presence and bold impression. Black painted turn and fog finishers as well as the rear bumper finished in high-gloss black paint reinforce the sporty appearance. The distinctive design accentuates the new double arch grille, which now takes on a more three-

dimensional look due to the elaborate detail of the high-quality waved mesh finish and chrome surround.

Declan J McCluskey, General Manager – Automotive, Saleh Al Hamad Al Mana Co said: “The new Infiniti Q70 sedan is a showcase of advanced technologies. It embraces the essence of all things Infiniti - style, performance, luxury, craftsmanship and technology. With significant enhancements in all these areas, the new Q70 will stand out in its segment satisfying the needs of premium customers by offering an upgraded welcoming interior and crafted feel with a truly exciting driving experience.”

Saleh Al Hamad Al Mana Co unveiled the new Infiniti Q70 sedan. With a fresh new exterior, the latest version of the Infiniti Q70 takes performance of the sedan up another level.

Alfardan Premier Motors Co., Jaguar Land Rover’s exclusive retailer partner in the State of Qatar, received two “Certificate of Recognition” awards during Jaguar Land Rover MENA’s Retailer Marketing Conference held in Dubai. The retailer received the first award in appreciation of its annual Land Rover Drive Experience and the second award recognised Hussein Adra, Marketing and Customer Relationship Manager for Alfardan Premier Motors, for his overall marketing achievements for fiscal year 2014/15.

ALFARDAN PREMIER MOTORS BAGS TWO

“CERTIFICATE OF RECOGNITION” AWARDS

NEW INFINITI Q70 MAKES QATAR DEBUT


The Audi Q3, the youngest member of the successful SUV family from Audi, is a practical companion for everyday - an urban model that feels at home anywhere. Its versatile character makes it attractive to a wide range of customers. The redesigned Audi Q3 has now arrived in the Middle East market. Since its market

introduction in early 2012, the Q3 model series has been a success for the Audi brand. Over 1,920 models have been sold in the region since introduction. Audi is constantly improving good and successful models, therefore the new Audi Q3 not only features a refreshed design, it also boasts a number of technical innovations.

NOW EVEN BETTER – THE NEW AUDI Q3

THE POWER WITHIN

The three TFSI four-cylinder engines boast higher output combined with reduced fuel consumption. CO2 emissions have been reduced as well. The engines displace 1.4 or 2.0 liters and produce between 150 hp and 220 hp. All are turbocharged, direct-injection units and comply with the limits of the Euro 6 emission standards.

The announcement of the deal comes ahead of the UEFA Champions League Group Stage draw and will see Nissan activations - such

as TV broadcast sponsorships around live UEFA Champions League matches - taking place across a further 40+ countries including Brazil, China, Japan and the USA from this season. Once again, fans will be at the heart of Nissan’s partnership as it looks to engineer unexpected moments of fan excitement to enhance their experience of Europe’s most prestigious football competition. Starting this season, Nissan will also

have the exclusive rights to offer fans the opportunity to be a Centre Circle Carrier, offering over 1,300 children across European territories the chance to get even closer to the action and their footballing heroes. This money-can’t-buy experience will see them become part of the opening ceremony, carrying the iconic UEFA Champions League emblem onto the centre of the pitch ahead of each match in front of a worldwide TV audience of millions. Roel de Vries, Corporate Vice President of Marketing and Brand Strategy for Nissan, said: “Our aim from the start of the

partnership was to give fans an engaging and exciting experience of the UEFA Champions League. We constantly strive to innovate across our whole business and with the partnership now being truly global, we can offer even more people the opportunity to get involved with our brand throughout the season. Whether through our ambassadors, the activations and competitions that we will host or the exclusive chance to join the players on the pitch at every match with our Centre Circle Carrier activity, we’ll give people more access to one of the world’s greatest sporting competitions.”

NISSAN’S UEFA CHAMPIONS LEAGUE PARTNERSHIP GOES GLOBALFollowing a successful first year as the Official Automotive Sponsor for the UEFA Champions League, Nissan’s partnership has been extended into all global territories for the next three seasons up to 2017/18.


business > auto news

Available in 2015 with enhanced comfort and smarter technologies across the Sierra portfolio, Mannai Auto said the Sierra HD (Heavy Duty) version in particular has been a strong performer. Mr Mohamed Helmy, Group General Manager, Mannai Auto, said: “True Sierra enthusiasts are past the notion of owning merely functional pickups with a trailer hitch. The Sierra combines comfort, modern aesthetics and everyday driver capabilities with pickup traits such as hauling heavy loads with unmatched comfort and technology. The HD line is among the best performing on both fronts.” Trim levels include a Sierra base model, as well as SLE, SLT and the top-of-line Denali. Features standard on Sierra Denali include a Bose audio system and heated and cooled leather front bucket seats.

MANNAI AUTO CONFIRMS SALES BOOST FOR NEW SIERRA HD RANGE IN QATARMannai Auto Group, official GMC agents in Qatar, announced that the GMC Sierra, one of the most popular pickup trucks in the country with its own dedicated owners' club, is outperforming sales figures recorded in previous years.

KIA MOTORS SHIPS ITS 15 MILLIONTH VEHICLE TO THE MIDDLE EAST

Kia Motors is celebrating the global export of its 15 millionth vehicle, an all new Sorento being shipped to the Middle East in August, 2015.

This occasion takes place 40 years after the brand’s first overseas vehicle export, underlining the Middle East as a region of great significance for Kia. Kia achieved the historic milestone of 10 million overseas vehicle exports in March 2011 and it has taken only a further four years to increase exports by a further 50% to reach 15 million. The past decade has seen rapid growth expansion for Kia Motors globally, as it took 30 years to surpass the 5 million overseas export marker.

Alex Chung, President of Kia Middle East and Africa, said: “This achievement is just the beginning of many more feats to come due to the strategic opportunities available in the Middle East. Kia’s first ever export was to the Middle East when 10 Brisa pick-up trucks were shipped to Qatar back in 1975 and this 15 millionth export signifies our continuing legacy in the region. Today, 40 years later, Kia Motors Middle East and Africa have existing operations across more than 50 countries. Kia exported more than 320,000 new vehicles to the Middle East and Africa last year and we expect this number to increase in 2015. We are excited to share the honour of receiving the 15 millionth overseas vehicle with our

regional distributors and customers as it is a testament to Kia’s global growth and the brand’s popularity in this region. With exciting launches such as the brand new Sorento and Grand Carnival models, we look forward to reaching 20 million exports in the next few years.”

Chung added: “Kia invests heavily in research and development to design and conceptualise cars with pioneering advances in technology, performance and safety. Each shipment of Kia vehicles promises the latest world-class automotive features that meet the needs and desires of our regional customers. The credit for our success has to be attributed to or loyal customers, dedicated employees and award-winning distributors as our 15 million success stories would not have been possible without them.”

Kia, the ninth largest global car manufacturer, sold 3.04 million vehicles worldwide in 2014, making it the first year in the brand’s history where more than three million cars were sold. The Middle East market accounts for 11% of global sales volume. Kia will launch 26 all new or new replacement vehicles and 46 model derivatives and upgraded models between 2015 and 2018, accompanied by aggressive product launch plans in order to enter new segments as well as reinforce current offerings.

Forty years after the company’s first vehicle was exported to Qatar, Kia’s 15 millionth car arrived in the UAE last month, only four years and five months since surpassing 10 million vehicle exports.


business > marketwatch

Hospitality Qatar, which is licensed by the Qatar Tourism Authority, will be one of the premier events to feature all aspects of the hotel and franchise market in the Gulf region and represents

an excellent platform for local, regional and international HORECA suppliers to meet hospitality professionals from the entire region. It will also allow franchise brands, hotel groups, developers, banks and consultants to network and create new business opportunities with hotels and franchise investors. The show covers the following exhibit profiles:

Franchisors and hotel groups Hotel construction and renovation Interior design, lighting, furniture Resort and outdoor construction HORECA technologies – facility

management – intelligent building systems - security solutions - HVAC

Green hotels systems and solutions Comfort and leisure equipment and

products Operating and HORECA equipment Food and beverage supply Health, hygiene, cleaning HORECA and retail services

Hospitality Qatar 2015 is being launched at a time when Qatar is emerging as a major player in the hospitality and franchise investment market in the GCC, due to the requirements of the 2022 FIFA World Cup, in terms of Food and Beverage/HORECA supply and hotel construction.

The last few years have seen a swift expansion in the number of hotels and other tourism facilities in Qatar, as the government has invested in transforming the country into a luxury, sports and business destination. Also, the hosting of the 2022 FIFA World Cup has boosted growth across the sector, with the state expected to spend as much as $200 billion in the build-up to the global event. The country plans to make significant additions to hotel capacity from around 15,000 to approximately 95,000 rooms by 2022. According to a recent report released by

Alpen Capital, the hotel occupancy rate is expected to rise to 70.5% in 2018. Similarly, occupancy rate for serviced apartments is expected to increase to 65.5% by 2018.

The show has received valuable support and sponsorship from several companies in Qatar including Al Sraiya Holding Group (Platinum Sponsor), Elegancia Hospitality Group (Gold Sponsor), Askar (Official Kitchen Sponsor), Boecker (Salon Culinaire and Official Hygiene Sponsor) and many more.

In order to enhance the experience

of both exhibitors and visitors alike, Hospitality Qatar 2015 will include four features: B2B Matchmaking, the Salon Culinaire, Mocktail Competition and the Innovation Zone.

The show’s business-to-business matchmaking platform will host buyers, decision makers, hoteliers, chiefs, procurements and marketing directors to meet with suppliers during the show, through a set of pre-arranged meetings, in a bid to create fruitful business.

Hospitality Qatar 2015 will also feature the Salon Culinaire which will attract the country’s leading chefs to compete across fifteen categories. The Salon Culinaire is

organised and co-organised by IFP Qatar LLC and Qatar Culinary Professionals, respectively. It will also be supervised by the World Association of Chefs Societies for Africa and the Middle East (WACS) and judged by 10 regional and international judges. Moreover, to add some zest, Hospitality Qatar 2015 will also include a Mocktail Competition, a great opportunity for HORECA bartenders to test their knowledge and to compete against each other for the tastiest mocktail in Doha.

Another feature of the show is a special

area, the Innovation Zone, which will be dedicated to all the latest products and technologies of the hospitality/HORECA industry. Companies can exhibit their newly invented state-of-the-art products in this zone. In addition to the above, Hospitality Qatar 2015 will feature certified workshops conducted by Boecker, which will include the following topics: Induction HACCP training and Hygiene awareness training.

Hospitality Qatar 2015 is preparing to become the ultimate platform of the hospitality and HORECA industry in Qatar and the GCC, attracting and hosting the best of the industry under one roof

Hospitality Qatar 2015, the hospitality and HORECA (Hotels, Restaurants, Cafés) show of Qatar, will take place from October 13 to 15 at the Doha Exhibition Centre, under the patronage of HE Sheikh Ahmed bin Jassim Al Thani, the Minister of Economy and Commerce.

Welcome to Qatar


business > marketwatch

Distinguished by exceptional service, including facilities for corporate meet-ings, multiple restaurants for dining and spectacular venues for events, the

Marriott Marquis City Center Doha Hotel, a property of Al Rayyan Tourism and In-vestment Company, is a front runner in the globally renowned Marriott International portfolio. The hotel has welcomed 637,435 diners into its ten acclaimed restaurants and hosts 1,384 meetings in its innovative meeting space. Setting a new benchmark in service excellence and hospitality, the hotel has been awarded seven food and beverage accolades in its first year and has been rec-ognised within the Marriott International as the ‘Best Full Service Hotel of the Year’ at the Marriott Middle East & Africa Gen-eral Managers’ Conference in May 2015.

“We are extremely proud of our accom-plishments in the first year, as it recognises our outstanding achievements as a team, offering exceptional and thoughtful ser-vice,” says Andreas Wissdorf, General Man-ager. On the occasion of its first anniver-sary, the hotel offers to all Qatar and GCC residents an exclusive staycation offer for QR577 for overnight stays from Wednesday through Saturday. A breakfast buffet in the award-winning Crossroads restaurant will be available for QR57 per person. You can add the promotional code D3Q to book on Marriott.com. Advance reservation is es-sential and a valid Qatari or GCC Resident Permit is required upon check-in to take advantage of the rate. The offer is valid until December 31, 2015 and will remain subject to availability.

One year in Doha

United Development Company announced it will auction for sale, through the envelope method, nine luxury townhouses in Qanat Quartier, the Venice-like mixed-use community.The nine townhouses come in two or three-bedroom units from 349 to 368 square metres, all located on the glamorous beach stretch of Qanat Quartier. In addition to their standalone settings, each townhouse enjoys a contemporary look, sea view, direct access to the beach and is only minutes’ walk away from Qanat Quartier’s central retail area. Auction prices for each townhouse will be set according to the highest bid, provided it meets the terms and conditions set for the auction, including the minimum opening price of QR25,000 per square metre. Auction bids are to be submitted by 12 noon on September 13 at the Sales and Marketing Centre in the Oyster at The Pearl-Qatar.

On the occasion of its first anniversary, Marriott Marquis City Center is set to offer the residents of GCC an exclusive discount for their next stay.

LUXURY TOWNHOUSES IN QANAT

QUARTIER TO BE AUCTIONED


It is the 65th edition of the global IKEA catalogue and the theme for this year is Food. The catalogue celebrates life in and around the kitchen with the aim of bringing people together through everyday enjoyable moments of preparing a meal and eating together. To re-inforce the new theme over the next year, the catalogue focusses on four main initiatives such as ‘growing and producing’, ‘cooking and preparing’, ‘eating, drinking and serving’ and ‘storing and handling’. Each of these enables a healthier and more sustainable way of life and helps people create special moments of togetherness while doing what they love. “This year at IKEA we start with the food by encouraging a healthier and more sustainable lifestyle through cooking, preparing and eating together. Through our IKEA Food department we are especially keen to contribute to a better everyday life with wider options of delicious, healthy food that is sustainably sourced and produced, all at affordable prices,” says John Kersten, Managing Director, IKEA.

To give the young achievers a head start, Home Centre’s specially assem-bled ‘Back to School’ collection has been designed to keep kids inspired

and refreshed through the year. This year, the collection features colourful accesso-ries, furniture, and storage compartments showcasing the latest prints and colour trends. The furnishings specifically include a range of storage units for stationery and books, clothes hangers, comforters, beds, rugs, lamps and wall stickers that are cer-tain to appeal to children and young adults.

Home Centre’s Head of Visual

Merchandising, Michelle Dinsmore, says, “By slightly revamping your child’s room to include extra storage space, or by jazzing up the colour palette with a new bed or lamp, you’ll notice a change in the enthusiasm levels of your child. Children and teens alike need a space where they can see their clothes, accessories and stationery clearly. This not only helps them manage their responsibilities, but also encourages them to associate their space with a new personality which is vital for high energy and growth.”

Luxury Swiss watchmaker Eberhard & Co. have signed an agreement with Al Fardan Jewellery to introduce their new collection of timepieces to connoisseurs at their boutique in Villagio Mall.To mark their entry into Qatar, Eberhard & Co. have featured a very special piece in their collection - the Special Edition Gilda Gran Pave Gold. This stunning women’s watch dazzles with over 8 carats of diamonds on its case and bracelet and is the piece de resistance of the Doha Collection.

Revive your child’s environmentHome Centre adds new arrivals to their ‘Back to School’ collection that includes practical furniture, storage compartments and room decorations to brighten up and organise children’s rooms.

IKEA launches new catalogue

IKEA, the Swedish furniture retailer and member of the Al Futtaim group of companies, launched its annual catalogue at a media event hosted in its store at Doha Festival City.

Al Fardan Jewellery to bring Eberhard & Co. to Doha


city life > doha diary

Jones the Grocer offers a modern international menu with an Australian influence and uses simple, fresh, quality ingredi-ents that create a blend of complementary flavours. The store also sells artisanal cheese, exotic tea and coffee blends and

selections from its bakery. The café celebrated the announce-ment of its new outlet in The Pearl with a new menu which it pre-viewed to select media outlets in the city. Some of the highlights of the new menu include a salad with sautéed chicken thigh, button mushrooms and spinach sprinkled with sesame seeds and balsamic dressing, pan-fried sea bream marinated in rose-mary served with provencal vegetables and oven-roasted chicken served with grilled broccoli.

Twenty children from the Shafallah Center for Children with Special Needs and the Qatar Orphans Foundation (Dhreima) recently spent a day at Kidzania, Kuwait, sponsored by Qatar Airways. During their two days spent in Kuwait City, the children spent an afternoon at Kidzania, where they were able to explore the inside of an aircraft and play the role of pilots to a Qatar Airways plane. Kidzania is a child-sized replica city featuring miniature buildings, transport and shops, which provides children with the opportunity to practice working as an adult and earning money.

JONES THE GROCER REINVENTEDThe gourmet food store and café launched a new menu to coincide with the announcement of a new outlet that is set to open at The Pearl.

ONE DAY AS A PILOT

A NEW VIEW OF DOHA

Google is reportedly in talks with the Ministry of Municipality and Urban Planning to bring Street View to Qatar.According to a statement released by the ministry, Anthony McLaughlin, in charge of Google Street View for Europe and the Middle East, visited Doha to consult with the officials at the ministry’s Geographic Information Systems centre on the possibility of signing the agreement. This will authorise Google to capture images of the streets in the State, accessible through the Internet and smart phone applications.


Held at Qatar National Convention Centre, the Doha Comedy Day brought together the funniest comedians from the region, includ-ing Badr Saleh, Ibrahim KhairAllah, and Fahd Al Betiri from Sau-di Arabia; Ali Al Sayed from the United Arab Emirates and Ahmed

Al Shimari from Kuwait. The group offered concentrated doses of hu-mour along with their Qatari host, Hamad Al Ammari, talking about issues common to Gulf culture and everyday life, and designed for all audiences, residents and visitors.

This invitation-only limited edition plan for both Qatar and UK numbers was born out of a demand from Qatar’s frequent travellers to the UK to have a unified service across both countries. Vodafone now makes it easy for prospective clients who already have UK num-bers to manage their local and international numbers with one single plan that is payable

through a single bill. The single plan innovation for UK and Qatar numbers is a first in the con-sumer market. With London Edition, both Qatar and the UK are regarded as home countries, eliminating all roaming charges on the Qatari and UK London Edition SIMs for both destina-tions. In addition, customers receive a total of 50GB and 30 hours of international calling to use between Qatar and the UK on both SIMs, in addition to 2GB of roaming data for all Vodafone Passport countries.

VODAFONE QATAR – THE LONDON EDITION

Vodafone Qatar unveiled details of the world’s first luxury telecoms plan – London Edition – in an exclusive event held at the Harrods in London in the presence of HE Dr Hessa Al Jaber, Minister of Information and Communications Technology, and HE Sheikh Dr Khalid bin Thani Al Thani, Chairman of Vodafone Qatar.

DOHA LAUGHS OUT LOUD

The final weekend of the Qatar Summer Festival 2015 wrapped up

with Doha Comedy Day featuring six stand-up comedians from

around the Gulf.


Jacinthe Lamontagne-Lecomte, Mixed media artist

Qatar Today follows the daily routines of professionals around

Qatar from all walks of life.

In the public’s imagination, a typical day in an artist’s life is divided between dreamy contemplation and feverish bursts of creativity. But Jacinthe Lamontagne-Lecomte shows us that there is more to it than that.

By Ayswarya Murthy

A day in the life of...

The day begins with the customary managing of all online affairs – both personal and those of the internet properties of International Artists of Doha, which she handles. The informal group of around 23 expat artists is a close-knit community that supports one another and facilitates the exchange of skills. September is usually when they come together for their annual exhibition and Lamontagne says their growing numbers means searching for a bigger venue for this.

The mornings are usually set aside for her sporting endeavours. Swimming is an important component of her daily routine. Sailing occupies her time on the weekends and she is a regular patron at the Doha Sailing Club. She used to own a horse which she would take out for a trot at Al Shaqab.

Her spiritual home in Doha has to be the Youth

Creative Art Center in Msheireb. Here, she

continues to learn sculpting, using the

kiln to bring gorgeous clay objects to life. She

says working at the centre exposes her to

different styles and the opportunity to work with

and learn from more well-known artists from

the region.

Many of her paintings, however, are produced at her cozy studio at home, which often spills over

into her dining and living rooms. Currently she is working on

replacing her artworks that are being displayed and sold at Hwang in the Intercontinental The City and

the Grand Hyatt. In her love of all things Far East, she has found a

rich and generous muse. She hopes she will in the coming months be

able to leave a mark on the interiors of Nobu and the newly renovated

sections of the Ritz Carlton.

She is preparing for the end of the summer lull; with September comes a big boom in the art scene with the museums and galleries opening new exhibits. She loves attending the openings and soaking up the art works to see what her contemporaries are doing. Her modern art leanings draw her often to Mathaf.

qatar today september 2015

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